Thu., November 5, 2009 8:21am (EST)

Bond Sale Nets Georgia Fiscal Budget Savings
By Edgar Treiguts
Updated: 5 years ago

ATLANTA  —   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.