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State announces over $2 million in taxpayer savings

By Staff | Sep 30, 2011

CHARLESTON – Acting Gov. Earl Ray Tomblin Sept. 29 announced that the state saved $2.61 million of taxpayer money through the issuance of the state’s Infrastructure General Obligation Refunding Bonds, which were sold to investors yesterday. The $2.61 million in savings represents a 13.65 percent reduction in the state’s future debt service payments calculated on a net, present-value basis.

West Virginia’s record of conservative budgeting, strong reserve fund balances and the expectation that the state will continue its conservative fiscal management practices, are among the strengths Moody’s Investor Services listed as rationale for its recent Aa1 rating for these bonds.

Fitch Ratings, like Moody’s, assigned the refunding bonds its second highest rating, AA+, based in part on the state’s recent budget surpluses, its focused and disciplined economic policies and its increasingly diversified economic base.

“By following a steady, responsible approach for managing the taxpayer’s resources, we were able to achieve savings that will benefit our taxpayers and reduce our future financial obligations,” Tomblin said in a statement. “My administration will continue to closely monitor market conditions and will pursue additional financial transactions that translate into immediate taxpayer dollar savings when opportunities arise.”

In its rating report for these refunding bonds, Moody’s also highlighted that the state has aggressively taken action to reduce the size of its pension obligations.