Gov. Earl Ray Tomblin today announced that the West Virginia School Building Authority successfully sold $26 million in revenue bonds that will fund $30 million in school construction projects.
The bonds are the first sold by the state since legislation enacted during the First Special Session of 2014 that dedicated additional lottery revenues to support School Building Authority projects. Due to the state's good credit rating, the 15-year bonds carry an effective interest rate of 2.9 percent.
Standard and Poor's rated the bonds as AAA, and Moody's rated the bonds A1. These ratings, combined with the security provided by the lottery proceeds, increased investor confidence, resulting in greater demands and the lower interest rate.
"Because of our foresight and commitment to keeping our financial house in order, we are able to provide funding to several school systems at a low interest rate," Gov. Tomblin said. "We will continue our commitment to fiscal responsibility so that we can invest in our future without putting undue burdens on future generations."
The School Building Authority awarded funding April 28 that will be provided to local schools, much of it coming from this bond sale.
"The state of West Virginia last month provided more than $43 million in SBA funds that, combined with local funding, will result in more than $89 million being invested into our local schools and educational systems," said Peter Markham, general counsel for Gov. Tomblin and chairman of the School Building Authority. "Students in Wayne, Monongalia, Gilmer and other counties across the state will benefit from these investments."