The bill outlines the recommendations of the Capital Debt Affordability Committee regarding the Commonwealth of Massachusetts' general obligation (GO) debt for fiscal year 2027. The Committee has determined that the Commonwealth can prudently utilize $3.3372 billion in new debt, which represents an increase of $110 million or 3.41% over the previous fiscal year. The Committee's analysis is based on a custom affordability modeling tool that forecasts future debt metrics under various economic scenarios, focusing primarily on the next 10 years while also considering a 30-year horizon. Key assumptions include a projected revenue growth rate of 3.2%, a bond coupon rate starting at 5% and increasing to 5.5%, and a bond premium of 10%.

Additionally, the Committee emphasizes the importance of maintaining debt service as a percentage of budgetary revenue within established limits, with a target of no more than 7% over the next 10 years. The recommendation is designed to support the Commonwealth's capital investment plan while ensuring that outstanding debt remains within statutory limits. The Committee will continue to monitor the debt levels closely, particularly as the bond cap grows, to ensure that future borrowing remains sustainable and aligned with economic conditions.