State Treasurer Signs State Debt Refinancing Tuesday Morning, Saves Washington Millions
Running total now over a quarter billion saved year to date
Tomorrow (Tuesday, 4/2/21), the State Treasurer’s office will be taking advantage of historically low interest rates and the state’s excellent credit ratings to refinance existing state debt. State Treasurer Mike Pellicciotti signed a similar refinancing last April, which saved the state nearly $112 million dollars in future debt costs, the highest amount of savings on a percentage basis from a refinancing in at least 35 years. In this latest round of refinancings, he will be moving forward to refinance another $320+ million in existing state debt that is now eligible.
“I have an outstanding debt management team that I rely on to help this office achieve such impressive savings for the people of Washington,” said State Treasurer Pellicciotti. “There’s really no better time to make this happen than right now. I’m optimistic that we will be able to create additional savings north of $65 million dollars — that’s real money back to the people of Washington,” he said.
Much like a homeowner who refinances their mortgage at a lower interest rate, creating savings that can be put into home improvements, continuing education, or launch a small business, the Office of the State Treasurer will be providing the opportunity for the state to enjoy some much needed budget savings. About half of the savings goes to the state’s general fund and half goes to transportation projects. Top general fund recipients are K-12 public schools and other social services.
“Investing in our children and schools instead of Wall Street’s profits is a win for our office and a win for Washington,” said Treasurer Pellicciotti. “I am proud that my team is leading the way in fiscal responsibility and keeping Washington dollars in Washington state,” he said.
After Tuesday, the Office of the State Treasurer will have saved the State of Washington over $250 million dollars through refinancings since Treasurer Pellicciotti took office in January.
The signing will be streamed live on the Office of the State Treasurer Facebook page at 11am.