Project Finance 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

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 = Local Share Local % MFP Budget

Local Share Determination Set in state law, unchanged since 1997 Higher of 2 Calculations 1. 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

The Cost of Waiting

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 Bode Chief Financial Officer Ohio School Facilities Commission Lois Snyder Deputy Chief Financial Officer