State treasurer adopts $1.513 billion in bond sales to fund schools, housing, transportation

State Treasurer Mike Palachciotti signed and adopted three bond-sale resolutions on June 16, awarding $1,513,275,000 in general obligation bonds to fund capital-budget projects across Washington.

Deputy Treasurer Jason Richter said Resolution 13 13 awarded $784,325,000 of State of Washington various-purpose general obligation bonds (Series 2026 E) for capital projects including K–12 school facilities, state universities and community and technical colleges, community-based and state facility projects, affordable housing, water and flood protection and other projects. "So resolution 13 13 awards a sale of $784,325,000," Richter said, adding the transaction received seven bids and achieved an overall true interest cost of 4.22%.

Richter presented Resolution 13 14 awarding $538,710,000 of motor vehicle fuel tax and vehicle-related-fees general obligation bonds (Series 2026 F) for transportation projects such as Move Ahead Washington and Connecting Washington improvements; he reported seven bids and a true interest cost of 4.11%. For Resolution 13 15, Richter said the committee awarded $190,240,000 of taxable general obligation bonds (Series 2026 T3) to fund capital projects that cannot be financed with tax-exempt bonds, including certain affordable housing, water-supply and clean-energy projects.

Municipal advisor Sean Rye (Montague DeRose) and underwriter Rob Shelley (Piper Sandler) said the competitive bidding reflected clear structure and good timing in a volatile market. Rye noted the state's pricing compared favorably to other large issuers and said the first series helped set an orderly market for the day. Shelley said seven bids was a strong result given recent market turbulence and the proximity of a Federal Open Market Committee meeting.

Richter recommended approval of each bond sale. Treasurer Palachciotti, hearing no objections in the virtual meeting, signed and adopted Resolutions 13 13, 13 14 and 13 15 during the session.

Votes at a glance: Resolution 13 13 — $784,325,000 (Series 2026 E) — adopted and signed at the meeting; Resolution 13 14 — $538,710,000 (Series 2026 F) — adopted and signed at the meeting; Resolution 13 15 — $190,240,000 (Series 2026 T3, taxable) — adopted and signed at the meeting. No roll-call vote or vote tallies were recorded in the transcript; adoption was announced by the treasurer.

In explaining the taxable series, Richter described the difference between tax-exempt and taxable bonds: tax-exempt interest is federally tax-preferred for investors, which typically lowers the state's borrowing cost, while taxable bonds are used for projects that do not meet tax-exempt requirements. He said tax-exempt debt typically allows the state to borrow at roughly 25% lower interest cost, but IRS rules restrict use for private-activity projects, which is why some housing and other projects are financed on a taxable basis.

Treasurer Palachciotti closed the session by reiterating that proceeds will support a broad set of public projects — including affordable housing, water supply, early education and K–12 facilities, clean energy, habitat conservation and outdoor recreation — and publicly thanked long-serving bond counsel Bill Tonkin of Foster Garvey. Tonkin said it had been an honor to work with the state. The meeting was adjourned at 12:20 p.m.