>I have the same question. Why not aggressively pay of the existing debt and reduce borrowing, when the sate has enough money in general budget. I don’t know a

>I have the same question. Why not aggressively pay of the existing debt and reduce borrowing, when the sate has enough money in general budget. I don’t know about this specific case but it can make sense for a state to borrow if their rate of return is greater than the interest rate on debt. With capital being so cheap right now this is likely true (unless they are pumping it into their high speed rail). Similar idea to people investing in their retirement instead of paying off their mortgage.