The State Debt Section issues and monitors all State debt, including debt secured by a pledge of the taxing power of the State, debt for which repayment is subject to appropriation and State-level revenue bonds. With the assistance of other State departments and agencies, the Section determines the cash needs for State capital projects, plans for the repayment of debt (maturity schedules) and schedules the sales at the most appropriate time.
An official statement describing the issue and other required disclosures about the State is prepared with the advice and cooperation of bond counsel. Finally, the Section handles the actual sale and delivery of the debt, maintains the State bond records and register of bonds, and monitors the debt service payments by maintaining detailed records of principal and interest payments coming due in current and future years.
The State Debt staff assists the State Treasurer in representing the State in all presentations to Moody’s Investors Service, Inc., Standard and Poor’s Corporation and Fitch Ratings, Inc., the three national bond rating agencies used by the State and local governmental units in North Carolina. Currently, the State has a “Triple-A” rating, the highest rating attainable, from all three national rating agencies. These ratings have enabled the State to sell its bonds at interest rates considerably below the Bond Buyer’s Index, thereby providing tremendous savings to North Carolina’s taxpayers.
The State Debt Section also staffs the State’s Debt Affordability Committee and drafts an annual Debt Affordability Study, which provides the Governor and the General Assembly with an overview of the State’s debt load and borrowing capacity. The Study also provides an estimate of the annual debt capacity for the Transportation Funds (the State Highway Fund and Highway Trust Fund).