Debt Management
Overview
Debt Management leads the state's efforts to issue bonds and enter into other financing contracts that support capital construction and transportation projects throughout the state.
Pursuant to state law, the State Finance Committee — comprised of the Governor, Lieutenant Governor and chaired by the Treasurer — authorizes and approves bond sales and financing contracts. The Deputy Treasurer for Debt Management serves as Secretary of the State Finance Committee.
The state's objective is to issue debt at low cost and risk by:
- Providing for issuance of debt at appropriate intervals and in reasonable amounts that support approved capital expenditures and the state lease/purchase program;
- Determining the appropriate structure for debt issues;
- Effectively presenting the state's financial, management, and economic condition to investors and rating agencies;
- Assuring the state complies with Internal Revenue Service (IRS), Securities and Exchange Commission (SEC), and Municipal Securities Rulemaking Board (MSRB) rules and regulations governing debt issuances; and
- Refunding debt, as appropriate.
The state's debt is well-managed and compliance assured by:
- Comprehensively preparing disclosure documents such as preliminary and final official statements and providing continuing financial and legal disclosure;
- Maintaining databases on the state's debt and lease financings, determining the state's debt capacity permitted under law and certifying this amount to the state legislature;
- Coordinating the issuance of debt with the investment of the state's cash to minimize interest costs while taking into account cash flow requirements;
- Assuring compliance with all terms, conditions and disclosure required by the legal documents governing the debt issued;
- Working in partnership with state agencies to maintain tax compliance;
- Providing timely payment of principal and interest by ensuring the fiscal agent receives funds for payment of debt service on or before the payment date.