Could Annexation Hurt Schools?
By
Associated Press
Published: Mon, November 12, 2007 - 3:41 pm
Last Updated: Monday, November 12, 2007 - 3:44 pm
Last Updated: Monday, November 12, 2007 - 3:44 pm
$750 million limit the state can borrow to lure new business
investment to Alabama just a few months after voters approved an
increase in the debt limit.
A commission chaired by Governor Riley has borrowed $610
million, leaving $140 million in borrowing capacity. But state
Finance Director Jim Main said nearly all that money has been
pledged to three development projects.
The debt cap was raised after June 5th when state voters
approved raising it from $350 million to $750 million.
Riley said the commission's borrowing limit means it could not
provide money that would be needed to lure another huge project to
Alabama, like the $3.7 billion steel plant that ThyssenKrupp is
building north of Mobile. The commission voted to sell bonds to
borrow $220 million for the ThyssenKrupp plant.
But Riley said he doubts the commission's borrowing limit will
harm Alabama's ability to recruit industries now on its target
list, like suppliers to the Kia assembly plant being built in West
Point, Georgia.
The fund receives 28 percent of the royalties the state collects
on natural gas pumped offshore.
(Copyright 2007 by The Associated Press. All Rights Reserved.)
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