By Associated Press
Montgomery, AL – Industrial recruiters are nearing the $750 million limit the state can borrow to lure new business investment to Alabama just a few months after voters approved an increase in the debt limit.
A commission chaired by Governor Riley has borrowed $610 million, leaving $140 million in borrowing capacity. But state Finance Director Jim Main said nearly all that money has been pledged to three development projects.
The debt cap was raised after June 5th when state voters approved raising it from $350 million to $750 million.
Riley said the commission's borrowing limit means it could not provide money that would be needed to lure another huge project to Alabama, like the $3.7 billion steel plant that ThyssenKrupp is building north of Mobile. The commission voted to sell bonds to borrow $220 million for the ThyssenKrupp plant.
But Riley said he doubts the commission's borrowing limit will harm Alabama's ability to recruit industries now on its target list, like suppliers to the Kia assembly plant being built in West Point, Georgia.
The fund receives 28 percent of the royalties the state collects on natural gas pumped offshore.
(Copyright 2007 by The Associated Press. All Rights Reserved.)