BATON ROUGE – Louisiana taxpayers saved more than $600 million in four years because the State Bond Commission gave approval to refinancing bonds for interest savings, according to the commission’s chairman, State Treasurer John Kennedy.
“Just like homeowners refinanced their homes to lock in lower interest rates, we refinanced bonds to save taxpayers money,” said Treasurer Kennedy. “We didn’t sit by idly when interest rates dropped. We helped the state as well as municipalities throughout Louisiana to secure savings.”
The refinancings impact infrastructure and economic development projects across Louisiana. The projects are financed through bonds. By refinancing existing debt, state and local governments unlocked savings that will benefit taxpayers by erasing debt faster.
State government saved $307 million in four years. Local governments saved $285 million in four years.
“The goal is to reduce debt by lowering the amount of interest that has to be paid,” Kennedy said. “Homeowners refinance their homes to pay less interest. We refinanced debt to ensure that the public pays less interest.”
Kennedy and the State Bond Commission continue to keep an eye on interest rates. Municipal rates have fallen in recent months, but they are expected to rise over the next year or two.
“I’m thrilled by the savings we were able to achieve,” Kennedy said. “The savings will reduce the debt burden borne by taxpayers in Louisiana.”