Analyses of GARVEE Bonding Capacity 2008

VIII. Recent Events

California voters in November 2006 approved Proposition 1B, the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006.  Proposition 1B provides almost $20 billion in General Obligation bond funds for Highway and Road Improvement, Transit, Goods Movement and Air Quality, and Safety and Security projects.  Although the bond funds represent a significant infusion of investments to improve the state’s transportation infrastructure, it is not nearly enough to make up for decades of chronic underinvestment.  The governor’s Strategic Growth Plan, therefore, includes GARVEE bonds as a necessary funding component for transportation.

During its meeting on March 12-13, 2008, the California Transportation Commission approved the State Highway Operation and Protection Program, which identified 11 projects for GARVEE financing from Fiscal Year 2008-09 to Fiscal Year 2011-12.  The total GARVEE financing for these projects is estimated to be around $1.76 billion.  It is anticipated that the next GARVEE bond issuance will occur in Fiscal Year 2008-09.