Economy

WASHINGTON - The National Surface Transportation Infrastructure Financing Commission yesterday urged lawmakers to authorize tax-credit bonds for transportation capital projects with a clear public benefit, create two grant programs that could be used by muni issuers for user-backed transportation projects, and pave the way for a future national highway system funded by mileage fees.

DALLAS - Armed with $1.2 billion in federal stimulus funds, the Texas Transportation Commission yesterday approved massive outlays, including $600 million of state Proposition 14 bonds, for highway and transit projects.

CHICAGO - Peoria, Ill.-based Caterpillar Inc.'s recent decision to trim 20% of its global workforce of 110,000 will put added strain and pressure on the budgets and credits of its hometown city and other nearby governmental units, Moody's Investors Service writes in a new commentary.

WASHINGTON - President Obama's fiscal 2010 budget proposes a five-year, $25 billion national infrastructure bank, a five-year $5 billion high-speed rail state grant program, $4.5 billion for community block development grants, and $3.9 billion for clean and drinking water state revolving funds.

The West Virginia Hospital Finance Authority is expected to sell $68 million of variable-rate revenue bonds tomorrow on behalf of the West Virginia United Health System Obligated Group.

Concerns about reform and taking on additional debt surround Massachusetts Gov. Deval Patrick's proposal to abolish the Massachusetts Turnpike Authority and raise the state's gas tax to 42.5 cents per gallon.

BRADENTON, Fla. - A sweeping overhaul of Georgia's transportation planning and financing system began making its way through the General Assembly this week.

The WakeMed health care system is expected to sell $75 million in variable-rate bonds today in the second part of a $175 million debt sale started in January.

CHICAGO - The Chicago Transit Authority's chief financial officer, Dennis Anosike, will leave his post at the end of the month after 12 years in which he shepherded the agency's return to the tax-exempt market and its efforts to shore up its operating budget and pension-related funds.

BRADENTON, Fla. - The Orlando-Orange County Expressway Authority board today will consider increasing tolls in central Florida to protect its bond ratings, bolster debt service coverage, and allow the agency to issue more debt later this year.

New York revealed more information about its plans to use federal stimulus funds for roughly $4 billion of infrastructure projects yesterday at a meeting of legislative leaders called by Gov. David Paterson.

The House today will take up a $410 billion fiscal 2009 omnibus spending package that includes $40.7 billion for transportation infrastructure and $41.5 billion for the Department of Housing and Urban Development. The time for passage is tight: on March 6 a continuing resolution that has kept federal agencies in operation since the fiscal year began on Oct. 1 will expire.

CHICAGO - Indiana lawmakers are considering for the first time dipping into a fund created with proceeds from the lease of the Indiana Toll Road to finance $500 million in local road and highway projects.

Massachusetts motorists will begin paying higher cash tolls in late March, but that increase could be temporary if lawmakers pass legislation to increase the state's gas tax to 42.5 cents per gallon.

ARLINGTON, Va. - Transportation Secretary Ray LaHood told state highway officials meeting here yesterday that public-private partnerships should be among the options for funding transportation projects, and that he and Obama administration officials have ruled out an increased gasoline tax to shore up the highway trust fund in the near term.

The Illinois Regional Transportation Authority last week approved a resolution urging state lawmakers to adopt a long-awaited capital program.

WASHINGTON - Pennsylvania Gov. Edward G. Rendell and public finance expert Felix Rohatyn are calling for the increased use of tax-exempt bonds to help finance infrastructure projects in the near term.

The New York Metropolitan Transportation Authority financial staff yesterday defended their use of mandatory tender bonds as a way to get access to short-term rates at a time when the issuer cannot access the variable-rate market.

ARLINGTON, Va. - Rep. James L. Oberstar, chairman of the House Transportation and Infrastructure Committee, said yesterday that he hopes to launch a program to create 30 "mega-projects" to ease congestion in urban areas that will give issuers or borrowers "special ability" to issue tax-credit bonds, tax-exempt bonds, and Garvees.

Work on state highways financed by the recently enacted federal stimulus package will begin soon, said Gary Ridley, director of the Oklahoma Department of Transportation.