Georgia’s budget will get extra savings from its recent bond sale. The Governor’s office says a one-time savings of $35 million is in-place for fiscal year 2010. In addition, officials say there will be an annual debt service reduction of $10 million.
Earlier this week, the state sold millions of dollars in bonds to help fund new schools, public safety projects and other infrastructure. The interest rate of 1.49 percent for 5-year bonds is the lowest in state history. 20-year bonds are getting a record-low rate of 2.99 percent.
Some of the bonds are backed by the federal stimulus, which returns a 35-percent interest rate subsidy to the state.