Debt capacity and debt limits : a state road fund perspective.

PDFTech ReportKTC 04-16/TA5-03-1FTA5-03DebtFinancingInfrastructureConstruction and maintenanceTransportation planningStrategic planningFinancial analysisHighwaysKentuckyUniversity of Kentucky Transportation CenterHackbart, MerlSapp, Suzanne PerkinsHur, YongbeomUniversity of Kentucky Transportation CenterKentucky. Transportation CabinetUnited States. Federal Highway AdministrationUS Transportation CollectionState governments are facing major transportation infrastructure financing challenges as highway or Road Fund revenue growth has slowed and resistance to tax increases has strengthened. As a result, state transportation officials have turned to other financing methods to maintain momentum in meeting highway construction and maintenance needs. Among the financing methods being considered is the expansion of bond or debt financing. Changes in federal legislation that permits states to "pre-obligate" future federal funds, among other considerations, has made debt financing an attractive alternative for the states