Maryland’s Capital Debt Affordability Committee will meet for the first of three days on October 11 to set the State’s capital debt limits for Fiscal Year 2024.
The Capital Debt Affordability Committee (CDAC), chaired by State Treasurer Derick Davis, will meet on October 11, 14, and 19, 2022, to discuss the State’s fiscal health and consider the limit on new state capital debt for the next fiscal year.
Maryland is in a particularly interesting position this year and the CDAC meetings and subsequent recommendations should reflect that. Economically, Maryland’s reserve looks good and the State is boasting a $2B surplus.
The State’s fiscal experts will probably say that we are in a position to spend cash or make more generous commitments than in a typical year. Fiscal conservatives, however, will want to pull back and be more cautious and perhaps further beef up the State’s coffers to save for the future.
Furthermore, traditionally, CDAC limits growth to around 3% 2% of which is for inflation. It will be interesting to see how the committee will account for this year’s high national inflation and how they will balance that to account for spending growth.
Adding an additional layer to this year’s quirkiness is the influx of federal funds, especially those relating to infrastructure support and development. CDAC will want to take that support into account and how it can beef up “one time” spending for capital projects.
Of course, CDAC’s forthcoming recommendations will not exist in a vacuum. The General Assembly’s Spending Affordability Committee will have the chance to approve, block, or adjust CDAC’s recommendations ahead of the 2023 legislative session and the state budget process.
Upcoming meetings
The first agenda has been set. On October 11, CDAC will largely review the prior year’s fiscal health, capital programs, and any notable legislative moves from the 2022 legislative session.
