§ 100550 Higher Education Bond Interest Use

• •Money from bond premiums and interest must stay in the education fund.
• •The money can be transferred to the General Fund.
• •When transferred, it counts as a credit that reduces the cost of paying bond interest.

The state sells a bond for $1,010 (the extra $10 is a premium). That $10 goes into the 1998 Higher Education Capital Outlay Bond Fund.

Later, when the state has to pay interest on the bond, it can take that $10 from the education fund and use it to lower the amount it has to spend from the regular budget on bond interest.