Debt study finds little room for NC to borrow

RALEIGH, N.C. — A report says North Carolina has essentially exhausted its ability to borrow money for state buildings and roads if it wants to protect its top credit rating.

The annual Debt Affordability Study released Tuesday by State Treasurer Janet Cowell says the state can only borrow an additional $9 million backed by tax revenues for each of the next five years and remain within self-imposed guidelines.

Officials base the recommendation on the assumption that annual debt service should be no more than 4 percent of state revenues.

The report also found there’s no extra debt capacity for projects until at least 2013.

Lawmakers review the commendations in deciding whether to authorize new borrowing.

(Copyright 2010 by The Associated Press. All Rights Reserved.)