Transportation industry

WASHINGTON - Congress yesterday passed legislation that would transfer $8 billion to the ailing highway trust fund after the federal government warned it would run out of money by the end of the month and states began cutting transportation projects, some of which relied in part on tax-exempt bonds.

The Federal Highway Administration yesterday denied the Pennsylvania Turnpike Commission's application to implement tolls on Interstate 80, a move that could encourage state lawmakers to consider an alternative transportation financing plan, a $12.8 billion concession agreement on the Pennsylvania Turnpike.

WASHINGTON - The Maryland Transportation Authority yesterday postponed its sale of $425 million of grant anticipation revenue vehicles in what could be the first of several stalled transactions following the federal government's announcement that the federal highway trust fund is nearly depleted.

DALLAS - Kansas will tap into an authorization of $150 million of taxable bonds for aviation projects in the state with a $33 million issue to help Cessna Aircraft Co. finance the expansion of an aircraft assembly plant in Wichita.

CHICAGO - Ohio next week plans to enter the market with roughly $300 million of public infrastructure bonds backed by the state's full faith and credit as part of Gov. Ted Strickland's $1.57 billion economic stimulus plan.

New Jersey officials are moving ahead with proposed toll hikes on the state's three tolled highways while Republican lawmakers are calling for legislative hearings on the issue.

Wayne County Airport Authority officials are taking bids on naming rights for its new $431 million terminal at the Detroit Metro Airport. Officials said it is the first time an airport has sold naming rights for a terminal.

WASHINGTON - Senate Majority Leader Harry Reid said yesterday that he intends this week to pass a pending bill to rescue the nearly depleted highway trust fund and prevent the government from delaying payments to states, despite the successful efforts by two Republican senators to block passage of the bill Monday evening.

New York Gov. David Paterson said yesterday that two different project plans are on the table for a new Moynihan Station and that transportation issues - like rerouting service to a new station - still need to be worked out between Amtrak and other transit agencies that would use the station.

Fitch Ratings yesterday placed the Massachusetts Turnpike Authority's $2.24 billion of Metropolitan Highway System debt on credit watch negative due to rising operating costs and an anticipated drop in debt service coverage.

CHICAGO - Chicago will remarket about $300 million of variable-rate third-lien general airport revenue bonds today, shedding the downgraded insurance from the 2005 floating-rate deal that had prompted investors to drop the bonds.

Facing a budget deficit, the Chicago Transit Authority this week announced it would cut 80 administrative jobs, defer non-critical spending on bus maintenance, and undertake other cost-cutting measures to save $40 million.

DALLAS - Shreveport, La., will further reduce its exposure to variable-rate debt this week with a negotiated sale of $24.7 million of fixed-rate airport revenue bonds to refund variable-rate bonds issued in fall 2007.

Transportation departments in some states are bracing themselves for staggering cuts to construction projects as the federal highway trust fund dries up and the Federal Highway Administration implements a rationing of reimbursements this week. The announcement exacerbated worries about the fund, which officials now expect to see at least a $3.1 billion shortfall by the end of fiscal 2009.

WASHINGTON - In a complete turnaround, the Department of Transportation is urging Congress to immediately pass legislation that would move $8 billion from the general fund into the highway trust fund, which DOT officials said has collected even less federal gas tax revenue than expected and is headed for a zero balance on Oct. 1.

WASHINGTON - The Maryland Transportation Authority plans to issue $425 million of grant anticipation revenue vehicles in a competitive deal Wednesday, marking the second and final tranche of Garvees being used to finance the ongoing construction of the state's Intercounty Connector, a $2.4 billion, 18.8-mile toll-road project.

The New Jersey Turnpike Authority will not be able to certify by Dec. 1 that it can meet the debt service coverage levels necessary to maintain its ratings without the increased revenue from toll hikes proposed last week.

The Maine Municipal Bond Bank later this month will issue nearly $50 million of debt backed by revenue allocated to the state's new TransCap Fund that lawmakers established to help finance transportation infrastructure needs.

The federal government must adopt bond-related policy changes and emergency provisions to keep the airport industry afloat, the American Association of Airport Executives said yesterday in a report by its energy and air service task force.

The Port Authority of New York and New Jersey last week got a reprieve in what could prove a lengthy dispute over the Federal Aviation Administration's proposed auctioning of two flight slots at Newark Liberty Airport.