RALEIGH, (AP) - An annual report says North Carolina state government could issue a little more debt in the next fiscal year and remain within self-imposed borrowing guidelines.

A panel led by State Treasurer Janet Cowell has completed its debt affordability study. It projects the state could issue another $125 million and bring annual debt service to no more than 4 percent of operating revenues. The report says the state is currently slightly above the 4 percent cap but would fall below it by mid-2014 without a borrowing spree.

Legislators and the governor review the report while making decisions they hope will let North Carolina retain its top credit rating on borrowing for building construction.

The report says there's no extra capacity to issue state bonds for transportation projects for another two years.