General Obligation (GO) debt, which is backed by the pledge of the full faith and credit of the State, finances a variety of public purposes, including the acquisition and construction of State facilities; capital grants to local governments for public schools, community colleges, jails and correctional facilities; and grants to local governments, non-profit institutions and other entities for hospitals, cultural projects and environmental projects.
The Treasurer recommends the size, timing, and terms of sale of GO bonds, which typically occur once or twice in a calendar year. In conjunction with the State’s financial advisor, the Treasurer’s counsel, and the State’s bond counsel, Debt Management Division staff coordinate the sale of the bonds and all activities prior to the actual sale. The method of sale can either be competitive, in which bids are transmitted electronically by underwriting syndicates, verified by the Office, and the winning bid is then ratified during a Board of Public Works meeting, or the sale may be negotiated, a process through which underwriters selected in a competitive procurement process negotiate bond prices with the Office and the Bond Purchase Agreement reflecting the pre-negotiated final pricing is approved at a Board of Public Works meeting.
The State Treasurer’s Office supervises all activities of post-sale settlement, the investment of the bond proceeds, compliance with Internal Revenue Service requirements for tax-exempt bonds, continuing disclosures and payment of debt service.
