125th MAINE LEGISLATURE
		LD 830		LR 161(01)
	An Act To Establish a Debt Limit for the State
	Preliminary Fiscal Impact Statement for Original Bill
	Sponsor: Rep. Chase of Wells
	Committee: Appropriations and Financial Affairs
	Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
Potential future biennium savings - General Fund Potential future biennium savings - Highway Fund
Fiscal Detail and Notes
	Establishing a debt limit for general obligation bonds and Maine Governmental Facilities Authority (MGFA) bonds originally issued for a term in excess of 5 years of 5% of General Fund revenues for the previous fiscal year may limit the bonds issued by these entities and may limit debt service payments in future fiscal years.  Debt service for general obligation bonds is paid from the General Fund and the Highway Fund.  Debt service for MGFA bonds is paid from the General Fund.  Because the precise time when the debt limit will be exceeded cannot be predicted, no estimate of savings for any given fiscal year is provided.