The State Property and Buildings Commission (SPBC) is an independent agency of the Commonwealth with power, subject to approval by and in cooperation with the Cabinet, to finance the acquisition of real estate and the construction and equipping of building projects and other public projects for any agency of the Commonwealth. SPBC is authorized to execute lease agreements with those state agencies requesting SPBC to issue revenue bonds, which leases provide for the payment of lease rentals to SPBC in order to make payments on the revenue bonds issued in the name of SPBC. Prior approval of projects and appropriations of debt service by the General Assembly are required for SPBC to issue debt.
The Turnpike Authority of Kentucky (TAK) is authorized, subject to the limitations contained in the Biennial Appropriations Act and terms of written agreements with the Transportation Cabinet, to construct, reconstruct, maintain, repair and operate turnpike projects, resource recovery road projects, and economic development road projects, to lease such projects to the Transportation Cabinet and to issue its revenue bonds, revenue refunding bonds, revenue notes and revenue bond anticipation notes to finance such projects. Prior approval of projects and appropriation of debt service by the General Assembly are required for TAK to issue debt.
The Kentucky Asset/Liability Commission (ALCo) was created by the General Assembly to develop policies and strategies to minimize the impact of fluctuating interest rates on the Commonwealth’s interest-sensitive assets and interest-sensitive liabilities. ALCo is authorized to issue tax and revenue anticipation notes, project notes and funding notes to provide financing of capital projects and cash flow borrowings to meet the working capital needs of the Commonwealth. Prior approval of projects and appropriation by the General Assembly are required for ALCo to issue debt, exclusive of cash flow borrowings within a fiscal year.
Kentucky’s public colleges and universities (1), with prior approval and appropriation of debt service by the General Assembly, may use debt financing for capital projects, including the construction of educational buildings, housing, and dining facilities; informational technology projects; and equipment.
Kentucky public universities are:
The Kentucky Housing Corporation (KHC) is a de jure municipal corporation and political subdivision of the Commonwealth established to serve a public purpose by increasing the supply of decent, safe and sanitary residential housing for persons and families of lower and moderate-income through, among other things, (i) originating or participating in the origination of insured low-interest construction loans, (ii) originating or participating in the origination of insured low-interest mortgage loans and (iii) purchasing or participating in the purchase of insured mortgage loans; in each case upon KHC’s determination that construction loans or mortgage loans, as the case may be, have been refused in writing, wholly or in part, by private lenders in the Commonwealth on reasonably equivalent terms and conditions. KHC is statutorily limited to $5 billion of debt outstanding.
The Kentucky Infrastructure Authority (KIA) is a de jure municipal corporation and political subdivision of the Commonwealth, created to engage in programs of financial assistance to governmental agencies in the state with respect to the construction and acquisition of infrastructure projects. KIA currently has four active loan programs, two of which are federally assisted through the Environmental Protection Agency. Prior appropriation of debt service by the General Assembly is required for KIA’s revolving loan programs to issue debt. Other KIA loan programs are statutorily limited to debt outstanding of $500 million without legislative authorization.
The Kentucky Higher Education Student Loan Corporation (KHESLC) was established to provide a program of financing, making and purchasing student loans in the Commonwealth. KHESLC is statutorily limited to $5 billion of debt outstanding.
The Kentucky Economic Development Finance Authority (KEDFA) was created to cooperate with local development agencies in their efforts to promote the expansion of business and job opportunities in Kentucky, to foster economic development and prevent unemployment through the retention, promotion, and development of health care and health-related facilities, and to issue revenue bonds. KEDFA utilizes low-interest loans, grants, and tax credits to developing businesses and manufacturing entities expanding or locating facilities in the Commonwealth.
The Kentucky Public Transportation Infrastructure Authority (KPTIA) was established in 2009 by the Kentucky General Assembly to review, approve, and monitor certain significant transportation projects within the Commonwealth and between the Commonwealth and the State of Indiana and, if necessary, to assist with the operation, financing, and management of those projects. Prior approval of projects by the General Assembly is required for debt issuance.