Project Project FinanceFinance

Eric Bode

Tobacco Securitization

• Approved as part of FY08-09 Budget

OSFC Funding Sources• GRF- backed

bonds• Tobacco

settlement funds

• Cash Transfers and other

• Total need = $14.8 billion estimate

OSFC Appropriations by Source by Year ($Millions)

-

200

400

600

800

1,000

1,200

1,400

Tobacco - actual

Tobacco Bonds - projected

Cash - projected

Cash - actual

Bonds - projected

Bonds - actual

Priority of Districts

• Move up the equity list

• In FY1998, start with #1

• In July, 2007, reached #243

• In July, 2008, reached #341

• Next group: through #375

• Voluntary program

Timeline

State/Local Share

• A set percentage, locked in at beginning of project

• x = LocalShare

Local%

MFPBudget

Local Share Determination

• Set in state law, unchanged since 1997

• Higher of 2 Calculations1. District’s percentile on equity list

2. “Net bonded indebtedness”

• Locked in for ELPP districts

Financial Requirements of School Districts

1. Obtain local share

2. Obtain maintenance funding (half mill X 23 years)

3. Share in financial risk

School District Financing• Flexibility in

ways to obtain local share

• Nearly all do some type of levy

• Must get $ within one year of OSFC approval

BOND PASSAGE RATE

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

OSFC

ELPP

OTHER

The Cost of WaitingOSDM Inflation rate

3.3%2.5%

3.9%3.3%

2.2%2.5%

8.3%

5.9%

4.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

1999 2000 2001 2002 2003 2004 2005 2006 2007

Project Finance

• Sign Project Agreement

• Approvals from District and OSFC

• District Treasurer pays all the bills

Locally Funded Initiatives

• What are they?

• Examples

• Process for approval

• May be early financial decision

Questions?

Eric BodeChief Financial OfficerOhio School Facilities Commissioneric.bode@osfc.state.oh.us614-466-7011

Lois SnyderDeputy Chief Financial OfficerLois.snyder@osfc.state.oh.us614-995-4552