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Board approves short‑term severance‑tax notes (SA1 & SA2) up to $850M
Summary
The board approved an authorizing resolution to issue short‑term severance‑tax notes (SA1 and SA2) with combined maximum principal of $850,000,000 (SA1 up to $652,900,000; SA2 up to $197,100,000), to fund legislatively appropriated projects and capital development reserves; notes are to be issued 06/25/2026 and repaid the following day.
Counsel presented the resolution authorizing issuance and sale of two series of severance tax notes (SA1 and SA2) with a combined maximum cap of $850,000,000. The SA1 note would fund legislatively appropriated projects and statutory set‑asides (maximum $652,900,000) while SA2 (maximum $197,100,000) would add funding for the capital development and reserve fund.
Counsel explained these short‑term notes are customarily issued via private sale to the state treasurer and are structured to be repaid quickly; interest on the notes is not tax‑exempt for federal purposes. The resolution delegates final determinations of the actual amounts on or before 06/23/2026 and sets the secured overnight financing rate plus 15 basis points as the note rate as of 06/15/2026. The board adopted the resolution on a roll‑call vote.
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