BOISE — A plan headed to lawmakers in the Idaho House would refinance some $200 million in federal loans the state has used to buttress its unemployment safety net.
The House Commerce and Human Resources Committee approved the legislation today, the Associated Press reports. It now goes to the full House.
Idaho began borrowing from the federal government in June 2009 and under the legislation, would sell revenue bonds to retire the debt then repay the bonds over four years.
Selling the bonds at less than 3 percent interest, thanks to Idaho’s solid credit rating, is expected to save millions of dollars in interest.
Proponents of the plan say it will also spare businesses a $157 million hit from a federal tax credit they’d otherwise lose if Idaho remains in arrears to the federal government.