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New York relaxes debt costs for schools, local governments amid tax evaporation caused by pandemic

As New York tries to figure out what it does with a looming, existing budget crisis – officials have eased borrowing costs for schools and municipalities.

A report released Monday by the credit rating agency Moody’s pointed to a recently approved measure that extends the rollover period for bond anticipation notes that are issued between 2015 and 2021.


What does that mean?

The measure provides a little breathing room for local officials working to contain the tax revenue loss created by the Coronavirus Pandemic.

One will allow those under significant strain to delay issuing long-term debt for at least two years and provide them some budgetary relief, according to Spectrum News. Government entities that are in better shape can rollover debt for an additional two years and shift long-term costs.

This comes as Governor Andrew Cuomo promises spending cuts if $59 billion in federal aid is not received soon.