Financial adviser: Louisiana moving nearer to its debt cap
BATON ROUGE - Louisiana's financial adviser is warning that the state is edging closer to its debt ceiling and will need to tightly manage construction spending to stay under the cap.
Lamont Financial Services Corp. provided an update Thursday to the State Bond Commission about the state's debt load.
Gov. Bobby Jindal's administration has committed to a billion dollars more in projects than the state has cash to spend. And Louisiana has a limited amount of space to borrow.
Treasurer John Kennedy said it appears the next governor will be left with a lengthy list of commitments - but not enough borrowing capacity to pay for them.
Commissioner of Administration Kristy Nichols questioned the borrowing assumptions in the data. She said Louisiana regularly manages its construction work to stay within the debt limits.