Notes to the Financial Statements

June 30, 2013

Note 17 Long-Term Debt

The following is a summary of changes in long-term debt of the primary government for the year ended June 30, 2013, (amounts in thousands):

   Balance         Balance    Amounts due
Governmental Activities    June 30, 2012    Additions    Reductions    June 30, 2013    within one year
Bonds:          
General Obligation    $13,964,576    $1,369,790    $1,106,138    $14,228,228    $1,032,033
Transportation    3,287,340    627,390    452,855    3,461,875    290,615
   17,251,916    1,997,180    1,558,993    17,690,103    1,322,648
Plus/(Less) premiums and                
deferred amounts    708,874    202,915    96,271    815,518    91,780
Total Bonds    17,960,790    2,200,095    1,655,264    18,505,621    1,414,428
Long-Term Notes    747,935    -    174,570    573,365    182,705
Other L/T Liabilities: 1                
Net Pension Obligation    2,496,190    2,067,874    2,030,810    2,533,254    -
Net OPEB Obligation    5,755,731    1,496,233    569,656    6,682,308    -
Compensated Absences    542,102    10,037    36,426    515,713    47,476
Workers' Compensation    559,546    129,268    101,162    587,652    100,303
Capital Leases    42,759   3,556  8,097    38,218    9,225
Claims and Judgments    44,942    13,943    15,363    43,522    15,439
Liability on Interest Rate Swaps    24,956    -    7,380    17,576    -
Contracts Payable & Other    705    -    -    705    -
Total Other Liabilities    9,466,931    3,720,911    2,768,894    10,418,948    172,443
Governmental Activities Long-Term                
Liabilities    $28,175,656    $5,921,006    $4,598,728    $29,497,934    $1,769,576
1. In prior years, the General and Transportation funds have been used to liquidate other liabilities.
Business-Type Activities          
Revenue Bonds    $1,439,345    $284,210    $346,857    $1,376,698    $108,757
Plus/(Less) premiums, discounts and          
deferred amounts    46,362    40,911    (1,531)    88,804    988
Total Revenue Bonds    1,485,707    325,121    345,326    1,465,502    109,745
Compensated Absences    156,082    33,668    29,704    160,046    50,997
Federal Loans Payable    632,026    154,057    211,771    574,312    -
Other    329,086    53,595    162,054    220,627    7,537
Total Other Liabilities    1,117,194    241,320    403,529    954,985    58,534
Business-Type Long-Term Liabilities    $2,602,901    $566,441    $748,855    $2,420,487    $168,279

The liability for claims and judgments (Governmental Activities) includes a pollution remediation liability of approximately $37.2 million. This liability represents the State’s share of the cost of cleaning up certain polluted sites in the state under federal and state superfund regulations. The liability was estimated using the cash flow technique and could change over time due to changes in costs of goods and services, changes in remediation technology, or changes in laws and regulations governing the remediation effort. In addition, there are other polluted sites in the state that require remedial action by the State that will result in additional cleanup costs. The State did not recognize a liability for these costs at year end because it could not be reasonably estimated.

As of June 30, 2013, long-term debt of component units consisted of the following (amounts in thousands):

Long-Term    Balance    Amounts due
Debt    June 30, 2013    within year
Bonds Payable    $4,475,108    $283,880
Escrow Deposits    205,807    39,540
Closure of Landfills    49,276    14,214
Due to State    27,069    -
Other    385,353    19,637
Total    $5,142,613    $357,271