At the end of fiscal year 2011, New York City reached a milestone: the amount of debt outstanding passed $100 billion. As total debt outstanding has grown - by 83 percent since 2002 - the forms of debt the City issues have also diversified.
Given the fiscal pressures on the City, what does Mayor Michael Bloomberg plan to do to cut debt service? Debt service, the payment of interest and principle due on long-term borrowing, has been growing rapidly under his tenure. Since it is tied to the size of the capital plan, it can only be controlled by reducing the level of capital investment that is supported with borrowing.