Public Meeting Notice  State Finance and Governance Board Meeting January 8, 2026

Notice of Public Meeting

In accordance with Section 20 of Chapter 20 of the Acts of 2021, as most recently extended by Chapter 2 of the Acts of 2025, this meeting will be conducted, and open to the public, via Zoom and Teleconference.

Meeting ID: 913 3820 1615

Passcode: 116784

Teleconference line: 1-646-931-3860; Phone Conference code: 116784#

The meeting was called to order at approximately 11:00 a.m.

Board members comprising a quorum:

Brent Andersen, Pilgrim Bay Insurance

Kaitlyn Connors, Executive Office for Administration and Finance, Board Interim Chair

John Durgin, Office of the State Treasurer

Sue Perez, Office of the State Treasurer

Others in attendance:

James Rust, MA State College Building Authority (MSCBA)

Poonam Patidar, Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

1. Administrative Matters

Ms. Connors called the meeting to order and conducted the roll call. The Board then voted unanimously to approve the November 13, 2025, meeting minutes.

2. Discussion

No discussion matters scheduled.

3. Waiver Requests

MA State College Building Authority (MSCBA)

Mr. James Rust, MSCBA Deputy Director and Chief Financial Officer, presented the MSCBA’s waiver request to the State Finance and Governance Board (the “Board”). Mr. Rust explained that the MSCBA was established as a public instrumentality for the general purpose of providing residence halls, dining commons, parking, athletic, cultural, and other student activity facilities primarily for use by students and staff of the Massachusetts state universities and community colleges (collectively, the state colleges). He noted that MSCBA projects are financed with bonds secured by a pledge of revenues from the colleges to the Authority to meet debt service obligations,  a pledge by the Board of Higher Education under a Contract for Financial Assistance, Management and Services of 25% of the average annual debt service associated with outstanding bonds, such amounts to be held and certified as to availability by each college.  He also noted that the MSCBA had a Commonwealth appropriation interception that could be utilized if needed. 

Mr. Rust explained the MSCBA has separate credit structures for bonds issued to finance or refinance projects at state universities and for bonds issued to finance or refinance projects at community colleges.  He noted that for the state university bond program, MSCBA plans to issue approximately $28 million of tax-exempt new money bonds to fund a project at Salem State University, which would likely be combined with one or more of the refunding opportunities to achieve cost of issuance efficiencies.  He reported the MSCBA has an opportunity to issue tax-exempt refunding bonds to current refund certain outstanding 2009 Build America bonds (taxable) and mentioned that that MSCBA is also exploring opportunity to issue tax-exempt refunding bonds to refund other prior bonds to achieve present value and annual debt service savings.

Mr. Rust concluded his presentation by noting that efficient implementation of refunding/restructuring transactions requires concurrent selection of the bonds to be refunded, pricing of the bonds being sold, and investment of bond proceeds to maximize the efficiency of the refunding escrow, which employs an iterative process to maximize results of the transaction and benefits to the students of the state colleges. Given the complexities, Mr. Rust reported that a refunding bond may be more efficiently issued using a negotiated method of sale. He also noted that negotiated transactions can be more flexible in terms of timing of issuance to take maximum advantage of favorable market conditions.

Ms. Connors asked if there were any questions.  There were none.  The Board then voted unanimously to grant the MSCBA a waiver from the presumption of a competitively bid financing to the Massachusetts State College Building Authority with respect to the issuance of refunding and new money bonds for its state university program in a par amount not to exceed $120,000,000 and that the MSCBA be authorized to sell such bonds, in one or more issues, on a negotiated basis not later than April 30, 2026.

4. Derivative Reviews

No discussion matters scheduled

5. Closed Transactions/Bond Sale Reviews:

MA State College Building Authority (MSCBA)

Mr. Rust presented the MSCBA Project and Refunding Bonds Series 2025A transaction review. In July 2025, the MSCBA sold $50,035,00 in new money and refunding tax-exempt bonds. 

Mr. Rust reported the Series 2025A Bonds totaled $50,035,000 in par and that the sale was significantly oversubscribed with more than $186 million in orders received. Bond proceeds funded capital projects at Massachusetts Maritime Academy and Worcester State University.  The combined all-in true interest cost of 3.342%. The Refunding component generated net present value savings of a little more than $2 million which was spread across all nine campuses. Mr. Rust noted that after the 2025A transaction, the total amount of MSCBA outstanding bonds is $1.01 billion.

Ms. Connors then asked if any board members had any questions. There were none.

6. Discussion on Board Activities

No matters scheduled.

7. Adjournment

Board members unanimously voted to adjourn the meeting at approximately 11:30 AM.

___________________________________________________

Kaitlyn Connors, Acting Chair

1. Administrative Matters
   • Adoption of meeting minutes from November 13, 2025 (Vote)
2. Discussion: No matters formally scheduled
3. Waiver Requests:
   • MA State College Building Authority (Vote)  
4. Derivative Reviews: No matters formally scheduled
5. Closed Transactions/Bond Sale Reviews
   • MA State College Building Authority
6. Discussion on Board Activities: No matters formally scheduled
7. Adjournment