1. Project Finance Eric Bode

2. Tobacco Securitization Approved as part of FY08-09 Budget

3. OSFC Funding Sources GRF- backed bonds Tobacco settlement funds Cash Transfers and other Total need = $14.8 billion estimate

4. Priority of Districts Move up the equity list In FY1998, start with #1 In July, 2007, reached #243 In July, 2008, reached #341 Next group: through #375 Voluntary program

5. Timeline

6. State/Local Share A set percentage, locked in at beginning of project x = Local Share Local % MFP Budget

7. Local Share Determination Set in state law, unchanged since 1997 Higher of 2 Calculations 1. District’s percentile on equity list 2. “Net bonded indebtedness” Locked in for ELPP districts

8. Financial Requirements of School Districts 1.Obtain local share 2.Obtain maintenance funding (half mill X 23 years) 3.Share in financial risk

9. School District Financing Flexibility in ways to obtain local share Nearly all do some type of levy Must get $ within one year of OSFC approval

10. The Cost of Waiting

11. Project Finance Sign Project Agreement Approvals from District and OSFC District Treasurer pays all the bills

12. Locally Funded Initiatives What are they? Examples Process for approval May be early financial decision

13. Questions? Eric Bode Chief Financial Officer Ohio School Facilities Commission eric.bode@osfc.state.oh.us 614-466-7011 Lois Snyder Deputy Chief Financial Officer Lois.snyder@osfc.state.oh.us 614-995-4552