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Time to Save or Spend? Debt Reduction Act divides House (video)

Members of the House passed the Debt Reduction Act of 2011 (Senate Bill 464) on Thursday, which repeals more than $50 million in construction borrowing previously allocated for capital improvement projects and land acquisition.

Mecklenburg County Rep. Ric Killian said the bill being run by fellow Republican Rep. Mitch Gillespie was ” prudent” as it would save the state money by lowering debt payments.

But Pasquotank County Rep. Bill Owens reminded the chamber that the state has $3.7 billion in renovation and repair needs, and that putting off these projects would likely cost the state more money in the long run.

Wake County’s Rep. Deborah Ross argued the $7 million the bill would save this year would be better spent creating jobs at a time when interest rates were low and bids would be more competitive for state contracts.

In the end, the Republican-controlled House passed the measure on second and third reading, repealing the previously authorized debt and sending the bill to the Governor. To hear part of Thursday’s debate on SB 464, click below:

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