After almost 16 hours in session, senators gave the government the authorization it needs to float $250 million in bonds to help plug the current budget deficit and free up some money for projected shortfalls in fiscal year 2011.
The decision was made around 2:30 a.m. Wednesday, with the bill squeaking through the marathon Senate session on an 8-7 vote.
Voting in favor of the bill were Sens. Carlton "Ital" Dowe, Louis P. Hill, Wayne James, Sammuel Sanes, Patrick Simeon Sprauve, Michael Thurland, Celestino A. White Sr. and Alvin Williams.
Voting against the bill were Sens. Craig W. Barshinger, Adlah "Foncie" Donastorg, Neville James, Shawn-Michael Malone, Terrence "Positive" Nelson, Nereida Rivera-O’Reilly, and Usie R. Richards.
For those voting in the "yes" column, the final decision appeared to come down to a choice between sending government workers home or helping the government continue to run until some better solutions are put in place.
And for many voting "no," the concerns really boiled down to whether the government is effectively managing its money, and whether senators have what it takes to make some "hard decisions" in the middle of an election year.
The bill was amended just minutes before it passed to include some new appropriations from the Education Initiative Fund for school projects and expenses, along with a mandate or two to help the government more quickly pay off its recent borrowing debt.
Last year, senators authorized the government to borrow up to $250 million to plug multi-million dollar funding gaps projected for both fiscal years 2010 and 2011. This initial proposal allowed officials to float bonds, tap into government public fund accounts, or turn to a bank or other financial institution for money.
At the time, the government opted to borrow $50 million from internal funds, which was then repaid by a portion of a $250 million line of credit subsequently opened with the banking syndicate formed by Banco Popular and FirstBank. It was said that the debt would be repaid within three to five years, converting any money left over after the interest is paid off into a short term loan.
To date, the government has drawn down about $175 million on the line of credit, but is looking to pay down $100 million by floating $250 million worth of bonds by next month. That would free up some more money for next fiscal year, which though it’s a few short months away is still fuzzy in terms of the final economic picture, officials have said.
To make all this possible, the bill essentially doubles the government’s current authorization to an overall $500 million, and senators passed another amendment Wednesday morning extending the payoff period for the bonds to 20 years.
All senators were present Tuesday and Wednesday when the vote was taken.
