StateDebtOverviewGovernorMitchellE.DanielsOfficeof

Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,Click to edit Master title style,Indiana: State Debt Overview,Governor Mitchell E. Daniels,Office of Management & Budget Director Ryan C. Kitchell,Public Finance Director Jennifer M. Alvey,June 30, 2007,0,Overview,I. State Credit Ratings,II. Outstanding Indiana Agency Debt,A. State Appropriation-Backed Debt,B. State-Related Debt (Not backed by State Appropriations),1,I. State Credit Ratings As of 7/26/07,MA AA/Aa2/AA,Minnesota,AAA/Aa1/,AAA,Iowa,AA+/(Aa1)/(AA+),Illinois,AA/Aa3/AA,Indiana,(Aa1)/,(AA+),Missouri,AAA/Aaa/,AAA,Arkansas,Aa2/AA,Louisiana,A/A2/A,Alabama,AA/Aa2/,AA,Georgia,AAA/Aaa/,AAA,South Carolina,AAA/Aaa/AA+,North Carolina,AAA/Aaa/AAA,Tennessee,AA+/Aa1/AA+,Kentucky,(Aa2)/(AA-),Virginia,AAA/Aaa/AAA,Ohio,AA+/Aa1/,AA+,Michigan,AA-/Aa3/,AA-,New York,AA-/Aa3/,AA,Vermont,AA+/Aaa/AA+,NH,AA/Aa2/AA,CT AA/Aa3/AA,NJ AA-/Aa3/AA,Washington,AA/Aa1/AA,Oregon,AA-/Aa2/AA,Nevada,AA+/Aa1/AA+,Utah,AAA/Aaa/AAA,California,A+/A1/A+,Idaho,(Aa2)/(AA),Montana,AA/Aa2/AA-,Wyoming,(AA),Arizona,Aa3/(AA),Colorado,(Aa3)/(AA),New Mexico,Aa1/AA+,Texas,AA+/Aa1/AA,Oklahoma,AA/Aa3/AA,Kansas,(Aa2)/(AA+),Nebraska,(Aa3)/(AA+),South Dakota,(A1)/(AA),North Dakota,(Aa2)/(AA),Wisconsin,AA-/Aa3/,AA-,Maine,AA/,Aa3/,AA,Pennsylvania,AA/Aa2/AA,MD AAA/Aaa/AAA,Florida,AA+/Aa1/AAA,RI AA/Aa3/AA,Puerto Rico,Baa3/BBB-,Alaska,AA/Aa2/AA,Hawaii,AA/Aa2/AA,DE AAA/Aaa/AAA,West Virginia,AA-/Aa3/AA-,AAA/,Aaa,AA/,Aa,Less than AA,No G.O. or Issuer Rating,/Aa3,Order of Ratings: Fitch/,Moodys,/S&P,Mississippi,AA/Aa3/AA,DC A+/A1/A+,( ),indicates states with no G.O. debt.,Ratings are hypothetical.,2,II. Outstanding Indiana Agency Debt Overview,State Related Debt,Issuing Entity,Debt Outstanding,Health & Educational Facility Authority,$6,928,010,450,Indiana Bond Bank,(Non-Moral Obligation),$1,918,815,001,State Revolving Fund,$1,790,382,020,Indiana Secondary Market for Educational Loans,$1,884,850,000,Housing & Community Development Authority,$1,206,925,000,Public University,( Non-Fee Replaced),$568,118,355,Port Commission,$36,987,612,State Fair,$17,455,000,Total,$14,351,543,438,State Appropriation-Backed Debt,Issuing Entity,Debt Outstanding,Transportation Finance Authority,$1,537,831,775,Public University,(Fee Replaced),$1,180,961,058,State Office Building Commission,$893,425,613,Indiana Bond Bank (Moral Obligation),$,466,460,000,Stadium & Convention Center,$611,525,000,Recreational Development Commission,$30,715,000,Total,$4,720,918,446,3,Indiana Finance Authority,The IFA issues debt on behalf of these five former issuers, and IFA has managed their debt portfolios since 2005.,The IFA also issues debt for the Stadium and Convention Center project,Entities outside IFA who issue debt backed by possible state appropriations include the Indiana Bond Bank (Moral Obligation Debt) and Public Universities (Fee-Replaced Debt).,The State Public Finance Director by statute manages the IFA and also oversees two additional bond issuing entities through statutory board positions including the Indiana Bond Bank and the Indiana Housing and Community Development Authority.,In the 2005 session of the Indiana General Assembly, the Indiana Finance Authority (“IFA”) was created to oversee State related debt. The enabling legislation consolidated five previously separate entities into the new IFA as shown below,Indiana Recreational Development Commission,Indiana Transportation Finance Authority,Indiana Finance Authority,Indiana Development Finance Authority,State Office Building Commission,State Revolving Fund,Indiana Health & Educational Facility Finance Authority,4,IIA. State Appropriation-Backed Debt,State Appropriation-Backed debt is approved by the General Assembly either by approval of the project or the source of funds used to finance the repayment of bonds issued.,Moral Obligation debt is reviewed by the Budget Committee and approved by the Budget Director.,5,ITFA issued debt in partnership with the Indiana Department of Transportation to finance the cost of construction, acquisition, reconstruction, improvement, or extension of the States public ways.,Payment is made on Highways and Bridges bonds primarily using State-appropriated gas tax dollars, among other resources.,The Airport Maintenance Facility was formerly the United Maintenance Facility and is currently leased to other users.,The Aviation Technology Center is a training center run by Vincennes/Purdue cooperative at Indianapolis International Airport. It was built in connection with the United Maintenance Facility for long-term worker training.,Currently the ITFA portfolio of debt is composed of:,87% fixed rate debt,13% variable rate debt,Project,Debt Outstanding,State Highways & Bridges,$1,329,131,775,Airport Maintenance Facility,$200,550,000,Aviation Technology Center,$8,150,000,Total,$1,537,831,775,State Appropriation-Backed Debt:Indiana Transportation Finance Authority (ITFA) Projects now IFA,6,State Appropriation-Backed Debt:Fee-Replacement Public University Debt,Fee-replacement bonds are debt issued by universities, through which State-appropriations,reimburse the universities for debt service.,Fee-replacement bonds must be approved by the State Budget Committee, Budget Agency, and the Governor of the State of Indiana.,University,Debt Outstanding,Indiana University,$426,924,386,Purdue University,$274,268,874,Ivy Tech College,$210,255,000,Ball State University,$77,090,000,Indiana State University,$75,695,976,University of Southern Indiana,$74,279,488,Vincennes University,$49,322,333,Total,$1,180,961,058,7,State Appropriation-Backed Debt:State Office Building Commission (SOBC) Projects now IFA,The State Office Building Commission (SOBC) issued debt in partnership with multiple entities to finance or refinance the cost of acquiring, constructing, or equipping buildings and improvements:,Department of Administration,Family and Social Services Administration,Department of Corrections,Currently the SOBC debt portfolio is composed of:,76% fixed rate debt,24% variable rate debt,Project,Debt Outstanding,Capitol Complex,$156,550,357,Miami Correctional,$132,485,000,Wabash Valley Correctional,$122,335,000,New Castle Correctional,$117,860,000,Indiana State Museum,$77,985,000,Forensic Health and Sciences Lab,$62,900,000,Madison State Hospital,$57,005,000,Rockville Correctional,$39,560,000,Pendleton Correctional,$34,500,000,Logansport State Hospital,$33,995,000,Evansville State Hospital,$30,745,000,Senate Av./ Washington St. Parking Facilities,$27,505,256,Project Hoosier Safe-T (Hoosier Notes),$7,034,000,Central Indiana Hospital,(Hoosier Notes),$6,118,000,Total,$906,577,613,8,State Appropriation-Backed Debt:Indiana Bond Bank Moral Obligation Debt,The Indiana Bond Bank (IBB) provides assistance to local government in funding special projects through the use of bonds including:,Water & Sewer Systems,Capital Improvement/ Building Projects,IBBs Special Program debt may form a Moral Obligation (M.O.) with the State of Indiana providing the issuing organization with more favorable financing terms.,The State only serves as a backstop on M.O. debt if the primary repayment source fails. IBB has never had a Moral Obligation claim in its history.,Moral Obligation debt is reviewed by the Budget Committee and approved by the Budget Director.,Project,Debt Outstanding,Hendricks County Hospital,$51,990,000,Adams County Hospital,$39,555,000,South Bend TIF Districts,$35,000,000,Hancock County Memorial Hospital,$34,610,000,Northern IN Commuter Transportation Dist.,$27,630,000,Columbus Learning Center,$27,515,000,East Chicago Building Facility Corp.,$25,130,000,Fort Wayne Regional Public Safety Academy,$20,660,000,Good Samaritan Hospital (Knox County),$15,870,000,Hendricks County Redevelopment Auth.,$15,675,000,City of Carmel Sewer,$10,780,000,Whiting Sanitary District,$7,130,000,Town of Burns Harbor,$7,010,000,Pittsboro Wastewater Plant,$4,025,000,Other Pooled Issuances,$143,880,000,IBB Special Programs (Moral Obligation),$466,460,000,9,State Appropriation-Backed Debt:Indiana Stadium & Convention Center debt managed by IFA,Stadium/Convention Center Construction Financing:,$400m and $211.5m of bonds were issued in 2005 and 2007, respectively, as variable rate debt.,Interest rates on the Stadium & Convention Center have been fixed through a BMA Swap.,The Stadium rate is locked at 4.231%.,The Convention Center rate is locked at 4.556%.,Remaining tranches totaling approximately $300 million are to be issued over the course of the projects.,First-line repayment source is local food & beverage, hotel, rental car and admission taxes, collections from the Professional Sports Development Area, and Colts license plate fees.,Project,Debt Outstanding,Lucas Oil Stadium,$611,525,000,Convention Center Line of Credit,$6,348,815,Total,$617,873,815,10,State Appropriation-Backed Debt:Recreational Development Commission (RDC) Projects now IFA,The Recreational Development Commission (RDC) issued debt in partnership with the Department of Natural Resources to finance or refinance the costs of the acquisition, construction, renovation, improvement or equipping of facilities for the operation of public parks.,Payment of RDC bonds is made through fees generated by the operation of all state parks and other fees received related to park projects.,Currently the RDC portfolio of debt is 100% fixed rate.,Project,Debt Outstanding,Prophetstown & Multi-Project Refundings,$13,385,000,Clifty Inn / Abe Martin Lodge,$12,780,000,Ft. Benjamin Harrison Golf Course,$4,550,000,Total,$30,715,000,11,State Appropriation-Backed Debt:Outstanding Debt Load (1997 - 2007),*Appropriation-Backed debt does not include Public University Fee-Replaced Debt as well as Contingent Obligations,Source: (IN Outstanding Debt Subject to Possible Appropriation) IN Official Statement Appendix A - Moodys Medians,12,State Appropriation-Backed Debt:Public University Fee-Replaced Debt,13,State Appropriation-Backed Debt:Debt Service Obligations,14,IIB. State-Related Debt,Quasi agencies that issue debt, but rely neither on the full faith and credit of the State nor on a moral obligation include debt from the following entities:,Indiana Health and Educational Facility Finance Authority (now IFA),Indiana Bond Bank (Non- Moral Obligation Projects),State Revolving Fund,Indiana Secondary Market for Educational Loans,Indiana Housing and Community Development Authority,Non-fee Replacement Public University Debt,State Port Commission,State Fair Commission,15,State-Related Debt: Indiana Health and Educational Facility Finance Authority,The Indiana Health and Educational Facility Financing Authority (IHEFFA) is the resulting authority from the merger of the Indiana Health Facility Finance Authority and the Indiana Educational Facilities Authority.,IHEFFA assists county and nonprofit hospitals, long-term health care providers, and private institutions of higher education in financing capital projects.,Program,Debt Outstanding,Health Care,$6,395,952,673,Private College/University,$532,057,777,Total,$6,928,010,450,16,State-Related Debt:Indiana Bond Bank Non-Moral Obligation Debt,As previously stated, the Indiana Bond Bank (IBB) is organized to provide assistance to local government in funding special projects through the use of bonds including:,School Pension Funding,Tax Anticipation Warrants,Common School Fund,Essential Use Equipment,In addition to Special Program debt that may form a Moral Obligation with the State of Indiana, IBB issues other non-Moral Obligation bonds to aid municipalities and subdivisions in financing local projects.,These bonds are repaid solely by municipalities and locals, and there is no State backstop.,Project,Debt Outstanding,Taxable School Severance Bond Program,$1,003,180,000,Advance Funding Program,$727,045,000,Common School Fund,$165,765,000,HELP Program,$37,033,673,Not-For-Profit Water Program,$23,076,108,Special Program Non-Moral Obligation,$22,825,000,Less: Pass Through Debt,($60,109,780),Total,$1,918,815,001,17,State-Related Debt: State Revolving Fund Loan Program now IFA,The State Revolving Fund (SRF) Loan Programs are set-up to assist local municipalities in financing drinking water and waste water infrastructure projects.,Currently, U.S. Environmental Protection Agency (EPA) grants are leveraged through bond issuances to provide below-market financing to municipalities (at a savings of approx. $33 million to local governments in FY 2007).,Currently, the SRF portfolio is 100% fixed rate.,Project,Debt Outstanding,Wastewater Fund,$1,477,143,764,Drinking Water Fund,$259,111,236,Total SRF Debt Outstanding,$1,736,255,000,18,State-Related Debt:Indiana Secondary Market for Educational Loans,The Indiana Secondary Market for Educational Loans (ISM) is a not-for-profit institution that operates in the higher education loan secondary market.,ISMs goal is to improve opportunities for students and families to obtain a post-secondary education.,Project,Debt Outstanding,Outstanding Prior Issues,$1,374,850,000,Short-Term Debt,$510,000,000,Total,$1,884,850,000,19,State-Related Debt: Indiana Housing and Community Development Authority (IHCDA),The Indiana Housing and Community Development Authority (IHCDA) was formerly known as the Indiana Housing Finance Authority.,IHCDA finances homeownership programs through the issuance of Mortgage Revenue Bonds.,IHCDA affords below-market interest rate loans to low and moderate income first-time homebuyers via a network of lenders throughout the State of Indiana.,Program,Debt Outstanding,Single Family,$1,206,925,000,Total,$1,206,925,000,20,State-Related Debt: Non-Fee Replacement Public University Debt,Non-fee replacement bonds constitutes debt issued by universities for which they are solely responsible for paying debt service through student fees.,Non-fee replacement bonds must be approved by the Director of Office of Management and Budget, but are not an obligation of the State.,Colleges and Universities,Debt Outstanding,Purdue University,$306,249,126,Indiana University,$140,952,393,University of Southern Indiana,$41,715,000,Ball State University,$40,750,147,Indiana State University,$20,849,023,Vincennes University,$17,602,666,Ivy Tech College,$0,Total,$568,118,355,21,State-Related Debt:Indiana State Port Commission,The Indiana State Port Commission provides funds for ports and economic development initiatives in the State.,Conduit Debt Obligation Revenue Bonds are special obligations of the Commission payable by a private-sector entity.,Project,Debt Outstanding,Conduit Debt Obligation Revenue Bonds,$36,965,000,Direct Commission Obligations,$22,612,Total,$36,987,612,22,State-Related Debt:Indiana State Fair Commission,The Indiana State Fair Commission provides funds for the operation and maintenance of State fairgrounds.,State Fair Commission bonds are payable solely from, and secured by a pledge of, net Fairground revenues after payment of expenses.,Project,Debt Outstanding,Outstanding Issues,$17,455,000,Total,$17,455,000,23,