Timothy M. Kaine, Governor
For Immediate Release - March 16, 2009
Contact: Gordon Hickey
Phone: (804) 225-4260
Phone: Cell (804) 291-8977
Director of Communications
Public Information Officer
RICHMOND – Governor Timothy M. Kaine announced today that $4.1 million in refinancing savings would be distributed to 31 Virginia school divisions. The savings, which range between $4,760 and $662,686, result from the issuance by the Virginia Public School Authority (VPSA) of $114.2 million in School Financing Refunding Bonds, Series 2009, which was completed March 12, 2009. Savings will be distributed to the localities on July 15, 2009, in the form of a one-time credit against their debt service.
"I am delighted that we have been able to provide some additional budget relief for these localities in 2010," Governor Kaine said. "These savings will be passed through to the localities as a credit, freeing up funds in local budgets."
Localities receiving the savings were participants in four earlier VPSA bond issues that were refunded by the 2009 bonds. The amount of savings credit for any locality is determined by the locality's participation in the earlier bond issues — the larger the original bond amount, the larger the savings. The participating localities are being contacted directly by the VPSA. The Literary Fund will also receive savings of approximately $2.86 million, representing savings on local borrowings originally subsidized by the Literary Fund.
State Treasurer Manju Ganeriwala added, "When this VPSA refinancing became feasible, the Authority acted quickly to take advantage of the opportunity to generate savings for the underlying localities."
The localities, and the estimated credit each will be receiving on July 15, 2009, are:
James City County
Prince George County
Prince William County