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State sells $300 million in Tax Anticipation Notes

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Gov. Mitch Daniels’ strategy to keep Indiana’s taxes low and spending tight is paying off in the form of modest borrowing costs.

Low taxes and tight belts helped Indiana reduce interest costs on its short-term debt. (IBJ File Photo)

On Jan. 21, the Indiana Bond Bank sold $300 million in Tax Anticipation Notes, the proceeds of which will help more than 120 local government units pay their bills while they wait for their property tax receipts. Local participants in the issue include the Greenwood Community School Corp., Indianapolis Public Schools, the Metropolitan School District of Perry Township, Speedway Public Library and Decatur Township.

The state’s borrowing rate was 0.98 percent for one year, or the lowest short-term borrowing rate the Indiana Bond Bank has ever offered during the 24 years of its Advanced Funding program. A year ago, rates stood at 1.79 percent.

New York-based credit rating agency Standard and Poor’s, which analyzed the $300 million debt issue in a Jan. 14 research note, said there is little chance Indiana could experience problems repaying the notes. And that remote possibility is offset by several factors, including strong bond bank oversight and program experience with property tax delays.

 

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  1. These liberals are out of control. They want to drive our economy into the ground and double and triple our electric bills. Sierra Club, stay out of Indy!

  2. These activist liberal judges have gotten out of control. Thankfully we have a sensible supreme court that overturns their absurd rulings!

  3. Maybe they shouldn't be throwing money at the IRL or whatever they call it now. Probably should save that money for actual operations.

  4. For you central Indiana folks that don't know what a good pizza is, Aurelio's will take care of that. There are some good pizza places in central Indiana but nothing like this!!!

  5. I am troubled with this whole string of comments as I am not sure anyone pointed out that many of the "high paying" positions have been eliminated identified by asterisks as of fiscal year 2012. That indicates to me that the hospitals are making responsible yet difficult decisions and eliminating heavy paying positions. To make this more problematic, we have created a society of "entitlement" where individuals believe they should receive free services at no cost to them. I have yet to get a house repair done at no cost nor have I taken my car that is out of warranty for repair for free repair expecting the government to pay for it even though it is the second largest investment one makes in their life besides purchasing a home. Yet, we continue to hear verbal and aggressive abuse from the consumer who expects free services and have to reward them as a result of HCAHPS surveys which we have no influence over as it is 3rd party required by CMS. Peel the onion and get to the root of the problem...you will find that society has created the problem and our current political landscape and not the people who were fortunate to lead healthcare in the right direction before becoming distorted. As a side note, I had a friend sit in an ED in Canada for nearly two days prior to being evaluated and then finally...3 months later got a CT of the head. You pay for what you get...

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