Governor  Dannel P. Malloy
 

Debt Management

The Year in Review

During Fiscal Year 2016, the Debt Management Division’s noteworthy accomplishments included:

  • New Money Bonds - $3.0 billion of new money bonds were issued to continue funding of the State's capital programs for local school construction grants, economic development initiatives, transportation infrastructure improvements, improvements at the University of Connecticut (UCONN), and Clean Water grants.  These projects help bolster the local economy and continue to be funded at some of the lowest interest rates in State history.
  • Refunding Bonds – As interest rates remained low, the Division refunded outstanding debt through the issuance of $501.4 million of General Obligation refunding bonds, $139.8 million of Special Tax Obligation refunding bonds, and $80.4 million of UCONN refunding bonds.  A total of $1.1 billion in debt service savings will be achieved over the life of the bonds from debt refunding and defeasances completed since January 1, 1999.
  • Transportation Bonding Program - Notable was a transportation bond sale to fund new and ongoing transportation infrastructure improvements that attracted more than $440 million in orders from retail investors, the highest level for any bond sale in State history.
  • Clean Water Fund  – The Division worked with the Department of Energy and Environmental Protection to complete the largest single grant and loan commitment in the history of the State's Clean Water program.  The Metropolitan District Commission will receive funding of $313 million over the next seven years for its South Hartford Conveyance Tunnel, a major component of its long-term wastewater control plan designed to protect and improve Connecticut's water quality.
  • Rating Agencies - Credit pressures caused by lower-than-projected revenue collections, persistent budget deficits and the need to draw down the State's Budget Reserve Fund caused two credit rating agencies to downgrade the State's General Obligation bonds, and another did so two weeks after the end of the fiscal year.  Communication with the credit rating agencies included in-person meetings with State leaders at the State Capitol, as well as several other briefings throughout the year.  In addition, the Division enhanced investor outreach with regular use of internet roadshows and conference calls with large investors.
  • Legislative Matters - The Division worked with the Treasurer, the General Assembly, and the administration on bonding matters, including the cancelation and deferment of $1 billion of General Obligation bond authorizations to allow the State to manage within its statutory debt limit.  The Division also assisted the Governor's Transportation Finance Panel on its funding recommendations for the "Let's Go CT!" initiative and UCONN on issuance of bonds and related matters.
  • Quasi-Public Agencies – The Division worked closely with State quasi-public agencies on various initiatives including the Connecticut Green Bank on financing options for energy efficiency improvements, the Connecticut Port Authority on transfer of State property and powers, the Connecticut Airport Authority on financing options for an intermodal transportation center, the Capital Region Development Authority on reprogramming bonding for the Connecticut Science Center, and the State's student loan agencies on using available funding to establish a new Connecticut student loan refinancing program.