Report says NC debt capacity has grown

RALEIGH (AP) -- State government has more room to borrow money than it did last year because tax revenues keep growing and debt is getting paid off. A state report released Thursday determined that North Carolina could issue about $480 million in additional debt annually over the next decade and remain financially sound. Last year, the Debt Affordability Study concluded the state could take on an average $384 million annually. State Treasurer Richard Moore chaired the panel that conducted the study. He said state lawmakers must stop creating new debt that doesn't require voters to approve the borrowing before it can occur. The panel's report also said the state could borrow an additional $176 million each year from two pots of dedicated transportation money. This is the first year the study examined transportation debt. (Copyright 2008 by The Associated Press. All Rights Reserved.)