Fiscal Note

HB0314S02 - Transportation Funding Revisions

State Impact:
Enactment of this bill will require the Division of Finance to deposit $90,000,000 of sales and use taxes annually into the newly created Critical Highway Needs Fund that would otherwise have been deposited into the General Fund. A general obligation bond, or a series of bonds totaling $1,000,000,000 (plus issuance costs) will be issued for highway projects. Assuming a standard fifteen-year repayment period with flattened payments at today's interest rates, when the full amount of bonding authority is issued, there will be fifteen annual payments of approximately $86,800,000 each plus first year interest costs of $19,000,000. While the entire bond is unlikely to be issued at once, these numbers show how total debt service will level out when all bonds are issued. The actual debt service schedule will vary according to how the bonds are structured. This bill exempts certain transfers or appropriations for transportation projects from certain appropriations limit provisions.

Individual, Business and/or Local Impact:
Enactment of this bill likely will not result in direct, measurable costs and/or benefits for individuals, businesses, or local governments.