The State of Georgia successfully sold $314.5 million in general obligation bonds to fund new schools, public safety projects, hospital improvements and other crucial infrastructure projects throughout the state, Gov. Sonny Perdue's office announced Thursday.
The state was able to secure an interest rate of 1.54 percent – the lowest rate in state history – for 5-year bonds and 3.8 percent for the 20-year bonds – the second lowest rate for the state, according to a news release from the governor's office.
In addition to the bond sale for new capital projects, the state was able to refinance outstanding debt at lower rates, netting savings of $32.6 million. These funds will be used to pay off bonds maturing on July 1, which will free up funds budgeted for that purpose to meet other needs in the FY 2010 budget, the release stated.
“In a year where revenues are down and the budget has been trimmed, we know taxpayers appreciate the state’s continued commitment to manage the budget and our bond program conservatively. We are spending wisely and realizing savings opportunities whenever available,” Perdue said.