Governor Deval Patrick's Five Year Capital Investment Plan FY2011 - FY2015

Governor's Capital Investment Plan FY2011

Methodology and Model for Analysis


Consistent with prior years’ analysis, this updated analysis evaluates the affordability of issuing new debt, taking into account the Commonwealth’s existing debt service and contract assistance payment obligations.  In this analysis, affordability is measured by determining the annual amount of debt service and other debt-like payment obligations as a percentage of budgeted revenues.  This measure (debt service as a percent of budgeted revenues) is a commonly accepted standard for measuring debt capacity.  It provides a true indication of the relative cost of Commonwealth debt by taking into account the actual payment obligations on Commonwealth debt and the amount of revenue available to pay those obligations and other budgetary obligations. 


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