JACKSON, Miss.–The sale of state bonds may have saved Mississippi taxpayers $36 million, according to State Treasurer Lynn Fitch, who announced Wednesday that the bond sale was complete. The state bonds, both taxable and tax-exempt, went on sale Feb. 3, on the open market.
If you’re not familiar with the sale of state bonds, they can be sold by the state and purchased as part of an investment portfolio. Essentially, you can invest in the state.
Late last year, the State Bond Commission authorized the sale of $157 Million tax-exempt bonds (Series 2015A) and $129 Million taxable bonds (Series 2015B). The proceeds of the bond sale will allow Mississippi to fund economic development and capital improvement projects.
“We’ve had the opportunity to fund projects like the Yokohama West Point facility and capital improvement projects at the University of Mississippi Medical Center (UMMC), which will lead to job creation and a stronger economy,” said Fitch in a statement. “It is important to manage the long-term state debt in a conservative manner and to be prudent with our state’s finances. Projects like Yokohama and UMMC help meet the needs of our state’s future and are perfect examples of using our resources to ensure Mississippi stays economically competitive.”
The state also entered the market with two refunding issues of $249,980,000 tax-exempt refunding bonds (Series 2015C) and $179 Million taxable refunding bonds (Series 2015D). Savings on the refinancing transactions are a big win for the state, with $24 Million savings achieved on the tax-exempt refunding, and $12 Million savings achieved on the taxable refunding. The total savings for the refinancing transactions totaled $36 Million. “That’s over $69 Million saved on behalf of Mississippi taxpayers by being proactive about managing the debt,” said Fitch.