Economics
6:00 am
Thu March 13, 2014

Comptroller: Tennessee Reduced Debts By $347 Million in 2013

Credit Courtesy kenteegardin, Flickr via Creative Commons

An annual assessment of the state's debt load showed marked improvement in 2013. Tennessee shaved more than a third of a billion dollars from its debt obligations, according to the report released Wednesday by state Comptroller Justin Wilson.

Of the $347 million cited in the report, about $95 million went into paying general debt obligation bonds. Those bonds pay for most state capital construction or improvement projects. Over the last two years, the state has paid back almost $190 million in general obligation bonds. Another big factor that contributed to the debt reduction last year was that Tennessee borrowed less money to fund new projects, Wilson said.

"Lower debt translates into lower interest payments on money owed, which, in turn, translates into substantial savings for Tennessee taxpayers," a press release from Wilson's office read.

At the close of calendar year 2013, Tennessee still had a debt load of $5.78 billion dollars.