New YorkA 30022025-2026 Regular SessionHouse

DEBT SERVICE FUND--GENERAL DEBT SERVICE FUND

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 8 benefits, 0 costs, 0 mixed.

New York funds state debt payments

For the budget year starting April 1, 2025, New York provides $405 million for general obligation bond payments and costs. Those bonds support transportation, environmental, park, and school purposes. Another $851 million covers state-supported debt: $800 million for debt payments, $50 million for costs, and $1 million for interest-rate agreements. This also covers credit facilities backing reserves for variable-rate debt, and funds can be transferred to another appropriation. The money pays state obligations, not household benefits.

State pays tax-backed bonds and notes

For the budget year starting April 1, 2025, New York funds payments on income-tax-backed and sales-tax-backed debt. The income-tax-backed debt gets $7.05 billion: $4 billion for debt payments, $3 billion for subordinate notes, and $50 million for costs. Sales-tax-backed bonds get $1.503 billion: $1.5 billion for debt payments and $3 million for costs. Payments require certificates from the state budget director approving the funds' availability. This pays authorized state debt; it does not change household income or sales taxes.

State funds debt reduction or capital projects

For the budget year starting April 1, 2025, the law provides $500 million from the Debt Reduction Reserve Fund. The money can retire previously issued bonds, set aside funds to pay them off, and cover related costs. At the state budget director's request, it can instead move to designated capital project funds. Those transfers can cover projects, equipment, or similar expenses legally authorized for financing through bonds, notes, or other obligations. This provides state funding, not direct household payments.

State protects tax-free interest for bondholders

For the budget year starting April 1, 2025, New York provides $20 million solely for rebates to the federal government. These rebates preserve tax-free interest on state obligations issued under sections 55 and 57 of the State Finance Law. The law also provides up to $225 million from the General Fund to redeem state general obligation bonds. The state comptroller limits redemption spending to what is needed to preserve that federal tax exemption. This protects the specified bondholders' tax treatment, not a general household tax break.

State funds health facility debt payments

For the budget year starting April 1, 2025, New York provides $26 million from health-related income funds. The money covers Department of Health agreements with the Dormitory Authority and related facility costs. Debt payments use up to $1 million in New York City Veterans' Home operating revenue and $19 million from other health facilities. The remaining funding includes $3 million for related costs and $3 million for capital expenses. This pays facility obligations without creating a new health benefit or changing coverage eligibility.

State funds highway and bridge debt

For the budget year starting April 1, 2025, New York provides $6 million for highway and bridge financing obligations. This includes $5 million for debt payments and $1 million for related costs. The bonds or notes must be required under cooperative agreements covered by section 10-e of the New York Highway Law. This pays financing obligations rather than giving money directly to households.

State pays debt for specialized school facilities

For the budget year starting April 1, 2025, New York provides $17 million for school facility contracts with the Dormitory Authority. This includes $15 million for debt payments and $2 million for related and capital costs. Covered schools include participating special act districts and state-supported schools for blind or deaf students and students with other disabilities. Private nonprofit schools must be approved by the state education commissioner. The money pays facility obligations, not household benefits.

State pays university and Gateway obligations

For the budget year starting April 1, 2025, New York provides $67 million for university and Gateway Development Commission obligations. This includes $1 million for State University facility bonds and $21 million for City University senior and community colleges. It also includes $10 million for Gateway principal and interest, plus $35 million for related costs. Payments require budget director approval; City University payments are reduced by interest, investment earnings, and excess earnings held by its Construction Fund. The $1 million State University Construction Fund appropriation remains available until April 30, 2026.

Sponsors & Cosponsors

Sponsor

Budget
Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 163 • No: 45

House vote • 3/27/2025

Assembly floor vote

Yes: 112 • No: 35

Senate vote • 3/27/2025

FLOOR Vote

Yes: 51 • No: 10

Actions Timeline

SIGNED CHAP.52
5/20/2025House
DELIVERED TO GOVERNOR
5/8/2025House
RETURNED TO ASSEMBLY
3/27/2025Senate
PASSED SENATE
3/27/2025Senate
3RD READING CAL.619
3/27/2025Senate
SUBSTITUTED FOR S3002
3/27/2025Senate
REFERRED TO FINANCE
3/27/2025Senate
DELIVERED TO SENATE
3/27/2025House
PASSED ASSEMBLY
3/27/2025House
ORDERED TO THIRD READING RULES CAL.118
3/27/2025House
RULES REPORT CAL.118
3/27/2025House
REPORTED
3/27/2025House
REPORTED REFERRED TO RULES
3/27/2025House
REFERRED TO WAYS AND MEANS
1/22/2025House

Bill Text

Original
1/22/2025
PDF

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