The New Jersey Transportation Trust Fund Authority plans to use an outside financial adviser to help craft a financing plan as it faces the prospect of running out of money for new capital projects by July 2011.
Officials anticipate releasing a request for proposals next month for financial adviser, said Steven Petrecca, New Jersey’s assistant state treasurer.
The trust helps finance road, bridge, and mass transit projects throughout New Jersey. Each year, the Legislature allocates $895 million of funds to the agency. By July 2011, the beginning of fiscal 2012, debt-service costs for prior debt will take up the entire $895 million allocation, leaving no bonding capacity for new infrastructure improvements.
Petrecca said the financial consultant’s primary function is to perform future cash-flow analysis the administration can use to help develop a funding plan for the trust. The adviser may also look at how other states finance their transportation infrastructure needs.
“We may ask them to look at what other states do, how things are financed, and if there’s any efficiencies there and things of that nature,” Petrecca said. “But most of it’s for cash-flow projections.”
Barclays Capital is set to price $1.2 billion of TTFA bonds in September, including $800 million of new money. Officials plan to use taxable Build America Bonds on the new-money portion. The transaction will include about $400 million of refinancing that will help to add additional bonding capacity this year.
Petrecca said Gary Brune will serve as TTFA’s executive director, replacing Steve Hanson, who left in May. Brune comes from the Office of Management and Budget, where he was associate director.