Bond Financing

What’s on this Page

Key Metrics & Information (Outstanding Debt, Ratings, Capacity, Historic Issuance)

Bonding Programs Summary

Continuing Disclosure & Recent Official Statements

Debt Affordability

Debt & Post-Issuance Compliance Policies

 

Section: Key Metrics & Information

Outstanding Debt, Ratings, Capacity, Historic Issuance

 

Principal Debt Outstanding

Total: $1,562,810,000

General Obligation Bonds: $558,775,000

Severance Tax Bonds: $1,004,035,000

 

Outstanding debt service schedules

General Obligation Bonds

Severance Tax Bonds

 

Bond Ratings

	Issuer Rating	General Obligation Bonds	Senior Severance Tax Bonds
Moody’s	Aa2, Positive	Aa2, Positive	Aa2, Positive
S&P	—	AA, Stable	AA, Stable

 

Recent Ratings Reports

History of Bond Issuances

5-Year Bonding Capacity—Sources & Uses

 

Section: Bonding Programs Summary

State Board of Finance (SBOF) manages the General Obligation Bond and Severance Tax Bond programs.

 

General Obligation Bonds

• Issued as tax-exempt bonds every two years (usually in the spring)

• Issued with a 10-year maturity

• Secured by the full faith and credit of the State

• Paid by property tax revenues generated from the mill levy and ad valorem tax revenues on oil, gas, and minerals production and equipment

• Funds (historically) higher education, aging & long-term (senior), and library capital projects

• Subject to voter approval in a general election

 

Severance Tax Bonds

Long-Term Bonds

• Includes senior and supplemental long-term severance tax bonds
• Issued as tax-exempt bonds when authorized by the legislature (senior bonds—historically annually, supplemental bonds—very infrequently)

• Issued with a 10-year maturity

• Secured and paid by severance tax revenues collected when oil, gas and other minerals are severed from the land.

• Funds capital projects authorized by the legislature (senior bonds) and public school capital projects (supplemental bonds)

 

Short-Term Notes

• Issued as taxable notes when authorized by the legislature to “sponge” up extra cash in the Severance Tax Bonding Fund before balances are transferred to the Severance Tax Permanent Fund (2x/year)
• Sold to the State Treasurer’s Office and repaid within the same fiscal year the notes are issued

• Secured and paid by severance tax revenues collected when oil, gas and other minerals are severed from the land.

• Funds capital projects authorized by the legislature, including earmark projects (water, colonias, tribal, housing).

 

 

Click here for more information on the General Obligation and Severance Tax Bonding Programs.

 

Section: Continuing Disclosure & Recent Official Statements

Annual Continuing Disclosure Reports

 

Official Statements

General Obligation Bonds 

Severance Tax Bonds 

 

Section: Debt Affordability

2025 Debt Affordability Study

 

Section: Debt & Post-Issuance Compliance Policies

Current Debt Policy

Current Post Issuance Compliance Policy