March 15, 2002

Rethinking TDOT

My column in Thursday's Nashville City Paper explains how the state is failing to take advantage of a funding mechanism that could allow Tennessee to accelerate its road-building program. Essentially, Uncle Sam will now let states issue bonds for highway projects and pay off those bonds, including interest, with future federal highway dollars. Using the federal "GARVEE bonds," new roads get built sooner, before inflation drives up the cost of labor, materials and right-of-way; the state gets the economic benefit of the roads sooner, and taxes don't have to be raised. In fact, if the state were to augment its "pay-as-you-go" policy with $100 million worth of GARVEE bond-financed projects per year, it would free up more than enough money to allow the state to shift the Department of Safety under the TDOT budget - allowing the state to re-direct general fund dollars currently used for the Department of Safety to some other use, such as deficit reduction or education reform. See below for more resources and information on GARVEE bonds.