debt limit

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Debt limit

The maximum amount that a municipality can borrow.

Debt Ceiling

The maximum amount that a government can borrow. The term especially applies to municipalities; rising above the debt ceiling may trigger a reduction it a municipality's credit rating. Cities and other local governments that are near the debt limit may issue participation certificates--a right to the receivables for a certain project--instead of direct debt. The United States also has a national debt ceiling, but Congress simply raises it every time the national debt approaches the ceiling.

debt limit

The statutory maximum amount of debt that a municipality may have outstanding.
References in periodicals archive ?
Without an increase in the statutory debt limit, the U.
The House GOP leadership Monday night had planned on bringing a measure to the floor that would have raised the debt limit through March 15, 2015, "and mostly eliminated a cut in the military retirement COLA, but we never thought they would be able to get a majority for that bill, and as it turns out, they didn't either," Washington Analysis said.
A suspension of the US debt limit, enacted by Congress in October, expired on Friday.
Contents Federal Debt Policy and the Debt Limit Extraordinary Measures and Debt Issuance Suspension Periods Recent Increases in the Debt Limit The 2011 Debt Limit Episode The 2011 Debt Ceiling Episode Begins Proposed Solutions in the Spring of 2011 The Budget Control Act of 2011 Debt Limit Increases Under the BCA The Debt Limit in 2013 Debt Limit Reached at End of December 2012 Suspension of the Debt Limit Until May 19, 2013 Replenishing the U.
Despite the myriad reasons why federal debt levels reach statutory ceilings, the contemporary politics of raising the debt limit in Congress are actually quite simple.
Congress, under US law, must approve an increase to the federal debt limit so the government can pay its bills.
Republican lawmakers have floated other ideas, such as a very short debt limit increase, which would create time for more negotiation at the expense of further market uncertainty, and repeal of a medical device tax.
More significantly, the result could be a dangerous and unpredictable fiscal superstorm that may be harder to resolve than the shutdown alone or the 2011 debt limit struggle that sent financial markets plummeting and brought the US to the brink of default.
The statutory debt limit restricts the funds that can be borrowed to meet the government's financial obligations.
Unless Congress is able to extend the debt limit by that time, the Treasury will add whatever it ultimately spends to the country's current $16.
4 trillion federal debt limit quickly, warning that benefits that the elderly and military veterans rely on will be affected if they don't and cautioning Republicans not to insist on cuts to government spending in exchange.