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CFO Sink Commends Use of Build America Bonds, Resulting in $56 Million Saved

7/1/2009

CONTACT: Kyra Jennings or Jayme O’Rourke (850) 413-2842

TALLAHASSEE – Florida CFO Alex Sink today commends the Division of Bond Finance for taking advantage of the Build America Bonds program, saving $56 million dollars for the taxpayers of Florida.

“I applaud the Division of Bond Finance for taking smart steps to utilize federal stimulus money and save the taxpayers of Florida millions of dollars,” said CFO Sink.  “In our current budget situation, our state must do everything it can to get our fair share of federal funds and find innovative ways to save money.  Making sure that Florida was taking advantage of these Build America Bonds was a great way to see millions in cost savings.”

The state of Florida will save over $1.7 million annually and $56.1 million overall by utilizing the Build America Bonds.  Division of Bond Finance Director, J. Ben Watkins III, was singled out by CFO Sink as a leader in using federal stimulus money to lower costs for Floridians.

Because the interest rate on the Build America Bonds with the $131.3 million federal rebate is less than traditional tax-exempt financing, total interest cost savings over the 30-year term of the financing will be $56,103,292.  Build America Bonds are new tax incentives created by the American Recovery and Reinvestment Act.  With Build America Bonds, Florida can receive a tax rebate from the Federal government equal to 35% of the interest costs.

CFO Sink noted that with this smart use of federal stimulus money, Florida is one step closer to getting our state’s fair share of federal funds.  Earlier this year, CFO Sink released a report specifically outlining steps Florida could take to maximize federal funding, which can be found at MyFloridaCFO.com. 

As a statewide elected officer of the Florida Cabinet, CFO Alex Sink oversees the Department of Financial Services.  A successful businesswoman with nearly three decades of experience in the private sector, Sink is serving her first term as Florida's CFO.  As CFO, Sink's priorities include using her business experience to cut wasteful government spending, cracking down on financial and insurance fraud and reforming the state government's contracting practices.