SD Unified Generates $19.6M Savings for Taxpayers by Refinancing Bonds for Propositions MM, S & Z

Smart financial decision Reduces total debt service costs without increasing tax rates

SAN DIEGO (MAY 6, 2026) - San Diego Unified School District has achieved $19.6 million in savings for local taxpayers while strengthening the District's long-term financial position by successfully completing a $299.5 million General Obligation bond refund.

The 2026 refunding refinances portions of prior bond issuances from Proposition MM (1998), Proposition S (2008), and Proposition Z (2012). By taking advantage of favorable market conditions, the District generated approximately $19.6 million in net present value savings, representing 5.83% savings on the refunded bonds.

"This transaction reflects our continued commitment to strong financial stewardship," said Ami Shackelford, Chief Financial Officer, San Diego Unified School District. "We closely monitor market opportunities and act when it benefits our taxpayers. This refunding allows us to reduce long-term debt costs without extending repayment timelines."

Benefits of this financial position to San Diego taxpayers:

• Reduces total debt service costs without increasing tax rates
• Captures savings upfront while maintaining repayment schedules
• Improves overall efficiency of voter-approved bond program
  
  

This refinancing does not create new debt. Instead, it replaces older, higher-cost bonds with lower-cost financing-similar to refinancing a mortgage at a better interest rate. The transaction involved paying off some bonds early and restructuring others to maximize savings, while keeping the overall repayment timeline the same.

The bonds were well received by investors, reflecting continued confidence in San Diego Unified's credit strength and financial management. The transaction achieved favorable borrowing costs across all three bond series. San Diego Unified remains focused on maximizing the value of voter-approved bond programs while ensuring transparency and accountability. Savings generated through refundings like this help preserve resources and support the District's long-term financial stability.

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