(Archived Content)
To view or print the Microsoft Excel content on this page, download the free Microsoft Excel Viewer.
TG-538
Build America Bonds Provide More Than $70 Billion Nationally to Date
Report Details Cumulative, State by State Bond Issuances
Recovery Act Bond Program Boosts Economic Development
WASHINGTON – As part of the effort to increase transparency in government and maintain accountability of funds allocated under the American Recovery and Reinvestment Act (Recovery Act), the Treasury Department today provided another comprehensive update on issuances of the Build America Bonds program, including state-by-state data. The Build America Bonds program is a new financing tool created by the Recovery Act to allow state and local governments to obtain much-needed funding, at lower borrowing costs, for projects such as construction of schools and hospitals, development of transportation infrastructure, and water and sewer upgrades.
Build America Bonds are designed to appeal to a broader set of investors than traditional tax-exempt bonds. Under the Build America Bonds program, the Treasury Department makes a direct payment to the state or local governmental issuer in an amount equal to 35 percent of the interest payment on the Build America Bonds. Potential investors include pension funds that traditionally do not hold tax exempt bonds and foreign investors. These investors have been important additions to the market for municipal debt.
The Obama Administration's FY 2011 budget proposes to make Build America Bonds permanent with a 28 percent subsidy rate that is estimated to be revenue neutral. The budget also proposes expanding the eligible uses of Build America Bonds, allowing them to support financing for nonprofits and a wider range of municipal borrowing.
Expanding and making permanent this successful Recovery Act program will provide certainty and improve the long term functioning of the municipal bonds market, said Alan B. Krueger, Assistant Secretary for Economic Policy at the Treasury Department.
Early market reception for Build America Bonds has been very positive. Between the program launch on April 3, 2009 and January 31, 2010:
· There have been $70.8 billion in Build America Bond issuances;
· Build America Bonds now constitute about 19.2 percent of the municipal bonds market; and
· There have been a total of 834 separate issues of Build American Bonds by local or state governments in 47 states.
The data contained in this report are compiled by the Department of the Treasury using data available from Bloomberg and are not based on filings with the Internal Revenue Service.
Table 1: BAB Issuances and Volumes Time Period Number
IssuesVolume $Millions Percent of
Muni Total2009: April 12 7,632 20.1 May 41 2,699 8.3 June 85 4,968 10.9 July 70 3,532 12.9 August 107 9,632 24.5 September 112 6,795 20.7 October 111 12,940 29.6 November 105 7,482 16.1 December 98 8,016 27.8
April to December
741
63,697
19.0 2010:
January
93
7,070
21.3
Since BABs inception: April 2009 to January 2010 834 70,767 19.2
Table 2: BAB Issuances and Volumes by State as of 1/31/10 State Number of
IssuesTotal
Amount
Issued
($Millions)AK 2 160 AL 4 202 AZ 13 645 CA 70 16,261 CO 19 1,486 CT 5 844 DC 3 956 DE 1 179 FL 27 2,922 GA 7 703 HI 2 91 IA 30 497 ID 1 72 IL 94 4,853 IN 17 751 KS 31 855 KY 32 1,436 LA 7 532 MA 5 1,963 MD 16 1,431 MI 35 1,394 MN 50 457 MO 31 1,484 MS 2 162 NC 7 698 ND 4 25 NE 16 378 NH 2 225 NJ 16 2,791 NM 3 96 NV 8 1,283 NY 18 6,540 OH 36 2,156 OK 12 299 OR 2 22 PA 21 1,996 SC 16 479 SD 8 143 TN 15 344 TX 34 7,194 UT 19 1,330 VA 17 1,468 VT 1 41 WA 28 2,035 WI 44 835 WV 1 38 WY 2 13 Total 834 70,767
###
REPORTS