State to refinance debts; millions in savings projected
by MARSHA SHULER - Advocate (excerpt)

The state Bond Commission on Thursday approved refinancing up to $600 million in state borrowing to lower debt payments. Bond Commission Director Whit Kling said the refinancing should save the state some $40 million over time — $700,000 in the current budget year and another $3 million-plus annually for the next 12 years. Kling said the savings is possible because of a drop in interest rates.

The bond refinancing is another step in efforts to reduce state government expenses as revenues available are dropping precipitously. Another projected budget shortfall is anticipated prior to the June 30 end of the current fiscal year. A $3 billion decline in revenues is projected for the next two budget years.

The commission had earlier talked about refinancing $500 million to $550 million. But Kling asked the commission to increase the authority to the $600 million mark because there could be other debt on which savings could be generated depending on interest rates at the time of the refinancing.