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An Audit Report on Certification of the Permanent School Fund’s Bond Guarantee Program for Fiscal Year 2019

January 2020

Summary Analysis

The State Auditor’s Office certifies that, for the fiscal year ended August 31, 2019, 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 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, 2019, the total principal of the 3,346 outstanding bond issues guaranteed by the Program was $84.4 billion, which included $82.5 billion for public school districts and $1.9 billion for charter districts.

As of August 31, 2019, the Program could guarantee an additional $26.9 billion in bonds for school districts and for charter districts before reaching the limit imposed by Board rules (the State Capacity Limit) and federal regulation (the Internal Revenue Service Limit), net of its $6.0 billion reserve. The final remaining capacity is equal to 23 percent of the Program’s total capacity

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