WASHINGTON, DC—A draft budget report by the DC Council’s Economic Development Committee states that the District might have to raise the 12% debt limit in coming years.
“Although the Council of the District of Columbia may increase the debt cap to 17% — the maximum amount permitted by Congress — the Committee hopes this will not be necessary in the near future,” the report, which was released Wednesday evening, states.
The District’s Finance office says the debt ratio for fiscal year 2014 stands at 10.3%. By fiscal 2018, the debt level is expected to rise to 11.87% and by 2022 it will reach 11.99%, according to the Washington Business Journal.
This current year the District will spend nearly $725 million on debt service. By 2018, without adding any new capital projects, such as the millions of dollars needed to fund infrastructure work related to the redevelopment of the former Walter Reed Army Medical Center campus, the debt payment will reach $1 billion.
The Economic Development Committee is chaired by Councilwoman and Democratic nominee for mayor Muriel Bowser. See story in the Washington Business Journal.