Treasurer outlines state debt portfolio, details state infrastructure bank loans and governor—s $150M bond proposal

Deputy Treasurer Carrie Eaton told the joint subcommittee that the consolidated bond interest and redemption fund (BERF) supports the state—s bond debt service and associated fees and currently backs a roughly $2.6 billion state debt portfolio. She said the portfolio includes roughly $958 million of self‑supporting debt without a general obligation pledge, $293 million of self‑supporting debt with a GO pledge, and about $1.39 billion of general obligation debt paid by the 17¢ per $100 property tax levy.

The nut graf: The treasurer—s office explained how BERF revenues and reserves, the state—s credit ratings and the newly formed State Infrastructure Bank (SIB) interact, and summarized the SIB—s lending to affordable housing projects and the governor—s recommendation to make an additional $150 million in general obligation bonds available to the SIB.

Eaton said the BERF receives ad valorem taxes, appropriations and interest earnings and described the fund—s purpose: payment of principal and interest, issuance costs and professional fees. She reported a reserve balance of approximately $307 million as of June 30, 2024, equal to about 24% of fiscal year 2025 debt service. Eaton also described several governor budget adjustments that move systems and software costs into the BERF account for biennial budgeting.

Eric Jimenez of the treasurer—s office outlined the SIB—s role and legal limits. He noted a constitutional prohibition on investing or lending state funds directly to private corporations, and said eligible borrowers include governmental units, tribal governments, nonprofit or educational charities and similar nonprofit borrowers. Jimenez described eligible project types as ranging from social infrastructure (childcare, housing, health care) to water and sewer, renewable energy, public safety and economic development.

Jimenez described the SIB—s initial capitalization: during the 2021 CIP the bank was seeded with $75 million of general obligation bonds that were issued as taxable bonds to preserve flexibility. After issuance and costs, he said $74,620,077 remained; total SIB loans approved to date totalled $74,502,000 leaving about $118,742 in initial bond proceeds. The SIB has also earned interest (arbitrage) on un‑loaned bond proceeds, which Jimenez said will be used to support additional loans until exhausted.

Jimenez highlighted one SIB loan: a $25 million, 35‑year loan at 4.5% with a $250,000 origination fee that the SIB made available early in the Desert Pines project in East Las Vegas. The loan, made to a qualifying nonprofit (Urban Strategies) with a developer partner (McCormack Baron Salazar) and capital partner (AFL‑CIO Housing Investment Trust), funded horizontal infrastructure for a master‑planned affordable housing development of about 1,600 units. Jimenez said the loan is expected to be repaid well before the 35‑year term (he estimated roughly five years) as vertical parcels close and repay horizontal infrastructure costs.

Finally, Jimenez summarized the governor—s executive budget recommendation: $150 million of GO bonds to support the SIB, proposed as two tranches of $75 million. He said one $75 million tranche would follow the SIB—s established loan model; the other $75 million would be linked to a proposed community infrastructure investment fund in the governor—s forthcoming economic development bill and would target rural workforce housing or necessary economic development infrastructure. Jimenez said details of eligibility and forgiveness terms will be informed by the governor—s bill and the GoED board and would still require SIB board approvals on loan terms.

Committee members asked about affordability metrics, credit ratings and bond lengths. Eaton said Nevada—s ratings are double‑A plus and that bond maturities typically range from 5 to 30 years depending on project and market conditions; she also confirmed the treasurer—s office uses municipal advisors and tax revenue projections for affordability analysis. On reserves and interest earnings, Eaton said she would follow up with a breakdown of which portions come from interest versus property tax collections. Committee members also questioned whether portions of the proposed $75 million for housing would be forgivable; Jimenez said those design choices remain to be defined and would require coordination with GoED and the infrastructure bank board.

The presenters repeatedly distinguished discussion items from approvals: the hearing discussed the governor—s recommendations and SIB activity but did not record committee votes or adopt changes.

Ending: The treasurer—s office said it will provide follow‑up detail on interest‑earnings breakdowns and loan documentation and that SIB policy details tied to the governor—s economic development bill will be developed as that bill advances.