Ohio Public Facilities Commission
The OPFC issues general obligation bonds for common schools, higher education, natural resources, coal research and development, conservation projects, local infrastructure improvements, Third Frontier research and development, job-ready
site development, and veterans' compensation. Each of these currently authorized programs is described below.
Coal Research and Development - A 1985 constitutional amendment authorizes $100 million of general obligation debt to be issued to finance grants, loans, or loan guarantees for research, development, and implementation of coal technology that will encourage the use of Ohio coal. Funding is available to any individual, association, or corporation doing business, or to any educational or scientific institution located in the state. Additional debt may be issued as outstanding debt is retired, provided that not more than $100 million is outstanding at any time.
Common Schools - A 1999 constitutional amendment authorizes general obligation debt to be issued to pay the costs of school buildings and related capital facilities for a system of common schools throughout the state. There is no constitutional limit on the amount of debt that can be outstanding at any time. The full faith and credit, revenue (including net state lottery proceeds, if pledged) and taxing power (excluding highway user receipts) of the state are pledged to retire this debt.
Conservation - Constitutional amendments in 2008 and 2000 authorize $400 million of general obligation debt to be issued to finance preservation of green space and natural areas, development of recreational trails, and protection of farmland through the purchase of agricultural easements, all through partnerships with local governments. Not more than $50 million may be issued in any fiscal year. Additional debt may be issued as outstanding debt is retired, provided that not more than $400 million is outstanding at any time.
Higher Education - A 1999 constitutional amendment authorizes general obligation debt to be issued to pay the cost of school buildings and related capital facilities for state-supported and state-assisted institutions of higher education. There is no constitutional limit on the amount of debt that can be outstanding at any time.
Infrastructure Improvements - A 2014 constitutional amendment authorized $1.875 billion of general obligation debt as a 10-year extension of this program to finance public infrastructure capital improvements of municipal corporations, counties, townships, and other local government entities as designated by law, with an annual issuance limit of $175 million in the first five years increasing to $200 million in the second five-years. This extension followed a prior 10-year extension passed in 2005 which authorized an additional $1.35 billion of general obligation debt. Additionally, there were two prior debt authorizations for this purpose (passed in 1985 and 1995) that each authorized $1.2 billion in debt.
Natural Resources - A 1993 constitutional amendment authorizes $200 million of general obligation debt to be issued to finance capital facilities for parks and natural resources improvements. Additional debt may be issued as outstanding debt is retired, provided that no more than $200 million is outstanding at any time. Not more than $50 million may be issued in any fiscal year. The full faith and credit, revenue (excluding net state lottery proceeds), and taxing power (excluding highway user receipts) of the state are pledged to retire this debt.
Site Development - A 2005 constitutional amendment authorizes the issuance of $150 million of general obligation debt for the development of sites for industry, commerce, distribution, and research and development by preparing those sites for immediate development by business prospects. Not more than $30 million was permitted to be issued in each of the first three fiscal years and not more than $15 million in any other fiscal year.
Third Frontier Research and Development - Constitutional amendments in 2010 and 2005 authorize the issuance of $1.2 billion of general obligation debt to provide grants to nonprofit and for-profit entities for research and development projects in support of Ohio industry, commerce and business. Project awards focus on biosciences, advanced materials, information technology, power and propulsion, and instruments-controls-electronics. No more than $450 million total may be issued in state fiscal years 2006 through 2011, no more than $225 million in fiscal year 2012 and no more than $175 million in any fiscal year thereafter.
Veterans' Compensation - A 2009 constitutional amendment authorizes the issuance of state general obligation debt to provide compensation to persons who have served in active duty in the United States armed forces at any time during the Persian Gulf, Afghanistan, and Iraq conflicts. Not more than $200 million may be issued and no obligations may be issued later than December 31, 2013.
SEC Municipal Advisor Rule Exemption - OPFC Engagement of Independent Registered Municipal Advisors
Commodity Futures Trading Commission Regulation OPFC Engagement of a Qualified Independent Representative ("QIR")
As authorized for specified purposes by Section 2i of Article VIII of the Ohio Constitution, Special obligation bonds are secured by lease-rental payments that are subject to biennial appropriations from the state's operating budgets. Special obligation bonds are not secured by a pledge of the state's full faith and credit, and bondholders have no right to have taxes or excises levied by the General Assembly for the payment of debt service. Debt service payments are subject to biennial appropriations made in the benefitting agency's operating budget pursuant to leases or agreements entered into by those agencies. The Treasurer of State is the current issuer of the state's special obligation lease-rental bonds.
Treasurer of State
The Treasurer issues lease-rental obligations to house branches and agencies of state government or its functions, including facilities for mental health, parks and recreation, cultural and sports purposes, prisons and corrections, juvenile detention, and state office buildings and facilities for the Departments of Administrative Services, Transportation, and Public Safety and for the Bureau of Workers' Compensation.
Debt service on special obligations is generally paid from the GRF, with the exception of debt issued for DOT and DPS facilities which is paid from highway user receipts.
Administrative Building Facilities - Provides financing for capital facilities to house branches and agencies of state government, including state office buildings and facilities.
Correctional Facilities - Provides financing for adult prisons and other correctional facilities (including juvenile detention facilities and community-based facilities) for state and certain local government entities.
Cultural and Sports Capital Facilities - Provides financing for grants administered by the Ohio Cultural Facilities Commission for cultural and sports capital facilities at Ohio's non-profit theaters, museums, historical sites and publicly owned professional sport venues.
Mental Health Capital Facilities - Provides financing for capital facilities for state and local parks and recreation.
Parks and Recreation Capital Facilities - Provides financing for state and community-based capital facilities for mental health and developmental disabilities purposes.
Transportation and Highway Safety Buildings - Provides financing for capital facilities housing the Ohio Department of Transportation (ODOT) and the Ohio Department of Public Safety (DPS).
Debt service on these special obligations is paid from biennial appropriations from the state general revenue fund, except that debt service on obligations issued for ODOT and DPS facilities is payable from biennial appropriations of highway user
receipts, including the motor vehicle fuel tax.
Revenue Obligations Payable from Federal Title 23 Highway Funds
Treasurer of State
The Treasurer of State issues Major New State Infrastructure Project Revenue Bonds (also known as Grant Anticipation Revenue Vehicles or GARVEEs) to fund selected highway construction projects that have been approved by the U.S. Department of Transportation. The debt service charges on these bonds are secured by and payable primarily from Federal Title 23 Highway Funds received and to be received by the state, subject to biennial appropriations by the General Assembly.
Buckeye Tobacco Settlement Financing Authority
The Buckeye Tobacco Settlement Financing Authority (BTSFA) was created in June 2007 (House Bill 119 of the 127th General Assembly) for the sole purpose of purchasing and receiving any assignment of tobacco settlement receipts ("TSRs") pursuant to the Tobacco Master Settlement Agreement (the "MSA") and issuing obligations to provide financing of essential State functions and facilities. BTSFA, codified in ORC section 183.52, is a body both corporate and politic comprised of the Governor, Treasurer, and the Director of Budget and Management. In October 2007, the Authority entered into a Purchase and Sale Agreement with the State wherein the State transferred to the Authority all of its rights and interests under the MSA between all participating States and the participating Tobacco manufacturers. These rights include the State’s share of all TSRs received on or after October 29, 2007 to be received under the MSA until the date on which all bonds have been fully repaid.
Tobacco Settlement Documents
BTSFA Series 2020 Bond Documents
SEC Municipal Advisor Rule Exemption -
BTSFA Engagement of Independent Registered Municipal Advisors
Annual Disclosure is available on the Municipal Securities Rulemaking Board (MSRB) website in the Electronic Municipal Market Access (EMMA) database. In addition, OBM has engaged Digital Assurance Certification, LLC (DAC) to serve as the BTSFA’s primary Disclosure Disseminating Agent. The DAC website also gives investors access to the BTSFA's official statements and disclosure.
Electronic Municipal Market Access
Digital Assurance Certification, LLC
Buckeye Tobacco Settlement Financing Authority Meetings
All Other Issuers
Links to other state issuers websites: