Briefing: Transportation Bond Bill
Earlier this month, the Patrick administration filed a $1.5-billion transportation bond bill that would maintain investments in transportation-related infrastructure through fiscal year 2013, or June 30 of next year.
What would the bill provide?
The bill would authorize $200 million to cities and towns to rebuild and repair local roads and bridges (also known as Chapter 90 aid), which Gov. Deval Patrick calls "much needed." It also includes $1 billion for road and bridge improvements and $311 million for improvements to rail and transit infrastructure, with responsibility for specific investments left to state transportation officials, according to the State House News Service.
The bill would also create an "infrastructure bank" that would allow the state to leverage private investment for targeted projects that create jobs.
When would the $200 million become available to cities and towns?
Pam Kocher, with the state's Executive Office of Administration and Finance, told a March 7 forum in Worcester that the state is aiming to have the money available by April 1, when the state must tell cities and towns what they'll receive in Chapter 90 money. City Manager Michael O'Brien said there's a backlog of streets and sidewalks in the city that need work.
How would the infrastructure bank work?
The bank could make loans that would finance energy, transportation and municipal development projects that could lead to the creation of jobs and spur economic development.
A similar federal bill, which would authorize $20 billion for an infrastructure bank through 2015, was proposed by Congressional Democrats last year.
Who would oversee the state bank?
The secretaries of transportation and administration and finance, the state treasurer, two appointees of the treasurer and five members appointed by the governor — experts in finance, transportation or other areas.
Do other states have similar banks?
Yes, according to Cyndi Roy of the Massachusetts Department of Transportation, who says 33 states have such banks. But, she added, they are "quite small" and not really banks since they don't issue debt to fund assets, like the Massachusetts bank would.
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