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Bonds issued will benefit Alabama schools


November 19, 2010

MONTGOMERY – The Alabama Public School and College Authority met Friday, November 19, to approve a $66.5 million bond issue for fleet renewal. The Alabama Department of Education will distribute the funds to school systems across the state for the purchase of new buses.

                            

“These are very low rates and this is a good transaction for the Public School and College Authority,” said Acting Director of Finance Bill Newton.

 

Newton is referring to the 2.48% rate on the $53 million, tax-exempt portion of the bonds and the 3.77% rate on the $13.5 million taxable portion.

 

Alabama has been noted as having one of the safest bus fleets in the nation,” said Dr. Craig Pouncey, Deputy State Superintendent of Education. “School districts are very dependent on these funds in order to maintain safe, updated bus fleets.”

 

Each district will earn a portion of the bond funds based on the number of buses that are eligible to receive fleet renewal funds. Eligibility is determined by the age of the bus. Schools typically purchase buses on a ten-year lease/purchase plan.

 

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