Volume I, No. 21

April 30, 2009

$1.9 Billion in State General Obligation Bond Proceeds for K-12 School Facility Projects

The Pooled Money Investment Board (PMIB) will disburse to K-12 school facility projects $1.9 billion of the $13.5 billion in state General Obligation Bond proceeds that the State Treasurer’s Office sold in March and April, 2009.

The State Allocation Board (SAB) had already approved apportionments for $2.4 billion in K-12 facility projects when the PMIB froze disbursement of funds on December 17, 2008 due to the state’s cash flow problems. The school projects, along with over 5,000 other state public works projects, have been waiting for the state to sell voter authorized state General Obligation Bonds to generate proceeds to fund the projects.

Approximately $1.4 billion of the $1.9 billion will go to K-12 facility projects that have already submitted fund release requests to the Office of Public School Construction. The remaining, approximately $500 million, will go to the first K-12 facility projects that submit their fund release requests in the next few months.  

That leaves about $460 million in projects that have received approved apportionments from the SAB, plus an additional $300 million in unfunded SAB approvals, that must wait for funding until the state sells more General Obligation Bonds. The State Treasurer is not expected to sell more bonds until late Summer 2009 at the earliest.