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11/14/05-The Oklahoma Transportation Commission voted Nov. 7 to approve a $100 million bond issue as part of a program intended to upgrade corridors deemed critical to the state’s economic growth.
It is the second $100 million issue approved for the state under a federal program that allows states to address immediate road needs with grant-anticipated revenue vehicle bonds, or GARVEE bonds.
The program allows a state to borrow money against the federal transportation dollars that come each year to pay for construction. The sale is based on the assumption that federal funding in future years would pay off the bonds. This allows states to get money needed for projects up front.
The bonds are part of the first phase of the program that will include $300 million in bonds and $214 million in regular road funding from the Oklahoma Department of Transportation, The Associated Press reported. No date was set for selling the final $100 million in bonds.
Gary Ridley, director of the Oklahoma Department of Transportation, said work is beginning on 12 corridors throughout the state.
It is the second $100 million issue approved for the state under a federal program that allows states to address immediate road needs with grant-anticipated revenue vehicle bonds, or GARVEE bonds.
The program allows a state to borrow money against the federal transportation dollars that come each year to pay for construction. The sale is based on the assumption that federal funding in future years would pay off the bonds. This allows states to get money needed for projects up front.
The bonds are part of the first phase of the program that will include $300 million in bonds and $214 million in regular road funding from the Oklahoma Department of Transportation, The Associated Press reported. No date was set for selling the final $100 million in bonds.
Gary Ridley, director of the Oklahoma Department of Transportation, said work is beginning on 12 corridors throughout the state.