Bond Financing
Bond Financing: Debt Policy and Debt Affordability
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
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
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.
Continuing Disclosure & Recent Official Statements
Annual Continuing Disclosure Reports
Official Statements
General Obligation Bonds
Severance Tax Bonds
Debt Affordability
2025 Debt Affordability Study
Debt & Post-Issuance Compliance Policies
Current Post Issuance Compliance Policy
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Debt Policy
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File Type |
|---|---|
| Click Here to view the current Debt Policy |
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Debt Affordability Study
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File Type |
|---|---|
| 2019 – Debt Affordability Study | |
| 2018 – Debt Affordability Study | |
| 2017 – Debt Affordability Study |