The Legislature has authorized $6.4 billion in /ease-payment bonds since 1983 and the Governor's Budget proposes $3.3 billion in new authorizations for 1995-96. Annual debt service costs on /ease-payment bonds have increased by almost $200 million over the last three years. For several reasons, total debt service costs for lease-payment bonds are significantly higher than general obligation bonds. We therefore recommend that the Legislature (1) minimize the use of lease-payment bonds in the future and (2) establish a multiyear plan to address its highest priority capital outlay needs using less costly financing alternatives-either direct appropriations or general obligation bonds. We also recommend a course of action for the budget year.