JEFFERSON CITY, MO – The Office of Administration today announced that Governor Greitens and the Board of Public Buildings approved a $77 million bond issuance for the completion of ongoing higher education capital improvement projects across Missouri. The state was able to secure a lower interest rate on the bond sale than expected, saving $2 million for Missouri taxpayers, thanks to continued fiscal discipline.
“I promised our citizens I would act as a budget hawk to protect your money. I promised I would make tough decisions to balance our budget,” said Governor Greitens. “And today, those tough decisions are paying off in the form of millions in savings. This is a major win for Missouri taxpayers.”
“Our budget and accounting teams work tirelessly to wisely spend the money entrusted to us by Missouri taxpayers,” Office of Administration Commissioner Sarah Steelman said. “Every dollar we can save by securing lower interest rates for long-term debt obligations is a dollar that can be better spent on a higher priority.”
Missouri remains one of just a few states in the nation with a AAA credit rating, which was reaffirmed ahead of today’s bond issuance.
Fitch Ratings attributed the state’s special obligation bond rating to Missouri’s “broadly diversified economy” and “conservative financial operations.”
Moody’s Investors Service noted that “Missouri’s declining debt levels remain well below the median” and credited the state’s “stable budget reserve fund” for providing “short-term liquidity without the need for external borrowing.”
Standard & Poor’s Rating Services views “Missouri’s commitment to maintaining structural balance while also addressing its long-term liabilities a positive factor.”
Funds from today’s bond sale will be used to finance the renovations and improvements of state higher educational facilities. These projects, which were previously approved and appropriated by the General Assembly, are underway across the State of Missouri.