State of Georgia debt management plan 2024-2028

STATE OF GEORGIA DEBT MANAGEMENT PLAN
JANUARY 2024 UPDATE for FISCAL YEAR 2024 FISCAL YEAR 2028

Georgia State Financing and Investment Commission
Members
GOVERNOR BRIAN P. KEMP - Chairman
LIEUTENANT GOVERNOR BURT JONES - Vice Chairman
STATE AUDITOR GREG S. GRIFFIN Secretary/Treasurer
SPEAKER OF THE HOUSE OF REPRESENTATIVES JON G. BURNS
ATTORNEY GENERAL CHRISTOPHER M. CARR
COMMISSIONER OF AGRICULTURE TYLER HARPER
STATE TREASURER STEVE McCOY
Construction Division Director Marty W. Smith Executive Secretary to the Commission
Financing and Investment Division Director Diana Pope

TABLE OF CONTENTS
Executive Summary .............................................................................................................. 1 Constitutional and Statutory Framework for State Debt ................................................. 2 Types of Debt Obligations.................................................................................................... 5 Other Long-Term Obligations............................................................................................. 13 Debt Structure....................................................................................................................... 16 Debt Affordability................................................................................................................. 16 Conclusion ............................................................................................................................. 26
Tables Summary of Projected Debt Ratios (GO Bonds and GR Bonds) ........................................ 28 Summary of Projected Debt Ratios (GO Bonds, GR Bonds, and GARVEEs).................... 29
Appendix A: State of Georgia General Obligation Bonds and Guaranteed Revenue Bonds Debt Service Schedules
Appendix B: State Authority Debt Service Schedules (as of June 30, 2023) Georgia Higher Education Facilities Authority ................................................................... B-1 Georgia Housing and Finance Authority ............................................................................. B-2 Lake Lanier Islands Development Authority....................................................................... B-3 Georgia Ports Authority ...................................................................................................... B-4 State Road and Tollway Authority ...................................................................................... B-5 Georgia World Congress Center Authority ......................................................................... B-6

STATE OF GEORGIA DEBT MANAGEMENT PLAN FISCAL YEAR 2024 FISCAL YEAR 2028
EXECUTIVE SUMMARY
Each January, the Georgia State Financing and Investment Commission (the Commission) updates the State's debt management plan (the Plan) to provide projections of the State of Georgia's general obligation (GO) and guaranteed revenue (GR) debt (principal amount) and the annual debt service requirements (principal and interest due to be paid during a fiscal year). The Plan covers the current fiscal year and the four succeeding fiscal years. The resulting projected highest annual debt service requirements (HADS) are compared to the prior year's State's treasury receipts (the HADS requirements includes debt service for authorized unissued debt). This ratio, which is limited by the State's Constitution at a maximum of 10%, assists the General Assembly in their consideration of the authorization of new State general obligation and guaranteed revenue bond debt during the annual appropriations process. Projected authorizations of new debt may be increased or decreased depending on the capital needs of the State and projections of estimated treasury receipts in future years.
The table on the following page shows actual (FY 2019 FY 2023) and projected (FY 2024 FY 2028) authorizations for GO debt and GR debt for capital projects, bond issuances for each fiscal year and the resulting ratio of combined annual GO and GR debt service to prior year State treasury receipts. New debt authorizations may not all be issued in each year, and to the extent there are any unused authorizations carried over from prior fiscal years, the amount of bonds issued in a fiscal year may exceed the amount of new authorizations for that fiscal year by up to the carryover amount. The approximately $702.7 million of general obligation debt authorized for FY 2024 addressed capital needs for education (K-12 needs and higher education facilities for the University System of Georgia (USG) and the Technical College System of Georgia (TCSG)), public safety, economic development, and various improvements to facilities of the State. The $670.9 million issued in FY 2024 includes $520.6 million from new FY 2024 debt authorizations and $150.3 million from prior year authorizations. The FY 2024 debt authorization is lower compared to prior years due to the State appropriating cash proceeds to various state agencies. Beginning with the FY 2022 amended budget, over $1.5 billion in cash has been appropriated to state agencies for various capital project needs. Additionally, the Governor's budget proposal recommends cash be appropriated to the Commission to fund various capital project needs in both the Amended FY 2024 and FY 2025 budgets. The cash appropriation recommendation of $1 billion for the Amended FY 2024 budget addresses the State's needs for certain significant one-time capital investments, with a significant portion for maintenance to extend the useful life of existing assets. The FY 2025 budget's cash funded proposal eliminates the need to issue new GO debt to fund $900 million of capital projects.
The planning level for new GO debt authorizations is $900 million, beginning with FY 2026. No additional new authorizations for GR debt are projected during the planning period; however, it currently is expected the unissued FY 2022 authorization of GR debt ($199.6 million) will be issued during FY 2026. The corresponding HADS ratios are based on the actual
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or scheduled debt service payments for all currently outstanding GO bonds and GR bonds plus the projected debt service appropriations for new debt authorizations.

$ - Millions Fiscal Year

2019

Actual Amounts

Projected Amounts*

2020 2021 2022 2023 2024 2025 2026 2027 2028

New GO Authorizations

$1,184

$1,096

$1,129

$983 $939 $703

$900 $900 $900

Capital Project Fund Cash
Appropriations

$900

GO Issuances $1,320 $997 $1,139 $1,139 $754 $671

$1,289 $900 $900

New GR Authorizations

$567

GR Issuances

$367

$200

HADS Ratio
(Highest annual debt service to Prior Year
State Treasury Receipts)

5.1%

*As of January 1, 2024

4.9%

4.7%

4.1% 3.7% 3.6% 3.7% 3.6% 3.8% 3.7%

Various State authorities are authorized by State law to transact multi-year debt obligations which are secured by revenues of the authority; however, these obligations are not included in the debt service ratio as defined in the Constitution. The act creating the Commission established the Commission as having final authority to authorize the issuance of any new debt by State authorities and in setting the parameters for the incurring of that debt. These debt obligations, which are backed only by the designated revenues, are commitments of the issuing State Authority only; there is no legal recourse to the State for repayment of the obligations. The obligations of State authorities are discussed in more detail, beginning on page 10.

There are other types of multi-year debt obligations, which even though they do not meet Georgia's constitutional definition of debt, generally are considered by the credit markets and rating agencies as de facto debt of the State (or the USG) and thus that debt does have credit rating implications for the State. The two primary types of such obligations are (1) lease obligations of State agencies and (2) the debt of foundations and cooperative organizations associated with the USG and its various institutions. In compliance with various Statements of the Governmental Accounting Standards Board (GASB), these obligations are reflected in the State's Annual Comprehensive Financial Report and are discussed on page 13.

CONSTITUTIONAL AND STATUTORY FRAMEWORK FOR STATE DEBT In November 1972 the electorate of the State approved a comprehensive amendment to the
Constitution (the 1972 Amendment), which permitted the State to finance its capital project
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needs directly through the incurring of GO debt and GR debt, both of which are secured by the full faith and credit of the State. The 1972 Amendment also included a prohibition against the State entering into any new lease/rental agreements if those agreements would serve as security for financings by State authorities or other public institutions. The State's first issue of GO bonds subsequent to the 1972 Amendment was in September 1974 with the issuance of $20 million series 1974A general obligation bonds.
With the ratification of a new Constitution in 1983, the ratio of maximum fiscal year GO and GR debt service to prior year State treasury receipts was lowered to 10% from its initial level of 15%. The parameters established by the Constitution regarding the issuance of GO and GR debt form a solid foundation supporting the highest possible ratings which have been assigned by the bond rating agencies to the State's debt, and the credit markets' high regard of the State's debt. Some of the key provisions of the Constitution include:
a prohibition against incurring additional debt (either via issuance of GO bonds or GR bonds) which would cause the highest aggregate annual debt service in the then current year or any subsequent year to exceed 10% of the total State treasury receipts for the fiscal year preceding the issuance of the additional debt;
explicit descriptions of the types of capital projects which can be funded with GO and GR debt;
a requirement that the maximum annual debt service for proposed new debt be appropriated at the time the debt is authorized;
a requirement for full appropriation each fiscal year of the amount necessary to pay the aggregate debt service coming due for that year;
a provision that debt service appropriations for new debt authorizations which were not issued do not lapse at the end of the fiscal year in which they were authorized;
a provision for repeal, prior to the incurring of the debt, of GO and GR debt authorizations by the General Assembly;
guidelines as to how GO and GR debt may be refunded to ensure that there is no incremental increase in debt service in any future year and to prohibit the extension (final maturity) of the debt as a result of the refunding;
limitations on cash flow borrowing for operating budget purposes; a prohibition against the issuance of any new Authority debt which would be secured by
lease agreements with State agencies or departments, as had been utilized extensively by the State prior to the 1972 Amendment; a provision that should the amount appropriated for debt service payments be insufficient for any reason to make all payments due with respect to GO debt, the first revenues thereafter received in the general fund of the State must be set aside to the extent necessary to cure any such payment deficiency; an explicit right established by the Constitution for any GO debt holder to bring suit, if necessary, to compel the appropriate state fiscal officer to meet the obligation to set aside the first revenues received after a determination that insufficient funds have been set aside for payment of all payments due with respect to GO debt of the State; guidelines as to the issuance of GR debt including a requirement that there be a debt service reserve funded at the time the debt is incurred in an amount equal to the highest
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annual debt service amount for that debt, and provisions for the replenishment of that reserve from state treasury receipts should there ever be a need to utilize any of the funds within the reserve for payment of debt service, and an explicit right established by the Constitution for any GR debt holder to bring suit, if necessary, to compel the appropriate state fiscal officer to meet the obligation to apply funds to the debt service reserve fund per the requirements of the Constitution.
The issuance of all State debt, and debt issued by State authorities, is subject to Commission approval unless there is a statutory exception. The Commission is comprised of seven members, all of whom serve in an ex-officio capacity with the three officer designations as established in the Constitution: the Governor of the State serves as Chairman, the President of the Georgia State Senate (the Lieutenant Governor) serves as Vice-Chairman, and the State Auditor serves as Secretary and Treasurer. Other members of the Commission are the Attorney General, the Commissioner of Agriculture, the Speaker of the House of Representatives, and the State Treasurer.
Pursuant to the Constitution, the Commission is charged with the following responsibilities:
the issuance of all public debt of the State, the proper application of the proceeds of such debt to the purposes for which it is
incurred, the investment of all proceeds to be administered by the Commission, providing debt related financial advisory services to State authorities and agencies, providing construction services for State agencies for GO debt funded projects, and additional responsibilities as provided by law.
In summary, the Constitution provides for the issuance, and limitations and conditions thereon, by the State of both GO debt and GR debt, and establishes that the full faith, credit, and taxing power of the State is pledged to the repayment of both of these types of public debt. During the legislative session each year as part of the budget appropriations process, the General Assembly may authorize new GO debt to be issued by the State and/or GR debt to be issued by various State authorities; the Governor may approve or veto individual debt authorizations included in the appropriations bill. The Constitution also provides for the issuance of revenue debt which may be issued by certain State authorities as authorized by State statute; such nonguaranteed revenue debt cannot be secured by the full faith, credit, and taxing power of the State, but instead must be secured only by specified revenues of the Authority pursuant to the Act creating and governing the Authority.
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TYPES OF DEBT OBLIGATIONS
General Obligation Debt
The Constitution limits the use of GO debt to the following purposes: to acquire, construct, develop, extend, enlarge, or improve land, waters, property,
highways, buildings, structures, equipment, or facilities of the State, its agencies, departments, institutions, and of certain State authorities; to provide educational facilities for county and independent school systems and for public library facilities for county and independent school systems, counties, municipalities, and boards of trustees of public libraries or boards of trustees of public library systems; and, to make loans to counties, municipal corporations, political subdivisions, local authorities, and other local government entities for water or sewerage facilities or systems, or for regional or multi-jurisdictional solid waste recycling or solid waste facilities or systems.
For the first two purposes described above, the State Constitution limits the term of GO debt to 25 years. As a matter of practice, however, the General Assembly typically approves the issuance of GO debt with a final maturity of not more than 240 months (20 years) from the date that the debt is incurred for major construction and renovation projects, or for a shorter final maturity (generally 60 months) for less extensive repair projects and capital equipment needs; this is done so the term of the debt does not exceed the useful life of the specific projects and equipment being funded.
The following chart provides a history of net GO debt authorizations beginning with FY 2008 (net GO debt is equal to original new authorizations less any deauthorizations by the General Assembly prior to the debt being incurred). In response to the decline in State revenues during and after the end of the 2007-2009 recession, the State reduced the amount of new authorizations for GO debt as compared to preceding years to only the most critical infrastructure projects in order to help bring the various debt ratios back within planning limits sooner rather than later. As State revenues slowly recovered after that recession, new debt authorizations also were returned to more normal levels. The COVID-19 Recession in 2020, which officially lasted only two months, did not result in as severe of a drop of State revenues, or for an extended duration as did the 2007-2009 recession, and thus did not require the same level of response with respect to reducing new debt authorizations. Instead, excess revenues above budget estimates provided opportunities for additional capital investments. Beginning in FY 2022, cash appropriations to various state agencies has funded a total of over $1.5 billion for capital project investments, thus reducing the amount needed to be funded with GO debt.
(Chart shown on following page.)
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Millions

$1,400

General Obligation Debt Net Authorizations

$1,200 $1,000
$800 $600

$1,201

$1,210

$1,024

$838

$1,097

$1,166$1,184$1,096$1,129

$847 $865

$949

$983 $939

$750 $632

$703

$400

$200

$0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

GO debt may be incurred only if the General Assembly first enacts legislation as part of the annual appropriations bill or the amended annual appropriations bill. The appropriation language includes the following: (1) the purpose(s) for the debt (in either general or specific terms), (2) the authorized maximum principal amount of the debt, (3) the amount appropriated for annual debt service, and (4) the maximum maturity of the debt. The Governor may approve or veto debt authorizations on an individual basis as part of signing the appropriations bill legislation into law. Authorizations for debt and the appropriations made for payment of debt service on that debt do not lapse at the end of the fiscal year even if the debt is not incurred and continue in effect until either the debt for which the appropriation was authorized has been incurred, or the authorization has been repealed by the General Assembly. The following chart illustrates how the GO net debt authorizations in aggregate of approximately $11.0 billion during the FY 2014 through FY 2024 period were distributed among major functions and programs of the State.
General Obligation Debt Net Authorizations by Program

6%

2%

9%

27%

10%

11% 34%

K-12 Education Higher Education Public Safety Economic Development Transportation Water & Sewer Other

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The Constitution requires that each fiscal year the appropriations for debt service payments on all GO debt be made to a special trust fund which is designated as the State of Georgia General Obligation Debt Sinking Fund. The amount to be appropriated to the sinking fund must be sufficient to pay that year's debt service on all outstanding GO debt plus the maximum annual debt service requirement on all authorized but unissued debt.
As a further safeguard against there being any shortage in the sinking fund necessary to make all required debt service payments, the Constitution provides that should the General Assembly fail to make sufficient appropriation to the sinking fund as described above, or if for any reason the amount in the sinking fund is insufficient to make all required debt service payments during the fiscal year, the first revenues thereafter received in the general fund of the State, to the extent necessary to cure the deficiency, are to be set aside and deposited into the sinking fund.
As of June 30, 2023, there was approximately $9.5 billion of GO debt outstanding (see Appendix A, page A-1). In July 2023, the State funded over $670.9 million of GO bond authorizations leaving approximately $388.9 million of GO debt authorizations available for future issuances. The net effect of these transactions, together with scheduled principal payments and other defeasance transactions which were made from July 1, 2023 through December 31, 2023, was that as of December 31, 2023 the total GO debt outstanding had decreased slightly by $27.1 million. As of the date of this Plan, there are no plans for additional issuance of GO bonds for the remainder of FY 2024. New capital project authorizations totaling $900 million for FY 2025 are projected to be funded with cash appropriations instead of with GO debt.
The following chart depicts the annual debt service on all currently outstanding GO debt plus the projected annual debt service on the debt currently authorized but not yet incurred, as well as projected future new debt authorizations annually of $900 million, beginning with FY 2026. FY 2024 debt service of approximately $1.2 billion represents actual scheduled debt payments on GO bonds that have already been issued.
General Obligation Bonds Debt Service FY 2024 - FY 2044
$1,500

$1,250

$1,000

Millions

$750

$500

$250

$0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044

Principal (Issued Bonds Only - as of 12/31/2023)

Interest (Issued Bonds Only - as of 12/31/2023)

Debt Service for FY 2026 - FY 2028 Projected Issuances Debt Service for FY 2029 - FY 2044 Projected Issuances

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Guaranteed Revenue Debt
GR debt is revenue debt issued by a State authority for which the State, via the legislative process, has guaranteed the repayment. The Constitution limits the use of GR debt to the following purposes:
toll bridges or toll roads, land-based public transportation facilities or systems, water facilities or systems, sewage facilities or systems, loans to, and loan programs for, citizens of the State for educational purposes, and regional or multi-jurisdictional solid waste recycling or solid waste facilities or systems.
The amount of GR debt which may be issued to fund water or sewage treatment facilities or systems is limited by the Constitution as follows:
"No guaranteed revenue debt may be incurred to finance water or sewage treatment facilities or systems when the highest annual debt service requirements for the then current year or any subsequent fiscal year of the State for outstanding or proposed guaranteed revenue debt for water facilities or systems or sewage facilities or systems exceed 1 percent of the total revenue receipts less refunds of the State treasury in the fiscal year immediately preceding the year in which any such debt is to be incurred."
There also is a limit on the amount of GR debt for educational purposes:
"The aggregate amount of guaranteed revenue debt incurred to make loans for educational purposes that may be outstanding at any time shall not exceed $18 million, and the aggregate amount of guaranteed revenue debt incurred to purchase, or lend or deposit against the security of, loans for educational purposes that may be outstanding at any time shall not exceed $72 million."
Prior to incurring GR debt, legislation must be enacted by the General Assembly and signed into law by the Governor authorizing the guarantee of the proposed debt obligation. In the legislation, which generally is part of the annual appropriations bill for the State, the General Assembly must determine conclusively that such obligations will be self-liquidating over the life of the obligation, specify the maximum principal amount of such obligation, and appropriate an amount at least equal to the highest annual debt service requirement for the obligation which must be deposited into a special trust fund designated as the State of Georgia Guaranteed Revenue Debt Common Reserve Fund (the common reserve fund) at the time the GR debt is incurred. The common reserve fund provides a reserve for debt service payments pursuant to the State guarantee(s) made in connection with each GR debt obligation. Appropriations of the maximum annual debt service made for the benefit of GR debt do not lapse for any reason and the appropriations continue in effect until the debt for which such appropriation was authorized has been incurred. The authorization and appropriation of debt service may be repealed provided such repeal occurs prior to the debt being incurred and payment made into the common reserve fund for the highest annual debt service requirement of the debt.
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If the revenue pledged to the payment of the GR debt is not sufficient to meet the debt service requirement and any portion of the debt service payment is required to be made utilizing funds in the common reserve fund, the Constitution mandates that the common reserve fund must be reimbursed from the State's general funds within ten (10) days after the start of the next fiscal year to restore the common reserve fund to the required amount. The requirement to reimburse the common reserve fund for any such payment is subordinate only to the obligation to make sinking fund deposits for the payment of GO debt.
The Constitution requires that the amount to the credit of the common reserve fund must at all times be at least equal to the aggregate highest annual debt service requirements for each outstanding GR bond series; the Constitution also provides that any excess funding in the common reserve fund at fiscal year-end is to be transferred to the State's general fund.
As of June 30, 2023, there was a total of $386.6 million of GR debt outstanding (see Appendix A, page A-2) with a common reserve fund requirement of $45.1 million; all outstanding GR debt was issued by the State Road and Tollway Authority (SRTA). The final 2016 refunding bonds principal payment made on October 1, 2023, reduced the total principal amount of GR debt outstanding to $367.38, which will leave only the 2021 GR bonds outstanding. The 2021 GR bonds were issued based on a FY 2022 authorization, of which $199.6 million is remaining. SRTA expects it will issue the remaining portion during fiscal year 2026.
The following chart shows the scheduled annual debt service payments for all outstanding GR debt (as of June 30, 2023) through fiscal year 2044. The final payment of $19.7 million for the Series 2016 Refunding Bonds occurs in FY 2024, and the final payment of $25.2 million for the Series 2021A and 2021B Bonds is scheduled for FY 2052. The chart also shows the required highest annual debt service amount for the guaranteed debt common reserve fund, which has an annual average of $25.3 million for fiscal years 2025 through 2052.
Guaranteed Revenue Bonds Debt Service as of June 30, 2023
$45 $40 $35 $30 $25 $20 $15 $10 $5 $0
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044
SRTA Series 2016 Refunding
SRTA Series 2021A and 2021B
Guaranteed Debt Common Reserve Requirement
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Millions

Refunding Opportunities
To ensure that the debt service on the State's outstanding debt is minimized, the Commission continuously monitors market conditions to determine if any outstanding debt could be refunded and thereby reduce future debt service payments. Refunding bond issues must comply with the requirements of the Constitution and the Commission's official policies which include: refunding debt may not extend the term beyond the term of the refunded debt; refunding debt may not increase debt service in any fiscal year; refunding debt should produce minimum present value debt service savings of 3% for a current refunding or 4% minimum present value debt service savings for an advance refunding. (Note: the terms "current refunding" and "advance refunding" are references to specific federal tax law definitions for two different refunding structures; current refundings can be federally tax-exempt; however, advance refundings are prohibited from tax-exempt issuances under the current federal tax regulations.) The minimum present value percentages can be waived should the Commission deem that to be appropriate for the circumstances. The increase in interest rates during calendar years 2022 and 2023 has impacted refunding opportunities in the near term. Beginning with FY 2005, a total of over $716.5 million in total cash flow savings to the State's General Obligation Debt Service Sinking Fund have been achieved by refunding transactions to date.
Authority Debt
Certain state authorities are authorized by statute to issue revenue bonds for various revenueproducing undertakings. Since such revenue debt incurred by state authorities is typically not tax-supported and there is no State guarantee regarding payment of the debt service (except in the case of the previously described GR debt obligations), the issuance of such debt by state authorities does not directly impact the State's debt burden or debt capacity. Unless specifically exempted by its statute, Commission approval is required before any authority debt can be incurred, including any line(s) of credit for operating cash flow purposes. Following is a brief summary of those state authorities which have revenue bonds or other debt obligations currently outstanding. Unless noted otherwise, all figures are as of June 30, 2023, with the outstanding amounts updated as of December 31, 2023. (See Appendix B for authority debt service schedules as of June 30, 2023.)
The Georgia Higher Education Facilities Authority (GHEFA) is authorized to incur debt to finance self-liquidating capital projects for the USG and the TCSG; GHEFA is authorized by statute to have outstanding at any point in time a maximum debt of $500 million. GHEFA issued revenue bonds in 2008, 2009, and 2010 which financed a total of eighteen projects at thirteen separate USG institutions; all of the original bonds have been subsequently refunded or defeased and only the three series of refunding bonds issued in 2015, 2019, and 2020 currently are outstanding. As of June 30, 2023, the aggregate principal amount of outstanding GHEFA bonds was just under $164.0 million - no additional bonds matured between then and December 31, 2023 and thus the balance outstanding remained the same.
The Georgia Housing and Finance Authority (GHFA) is authorized to issue bonds and notes for the purpose of facilitating economic development including the underwriting or purchase of single-family residential mortgages; the improvement of public health, safety, and welfare; and for other public purposes, including healthcare services. By
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statute, GHFA may have a maximum aggregate amount of bonds and notes outstanding at any point in time of $3 billion for GHFA's single-family residential housing program, excluding refunding bonds and notes. As of June 30, 2023, GHFA had approximately $1.5 billion bonds outstanding, all of which were for its single-family residential housing program. In November 2023 GHFA issued its 2023B bonds and along with additional principal redemptions during the second half of the calendar year, GHFA's total outstanding bonds increased by just under $91 million. GHFA received Commission approval in January 2024 to issue up to $250 million of bonds during calendar year 2024 for its single-family residential mortgage loans program.
The Lake Lanier Islands Development Authority (LLIDA) is authorized to issue revenue bonds and borrow money (no debt limit is specified in the LLIDA Act) for the purpose of improving, developing, and promoting the islands in Lake Lanier as a recreational and convention location. In 2008, LLIDA issued $10 million revenue bonds for roadway and other capital improvements; it also borrowed approximately $15.1 million from Georgia Environmental Financing Authority (GEFA) to make improvements to its sewerage system (the interest rate on the 2008 GEFA loan was reduced in 2019). In November 2021, GEFA and LLIDA entered into an agreement for GEFA to provide funding for a sewer force-main improvement project; monthly payments on the $3.7 million project began in fiscal year 2024 and are scheduled until June 1, 2043. As of June 30, 2023, LLIDA had a combined total of approximately $11.07 million principal outstanding; as of December 31, 2023, scheduled principal payments reduced the outstanding balance to approximately $10.07 million.
The Georgia Ports Authority (GPA) is authorized to incur debt for projects which are self-liquidating; there is no specified limit as to the total amount of debt GPA is permitted to incur. In November 2021 GPA issued revenue bonds in the amount of $427.04 million for the purpose of funding improvements and expansions at the Port of Savannah. In August 2022, GPA issued an additional $755 million in revenue bonds which funded approximately $850 million of additional projects at the Port of Savannah. As of June 30, 2023, GPA had approximately $1.2 billion of total revenue bonds outstanding.The aggregate amount of GPA revenue bonds outstanding as of December 31, 2023 was reduced slightly by the $10.4 million principal payment made in July 2023.
The State Road and Tollway Authority (SRTA) is authorized to issue revenue bonds (no debt limit is specified in the SRTA Act) for self-liquidating land public transportation systems (roads, bridges, etc.) and projects. As of June 30, 2023, the aggregate amount of SRTA bonds outstanding was approximately $801.5 million, consisting of both GR Bonds and GARVEE Bonds as described below. As of December 31, 2023, scheduled principal payments had reduced the aggregate amount of outstanding bonds to approximately $782.2 million.
Guaranteed Revenue Bonds. As of June 30, 2023 SRTA had two series of GR bonds outstanding: $19.3 million of Series 2016 refunding bonds (the final maturity was paid on October 1, 2023) and $367.4 million of Series 2021 bonds (the Series 2021 bonds were issued from the $567 million authorized by the General Assembly in the FY 2022 appropriations bill, of which $199.2 million currently is remaining); the total amount of GR bonds outstanding was $386.6 million. SRTA currently does not anticipate issuing
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the $199.6 million remaining GR debt authorization until FY 2026. After the final payment for the 2016 refunding bonds, as of December 31, 2023, the total amount of GR bonds outstanding was $367.4 million.
Grant Anticipation Revenue Vehicle (GARVEE) Bonds. As of June 30, 2023, SRTA had an aggregate outstanding amount of GARVEE bonds (described in more detail in the following GARVEE Bonds section) of $414.8 million. There were no scheduled payments of principal between June 30, 2023 and December 31, 2023; therefore, the aggregate amount of outstanding GARVEE bonds remained $414.8 million as of December 31, 2023. SRTA currently does not anticipate issuing additional GARVEE bonds during the Plan period.
Public-Private Partnership (P3) Obligations. SRTA is authorized to enter into P3 contracts to fund transportation projects for the State. These obligations are not included in the debt service coverage ratio as defined by the Constitution, but the rating agencies may incorporate outstanding obligations related to P3 transactions in their calculations of total net tax-supported debt. As discussed on page 22, Moody's inclusion of P3 debt is based on the higher of the liability in the government's financial statement or the size of the government's termination payment obligation. As of June 30, 2023, the outstanding amount for SRTA's P3 obligations was approximately $731.7 million (for the I-285 at SR 400 project and the I-285/I-20 East Interchange project); payments are secured by state motor fuel tax revenues. SRTA and GDOT are currently working on a much larger P3 transaction to fund the SR 400 Express Lanes project; this project is one of GDOT's initial Major Mobility Investment program projects, and is expected to be supported by toll revenues and delivered as a revenue risk, design build finance and maintain P3 contract with a 50-year operations and maintenance term. Developer selection is anticipated to be made in Q3 of calendar year 2024, with financial close and design commencing in Q3 calendar year 2025. Amounts related to P3 transactions are not included in the schedules in Appendix B.
The Georgia World Congress Center Authority (GWCCA) is authorized by statute to have outstanding no more than $500 million revenue bonds at any time for multipurpose stadiums and coliseums and certain ancillary facilities. In April 2021, GWCCA issued a total of $439.6 million in Convention Center Hotel Revenue Bonds to finance the development of a new Authority-owned hotel with additional convention facilities on GWCCA property adjoining its multi-use stadium facility in Atlanta. As none of GWCCA's currently outstanding bonds mature prior to FY 2027, the outstanding amount remains $439.6 million as of December 31, 2023.
GARVEE Debt
In 2006, SRTA established a structure for the GARVEE bonds as consisting of two separate series, one described as Federal Highway Grant Anticipation Revenue Bonds and the other described as Federal Highway Reimbursement Revenue Bonds at an 80/20 ratio, respectively, with a final maturity of approximately 12 years from the date issued. The master trust indenture for the GARVEE bonds established an additional bonds test requiring that the amount of Federal Obligation Authority available must be equal to at least 3.0 times the maximum annual debt service on all outstanding and any proposed GARVEE debt when the proposed bonds are to be
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issued on parity with the outstanding debt. SRTA's GARVEE bonds are secured solely from federal highway grant revenues and reimbursements and they do not have any legal claim to the full faith and credit of the State; thus, they are not GO debt nor GR debt of the State and are not included in the debt service coverage ratio as defined by the Constitution. As of December 31, 2023, there was an aggregate of $414.8 million GARVEE bonds outstanding.
The following table summarizes the debt service requirements on the outstanding GARVEE bonds, the most recent Projected Federal Obligation Authority available for debt service, and the resulting debt service coverage factors. Estimated total federal reimbursements are expected to be lower, as shown in the table on page 29; these amounts are included in the calculation of annual debt service to prior year revenues.

$ - Millions
Debt Service Requirements Outstanding Debt
Projected Federal Obligation Authority
Debt Service Coverage (Debt Service as a % of Projected Federal Obligation Authority)

FY 2024 $60.4
$1,605.6
26.6x

FY 2025 $60.4
$1,637.7
27.1x

FY 2026 $60.4
$1,670.5
27.7x

FY 2027 $60.4
$1,703.9
28.2x

FY 2028 $60.4
$1,720.9
28.5x

With respect to calculations of net tax-supported debt, both Moody's and Fitch include GARVEE debt (with a corresponding allowance granted for the federal revenue sources which support the debt) in their calculations. As shown in the table on page 29, including GARVEE bonds and corresponding federal revenue sources which support the debt in the debt ratio calculations results in a slight increase in the State's overall debt burden. The ratio of debt service requirements to the prior year's State treasury receipts plus federal reimbursements is projected at 3.7% in FY 2024, 3.7% in FY 2025, 3.7% in FY 2026, 3.8% in FY 2027, and 3.7% in FY 2028; these percentages are well below the Commission limit of 8% inclusive of the GARVEE debt as established in the Plan.

OTHER LONG-TERM OBLIGATIONS
Multiyear Contracts for Energy Efficiency Projects
In November 2010, an amendment to the Constitution to provide for multiyear contracts for energy efficiency or conservation improvement projects (the 2010 Amendment) was approved by the electorate of the State. The 2010 Amendment allowed the General Assembly, through adoption of general law (2010 General Assembly Senate Bill 194, effective January 1, 2011), to authorize state governmental entities to incur debt for the purpose of entering into multiyear contracts for governmental energy efficiency or conservation improvement projects in which the vendors guarantee that debt service payments for the energy efficiency improvements will be offset fully by specified savings or revenue gains attributable solely to the improvements. Senate Bill 194 also required the Commission to adopt fiscal policies and establish a total multiyear contract value for such contracts and further provided any contract entered into by a state agency not in compliance with the policies and multiyear contract value authority set by the Commission would be void and of no effect. A total of $79.9 million in contracts have been executed, with the
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last debt service payment due in fiscal year 2033. While the debt service amount is not required to be included in the calculation of the debt service ratio previously discussed in the Plan, and it is neither GO debt nor GR debt of the State, the Commission has determined to make such calculations to ensure that conservative debt affordability standards are maintained for all State debt. The energy conservation project multiyear contracts are recorded as Notes Payable on the financial statements of the State.
Multiyear Contracts for Real Property Leases
In November 2012, an amendment to the Constitution to provide for multiyear rental agreements for real property was approved by the electorate of the State. This amendment allowed the General Assembly, through adoption of general law (2012 General Assembly Senate Bill 37, effective January 1, 2013), to authorize certain State agencies - the State Properties Commission (SPC) and the Board of Regents (BOR) - to enter into multiyear rental agreements, without obligating funds for the total amount of the obligation that the State will bear under the full term of such agreements, provided the Commission has adopted fiscal policies and established total multiyear contract value authority for the current and future fiscal years. The Commission adopted the requisite fiscal policies at its December 12, 2012 meeting. Although the debt service amount for the multiyear rental agreement contract value authority is not required to be included in the calculation of the debt service ratio previously discussed in the Plan, nor can it be construed as general obligation debt or guaranteed revenue debt of the State, the Commission has determined to make such calculations to ensure that conservative debt affordability standards are maintained. Various accounting rules and standards dictate that the multiyear real property rental agreements are considered leases on the financial statements of the State (see "Leases" below).
Through FY 2023 SPC and BOR had closed on an aggregate of approximately $918.7 million of multiyear rental agreements per authorizations approved by the Commission. For BOR, the Commission authorized $10 million of multiyear contract value authority for FY 2024, although BOR had not closed on any new leases as of December 31, 2023. SPC received Commission approval in January 2024 for up to $150 million of multiyear contract value authority for FY 2024 and up to $85 million of multiyear contract value authority for FY 2025.
Leases
The State routinely acquires use of real property and equipment through leases (including the multiyear contracts for energy projects and real property leases as described above). Many of these agreements contain fiscal funding clauses in accordance with O.C.G.A. 50-5-64 which prohibits the creation of a debt to the State for the payment of any sums under such agreements beyond the fiscal year of execution, or on a current year basis in the years subsequent to the initial fiscal year of execution, if appropriated funds are not available. Although these leases do not directly impact the calculation of the debt service ratio as defined by the State Constitution, they are considered by the rating agencies as tax-supported debt and are included in the rating agencies' calculations. For additional information regarding leases, see the State's audited Annual Comprehensive Financial Report, available on the State Accounting Office's website at www.sao.georgia.gov.
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In some instances, the lessor obtained acquisition and/or renovation financing for the property being leased by the State via a funding process which involved the issuance of revenue bonds by a local city or county government or local development authority (the proceeds then are loaned to the lessor for the acquisition and/or renovations and the state agency leases the property on an annually renewable basis). When this is the case (for example, the highly specialized archives storage facility originally developed for the Secretary of State which since has been transferred to the BOR), the rating agencies have indicated that despite the legal ability of the State to not renew a lease in a subsequent fiscal year, a non-appropriation of the lease payment in any year during the term of the bond issue would be viewed as an adverse credit event for the State. Numerous and consistent communications from the rating agencies have affirmed that such an event of non-appropriation likely would jeopardize the State's triple-A credit ratings as being indicative of either an unwillingness, or inability, of the State to continue the lease and thus fulfill its credit obligations. While these obligations are not legally equivalent to the debt service payment obligations for general obligation debt or guaranteed revenue debt, the annual payments essentially become a de facto fixed payment obligation which has the practical effect of binding the State to make these lease payments for the entire term of the lease, thus slightly reducing the future financial flexibility of the State.
Public University Foundation Debt
According to the BOR's Finance Office, as of June 30, 2023 the total outstanding principal amount of bonds and leases which financed USG facilities through the system's Public Private Ventures Program totaled approximately $2.5 billion. This amount includes bonds issued by local authorities, bonds issued by GHEFA (as previously discussed herein), loans from the United States Department of Agriculture, and multiyear contracts for real property leases. Proceeds of these transactions have been used to construct, renovate and/or rehabilitate, or acquire various types of projects at the colleges and universities, such as student housing, dining, research facilities, faculty and administrative office buildings, parking, and student activity facilities, which then are leased by the foundation or cooperative organization to the BOR on an annually renewable basis. Most of the projects generate revenues (such as housing fees), or the BOR has instituted dedicated student fees (such as student activity or parking fees), which provide revenues to support the annual lease payment; upon renewal of the lease each fiscal year, the lease payment obligation becomes a legal and binding obligation of the BOR for that fiscal year and thus is secured by the entirety of the legally available financial resources of the BOR. These obligations are included on the financial statements of the various USG institutions, the USG, and the State; additional information may be obtained from those documents.
Retirement Systems and Other Post-Employment Benefits (OPEB)
Pension and OPEB liabilities do not directly impact the calculation of the State's debt service ratio as defined by the Constitution, but they do represent significant ongoing financial commitments which could affect both the current and future financial flexibility of the State. Also, the rating agencies view these liabilities as long-term tax-supported debt and include their own adjusted calculations in various calculations of tax-supported debt as an indicator of financial flexibility of the State and as comparative metrics among the states. The State has two primary pension systems (Employees' Retirement System and Teachers Retirement System); as part of its conservative debt management policies, the State fully funds the actuarially determined contributions. For a more complete description and discussion of these liabilities,
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which involve extremely complex actuarial calculations unique to each pension/OPEB plan and assumptions regarding investment returns of the various pension and OPEB funds, see notes 15, 16, and 17 of the State's Annual Comprehensive Financial Report which is available via the State Accounting Office's website at www.sao.georgia.gov. The calculations shown in the latter sections of the Plan currently do not include the pension or OPEB liabilities for the State or the comparison states.
DEBT STRUCTURE
State debt may be issued with fixed interest rates or with a rate structure which can vary according to a prescribed methodology, generally known as variable rate debt. The use of variable rate debt introduces an element of interest rate risk and the potential of increased debt service payments during the period of time the variable rate debt is outstanding. During FY 2017 the State refunded all of its outstanding variable rate general obligation debt with fixed interest rate debt and no other variable rate debt has been issued since that time. There currently are no plans for considering the use of new variable rate debt during the period covered by the Plan.
Generally, the State's objective for each new GO and GR bond issue is to structure the issue with approximately level annual debt service payments corresponding with the term of, and debt service appropriation for, the authorized debt being funded by that issue. Should any variable rate debt be considered in the future, the maximum allowed interest rate would be utilized to develop a level annual debt service schedule incorporating serialized annual principal maturities and/or term bonds structured with annual mandatory redemptions for that debt.
In analyzing debt issuance levels for the Plan, the rise in interest rates over the course of calendar year 2022 and 2023, with the uncertainty of additional increases to help address inflation, have had an impact in terms of higher annual debt service requirements on recent issuances of State GO and GR bonds as compared to the last several years. To ensure the Plan provides sufficient debt service for future new issues of GO and GR bonds, the maximum interest rates have been adjusted to 6.25% for 5-year tax-exempt debt, 7.00% for 5-year taxable debt, 6.5% for 20-year tax-exempt debt, and 7.5% for 20-year taxable debt. Also, it has been assumed the bonds will be issued near or at par rather than including significant original issue premium as has been the case for the last several years.
DEBT AFFORDABILITY
The Plan is intended to ensure an acceptable balance is maintained between the provision of capital projects required to meet the State's future needs and the impact of additional debt service on future budget capacity. Through the establishment of reasonable target levels based on the State's expected population growth and per capita income projections balanced with the financial resources available to meet its debt obligations, the Plan provides assurance the authorization of additional debt by the General Assembly is at prudent levels which would not be expected to jeopardize the State's triple-A bond ratings.
There is no specific formula, however, for determining the maximum amount of debt which can be issued by the State in any particular year to accomplish these objectives. Many factors must be considered, including: balancing the State's current and projected operating budget for
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funding both ongoing and new program requirements, current year and subsequent year projected revenues, available fund balances, and an overall plan for managing the operating budget in balance with the need for capital project investments. The Plan incorporates the concept of debt affordability in determining an acceptable amount of tax-supported debt the State can issue. Also, any model for determining debt affordability is dependent upon the reasonableness and ultimately the degree of accuracy of economic forecasts and the projected impact on the State's total financial resources. Since FY 2006, the Commission's debt management plan has utilized a more conservative 7% cap (8% including GARVEE debt) for the debt service ratio, rather than the 10% maximum as specified by the Constitution.
Rating Agency Considerations
Due to the economic and financial diversity among the 50 states, many purchasers of governmental bonds historically have relied heavily on the major rating agencies' analysis of the factors affecting each borrower's ability to meet its debt obligations as reflected by the ratings and outlooks on those obligations. Each issuer's rating and outlook has a significant effect on the marketability of its bonds and the interest rates necessary to generate investor demand for the issuer's debt obligations. The states whose GO bonds are rated triple-A generally can sell those bonds at the lowest possible interest rates at any given point in time.
Another benefit of triple-A ratings was demonstrated during the credit market disruptions of late 2008 and early 2009 when higher rated issuers were able to access the credit market sooner and in larger amounts than was the case for lower rated issuers. (For some of the referenced time period, credit market access was severely curtailed to almost nonexistent and a functional credit market was restored only in a gradual manner over several months.) A somewhat similar situation, although not for as long or as severe as in 2008-2009, occurred in the late first quarter and second quarter of calendar year 2021 due to the unsettled market conditions resulting from the impact of COVID-19 upon economic activity in the State of Georgia, the U.S., and internationally. The highest rated issuers, including the State of Georgia, were among the earliest issuers to regain access to the market, particularly with respect to larger issue sizes such as the State typically brings to market.
Rating agencies consider and incorporate trends relating to an issuer's overall debt and liability burden, revenue base, fund balances, and general economic base into their rating decisions, as well as a comparison of actual fiscal experience versus budget projections over a three- to five-year period. While specific rating criteria and weightings do vary slightly between the three rating agencies, the rating analysis generally incorporates four primary fiscal factors:
debt burden as measured by ratios, quality and strength of the state's economic base, fiscal management, and actual financial performance versus projections.
The amount of an issuer's tax-supported debt is a very important factor in the determination of its credit rating. Credit analysts usually calculate several ratios, including those which are discussed in greater detail in a later section of the Plan, to measure the issuer's debt burden. Credit analysts also look for balance, diversity, and growth potential of the economic base, as well as the primary sources of revenue to generate sufficient revenues to consistently meet
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operating program needs as well as repay all debt obligations this is what the rating agencies generally refer to as "structural balance". Those issuers which demonstrate structural balance over both good times and bad times generally receive higher ratings than issuers which do not maintain structural balance during the bad times, or issuers which fail to regain structural balance within a reasonable period of time after major adverse events such as economic recessions or disasters such as hurricanes, tornados, significant wildfires, floods, or extreme blizzards.
When analyzing an issuer's fiscal management practices, credit analysts also compare fiscal results with budgets and plans. Over time, such comparisons tend to serve as a good indicator of the effectiveness and quality of fiscal management by the issuer. Another criterion of sound fiscal management is the existence of laws, policies, and procedures which allow an issuer to exercise strong, but reasonable and flexible, control over its sources and timing of revenues, expenditures, and debt issuance. Issuers which do not have such control, or which frequently must use one-time measures to maintain budgetary balance, are not considered to be wellmanaged fiscally.
Actual financial performance is a result of both the quality of a state's fiscal management and general economic performance of the local economy. One indicator of financial performance is an issuer's ability to adjust to revenue shortfalls due to unexpected economic downturns, or downturns that are much more severe or longer than initial expectations, such as occurred during the 2007-2009 recession and the very slow, long, and shallow recovery which followed.
Another gauge of an issuer's fiscal management and financial performance is its ability to establish and maintain reasonable levels of reserves for cushioning the effects of unexpected adverse economic events, and then its ability to rebuild those reserves in a timely manner subsequent to their use in preparation for future downturns in the economy. The State often is cited by the rating agencies as using its Revenue Shortfall Reserve appropriately building it up during periods of robust economic activity and then judiciously using it during recessions to mitigate even more significant cutbacks in service levels that likely would have been necessary without those reserve resources.
Illustrative of how these various concepts affect the State's general obligation bond rating, the rating agency credit reports with respect to the State's June 2023 sale of 2023A, 2023B, and 2023C GO Bonds highlighted the following strengths:
Moody's Investors Service (May 30, 2023): o Moody's Analytics ranks Georgia among the top ten states for forecasted employment growth over the next three years, driven by strong demographics and a diverse industrial mix. o Available fund balance and unrestricted cash across governmental funds will remain strong, providing ample buffer in case of an economic shock or revenue decline. o Georgia's total leverage from debt, pension, OPEB and other long-term liabilities will remain low given manageable additional borrowing compared to revenue growth and a pension burden that is roughly half of the median for US states. o The state's debt policy is conservative, limiting debt service to 7% of the prior year's revenue (8% include GARVEEs), a more restrictive policy than the 10% limit imposed by the state constitution.
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o Georgia's fiscal governance framework and financial management practices are stronger than most states.
S&P Global Ratings (June 8, 2023): o The `AAA' GO rating reflects our view of Georgia's: Very strong governmental framework, with the authority and a demonstrated willingness to make politically difficult decisions to align expenditures with revenue projections. Very strong financial and budgetary management, with well embedded, and likely sustainable processes for monitoring performance and planning for future needs. Diverse economy, with ongoing economic development projects that we believe will help sustain future growth. Generally strong budgetary performance, with a commitment to increasing and maintaining reserves during economic growth and a commitment to restoring reserves if necessary to manage revenue shortfalls. Adequate pension funding discipline, coupled with a moderate-to-low debt burden and modest upcoming debt plans that are unlikely to change our view of the state's debt profile. o Georgia's GO bonds are eligible to be rated above the sovereign [U.S.] because we believe the state can maintain better credit characteristics than the U.S. in a stress scenario.
Fitch Ratings (June 23, 2023): o Georgia's `AAA' Issuer Default Rating (IDR), GO and guaranteed revenue bond ratings reflect the state's proven willingness and ability to maintain fiscal balance and a broad-based, growth-oriented economy that supports solid revenue gains over time. o Georgia's economic base is diverse and similar to that of the nation, although wealth indicators are below average. Growth in population and jobs has outpaced the nation over several decades, driving steady economic gains and providing a solid foundation for future growth. o Georgia's revenues, primarily comprising income and sales taxes, will continue to reflect the breadth of the economy and its solid long-term growth potential. o Georgia's long-term liability burden is low and overall debt management is conservative. The state regularly issues bonds for capital needs and principal amortization is rapid. o The state is well positioned to deal with economic downturns with exceptionally strong gap-closing capacity, due to its broad control over revenues and spending, coupled with prudent reserve-building practices. Georgia has a track record of restoring financial flexibility during economic expansions, which is important given tits above average revenue volatility, as indicated by the Fitch Analytical Stress Test (FAST) model. o Georgia's major pension systems covering both state employees and teachers have benefited from consistent full actuarial contributions.
Maintaining triple-A ratings requires continued attention to debt and liability management and strong financial condition and commitment to conservative fiscal governance. The Plan
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contained herein adheres to the State's ongoing overall conservative fiscal management approach in support of those highest credit ratings; however, some factors that could lead to a downgrade as cited in the June 2023 rating reports include:
o A materially diminished financial position. o Growth in long-term liabilities and fixed costs that outpace expansion of the state's
economy and revenue base. o A departure from strong fiscal management and governance practices. o Significant reliance on reserves to close budget gaps without a plan to restore
structural balance and replenish reserve levels. o Sustained and unanticipated growth in carrying costs for debt and retirement
liabilities toward or above 10% of total spending, signaling more restricted expenditure flexibility. o Failure to quickly adjust to changing fiscal and economic circumstances and address budgetary challenges, including those resulting from tax policy changes.
Measuring the Debt Burden
When calculating indebtedness, credit analysts use measures which take into account all debt supported, or serviced, by the issuer's sources of revenues, and particularly taxes such as income taxes and sales and use taxes; in most cases the debt being supported or serviced will include not only GO debt, but various leases, GARVEE bonds, and other debt depending upon the legal security and source of payments for the debt service. Such debt is classified as net tax-supported debt. For the State, net tax-supported debt includes all GO debt and GR debt but does not include any revenue bonds not supported by the guarantee of the State. GR debt is included in the calculation of net tax-supported debt because the guarantee is related to all revenues of the State and not just project revenues. Except for the GARVEE bonds as noted above, revenue bonds issued by an instrumentality of the State which do not carry the State's explicit guarantee are typically not included in the calculation of the State's net tax-supported debt. As described earlier in the Plan, the issuance of revenue bonds by State authorities requires prior approval by the Commission; such approval is granted only after careful evaluation of the dedicated revenue stream that provides the security for these issues, as well as other pertinent factors. As Authority revenues, these revenues are not included in the State's general treasury revenues and thus can be pledged to the repayment of the debt pursuant to the enabling legislation for the Authority.
The table below summarizes the State's issued principal amounts for new projects and the outstanding principal amounts as of December 31, 2023; there also remained $388.9 million of GO debt and $199.6 million of GR debt authorized which had not been incurred. Additional debt to fund capital projects is not expected to be incurred until FY 2026.

General Obligation Debt Guaranteed Revenue Debt Total State Obligations

Total Principal Issued $ 32,517,900,000
1,220,095,000 $ 33,737,995,000

Outstanding Principal

$

9,510,535,000

367,380,000

$

9,877,915,000

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Four debt ratios as shown in the following table frequently are used to measure debt burden. These debt ratios provide a means to monitor the relative debt burden level for the State over a period of years; they also provide a method of comparison of debt burdens among the various states.

Debt Ratios
Debt per Capita
Debt as Percent of Personal Income Debt as Percent of State Gross Domestic Product Debt Service Ratio

How Debt Ratio is Calculated
Net Tax-supported Debt / State Population Net Tax-supported Debt / Total Personal Income of the State's Population Net Tax-supported Debt / State Gross Domestic Product Annual Debt Service Requirement / Prior Year State Treasury Receipts

Maximum Limits
(without GARVEEs)

Maximum Limits
(with GARVEEs)

$1,200

$1,500

3.50%

4.00%

N/A 7.00%

N/A 8.00%

All the ratios described above serve as important tools to track and monitor the impact of the State's debt. The Plan establishes reasonable amounts and peer-group comparable levels for three of the four debt ratios to help maintain triple-A credit ratings, as well as ensuring that the State remains below the maximum allowable debt limit as established by the Constitution.
The following table presents a historical comparison of the State's net GO and GR indebtedness and debt ratios (note that FY 2022 includes the issuance of SRTA's Series 2021 GR Bonds.)

Historical Debt Ratios for General Obligation Bonds and Guaranteed Revenue Bonds

Fiscal Year Ended June 30
2019
2020
2021
2022
2023

Debt Outstanding ($ millions) $ 9,547.3
9,551.6
9,691.6
10,203.5
9,924.3

Debt per Capita $899
892 897 935 900

Debt to Personal Income
1.9% 1.7%
1.6%
1.6%
1.5%

Debt Retired in 5 Years
42% 42
41
40
40

Debt Retired in 10 Years
73% 73
72
69
69

Debt Service Ratio
5.1% 4.9%
4.7%
4.1%
3.7%

Note: Ratios based on most recent personal income and population data available.

Credit analysts also examine how fast the debt is being repaid by calculating how much, in percentage terms, of the issuer's total long-term debt is retired after 5 and 10 years. Analysts generally use a standard for this measure of 25 percent retired in 5 years and 50 percent retired in 10 years as being more favorable than slower debt amortizations. As shown above, the percent of debt to be retired in 5 years and in 10 years has remained at levels generally viewed as favorable by the rating agencies.

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The debt service ratio (annual debt service as percent of prior year state treasury receipts) is significantly impacted by changes in revenue collections. The eighteen month long financial crisis recession which began in 2007 and ended in mid-2009 was quite severe and the ensuing exceptionally slower than normal economic recovery which followed resulted in dramatically reduced state treasury receipts which were very slow to recover to previous levels. As a result, the debt service ratio in FY 2011 peaked at 8.1% compared to FY 2010 state treasury receipts, and has improved in each year since then. The COVID-19 recession of 2020 provided much uncertainty; however, was much faster, deeper, and considerably shorter at only two months long with the subsequent economic recovery continuing through calendar year 2021. Actual revenues exceeded the conservative State revenue estimates by considerable amounts for the most recent completed three fiscal years (FY 2021 through FY 2023), and has provided favorable debt service ratios; at the end of FY 2023 the debt service ratio using FY 2022 revenues was at a low 3.7%.
During this period the net amount of debt outstanding increased by $377.0 million and the "Debt as % of Personal Income" ratio decreased to 1.5% from 1.9%. As a result of the continued improvement in the State's economy during the last several years, the "Debt Service Ratio" improved to a record low of 3.7% for FY 2023.
Comparison of Debt Burden to Other Triple-A States
Georgia is one of fifteen states currently rated triple-A by all three of the three major rating agencies; however, only the eleven states shown in the following table are active issuers of general obligation debt (the states not included in the table are Indiana, Iowa, South Dakota, and Texas). As of the date of this plan, no state which has triple-triple-A ratings currently has a negative outlook on any of its ratings. To assess the reasonableness of its target debt ratios for the Plan, Georgia compares its ratios to those of this peer group.
The table on the following page presents the fiscal year 2022 net tax-supported debt metrics for the eleven triple triple-A states, as well as comparisons to the 50-state median and average results, as reported by Moody's. Moody's net tax-supported debt includes GARVEEs, P3 debt obligations, leases as reported in the State's Annual Comprehensive Report, and the Development Authority of Clayton County revenue bonds issued in 2012 for the State Archives Building. Moody's debt calculations are based on information reported in each state's fiscal year 2022 financial statements.
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Fiscal Year 2022 State Net Tax-Supported Debt (NTSD) Metrics

States with Triple-Triple-A
Ratings
Maryland

FY 2022
Rank
(Among all Amount 50 states) ($ Billions)

6

19.4

As % of Own Source
Revenue
55.5%

Per Capita
3,147

FY 2022

Implied Debt

As % of As % of Service as % of

Personal state Own Source

Income GDP

Revenue

4.4% 4.1%

3.4%

Delaware

10

4.3

52.1% 4,266 6.9% 5.0%

3.5%

Ohio

13

19.3

48.4% 1,642 2.8% 2.3%

3.6%

Virginia

16

17.8

43.7% 2,047 3.0% 2.7%

2.7%

Georgia

19

12.5

34.6% 1,144 2.0% 1.7%

2.3%

Minnesota

25

9.4

26.2% 1,638 2.4% 2.1%

1.7%

Florida

29

14.7

21.8%

661 1.0% 1.1%

1.7%

Utah

33

2.8

18.4%

827 1.4% 1.1%

1.4%

North Carolina

34

7.5

18.1%

700 1.2% 1.0%

1.2%

Missouri

38

2.3

13.2%

378 0.7% 0.6%

1.0%

Tennessee

47

Triple-A Average

--

Triple-A Median

--

50-State Average

--

2.1

7.6%

294 0.5% 0.4%

0.5%

10.2

30.9% 1,522 2.4% 2.0%

2.1%

9.4

26.2% 1,144 2.0% 1.7%

1.7%

12.3

32.8% 1,808 2.7% 2.4%

2.2%

50-State Median

--

5.3

24.5% 1,179 2.2% 2.0%

1.8%

Compiled from Moody's September 26, 2023 State Sector Debt Report

As shown above, Moody's State Sector Debt Report also provides "implied debt service" information which represents a state's annual cost to amortize the state's net tax-supported debt over 20 years with level payments. At 2.3%, Georgia's implied debt service as a percentage of own source revenues is considered moderate and slightly higher than both the triple-A average and triple-A median. This likely is the case in large part because unlike most other states, Georgia devotes a substantial portion of its debt capacity each year to providing significant levels of State bond-funded capital outlay grant funds to K-12 public school systems throughout the State. Furthermore, even for those states which have a similar public educational facilities funding program, most are not as comprehensive in scope as Georgia's program. (As previously shown within the Plan, in recent years 27% of net authorizations has been for K-12 educational facilities.) Another likely factor is that Georgia has been one the fastest growing states for the last several decades and has devoted substantial State bond-funded capital outlay funding to various infrastructure projects in order to meet the increasing needs resulting from the population growth and also to remain economically competitive with other states.

Standard & Poor's and Fitch also publish annual state debt metrics ranking reports. Fitch's "2023 State Liability Report" dated November 15, 2023 noted that carrying costs for long-term liabilities, including debt service, actuarial determined contributions for pensions and actual contributions for other post-employment benefits have been a low burden for states; the median state carrying costs equaled only 4.2% of governmental expenditures in fiscal 2022. Standard & Poor's report dated July 10, 2023 noted that U.S. state tax-supported debt levels remained relatively flat in fiscal 2022 compared with 2021, declining a modest 0.2%. The decline is

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attributed to quickly rising borrowing costs and record reserves, coupled with federal COVID-19 relief stimulus, allowing state governments to leverage pay-as-you-go financing.
Debt Issuance Projections
New GO debt authorizations for FY 2024 totaled $702.7 million; when added to the $357.1 million unissued prior years' debt authorizations carried over into FY 2024, there was a total of approximately $1.1 billion GO debt authorizations available at the beginning of FY 2024. In July 2023, the State utilized $670.9 million of available GO debt authorizations for the issuance of the 2023A and 2023B bonds, leaving $388.9 million of debt authorizations to be carried forward. The Plan currently projects those carry forward amounts to be issued in FY 2026; actual issuance amounts may differ from projected amounts.
Cash appropriations to the Commission for capital projects are being recommended for Amended FY 2024 and FY 2025. New GO debt authorizations for FY 2026 through FY 2028 are projected at $900 million annually, as shown in the following table. The Plan also projects that all currently authorized but unissued GO debt will be issued in FY 2026 and that all new authorizations will be issued during the fiscal year authorized. Future debt is expected to be structured to achieve approximately level debt service each fiscal year for the term authorized and to be within the maximum amounts appropriated for debt service.

Projected Issuances of General Obligation Bond Authorizations ($ - Thousands)

FY 2024 FY 2025 FY 2026 FY 2027

Prior Year Authorizations Carry Over

$ 150,265 $

-- $ 388,940 $

-- $

New 5-Year Bond Authorizations

96,970

180,000 180,000

New 10-Year Bond Authorizations

24,320

New 20-Year Bond Authorizations

399,320

720,000 720,000

Total Projected Issuances

$ 670,875 $

-- $ 1,288,940 $ 900,000 $

FY 2028 --
180,000
720,000 900,000

Based on the currently outstanding debt, new debt incurred, scheduled debt retirements, and projected debt issuance, the table on the following page summarizes the projected combined GO and GR debt outstanding at the end of the fiscal year for each year through FY 2028 and the projected highest annual debt service on that debt in each year.

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Combined General Obligation and Guaranteed Revenue Debt

$ - Thousands

FY 2024

FY 2025

FY 2026

FY 2027

FY 2028

Debt Outstanding at Beginning of Fiscal Year
Issuances of GO Bond Authorizations

$ 9,924,255 $ 9,625,730 $ 8,761,130 $ 9,437,565 $ 9,497,690

670,875

1,288,940

900,000

900,000

GR Bond Issuances

199,620

Payments, Redemptions, Other

(969,400) (864,600) (812,125) (839,875) (838,870)

Debt Outstanding at End of Fiscal Year

9,625,730 8,761,130 9,437,565 9,497,690 9,558,820

Highest Annual Debt Service $ 1,338,634 $ 1,292,145 $ 1,313,006 $ 1,354,935 $ 1,376,243

The chart below shows historical debt service ratios for FY 2011 through FY 2023 and projected debt service ratios for FY 2024 through FY 2028; it also shows both the 10% constitutional debt limit and the more restrictive 7% Commission limit. As previously mentioned, as part of the active and responsive financial management of the State's finances to address the decline in State revenues during and after the end of the 2007-2009 recession and the subsequent slow recovery of State revenues, the debt service ratio exceeded the 7% Commission limit for several years. In response to the situation, the State reduced new debt authorizations to provide funding for only the most critical infrastructure projects. As State revenues recovered, the debt service ratio improved to where it was possible to increase new authorizations. Following the slight dip in State Treasury Receipts in FY 2020 from FY 2019 (approximately -0.3%) primarily due to the impact of the COVID-19 Recession, receipts recovered in FY 2021 to a total amount of over $30.3 billion, which was an increase of over 12.6% from FY 2020 and an increase of over 12.3% from FY 2019. Beginning with the amended appropriations bill in FY 2022, and continuing through FY 2023 and FY 2024, the General Assembly provided over $1.5 billion in cash appropriations to state agencies for capital project investments. Additional cash appropriations to the Commission for capital project authorizations on behalf of state agencies is being recommended for amended FY 2024 and for FY 2025.

$4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000
$500 $0

Fiscal Year Highest Annual Debt Service Requirements (with Percentage of Prior Year State Treasury Receipts)
Projected
8.1% 7.0% 6.7% 6.3% 6.3% 6.0% 5.5% 5.5% 5.1% 4.9% 4.7% 4.1% 3.7% 3.6% 3.7% 3.6% 3.8% 3.7%

Millions 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Highest Annual Debt Service

10% Constitutional Limit

7% Commission Limit

-25-

As reflected below, revenues are projected to decrease by 6.8% during FY 2024, resulting in a slight increase to the debt service ratio in FY 2025 compared to FY 2024. With funding capital projects with cash proceeds in FY 2025, the debt service ratio is projected to fall back to 3.7% in FY 2028.
Economic and Demographic Projections
The Governor's Office of Planning and Budget and the State economist provides projections of Treasury Receipts, personal income, and population. These projections are summarized in the following table.

Fiscal Year 2024 2025 2026 2027 2028

Treasury Receipts
(billions)
$ 35.153
36.088
35.624
37.051
38.628

Economic and Demographic Projections

Personal Year over Income Year over Year Growth (billions) Year Growth

(6.8%) $ 678

4.5%

2.7

708

4.6

(1.3)

742

4.7

4.0

777

4.8

4.3

815

4.9

Population
(millions)
11.105 11.213 11.325 11.432 11.545

Year over Year Growth
0.7% 1.0 1.0 0.9 1.0

Impact of Debt Issuance Projections on State Debt Ratios
As can be seen in the following table, based on the assumptions utilized in the Plan, the authorization of approximately $702.7 million of new GO debt in FY 2024 and the projected new GO debt authorizations of $900 million for FY 2026 and thereafter, will result in projected ratios that are within the Commission's maximum levels. As previously discussed, the rating agencies view the percent of debt retired ratios as rapid and favorable. Furthermore, the projected ratios indicate that there still is some available margin should any of the growth rate assumptions, or projections regarding the interest rate environment, prove to be too optimistic.

Projected Debt Ratios (Combined General Obligation and Guaranteed Revenue Debt)

Fiscal Year

Debt

Ended June Outstanding

30

(thousands)

Debt to Personal Income

Debt Debt per Retired in Capita 5 Years

Debt Retired in 10 Years

Annual Debt Service to Prior Year Receipts

2024 $ 9,625,730 1.4% $ 867 40.5%

70.2%

3.6%

2025

8,761,130 1.2

781 41.8

72.5

3.7

2026

9,437,565 1.3

833 40.3

69.2

3.6

2027

9,497,690 1.2

831 40.6

69.0

3.8

2028

9,558,820 1.2

828 41.2

68.6

3.7

CONCLUSION
The Plan serves as a guide to the State in ensuring the availability of funding for necessary capital projects required to meet the State's future needs while maintaining the balance between the State's need for capital and the impact of additional debt service on future budget capacity. In addition, the Plan assists the State in its efforts to preserve triple-A bond ratings from all three
-26-

rating agencies by assuring the rating agencies that the State can fund the capital projects necessary to sustain its economic growth while continuing to meet citizen demand for State provided services and facilities in an affordable manner. The State has established maximum limits for the debt ratios and will continue to monitor debt levels and ratios and adjust debt issuances if the ratios consistently exceed the target levels. The Plan will be updated each subsequent year and all assumptions will be revisited and reaffirmed or revised as needed to project the State's debt capacity accurately and conservatively. The Plan indicates that the projected new bond authorization amounts will not cause the State to equal or exceed any of its maximum levels for the various ratios measured by the Plan during the period covered by the Plan, even though debt outstanding at the end of each fiscal year covered by the Plan may increase slightly as a result of additional annual authorizations. In fact, the Plan currently reflects record low highest annual debt service ratios for the period FY 2024 through FY 2028.
Following are tables which summarize the assumptions and resulting debt ratios, both with and without inclusion of the GARVEE bonds, based on the currently projected debt issuance schedule. The annual debt service amounts reflect actual debt service for existing debt issued as of calendar year end 2023 plus the highest annual debt service for the current authorized but unissued amounts and projected new authorizations. Additional tables in Appendix A and Appendix B present the debt service schedules for outstanding GO bonds, outstanding GR bonds, and outstanding revenue bonds of State authorities.
-27-

Summary of Projected Debt Ratios General Obligation and Guaranteed Revenue Debt

Principal Outstanding at Beginning of Fiscal Year ($ thousands) Issuances of New GO Bond Authorizations Issuances of Prior Year GO Bond Authorizations Issuance of GR Bonds Principal Payments for both GO Bonds and GR Bonds Premium Proceeds from GO Bond Issuances Net Effect of GO Refunding Bonds Other Redemptions Principal Outstanding at End of Fiscal Year ($ thousands)

FY 2024

FY 2025

$ 9,924,255 $ 9,625,730 $

520,610

150,265

(893,990)

(864,600)

(49,540)

(16,520)

(9,350)

$ 9,625,730 $ 8,761,130 $

FY 2026

FY 2027

FY 2028

8,761,130 $ 9,437,565 $ 9,497,690

900,000

900,000

900,000

388,940

199,620

(812,125)

(839,875)

(838,870)

9,437,565 $ 9,497,690 $ 9,558,820

State Treasury Receipts ($ millions) Population (millions) Personal Income ($ billions)

35,153 11.105
678

36,088 11.213
708

35,624 11.325
742

37,051 11.432
777

38,628 11.545
815

Ratios for Outstanding Principal at the End of the Fiscal Year Debt to Personal Income Debt per Capita

1.4% $867

1.2% $781

1.3% $833

1.2% $831

1.2% $828

Annual Debt Service Ratios* Actual Annual Debt Service - Issued (through 12/31/2023) Guaranteed Revenue Bonds - HADS (Unissued) General Obligation Bonds - HADS (Unissued) Total Highest Annual Debt Service Calculation

$ 1,289,047 $ 1,242,558 $ 1,153,691 $ 1,085,892 $

13,465

13,465

13,465

13,465

36,122

36,122

145,850

255,578

$ 1,338,634 $ 1,292,145 $ 1,313,006 $ 1,354,935 $

Debt Service to Prior Year Receipts

3.6%

3.7%

3.6%

3.8%

*Highest annual debt service is based on (1) actual debt service for debt that has been issued as of 12/31/2023 and (2) highest annual authorized debt service (HADS) for unissued authorizations. No additional debt is expected to be incurred prior to the year end of FY 2025.

997,472 13,465 365,306 1,376,243
3.7%

-28-

Summary of Projected Debt Ratios General Obligation, Guaranteed Revenue, and GARVEE Debt

GO and GR Bonds Principal at Beginning of Fiscal Year GARVEE Bonds Principal at Beginning of Fiscal Year Issuances of New and Prior Year GO Bond Authorizations Issuance of GR Bonds Principal Payments: GO and GR Bonds Principal Payments: GARVEE Bonds Premium Proceeds from GO Bond Issuances Net Effect of GO Refunding Bonds and Other Redemptions Principal Outstanding at End of Fiscal Year ($ thousands)

FY 2024

FY 2025

FY 2026

FY 2027

FY 2028

$ 9,924,255 $ 9,625,730 $ 8,761,130 $ 9,437,565 $ 9,497,690

414,845

375,130

333,445

289,675

243,720

670,875

--

1,288,940

900,000

900,000

199,620

(893,990)

(864,600)

(812,125)

(839,875)

(838,870)

(39,715)

(41,685)

(43,770)

(45,955)

(48,250)

(49,540)

(25,870)

$ 10,000,860 $ 9,094,575 $ 9,727,240 $ 9,741,410 $ 9,754,290

State Treasury Receipts ($ millions) Estimated Federal Reimbursements ($ millions) Total Revenues ($ millions)

$

35,153 $

36,088 $

35,624 $

37,051 $

38,628

1,508

1,538

1,569

1,601

1,633

$

36,661 $

37,626 $

37,193 $

38,652 $

40,261

Population (millions) Personal Income ($ billions)

11.105 678

11.213 708

11.325 742

11.432 777

11.545 815

Ratios for Outstanding Principal at the End of the Fiscal Year Debt to Personal Income Debt per Capita

1.5% $901

1.3% $811

1.3% $859

1.3% $852

1.2% $845

Highest Annual Debt Service Ratios* Highest Annual Debt Service - (GO Bonds and GR Bonds) GARVEE Debt Service - Issuances as of 12/31/2023 Debt Service to Prior Year Total Revenues Debt Service to Current Year Total Revenues

$ 1,338,634 $ 1,292,145 $ 1,313,006 $ 1,354,935 $

60,446

60,442

60,442

60,439

3.7%

3.7%

3.7%

3.8%

3.8%

3.6%

3.7%

3.7%

*Projected annual debt service is based on (1) actual debt service for debt that has been issued as of 12/31/2023 and (2) highest annual debt service (HADS) for unissued authorizations. No additional debt is expected to be incurred prior to the end of FY 2025.

1,376,243 60,436 3.7% 3.6%

-29-

APPENDIX A
STATE OF GEORGIA GENERAL OBLIGATION BONDS
AND GUARANTEED REVENUE BONDS DEBT SERVICE SCHEDULES AS OF JUNE 30, 2023
and AS OF DECEMBER 31, 2023

State of Georgia
General Obligation Bonds Debt Service Schedule As of June 30, 2023

Fiscal Year

2024

$

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

2042

2043 Total $

Principal 871,605,000 $ 832,495,000 778,665,000 742,845,000 686,110,000 682,120,000 608,455,000 578,160,000 535,180,000 539,315,000 462,580,000 419,905,000 376,745,000 335,875,000 279,530,000 283,520,000 208,205,000 149,535,000 116,275,000 50,490,000
9,537,610,000 $

Interest 373,466,462 337,314,092 302,298,748 270,312,958 238,928,091 209,082,855 180,859,541 155,714,449 132,287,361 109,819,266 88,929,703 72,191,950 56,884,309 43,341,718 31,920,248 22,485,814 14,215,065
8,389,278 4,064,855 1,049,070 2,653,555,831

Total Debt Service

$

1,245,071,462

1,169,809,092

1,080,963,748

1,013,157,958

925,038,091

891,202,855

789,314,541

733,874,449

667,467,361

649,134,266

551,509,703

492,096,950

433,629,309

379,216,718

311,450,248

306,005,814

222,420,065

157,924,278

120,339,855

51,539,070 $ 12,191,165,831

Note: amounts as shown above may not add precisely due to rounding.

A-1

State of Georgia
Guaranteed Revenue Bonds Debt Service Schedule As of June 30, 2023

Fiscal Year

2024

$

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

2042

2043

2044

2045

2046

2047

2048

2049

2050

2051

2052

Total $

Principal 19,265,000 $ -- -- -- -- -- -- 4,440,000 6,320,000 8,725,000 10,940,000 13,365,000 13,755,000 14,305,000 14,875,000 15,470,000 16,095,000 16,740,000 17,400,000 18,100,000 18,825,000 19,575,000 20,365,000 21,170,000 22,025,000 22,680,000 23,360,000 24,065,000 24,785,000 386,645,000 $

Interest 13,182,465 12,700,840 12,700,840 12,700,840 12,700,840 12,700,840 12,700,840 12,663,100 12,568,480 12,437,438 12,264,815 11,970,403 11,499,350 10,938,150 10,354,550 9,747,650 9,116,350 8,459,650 7,776,850 7,066,850 6,328,350 5,560,350 4,761,550 3,930,850 3,177,075 2,506,500 1,815,900 1,104,525 371,775 255,808,016

Total Debt Service

$

32,447,465

12,700,840

12,700,840

12,700,840

12,700,840

12,700,840

12,700,840

17,103,100

18,888,480

21,162,438

23,204,815

25,335,403

25,254,350

25,243,150

25,229,550

25,217,650

25,211,350

25,199,650

25,176,850

25,166,850

25,153,350

25,135,350

25,126,550

25,100,850

25,202,075

25,186,500

25,175,900

25,169,525

25,156,775

$ 642,453,016

Note: all outstanding GR bonds were issued by SRTA

A-2

State of Georgia
General Obligation and Guaranteed Revenue Bonds Combined Debt Service Schedule As of June 30, 2023

Fiscal Year

2024

$

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

2042

2043

2044

2045

2046

2047

2048

2049

2050

2051

2052

Total $

Principal 890,870,000 $ 832,495,000 778,665,000 742,845,000 686,110,000 682,120,000 608,455,000 582,600,000 541,500,000 548,040,000 473,520,000 433,270,000 390,500,000 350,180,000 294,405,000 298,990,000 224,300,000 166,275,000 133,675,000 68,590,000 18,825,000 19,575,000 20,365,000 21,170,000 22,025,000 22,680,000 23,360,000 24,065,000 24,785,000
9,924,255,000 $

Interest 386,648,927 350,014,932 314,999,588 283,013,798 251,628,931 221,783,695 193,560,381 168,377,549 144,855,841 122,256,704 101,194,518 84,162,353 68,383,659 54,279,868 42,274,798 32,233,464 23,331,415 16,848,928 11,841,705
8,115,920 6,328,350 5,560,350 4,761,550 3,930,850 3,177,075 2,506,500 1,815,900 1,104,525
371,775 2,909,363,847

Total Debt Service $ 1,277,518,927
1,182,509,932 1,093,664,588 1,025,858,798
937,738,931 903,903,695 802,015,381 750,977,549 686,355,841 670,296,704 574,714,518 517,432,353 458,883,659 404,459,868 336,679,798 331,223,464 247,631,415 183,123,928 145,516,705 76,705,920 25,153,350 25,135,350 25,126,550 25,100,850 25,202,075 25,186,500 25,175,900 25,169,525 25,156,775 $ 12,833,618,847

Note: amounts shown above may not add precisely due to rounding.

A-3

State of Georgia
General Obligation Bonds Debt Service Schedule
As of December 31, 2023

Fiscal Year 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 Total

Principal

Interest

Total Debt Service

$ 252,185,000 $ 193,116,795 $ 445,301,795

864,600,000

365,256,979

1,229,856,979

812,125,000

328,865,394

1,140,990,394

777,710,000

295,480,842

1,073,190,842

722,440,000

262,331,451

984,771,451

721,130,000

230,636,824

951,766,824

627,665,000

200,987,895

828,652,895

598,130,000

174,882,703

773,012,703

556,555,000

150,233,555

706,788,555

562,340,000

126,460,270

688,800,270

488,800,000

104,183,517

592,983,517

442,235,000

86,266,494

528,501,494

402,910,000

69,775,543

472,685,543

363,375,000

54,931,582

418,306,582

308,445,000

42,140,945

350,585,945

312,160,000

31,297,816

343,457,816

240,180,000

21,539,338

261,719,338

183,170,000

14,106,264

197,276,264

151,650,000

8,081,729

159,731,729

87,590,000

3,387,785

90,977,785

35,140,000

767,600

35,907,600

$ 9,510,535,000 $ 2,764,731,321 $ 12,275,266,321

Note: amounts as shown above may not add precisely due to rounding.

A-4

State of Georgia
Guaranteed Revenue Bonds Debt Service Schedule
As of December 31, 2023

Fiscal Year

2024

$

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

2042

2043

2044

2045

2046

2047

2048

2049

2050

2051

2052

Total $

Principal -- $ -- -- -- -- -- --
4,440,000 6,320,000 8,725,000 10,940,000 13,365,000 13,755,000 14,305,000 14,875,000 15,470,000 16,095,000 16,740,000 17,400,000 18,100,000 18,825,000 19,575,000 20,365,000 21,170,000 22,025,000 22,680,000 23,360,000 24,065,000 24,785,000 367,380,000 $

Interest 6,350,420 12,700,840 12,700,840 12,700,840 12,700,840 12,700,840 12,700,840 12,663,100 12,568,480 12,437,438 12,264,815 11,970,403 11,499,350 10,938,150 10,354,550 9,747,650 9,116,350 8,459,650 7,776,850 7,066,850 6,328,350 5,560,350 4,761,550 3,930,850 3,177,075 2,506,500 1,815,900 1,104,525 371,775
248,975,971

Total Debt Service

$

6,350,420

12,700,840

12,700,840

12,700,840

12,700,840

12,700,840

12,700,840

17,103,100

18,888,480

21,162,438

23,204,815

25,335,403

25,254,350

25,243,150

25,229,550

25,217,650

25,211,350

25,199,650

25,176,850

25,166,850

25,153,350

25,135,350

25,126,550

25,100,850

25,202,075

25,186,500

25,175,900

25,169,525

25,156,775

$ 616,355,971

Note: amounts shown above may not add precisely due to rounding.

A-5

APPENDIX B
DEBT SERVICE SCHEDULES For
STATE AUTHORITIES

Georgia Higher Education Facilities Authority
Revenue Bonds Series 2015 Refunding, Series 2019 Refunding, and Series 2020 Refunding
Debt Outstanding as of June 30, 2023

Fiscal Year

2024

$

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

Total $

Principal 6,785,000 $ 7,125,000 7,480,000 7,780,000 8,115,000 8,480,000 8,910,000 9,350,000 9,755,000 10,145,000 10,610,000 11,100,000 11,575,000 12,035,000 12,530,000 13,015,000 5,890,000 3,305,000
163,985,000 $

Interest 7,063,075 6,723,825 6,367,575 6,060,475 5,736,069 5,365,919 4,941,919 4,496,419 4,079,919 3,698,619 3,235,419 2,750,669 2,270,219 1,801,025 1,313,188 835,481 339,106 132,200 67,211,121

Total Debt Service

$

13,848,075

13,848,825

13,847,575

13,840,475

13,851,069

13,845,919

13,851,919

13,846,419

13,834,919

13,843,619

13,845,419

13,850,669

13,845,219

13,836,025

13,843,188

13,850,481

6,229,106

3,437,200

$ 231,196,121

Note: amounts as shown above may not add precisely due to rounding.

B-1

Georgia Housing and Finance Authority
Single Family Mortgage Bonds Debt Outstanding as of June 30, 2023

Fiscal Year

Principal

2024

$ 43,330,000 $

2025

43,155,000

2026

44,085,000

2027

43,940,000

2028

43,555,000

2029

45,435,000

2030

44,105,000

2031

44,810,000

2032

45,270,000

2033

48,505,000

2034

48,425,000

2035

50,205,000

2036

50,975,000

2037

56,530,000

2038

62,990,000

2039

64,530,000

2040

66,890,000

2041

70,635,000

2042

64,665,000

2043

62,215,000

2044

66,080,000

2045

45,300,000

2046

54,485,000

2047

62,165,000

2048

61,250,000

2049

53,395,000

2050

38,455,000

2051

10,600,000

2052

12,195,000

2053

6,835,000

2054

1,390,000

Total $ 1,456,400,000 $

Interest 46,613,250 45,608,501 44,493,137 43,303,768 42,101,944 40,858,592 39,522,042 38,255,260 36,932,254 35,538,883 33,995,614 32,495,285 30,831,901 29,214,661 27,274,332 25,101,547 22,915,593 20,592,280 18,124,520 15,944,256 13,709,758 11,570,134 10,038,023 7,995,061 5,839,895 3,810,105 2,081,544 1,141,473 685,530 297,160 31,970 726,918,271

Total Debt Service

$

89,943,250

88,763,501

88,578,137

87,243,768

85,656,944

86,293,592

83,627,042

83,065,260

82,202,254

84,043,883

82,420,614

82,700,285

81,806,901

85,744,661

90,264,332

89,631,547

89,805,593

91,227,280

82,789,520

78,159,256

79,789,758

56,870,134

64,523,023

70,160,061

67,089,895

57,205,105

40,536,544

11,741,473

12,880,530

7,132,160

1,421,970

$ 2,183,318,271

Note: amounts as shown above may not add precisely due to rounding.

B-2

Lake Lanier Islands Development Authority
2008 Revenue Bonds and GEFA Loans Debt Outstanding as of June 30, 2023

Fiscal Year

2024

$

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

2042

2043

Total $

Principal 1,998,724 $ 2,051,967 2,107,357 1,136,261 972,630 184,887 185,128 185,369 185,610 185,851 186,093 186,335 186,577 186,820 187,063 187,307 187,550 187,794 188,038 188,283 11,065,645 $

Interest 231,085 177,842 122,451 70,851 29,942 3,528 3,288 3,047 2,806 2,564 2,323 2,080 1,838 1,595 1,352 1,109 865 621 377 133 659,699

Total Debt Service

$

2,229,809

2,229,809

2,229,808

1,207,113

1,002,573

188,416

188,416

188,416

188,416

188,416

188,416

188,416

188,416

188,416

188,416

188,416

188,416

188,416

188,416

188,415

$

11,725,344

Note: amounts as shown above may not add precisely due to rounding.

B-3

Georgia Ports Authority
Revenue Bonds Series 2021 and Series 2022
Debt Outstanding as of June 30, 2023

Fiscal Year

2024

$

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

2042

2043

2044

2045

2046

2047

2048

2049

2050

2051

2052

Total $

Principal 10,435,000 $ 17,150,000 21,960,000 23,055,000 24,210,000 25,420,000 26,690,000 28,030,000 29,425,000 30,900,000 32,445,000 34,070,000 35,770,000 37,560,000 39,295,000 41,115,000 43,075,000 44,800,000 46,705,000 48,870,000 51,210,000 53,365,000 55,610,000 57,955,000 60,420,000 63,030,000 65,755,000 68,600,000 46,820,000
1,163,745,000 $

Interest 53,173,763 52,652,013 51,794,513 50,696,513 49,543,763 48,333,263 47,062,263 45,727,763 44,326,263 42,855,013 41,310,013 39,687,763 37,984,263 36,195,763 34,460,413 32,644,013 30,678,350 28,955,350 27,049,050 24,885,650 22,543,413 20,390,313 18,144,113 15,800,913 13,333,056 10,721,844 7,996,450 5,151,975 2,183,050 936,280,875

Total Debt Service

$

63,608,763

69,802,013

73,754,513

73,751,513

73,753,763

73,753,263

73,752,263

73,757,763

73,751,263

73,755,013

73,755,013

73,757,763

73,754,263

73,755,763

73,755,413

73,759,013

73,753,350

73,755,350

73,754,050

73,755,650

73,753,413

73,755,313

73,754,113

73,755,913

73,753,056

73,751,844

73,751,450

73,751,975

49,003,050

$ 2,100,025,875

Note: amounts as shown above may not add precisely due to rounding.

B-4

State Road and Tollway Authority
GARVEE Bonds Series 2017 and Series 2020
Debt Outstanding as of June 30, 2023

Fiscal Year

2024

$

2025

2026

2027

2028

2029

2030

2031

2032

Total $

Principal 39,715,000 $ 41,685,000 43,770,000 45,955,000 48,250,000 50,665,000 45,935,000 48,230,000 50,640,000 414,845,000 $

Interest 20,731,300 18,756,500 16,672,250 14,483,750 12,186,000 9,773,500 7,240,250 4,943,500 2,532,000 107,319,050

Total Debt Service

$

60,446,300

60,441,500

60,442,250

60,438,750

60,436,000

60,438,500

53,175,250

53,173,500

53,172,000

$ 522,164,050

B-5

Georgia World Congress Center Authority
Convention Center Hotel First Tier Revenue Bonds, Series 2021A and
Convention Center Hotel Second Tier Revenue Bonds, Series 2021B
Debt Outstanding as of June 30, 2023

Fiscal Year

2024

$

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

2042

2043

2044

2045

2046

2047

2048

2049

2050

2051

2052

2053

2054

Total $

Principal -- $ -- --
7,240,000 7,705,000 8,200,000 8,700,000 9,225,000 9,760,000 10,460,000 11,185,000 11,705,000 12,240,000 12,795,000 13,380,000 13,990,000 14,615,000 15,280,000 15,970,000 16,685,000 17,430,000 18,205,000 19,025,000 19,865,000 20,750,000 21,660,000 22,630,000 23,615,000 24,665,000 25,745,000 26,870,000 439,595,000 $

Interest 19,106,125 19,106,125 19,106,125 19,106,125 18,873,550 18,622,056 18,360,056 18,083,681 17,792,150 17,341,650 16,860,150 16,346,500 15,810,700 15,252,150 14,670,000 14,063,000 13,430,100 12,770,700 12,083,100 11,366,300 10,619,250 9,840,700 9,029,400 8,183,450 7,302,050 6,383,350 5,426,300 4,428,350 3,388,950 2,305,350 1,176,300 396,233,794

Total Debt Service

$

19,106,125

19,106,125

19,106,125

26,346,125

26,578,550

26,822,056

27,060,056

27,308,681

27,552,150

27,801,650

28,045,150

28,051,500

28,050,700

28,047,150

28,050,000

28,053,000

28,045,100

28,050,700

28,053,100

28,051,300

28,049,250

28,045,700

28,054,400

28,048,450

28,052,050

28,043,350

28,056,300

28,043,350

28,053,950

28,050,350

28,046,300

$ 835,828,794

Note: amounts as shown above may not add precisely due to rounding.

B-6