Debt management outlines recent bond issuances and projects funded, reiterates treasurer's market discretion

Jaime Alvarez, director of debt management at the Oregon State Treasury, told the Ways and Means Subcommittee on General Government on April 3 that the division continues to issue bonds for capital projects, maintain strong credit ratings and support local issuers.

Alvarez said debt management issued roughly $1.8 billion in bonds last year, maintains an overall state debt portfolio of about $12.8 billion and produced a current capacity recommendation of roughly $2.2 billion for the upcoming biennium. He said planned near‑term market activity includes lottery and general obligation transactions and that credit ratings have been reaffirmed by major rating agencies.

Alvarez described several bond‑funded capital projects the division supports, citing Seaside High School's reconstruction as an example of seismic resilience and community benefit; he also highlighted Big Creek Dam replacement, a Klamath Falls childcare and learning center (about 100 children capacity) and the Sage Center museum and visitors center in Boardman. He noted the general obligation bond issuance will include funding components for multifamily housing programs such as PSH and LIFT.

In response to committee questions, Alvarez said the Treasurer retains discretion in market timing and can delay or decline to issue bonds already authorized, pointing to pandemic experience when lottery revenues dropped and legal/contractual conditions constrained sales. He also described the role of the Capital Construction Subcommittee and the State Debt Policy Advisory Commission in setting capacity recommendations and how the legislature authorizes bond programs.

Ending: Alvarez concluded that the division works to preserve the state's credit strength and to align issuance with market conditions and legislative direction; no vote occurred on debt management actions during the hearing.