State refinances bonds to save on interest

JEFFERSON CITY, Mo. -- Missouri government is expected to save about $11.5 million in interest payments over the next two years by refinancing some $150 million in outstanding bonds.

The projected savings include $2.1 million during the current fiscal year and up to $9.4 million during the fiscal year that starts July 1, said Mark S. Kaiser of the state Office of Administration. Savings in subsequent years are expected to be significantly less.

Gov. Bob Holden said the savings should allow the state to put more money into education, even though $11.5 million over two years is a relatively small amount compared to the state's annual $19 billion budget.

"This is where you can ... find additional dollars so you can fund those priorities of the state of Missouri," Holden said.

The bond refinancing was approved Tuesday by the state Board of Fund Commissioners, which consists of the governor, lieutenant governor, state treasurer, auditor, attorney general and commissioner of administration.