Learn about Virginia General Obligation Bonds, including Featured News, The Team, and Treasury Board.
General Obligation Bonds of the Commonwealth are secured by a pledge of the full faith and credit. The Virginia Constitution sets out the requirements for Commonwealth debt in Article X, Section 9. General Obligation Bonds of the Commonwealth are currently rated in the highest bond ratings category - AAA, Aaa and AAA by Fitch, Moody's and Standard and Poor's, respectively.
Section 9(b) of Article X of the Constitution permits the issuance of general obligation debt for capital projects upon authorization by the General Assembly, and upon approval by a majority of the voters at referendum. The last referendum was held in 2002, when general obligation bonds were authorized for up to $900.5 million for capital projects at educational facilities of the Commonwealth. In the same year, up to $119.0 million was authorized for state park and recreational facilities. These bonds have all been issued.
Section 9(c) of Article X of the Constitution permits the issuance of general obligation bonds without voter approval for specific revenue-producing capital projects secured by net revenues derived from rates, fees and charges of the project, and the full faith and credit of the Commonwealth. The debt must be authorized by the affirmative vote of two-thirds of the members elected to each house of the General Assembly. 9 (c) Bonds are frequently authorized and issued for revenue producing projects such as higher education dormitories and dining facilities.
$160,240,000 Commonwealth of Virginia General Obligation Bonds, Series 2019A (Negotiated), General Obligation Refunding Bonds, Series 2019B (Negotiated) and General Obligation Refunding Bonds, Series 2019C (Competitive) (Federally Taxable) Investor Presentation
Virginia Governor Ralph Northam announces that Commonwealth of Virginia reached the end of fiscal year 2019 with a sizable revenue surplus.
For Immediate Release: June 8, 2018
Contacts: Office of the Governor: Ofirah Yheskel, Ofirah.Yheskel@governor.virginia.gov
Following budget adoption, agency moves outlook back to stable
RICHMOND—Governor Ralph Northam today issued the following statement regarding S&P Global Ratings’ move to affirm Virginia’s AAA bond rating and upgrade the Commonwealth’s financial outlook to stable. In April 2017, the ratings agency downgraded the Commonwealth’s outlook from stable to negative. The upgrade follows Governor Northam’s adoption of a historic budget that expands Medicaid and allocates more dollars for the state’s primary reserve funds.
“I’m encouraged that the actions we’ve taken to shore up our reserve funds and to finalize a fiscally sound budget have resulted in an upgraded outlook from S&P Global Ratings. This demonstrates the fiscal health of the Commonwealth and affirms the work we have done over the course of the session to ensure our critical AAA bond rating remains intact.
“This is a positive sign for Virginia’s economy and I look forward to continuing to work with the General Assembly to make the Commonwealth work better for every family.”
The Treasury Board is a policy board in the executive branch of state government established under Section 2.2-2416 of the Code of Virginia. Among its powers and duties, the Treasury Board exercises general supervision over all investments of state funds, administers the Security for Public Deposits Act and the State Non-Arbitrage Program, makes recommendations to the Governor on proposed financing arrangements, approves the terms and structure of certain bonds or other financing arrangements paid from state appropriations - which includes General Obligation Bonds, establishes guidelines for bonds or financing arrangements, and approves the financial terms of lease purchases for state agencies.
Statutory Requirements for Membership: Under Section § 2.2-2415 of the Code of Virginia the Treasury Board is comprised of the State Treasurer (Chair), the Comptroller, the State Tax Commissioner, and four additional members appointed by the Governor. Appointees have a background and experience in financial management and investments, and serve at the pleasure of the Governor.