Following debt authorizations of $39 million for fiscal years 2002 through 2004, debt authorized for fiscal years 2005 through 2012 has increased each year. Authorizations since fiscal year 2002 have been:

2002:                $39.000,000
2003:                $39,000,000
2004:                $39,000,000
2005:                $41,000,000
2006                 $45,000,000
2007:                $45,000,000
2008:                $49,200,000
2009:                $64,650,000
2010:                $69,955,000
2011:                $71,825,000
2012 & 2013:     $153,160,000

Increases are designed to balance the need to invest in State infrastructure with the objective of maintaining the State's favorable debt profile. The Recommended Annual Net Tax-Supported Debt Authorization in the September 2010 Report of the Capital Debt Affordability Advisory Committee ("CDAAC") for fiscal year 2012 is $76.580 million, an increase of 6.6 percent from fiscal year 2011.

In addition, in the September 2010 Report, the CDAAC provides an alternative 2-year recommendation of $153,160,000 for fiscal years 2012 and 2013. This amount would be available starting in fiscal year 2012, and no additional authorization would be provided in fiscal year 2013. The CDAAC believed that this 2-year authorization was better-aligned both with the biennial Legislative cycle, and with the multi-year budgeting needs of Vermont's larger capital projects.

By keeping new authorizations at moderate levels, the State of Vermont has reduced its total level of outstanding long-term debt from its fiscal year 1997 high of $536.2 million. Net tax-supported debt outstanding had been above the $500 million mark until fiscal year 2001. For June 30, 2010, net tax-supported debt outstanding is $464.341 million. This is important given that the national trend has seen a significant rise in aggregate general obligation debt levels.

Having achieved significant progress in the level of debt outstanding and in debt ratios considered critical to debt rating agencies in formulating the State's bond ratings, Vermont has the capacity to issue larger amounts of debt while expecting maintenance of its current strong ratings. While net tax supported debt will rise modestly in the next several years based on higher debt authorization levels, debt per capita and debt as a percent of personal income are expected to remain favorable compared to triple-A states.

Total debt service, which is, the amount appropriated to pay principal and interest on bonds, is calculated at $70.309 million for fiscal year 2011, versus $70.747 million in 2010. Assuming constant new debt issuance amounts of $76.580 million each year from 2012 through 2021, annual debt service will rise to $101.242 million in fiscal year 2021.