Hawaii Visitor Industry and Public Health Update
16 (1)
(2)
Debt Management
The State has a long track record of conservative debt management practices that are governed by a
formal debt management policy
G.O. Debt Service Profile (1)
■ Principal and interest on G.O. Bonds are a first charge on the
General Fund and have a pledge of full faith and credit
G.O. Bonds have conservative Constitutional constraints on
debt structure
Limits final maturity to 25 years, and principal can be deferred
no more than
years
Requires level debt service or level principal amortization
Maximum annual debt service can be no more than 18.5% of
the average of the prior three year General Fund revenues
No statewide ballot initiatives required for debt issuance
■The State conservatively manages its debt portfolio
Bonds issued with 20 year maturity and level debt service
100% fixed rate G.O. debt with no derivatives
63% of principal amortizes over the next 10 years
BABS debt service is budgeted on a gross basis
G.O. debt service as a percentage of General Fund revenues
has been relatively constant across multiple economic cycles
14%
12%
10%
8%
6%
4%
2%
0%
Excludes $321 million of reimbursable G.O. Bonds and $600 million Bond Anticipation Notes. The State also has a de minimis amount of Certificates of Participation outstanding.
Excludes reimbursable G.O. Bond and Bond Anticipation Notes debt service.
Millions
$1,000
$800
$600
$400
$200
$-
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
Fiscal Year
2032
2033
Debt Service as % of General Fund Revenues (2)
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Fiscal Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2034
63%
■General State Projects (46%)
Department of Education (40%)
University of Hawaii (14%)
2035
2036
2037
2038
2039
2040
2041
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