Strongest California Economy Drives University Bond
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The University of California plans its biggest tax-free borrowing since 2006 as the 238,000-student system benefits from the state economy’s record strength and a rally in education debt that’s outpacing the municipal market.
The offer totals $2.6 billion when including taxable and variable-rate debt. It comes the week before former Homeland Security Secretary Janet Napolitano takes over as president of the 10-campus system with an operating budget of $24 billion. Governor Jerry Brown, a UC Berkeley graduate, pushed lawmakers to boost funding 5 percent, after five years of deficits.