highways
Tennessee bill would fund roads, bridges and public buildings
The measure would authorize up to $438 million in state-backed borrowing for highways, bridge repairs, buildings, site work and grants to local governments and industrial development corporations.
Tennessee now has a state borrowing tool for big projects that are hard to pay for at once. The law authorizes up to $438 million in bonds, backed by the state, for buildings, site work, highways, bridge repairs and related grants.
- Up to $438 million in state bonds are authorized.
- Money can go to buildings, highways, bridges and site work.
- The law also allows short-term bond anticipation notes.
- Local governments and industrial development corporations can get grants.
- Tennessee now can borrow up to $438 million through direct general obligation bonds backed by the state’s full faith and credit
Tennessee now can borrow up to $438 million through direct general obligation bonds backed by the state’s full faith and credit. The money is meant for big-ticket public projects that are hard to pay for all at once, including equipment, sites, buildings and the acquisition of existing structures for expansion, improvements and major repairs.
The law also allows bond anticipation notes, a short-term borrowing tool the state can use while the longer financing is being put in place.
The projects on the list
The financing can support highway construction and the repair, replacement or rehabilitation of bridges, along with grants to counties, metropolitan governments, towns, cities, special districts and other public agencies. It also reaches industrial development corporations, which can receive help for equipment, site preparation, construction and infrastructure improvements.
The state is allowed to issue debt above the authorized amount to cover discounts and issuance costs, and the act sets aside the proceeds for spending over an indefinite period of time.