Enactment of this legislation likely will not materially impact state revenue.

Enactment of this legislation authorizes the Transportation Commission to issue general obligation bonds of up to $1.6 billion (plus costs of issuance) for state highway construction or reconstruction projects. Issuance of these bonds could cost approximately $400 million from sales tax revenue for interest. The bill directs that $56 million of bond proceeds be made available to the Transportation Infrastructure Loan Fund (TILF) for the following: 1) $24 million - to a military installation development authority (MIDA); 2) $5 million - to the Inland Port Authority for infrastructure projects; 3) $7 million - to Midvale City for a parking structure in proximity to an intermodal transportation facility; and 4) $20 million - unspecified (Salt Lake County could use the funds for parking facilities that support economic development and recreation and tourism). The bill eliminates a $5 million allocation from TILF for right-of-way acquisition and highway construction in the northwest quadrant of Salt Lake City. The bill directs $164 million bond proceeds for use on projects/purposes in the following locations: 1) $12 million - underpasses connecting a state park and a project area created by a MIDA; 2) $10 million - 1600 North in Orem City; 3) $10 million - realignment of U-111 south of Old Bingham Highway in Salt Lake County; 4) $15 million - corridor preservation and land acquisition for a transit hub at the mouth of Big Cottonwood Canyon; 5) $20 million - underpass on Interstate 80 related to the inland port; 6) $8 million - connector facility in Vineyard City; 7) $15 million - infrastructure improvements related to a project area of the MIDA in Weber County; 8) $23 million - transportation infrastructure and gate realignment at Hill Air Force Base; 9) $4 million - environmental and traffic studies on 1100 North in North Salt Lake; 10) $20 million - Shepard Lane in Davis County; 11) $9 million - Provo Airport; 12) $11 million - Pony Express Parkway near Saratoga Springs and Eagle Mountain; and 13) $7 million - a bridge on Coal Creek Road near Cedar City. Debt issuances are assumed to be for fifteen years at projected market interest rates as follows: FY 2021 - $160 million; FY 2022 - $500 million; FY 2023 - $500 million; and FY 2024 - $440 million. Debt service payments (principal and interest) could rise from approximately $3 million in FY 2021 to approximately $130 million annually from FY 2025 through FY 2036 then decrease until final repayment in FY 2039.