RICHMOND, Va. (AP) - Virginia Gov. Ralph Northam is announcing a new plan to refinance debt related to construction on college campuses, a move he said will save public colleges $300 million over the next two years.
Northam made the announcement Tuesday at George Mason University, which the governor’s office said will save $58.3 million over the next two years.
The governor said the state will take advantage of low interest rates by refinancing bonds issued by the Treasury Board of Virginia and the Virginia College Building Authority. Northam said colleges would not have to make any principal payments on any VCBA bonds through fiscal 2023.
Northam’s plan comes amid widespread disruption at Virginia colleges due to the coronavirus. The impact of the governor’s refinancing plan will affect schools differently. Under Northam’s plan, James Madison University will save $43.7 million and Virginia Tech will save $40 million, while the University of Virginia is expected to see only about $344,000 in savings.
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