9/22/05-Gov. Mike Easley has signed a bill into law allowing the state to issue transportation bonds financed with federal funds.
The new law, previously HB254, allows the state to issue $900 million in grant-anticipated revenue vehicles, or GARVEE bonds, to use on transportation projects in 2007 and 2008. No specific projects have been identified.
The funding program breaks from the traditional pay-as-you-go method and allows the state to borrow money against the federal transportation dollars that come each year to pay for construction. The bond issue – or loan – is based on the assumption that federal funding in future years would pay off the debt. This allows the state to get money needed for the project up front.
Because the bonds are repaid with future federal dollars, they don’t affect the state’s credit or impose an ordinary state debt.

8/23/05-The Legislature gave its final approval Aug. 22 to a bill that would allow the state to issue transportation bonds financed with federal funds.
House lawmakers voted 81-32 to agree to changes made to the bill by the Senate. It now heads to Gov. Mike Easley, who has endorsed the idea.
HB254 would allow the state to issue about $950 million in grant-anticipated revenue vehicles, or GARVEE bonds, to use on transportation projects in 2007 and 2008. No specific projects have been identified.
The funding program breaks from the traditional pay-as-you-go method and allows the state to borrow money against the federal transportation dollars that come each year to pay for construction. The bond issue – or loan – is based on the assumption that federal funding in future years would pay off the bonds. This allows the state to get money needed for the project up front.
Because the bonds are repaid with future federal dollars, they don’t affect the state’s credit or impose an ordinary state debt.
For bill status, call (919) 733-7779.

8/15/05-The Senate unanimously approved a bill Aug. 13 that would allow the state to issue transportation bonds financed with federal funds.
The bill now heads back to the House for final approval before going to Gov. Mike Easley for his signature.
HB254 would allow the state to issue $900 million in grant-anticipated revenue vehicles, or GARVEE bonds, to use on transportation projects. No specific projects have been identified.
The funding program breaks from the traditional pay-as-you-go method and allows the state to borrow money against the federal transportation dollars that come each year to pay for construction. The bond issue – or loan – is based on the assumption that federal funding in future years would pay off the bonds. This allows the state to get money needed for the project up front.
Because the bonds are repaid with future federal dollars, they don’t affect the state’s credit or impose an ordinary state debt.
For bill status, call (919) 733-7779.

7/18/05-House lawmakers overwhelmingly approved a bill July 13 that would allow the state to issue transportation bonds financed with federal funds.
HB254 would allow the state to issue $900 million in grant-anticipated revenue vehicles, or GARVEE bonds, to use on transportation projects. No specific projects have been identified.
The funding program breaks from the traditional pay-as-you-go method and allows the state to borrow money against the federal transportation dollars that come each year to pay for construction. The bond issue – or loan – is based on the assumption that federal funding in future years would pay off the bonds. This allows the state to get money needed for the project up front.
Because the bonds are repaid with future federal dollars, they don’t affect the state’s credit or impose an ordinary state debt.
The funding plan has the support of Gov. Mike Easley. He will get a chance to sign the effort into law if state senators, as expected, cast their votes in favor of the effort.
For bill status, call (919) 733-7779.