Evolving Debt Finance Practices for Surface Transportation (2017) / Chapter Skim
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Pages 59-74
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60 Appendix C detailed State Responses to Qualitative Survey Questions State-issued debt outstanding for highway/roadway investment purposes (including bridges and tunnels)
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61 Briefly describe what percent of state fiscal year 2015 transportation revenues within the purview of the state DOT were utilized for debt service payments (please exclude refundings and other one-time restructuring payments)
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62 Oklahoma There are two types of debt -- GARVEE debt which is paid for with future federal revenue and state issued debt paid for with Income Tax revenue. Pennsylvania No toll revenue.
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63 State-issued debt outstanding for other transportation purposes (including transit, airport, rail infrastructure and rolling stock, etc.)
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64 State Comments on Debt Capacity Forecasting Method Any variability between estimated and actual values could lead to variances in the tax forecast. In order to deal with this variability, the Department employs a Risk Analysis Process (RAP)
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65 Texas Only one debt program is authorized as a perpetual fund. Capacity is determined as a function of the revenues forecasted by the state comptroller (as the revenue estimator for the revenue sources dedicated for repayment of debt)
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66 Louisiana DOTD Statewide Transportation Plan coordinated through the Legislative Process. Maine The State Legislature decides through the budget process.
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67 How does your state decide between whether to issue debt backed by federal funding (e.g., GARVEEs) or state funding for transportation purposes?
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68 State Comments on Selecting State of Federal Sources Pennsylvania This is done through discussions with the Governor's Office of Budget. The considerations are how much debt service payments will be and for how long and is it more beneficial than using current revenues for projects.
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69 (continued on next page) Please provide any additional explanation to how availability payments are treated for debt capacity measures, including whether treatment is determined by formal (e.g., constitutional, statutory, formal written policy)
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70 State Comments on Treatment of Contractor Payments in Debt Capacity Measures Minnesota Have not utilized contractor financing arrangements Mississippi We do not currently have these types of arrangements. Nevada If we had any we would consider DBF payments in our analysis similar to a subordinate lien.
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71 State Comments on Major Transportation Related Debt Issues Within State Idaho Once legislative authorization is approved for a specific project(s) , Idaho has not had issues.
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72 Does your state or DOT employ specific debt management practices that you believe would be of potential interest to other DOTs (i.e., practices that you consider to be a "best practice" or that has helped you address a specific challenge)
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73 State Comments on Practices to Share with Other States Illinois Illinois uses a level principal, as opposed to level debt service, repayment structure, which saves interest expense over the life of the bonds by repaying principal faster. Illinois has also tended to stay away from "gimmicky" financing like GARVEE bonds, which were recently downgraded en masse over the problems with the federal Highway Trust Fund.
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74 Has your DOT implemented any noteworthy changes in your debt management practices in the last 3–5 years? If Yes, please describe the change(s)
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75 New Hampshire The Department needs to resist the urge to issue longer term debt (30 years plus) to make up for a lack of revenue.
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