Section 67-B. Limitations on the issuance of state-supported debt

1. (a)
  State-supported debt may not be contracted for  unless,  as  of  October
  thirty-first,  two  thousand  one  and  as  of each October thirty-first
  thereafter, the total outstanding principal amount of such debt,  as  of
  the  last day of the immediately preceding fiscal year, is less than the
  designated percentage of the total personal income of the state. Nothing
  shall preclude the contracting of state-supported debt prior to  October
  thirty-first  of  each  year  if,  as of the last day of the immediately
  preceding fiscal year, the total outstanding principal  amount  of  such
  debt  was  less  than  the  designated  percentage of the total personal
  income of the state. The total  outstanding  principal  amount  of  debt
  shall  include all state-supported debt issued on and after April first,
  two  thousand.  Such  designated   percentage   shall   be   seven   and
  one-half-tenths  of  one  percent  for  fiscal  year  two  thousand--two
  thousand one, and shall increase by five-tenths of one percent in fiscal
  year two thousand one--two thousand two, by an additional four-tenths of
  one percent in fiscal year two thousand two--two thousand three, and  by
  an  additional  one-third of one percent in each of the seven subsequent
  fiscal years. The designated percentage for  fiscal  year  two  thousand
  ten--two  thousand  eleven  and for each fiscal year thereafter shall be
  four percent.
    (b) If state-supported debt is issued to refund  or  otherwise  affect
  the   refunding,   retirement  or  defeasance  of  state-supported  debt
  originally issued on and after April first, two thousand, provided  such
  refundings  are conducted in accordance with section thirteen of article
  VII of the state constitution, the calculation of the total  outstanding
  principal  amount  of  debt shall exclude such refunding debt, and shall
  only include the amount of prior refunded debt,  as  if  it  were  still
  outstanding,  in each year until such refunding debt is finally retired.
  Notwithstanding the foregoing, the provisions of such  section  thirteen
  of  article VII of the state constitution relating to the maintenance or
  management of escrow funds and sinking funds shall only be applicable to
  state-supported debt issued by the state comptroller. If state-supported
  debt is issued to refund or otherwise affect the  refunding,  retirement
  or  defeasance  of state-supported debt issued prior to April first, two
  thousand, then the amount of such refunding debt shall be excluded  from
  the  calculation  of  the  total outstanding principal amount of debt in
  each year until such refunding debt is finally retired. In addition,  if
  state-supported  debt is retired or defeased with payments in any fiscal
  year made by the state that are not required by mandatory payments, such
  debt shall be excluded from the calculation  of  the  total  outstanding
  principal   amount   of   debt,  including  retirements  or  defeasances
  accomplished on an economic basis.
    2. State-supported debt may  not  be  contracted  for  unless,  as  of
  October   thirty-first,   two  thousand  one  and  as  of  each  October
  thirty-first thereafter, the total amount of interest,  installments  of
  principal,  contributions  to  sinking  funds, and related payments on a
  cash basis of accounting for state-supported  debt  in  the  immediately
  preceding  fiscal  year  is less than the designated percentage of total
  governmental funds receipts for such fiscal year. Nothing shall preclude
  the contracting of state-supported debt prior to October thirty-first of
  each year if, in the immediately preceding fiscal year, the total amount
  of interest, installments of principal, contributions to sinking  funds,
  and  related  payments  was less than the designated percentage of total
  governmental funds receipts. This shall  include  the  total  amount  of
  payments on such debt issued on and after April first, two thousand, but
  shall  not  include  payments  in  any  fiscal year made by the state to
  defease or retire debt not required by mandatory payments  nor  payments

  made  by  the state for debt issued to refund debt that was issued prior
  to April first, two thousand. In addition, if  state-supported  debt  is
  issued  to  refund  or  otherwise  affect  the  refunding, retirement or
  defeasance  of state-supported debt originally issued on and after April
  first,  two  thousand,  provided  such  refundings  are   conducted   in
  accordance   with   section   thirteen  of  article  VII  of  the  state
  constitution,  the  calculation  of  the  total  amount   of   interest,
  installments  of  principal, contributions to sinking funds, and related
  payments shall exclude payments made on such refunding debt,  and  shall
  only  include  the  payments  on  the prior refunded debt, as if it were
  still outstanding, in each year until such  refunding  debt  is  finally
  retired.  Such  designated percentage shall be seven and one-half-tenths
  of one percent for fiscal year two thousand--two thousand one, and shall
  increase by five-tenths of one  percent  in  fiscal  year  two  thousand
  one--two  thousand  two,  by an additional four-tenths of one percent in
  fiscal year two thousand two--two thousand three, and by  an  additional
  one-third of one percent in each of the ten subsequent fiscal years. The
  designated   percentage  for  fiscal  year  two  thousand  thirteen--two
  thousand fourteen and for each fiscal  year  thereafter  shall  be  five
  percent.
    3.  No  state-supported  debt  shall  be  contracted except to finance
  capital works or purposes.
    4. Notwithstanding any other provision of  law  to  the  contrary,  no
  state-supported  debt shall be issued with a final maturity of more than
  thirty years.
    5. The provisions of this section shall apply to debt issued  pursuant
  to  section  nine  of  article VII of the state constitution only to the
  extent that such notes remain outstanding.