Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

Making bond sales more competitive

Published (3/13/2009)
By Sonja Hegman
Share on: 

In a volatile market, an attempt is being made to make bond sales more competitive.

Sponsored by Rep. Alice Hausman (DFL-St. Paul), HF918 would permit the use of either a competitive public sale or a negotiated private sale of the state’s general obligation bonds.

Kathy Kardell, assistant commissioner of Minnesota Management and Budget, said the bill would give the state flexibility to ensure continued access to the municipal bond market under current conditions, which are volatile and uncertain. She added that a private sale would permit the state to implement a program to access retail investors, something that can’t be done with a public sale. Currently only general obligation bonds are required to be sold by public sale.

In January, Minnesota Management and Budget sold $400 million worth of bonds in three competitive sales. The sale would have normally occurred in October, but was deferred because of poor market conditions.

The bill was laid over March 10 for possible inclusion in the House Capital Investment Finance Division omnibus bill. A companion, SF1307, sponsored by Sen. Debbie Johnson (R-Ham Lake), awaits action by the Senate Finance Committee.

Session Weekly More...

Session Weekly Home

Related Stories

Capital investment bill chopped into law
Line-item veto authority cuts $313 million; higher education hit hard
(view full story) Published 3/18/2010

From veto fear to positive outlook
Instead of starting over, governor and legislators seek compromise
(view full story) Published 2/25/2010

A nearly billion-dollar battle?
Bonding bill set for floor vote; governor issues another warning
(view full story) Published 2/11/2010

First Reading: Bonding bill on track for early action
Differences abound on a capital investment amount, projects to be funded
(view full story) Published 2/4/2010

At Issue: ‘Bread and butter’ emergency borrowing
Omnibus bonding bill heads to conference committee
(view full story) Published 4/10/2009

First Reading: Bonding funds — funding what?
Audit shows need for tightened policies and requirements
(view full story) Published 2/6/2009