trustees or a university system’s board of regents must
file a claim in the amount of the next debt service pay-
ment with the state comptroller. Filing of a claim will
enable the bond trustees to receive a warrant for pay-
ment directly from the state at least 15 days prior to
the principal and interest payment date. Bonds issued
under Article 7, Section 17 of the state constitution are
payable solely from these constitutional appropria-
tions. Each issue must also be in serial form, offered
for competitive bidding, and be approved by the state
attorney general. Once approved, bonds are incon-
testable. The legislature may review the level of the
appropriation and, with a two-thirds majority of both
houses, reduce the amount of the constitutional
appropriation for the succeeding five years. However,
the legislature may not reduce the appropriation so as
to impair the payment of the obligations created by
the bonds or notes issued in accordance with Section
17 of the constitution.
Utah School Bond Guaranty Program (‘AAA’)
Governing statutes: Utah voters approved
Proposition 4 in 1996, a state constitutional
amendment providing a state general obligation
guarantee on qualified local school district debt.
The constitutional amendment allows for the imple-
mentation of the state’s school bond default avoid-
ance program under the Utah School Bond
Guaranty Act. This rating moves in conjunction
with that of the state.
Eligibility requirements: The state treasurer deter-
mines the eligibility of each school district for the
program on consultation with the state superinten-
dent of public instruction. Criteria for eligibility
include the ability of a school district to meet its
debt service obligations without state support.
Program provisions: Once a school district enters
the program, the state’s full faith and credit and
unlimited taxing power are pledged to guaranteeState Credit Enhancement Programshttp://www.standardandpoors.com 101State Debt Type Covered Rating Outlook Enhancement
New Jersey Additional state aid bonds AA- Stable State appropriations for school districts and
community colleges
New Jersey All pre-approved local AA- Stable State direct deposit of state aid to paying
qualified municipal debt agent
New York Local school bonds A Stable State aid withholding law
Ohio* Eligible local school bonds AA Stable State aid withholding law with 2x
MADS coverage
Ohio* Eligible local school bonds AA- Stable State aid withholding law
Oregon Qualified local school bonds AA- Stable State guarantee
Pennsylvania* Local school bonds A Stable State aid withholding law
Pennsylvania* Local school bonds A+ Stable State aid withholding law with enhanced
resolution provisions
South Carolina Local school bonds AA Stable State aid withholding and general fund
make-up provision
South Dakota Local school bonds A Stable State aid withholding law
Texas Approved local school bonds AAA Stable Constitutional Permanent School Fund
Texas Higher education bonds AA Stable Direct and continuing state appropriations
Utah Qualified local school bonds AAA Stable State guarantee
Virginia All local G.O. debt A Stable State aid withholding law
Washington Qualified local school bonds AA Stable State guarantee
West Virginia All local G.O. debt AA- Stable Continuing state appropriations to
cover deficiencies
Wyoming Eligible local school bonds AAA Stable Common School Account, Permanent
Land Fund*See program detail.Standard & Poor’s Rated State Credit Enhancement Programs(continued)