Administration weighs debt restructuring

Commissioner of Administration Kristy Nichols says the Jindal administration is looking at ways to restructure Louisiana’s debt to keep dollars flowing for state construction projects, even as the state hovers near its debt ceiling. Refinancing debt to take advantage of low interest rates is one option being considered. Nichols says the administration will ask the Bond Commission next week for approval to bring on a financial adviser to help chart the plans. The state borrows money to pay for construction projects through bond sales to investors, with the debt paid off with interest over decades. But Louisiana has a constitutional limit on debt, and the state is $22 million away from hitting its $605 million debt ceiling, the amount allowed for annual debt-repayment requirements. State Treasurer John Kennedy says the decisions could have implications on Louisiana’s credit ratings. He says he’d suggest scrapping, or at least delaying, some projects that haven’t begun and that aren’t urgent needs. However, Nichols says the administration won’t support stalling projects already given lines of credit and doesn’t anticipate any delays with planned construction.