In a flurry of bill signing last week, Gov. Mario M. Cuomo signed into law a measure allowing the state comptroller to sell variable-rate debt.
The Assembly and the Senate had passed bills earlier in the summer that authorize variable-rate bond sales.
The law adds a paragraph to the state finance law permitting the comptroller to sell the debt through competitive or negotiated sale until June 30, 1994. The comptroller may reissue variable-rate bonds issued before this date and tendered to the state on or after this date. Debt volume is limited to 10% of outstanding debt as outlined in the state finance law.
Last year, lawmakers passed a bill allowing local governments to sell variable-rate debt. State Comptroller Edward V. Regan had been urging lawmakers for about a year to pass the legislation authorizing the state to do the same.
He noted at the time that such a borrowing mechanism would allow the state to borrow on a long-term basis while paying lower, short-term interest rates.
State authorities, such as the Metropolitan Transportation Authority and the Job Development Authority, have been permitted to sell variable-rate debt for some time.