An Audit Report on Certification of the Permanent School Fund’s Bond Guarantee Program for Fiscal Year 2016
The State Auditor’s Office certifies that, for the fiscal year ended August 31, 2016, the amount of school district and charter district bonds guaranteed
by the Permanent School Fund’s (Fund) Bond Guarantee Program (Program) was within the limits applicable to the Program. In addition, the Fund had sufficient
capacity of $4.9 billion to meet the State Board of Education’s (Board) requirement to hold no less than 5 percent of the total guarantee capacity in reserve for the same time period.
As of August 31, 2016, the total principal of the 3,279 outstanding bond issues guaranteed by the Program was $68.3 billion.
As of August 31, 2016, the Program could guarantee an additional $24.7 billion in bonds before reaching the limit imposed by
Board rules and statute, net of its $4.9 billion reserve. The final remaining capacity is equal to 25 percent of the Program’s statutory capacity.
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