Passage of this bill will authorize the issuance of general obligation bonds up to $6,000,000, for Highway Improvement Funding. The estimated annual interest payments of $300,000 will be paid as a project cost within the $6,000,000 bond limitation. The bonds may not be issued until a developer whose projects benefits from the improvements accepts liability for project costs and provides certainty that the new development will generate at least $6,000,000 in new tax revenue. The new revenues will be used to repay the debt, rather than accrue to the General Fund. Based on the construction of a large sales tax generating development, the state can expect at least $4.2 million in new sales tax revenue from construction. Additional sales tax revenue of at least $2.1 million would arise from increased retail sales.

Office of the Legislative Fiscal Analyst

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