Connecticut plans to apply for $220 million of federal funds to upgrade a rail corridor between New Haven and Springfield, Mass., Gov. M. Jodi Rell announced last week. If approved, the state would match the funds with $260 million of bond proceeds. The state Bond Commission will consider the issue when it meets Aug. 11.
The debt would be issued as special tax obligation bonds secured by motor vehicle, petroleum and other transportation-related taxes. The state sells bonds on this credit as needed for transportation capital projects.