Summary
Maine legislators are picking through a couple dozen bond proposals under the impression that either Maine has low debt and plenty of room to borrow or has taken on lots of debt recently and can't afford much more. According to an investment service, both views aren't far off, a situation that should leave the Legislature in search of a more sophisticated way of thinking about what Maine can afford.
The two typical ways of measuring the depth of a state's debt are to look at its tax-supported debt per capita and its tax-supported debt as a percentage of personal income. In both cases, Maine ranks well, certainly well below average, and yet Moody's Investors Service recently put Maine on a watch list for a bond rating downgrade.See the full content of this document
Extract
Counting the Debt
Moody's cited the governor's plan to sell lottery proceeds over the next decade to ra...
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