<body><div><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=3QT2ux_0wEeoRMg00" alt="https://img.particlenews.com/image.php?url=3QT2ux_0wEeoRMg00" width="735" height="400" ></figure>HARRISBURG, PA — The Shapiro Administration recently announced the successful sale of approximately $1.395 billion in new General Obligation Bonds, complemented by a refunding issuance of $237.1 million. This refinancing effectively reduces existing debt by roughly $248 million, marking a noteworthy achievement for Pennsylvania’s financial management.The bond sale and refinancing are poised to deliver substantial savings for the Commonwealth, with projections of $21.8 million in gross debt service savings. This translates to $18.1 million in net present value (NPV) savings. When aggregated with previous bond refundings executed in December 2023, taxpayers are expected to benefit from a cumulative $121.5 million in savings over the next decade.A significant highlight of this financial endeavor is its alignment with recent credit rating upgrades. Recently, Moody’s elevated Pennsylvania’s credit rating to its highest level in over a decade, a testament to the state’s robust fiscal governance and economic stability. This upgrade, alongside similar adjustments by Fitch Ratings and S&amp;P Global Ratings over the past two years, underscores the Commonwealth’s commitment to sound fiscal management, balanced budgets, and steady economic growth.The improved credit ratings have immediate benefits, notably lowering borrowing costs. This translates into short-term taxpayer savings estimated between $10 million to $20 million on new issuances over the past two years. Such savings provide the Shapiro Administration with the flexibility to potentially channel funds into priority areas such as education and economic development.Secretary of the Budget Uri Monson emphasized the fiscal prudence displayed by the administration, stating, “Our responsible fiscal management has saved Pennsylvania taxpayers millions, enabling us to redirect resources towards essential programs that support education, community safety, and economic expansion.”The bond sale was executed through a multi-tranche approach, optimizing participation and competition among bidders. This method attracted 15 bids across three tranches from five distinct bidding entities, achieving an NPV savings rate of 7.291 percent — more than double the targeted 3.0 percent set out in the Commonwealth’s Debt Management Policy.Additionally, the credit rating upgrades have positively impacted the School District Intercept Program, benefiting over 150 school districts by lowering their borrowing costs. This results in expanded financial resources available for educational purposes across Pennsylvania.This series of fiscal strategies not only demonstrates a commitment to financial stewardship but also positions Pennsylvania as a leader in innovative state governance, with ongoing benefits anticipated for its residents.For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.</div></body>

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Shapiro Administration’s Bond Strategy Unlocks Millions in Savings for Pennsylvania

HARRISBURG, PA — The Shapiro Administration recently announced the successful sale of approximately $1.395 billion in new General Obligation Bonds, complemented by a refunding issuance of $237.1 million. This refinancing effectively reduces existing debt by roughly $248 million, marking a noteworthy achievement for Pennsylvania’s financial management. The bond...