Treasurer Fitzgerald Announces Additional Savings of $9.3 Million in Bond Refinancing
June 28, 2016
DES MOINES, Iowa – State Treasurer Michael Fitzgerald announced today that the state refinanced bonds that were originally sold in 2010 to build the state penitentiary in Fort Madison. Today’s refinancing transaction, which involved issuing $80 million in bonds, lowered the state’s interest rate by about 2%. “We saved over $9.3 million by refinancing the prison bonds,” Fitzgerald said. “Last week, we refinanced IJOBS bonds for a savings of $36.5 million. Combined, this is a savings of over $45 million for Iowa taxpayers.”
- Good fiscal management and a structurally balanced budget;
- Maintenance of significant rainy day reserves;
- Average income levels, low unemployment and stable economic growth; and
- Low debt burden, low state employee unfunded pension liabilities and a minimal post-employment benefits liability.