Watching the news on WKYC tonight I was intrigued at the story about a new plan set up by the State of Ohio. Buckeye Savers Bonds can be bought for as little as $5000. Treasurer Richard Cordray has information on his website. It includes replacement of bridges (I-90) in Lake County - a total of 24 highway improvement programs. (note: the previous link is pdf) The WKYC story said 100 million dollars worth of bonds was needed; the website says the entire highway program costs $190 million.
Supposedly, they are estimating these Series K Bonds will reap 'buyers' with a 3 1/2 to 4 percent interest on their investment...and that interest is tax free, both State and Federal. What do you think?
April 1, 2007: Here is an update to this post, also from The Plain Dealer under their Business Diary section from March 27th:
Highway bonds are triple tax-free
"Individual investors next week will have an opportunity to buy state bonds that are exempt from federal, state and local income taxes. Through the Buckeye Savers program, the state is issuing $190 million in Series K highway capital improvement bonds. The state set the minimum purchase - $5,000 - low enough to be affordable to individual investors, said Holly Hollingsworth, spokeswoman for Ohio Treasurer Richard Cordray. Investors can place orders now through brokers. The sale will be April 3. The bonds will be backed by the state of Ohio and highway receipts. Among the Cuyahoga County projects the bonds will pay for: an upgrade of U.S. 322/Mayfield Road and the installation of an "intelligent transportation system" on parts of Interstates 90 and 71. The system will help provide road weather information to drivers. "