(Washington Business Journal) — The last-minute restoration of $47 million in streetcar funding that D.C. Council Chairman Vincent Gray had slashed from next year’s budget will end up depleting by one-third the debt service capacity available for other, yet-to-be-financed projects in the city.
The District is limited by a statutory 12 percent debt cap, meaning its annual debt service payments must not exceed 12 percent of its general fund expenses. Having borrowed billions of dollars for all manner of projects, the government is right up against the cap today and will come even closer in each of the next five years.
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