The Florida Cabinet on Tuesday authorized the sale of $586.6 million of public education capital outlay bonds that will be secured by gross receipts taxes and a pledge of the state’s full faith and credit. No date for the competitive sale has been announced.
The Cabinet, which oversees the day-to-day affairs of the state, consists of Gov. Charlie Crist, Attorney General Bill McCollum, Chief Financial Officer Alex Sink, and Charles Bronson, commissioner of the Department of Agriculture and Consumer Services.
While approving the new PECO bond sale on Tuesday, Sink asked for an update on turmoil in the credit markets and if the situation would hinder the state’s ability to issue new debt.
The credit markets have been challenging and volatile, noted Ben Watkins, director of the Division of Bond Finance.
“It’s something to monitor and watch,” Watkins said. “At this point I’m not overly concerned about our ability to continue to sell bonds to finance the infrastructure for the state — albeit it may be at higher rates than historically what we have enjoyed.”
