A note from Governor Pat McCrory
It's been 15 years since the last general obligation bond was approved by the voters to upgrade our state’s infrastructure and since then North Carolina has added 2 million people in population. The $2 billion bond will connect North Carolina to the 21st century through statewide investments in education, parks, safety, recreation, and water and sewer infrastructure.
The Connect NC bond will allow us to pay for 50-year assets with 20-year financing. No tax increases are necessary to finance the bond, given our strong revenue growth and ample debt service capacity. We will continue to balance the budget and uphold our position as one of only 10 states to have earned the coveted Triple A bond rating from all three major ratings agencies.
Thank you for visiting our website and for your interest in North Carolina’s exciting future.
It has been 15 years since the last bond was authorized to upgrade our state’s critical infrastructure and since then North Carolina has added 2 million people in population.
The chart below demonstrates that we have ample debt service capacity within our existing revenue profile to support the Connect NC bond investments.
Note: General Fund revenue data reflect budgeted amounts (HB 97) for FYs 2015-16 and 2016-17 and OSBM estimates for FY 2017-18 to FY 2025-26. Debt-service payments based on NC Fiscal Research Division estimates.
Interest rates are lower than they have ever been previously. The Connect NC Bonds are well within our existing affordability and do not require a tax increase of any kind.
NC Budget Director Lee Roberts
No tax increases are necessary to finance the bond. The state has ample credit capacity to borrow and repay the bonds with no tax increase. Because we are paying off our existing debt rapidly, our overall debt levels will not increase with this new bond.
No. While this bond will go a long way toward connecting more North Carolinians to educational and recreational opportunities, in reality, it’s just a start. Even with Connect NC, the majority of our state’s infrastructure needs will remain unmet and our community colleges and universities will still have projects that need to be built on their campuses. But Connect NC begins the long-neglected task of building and upgrading our state’s infrastructure.
Yes. The Connect NC bond proposal is well within current debt affordability as determined by the State Treasurer and the nonpartisan Debt Affordability Committee.
North Carolina is one of only 10 states with AAA credit rating from all three major ratings agencies. This top credit rating saves North Carolina taxpayers millions of dollars and we will not do anything to jeopardize our pristine credit ratings. Because we are paying off our existing debt rapidly, our overall debt levels will not increase with this new bond.
With interest rates at historic lows, it has never been less expensive to borrow.
The bond allows us to pay over 20 to 25 years for assets that will last 50 years or more, and to do so at historically low rates. Most of these projects cannot be financed from our annual operating budget, just as most homeowners pay for a house as they use it over time, not the day that they move in. North Carolina has been rated AAA since state ratings began in the 1960s, and will continue to be rated AAA with this bond issue.