Tools & Programs:
Federal Debt Financing Tools
Grant Anticipation Revenue Vehicles (GARVEEs)
The following is a brief summary of GARVEE transactions in 2014.
- Idaho made its eighth sale ($75.2 million) since May 2006 in support of its GARVEE Transportation Program to fund six critical transportation corridors throughout the state: US-95 Garwood to Sagle, US-95 Worley to Setters, SH-16, I-84 to South Emmett, I-84 Caldwell to Meridian, I-84 Orchard to Isaacs Canyon, and US-30 McCammon to Lava Hot Springs. The program is currently planned to utilize $857 million in proceeds. Funding authorizations are requested annually. The total GARVEE bonds sold to date amount to $807 million.
- Kentucky issued $132.2 million in GARVEEs in March to finance improvements to US 68/US 80 between Aurora and Cadiz in the southwestern portion of the state, northwest of Nashville, Tennessee. The roadway will reconstructed and widened in certain locations and the bridges over Kentucky Lake and Lake Barkley will be replaced. FHWA approved an Initial Finance Plan for these projects in September 2012. The Commonwealth also issued $39.8 million of GARVEEs to refund GARVEEs issued in 2005 that financed the widening and rehabilitation of I-64, I-65, and I-75 and were slated to mature between September 2015 and September 2017.
- Mississippi issued $82.9 million in GARVEE bonds in June to further construction on the expansion and extension of I-69/269 between US 55 and US 78 in Desoto County, just south of the Tennessee border. This is the third GARVEE issue since 2007 for this $376 million project, expected to be complete in 2018.
- In November, the State of Arkansas issued the remaining $206.5 of $575 million in GARVEEs approved by voters in 2011. As with the first two series issued in September 2012 and November 2013, the bonds are backed by federal highway funds and a portion of the state excise tax on diesel fuel. They were issued as General Obligation bonds and are further backed by the full faith and credit of the state. The proceeds help to finance state highway rehabilitation and upgrade projects in conjunction with the Connecting Arkansas Program approved by voters in 2012 that dedicates a 0.5 percentage point increase in the state sales tax over 10 years to state, county, and city highway projects.
- Maine’s fourth GARVEE issuance in the amount of $44.8 million by the Maine Municipal Bond Bank on behalf of the Maine Department of Transportation took place in November. The proceeds will be used to pay a portion of the costs of the replacement of the Sarah Mildred Long Bridge which carries U.S. Route 1 over the Piscataqua River between Portsmouth, NH and Kittery, ME, and the Penobscot River Bridge which carries Route 6, 116, and 155 over the Penobscot River between Howland and Enfield in Central Maine. The bonds were issued as part of a statutory plan of finance designed to accelerate the delivery of high priority transportation projects in the state.
- In December, Ohio issued $218.1 million in GARVEE bonds comprising $155.9 million of Major New State Infrastructure Project Revenue Bonds and $62.3 million in proceeds to refund outstanding Revenue Bonds issued in 2008. The new revenue bonds will finance various highway and bridge projects throughout the state. These include structurally deficient bridges, interstate resurfacing, rehabilitation, and widenings, intersection improvements, and new expressway construction, among others.