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State Treasurer signs three bond‑sale resolutions totaling $1.513 billion to fund capital projects
Summary
State Treasurer Mike Palachciotti on June 16 signed three resolutions awarding $1.513 billion in general‑obligation bonds to fund K–12 and higher‑education projects, transportation improvements and taxable financing for projects that cannot be funded with tax‑exempt debt.
State Treasurer Mike Palachciotti on June 16 signed and adopted three bond‑sale resolutions that together award $1,513,275,000 in general‑obligation debt to finance projects in the state capital budget.
The State Finance Committee approved: resolution 13 13, a $784,325,000 various‑purpose GO bond series 2026E for capital projects including K–12 school facilities, state universities and affordable‑housing and water projects; resolution 13 14, $538,710,000 in motor‑vehicle‑fuel‑tax and vehicle‑fee GO bonds (series 2026F) to support transportation projects such as Move Ahead Washington improvements; and resolution 13 15, $190,240,000 in taxable GO bonds (series 2026T3) for capital needs that do not meet tax‑exempt requirements.
Deputy Treasurer Jason Richter, who leads the debt management division, said the largest series, 2026E, drew seven bids and carried a true interest cost of 4.22%. "We were able to price this at a real fortuitous time," Richter said, noting recent market moves produced favorable pricing. He recommended approval of the sales and the chair signed the resolutions.
Municipal adviser Sean Rye of Montague DeRose and Rob Shelley of Piper Sandler described the market as unusually active but competitive. "Fortuitous time, but I think also, you know, with preparation met a fortuitous time here," Rye said, praising the state's structure and process. Shelley added that the results were "a very good result given everything that has happened" and that seven bids were a strong showing.
For the transportation‑backed series 2026F, Richter reported seven bids and a true interest cost of 4.11%. For the taxable series 2026T3, intended for projects that cannot use tax‑exempt proceeds (some affordable housing and other private‑activity‑type expenditures), Richter said the sale received four bids; he explained taxable bonds typically carry higher rates because interest is taxable, and that the state shortens maturities on taxable issues to reduce incremental cost.
The transcript records the winning bids as indicated by staff: BFA Securities submitted the winning bid on the largest series, and Bank of America (referenced in speech as "B of A") was cited among strong bidders on other series. The transcript does not record a roll‑call vote or individual vote tallies for the approvals; Richter recommended passage and Treasurer Palachciotti said he would sign and adopt each resolution.
The resolutions fund a range of capital items across the state, including K–12 school renewal, community colleges, flood protection, habitat conservation, water supply, clean energy and local infrastructure. Palachciotti closed by thanking long‑time bond counsel Bill Tonkin of Foster Garvey, who responded that it had been an honor to work with the state.
The committee adjourned at 12:20 p.m.
