CHICAGO -- Nebraska will consider issuing bonds for highway projects for the first time in decades.
A lawmaker last week introduced a bill that would let the state issue up to $400 million of new-money bonds for highway projects across the state.
"The Legislature finds that it is in the best interest of Nebraska taxpayers to leverage historically low interest rates to offset the challenges that construction inflation and uncertain federal highway funding pose to adequately financing the state's infrastructure needs," legislative bill 1092 says.
Sen. Annette Dubas, D-Fullerton, introduced the bill.
The state would issue up to $400 million of bonds with debt service totaling not more than $30 million over a 19-year period to finance the projects. No new money bonds could be issued after 2020.
Under the bill, the debt would be special obligations of the state, which enjoys a coveted AAA issuer credit rating from Standard & Poor's. Nebraska does not issue general obligation debt.
The bonds would be backed by the state's motor vehicle fuel taxes and motor vehicle registration fees. Since 2011, the state also diverts 0.25% of the state sales tax to fund construction projects, and that revenue would also be pledged to the bonds.
Nebraska first allowed highway bonding in 1969, according to local reports, and the state has since issued only $20 million of highway bonds.
