School Board approves $495M bond resolution with no early payment penalties

In a significant move for the Clayton County Board of Education, board members discussed a bond resolution during their meeting on May 5, 2025, aimed at addressing the district's financial needs without imposing penalties on early repayments. The proposal involves selling $495 million in bonds, allowing the district to pay off up to $49.5 million in the first year without incurring any penalties, a provision emphasized by board members Dr. Smith and Ms. Bivens.

The board clarified that while the bonds will require payments twice a year, the initial principal payment is set at $1 million annually, with interest payments not included in this figure. After ten years, when a significant portion of the debt is paid off, annual payments are expected to decrease from $60 million to $48 million, freeing up additional funds for other educational needs.

The discussion also touched on current interest rates, which are approximately 2% higher than they were two years ago. However, there is optimism that rates may decrease later this year, allowing for potential refinancing opportunities that could lower costs for the district.

The board unanimously moved to accept the superintendent's recommendation for the bond resolution, marking a proactive step towards securing financial stability for Clayton County schools. This decision is expected to have a positive impact on the district's budget and its ability to allocate resources effectively in the coming years.