Rep. Eldon Mulder State Capitol, Room 507 Juneau, AK 99801-1182 Phone: (907) 465-2647 Fax: (907) 465-3518

Rep. Bill Williams State Capitol, Room 511 Juneau, AK 99801-1182 Phone: (907) 465-3424 Fax: (907) 465-3793

Future Federal Money to Fund Road Work
HB 191 Authorizes $395 Million GARVEE Bond Package

(JUNEAU) – Using the promise of future federal funding to speed construction of roads needed now, the House today approved a $395 million bond package to fund an accelerated program of transportation projects around the state.

Sponsored by the House Finance Committee, House Bill 191 authorizes the state to issue Guaranteed Anticipated Revenue Enhancement Vehicles, known as GARVEE bonds, secured by the anticipated future revenue from federal transportation funds.

The proceeds would pay to build roads, trails, sidewalks and other transportation projects that qualify for federal transportation funding, and which are already established and prioritized in the Statewide Transportation Improvement Program, said Rep. Bill Williams (R-Saxman), co-chair of the House Finance Committee.

"Alaskans in every area of the state have transportation needs, and the House has done a good job in utilizing this creative financing technique to start meeting these needs now when it is less expensive, so we can all enjoy the benefits sooner," Williams said.

HB 191 addresses transportation needs in every region of the state:

• Anchorage: $146.5 million
• Fairbanks: $57 million
• Matanuska-Susitna: $58.8 million
• Kenai Peninsula: $15.7 million
• Rural Alaska: $30.6
• Kodiak: $6 million
• Southeast: $65 million

One of the attractions of GARVEE bonds is that interest earnings on the bonds can pay a portion of the state match required for federal transportation funds, saving the state about $37 million per year, Williams said.

HB 191 moves next to the Senate for consideration.

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