To resolve the shortfall in the city's debt issuance capacity (when compared with its spending plan), New York City's debt issuing limit associated with the Transitional Finance Authority (TFA) could rise to $12 billion next year, a 62% increase, said a source for the city.

"The city has known for a number of years that the amount of debt it's allowed to issue under state law is limited, and that we're approaching the limit," said the source. "So what we did was create the Transitional Finance Authority."

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