State approves plan to borrow $1.6B for transportation projects

[Star Ledger]

State approves plan to borrow $1.6B for transportation projects
by Dunstan McNichol/The Star-Ledger
Tuesday October 28, 2008, 4:19 PM
New Jersey today prepared to take a plunge into the turbulent market for public debt, approving plans to borrow up to $1.6 billion for transportation improvements next month.

The borrowing, by the state's Transportation Trust Fund Authority, will raise funds for about a year's worth of work on New Jersey highways, mass transit programs and local aid.

Members of the authority's board approved the bond sale, which officials have scheduled for Nov. 12 and 13.

It marks the first time since July that the state has attempted to borrow funds. Public borrowing has been difficult since the summer as the collapse of securities tied to sub-prime mortgages has left many banks and investors unwilling to advance funds to any borrowers.

Nancy Feldman, director of the state's Office of Public Finance, said officials may use a series of smaller issues over the course of several months to raise the transportation funds if interest rates are buyers are difficult to find next month.

The transportation program has about $9.3 billion in debt outstanding. It is a portion of the state's $32 billion in outstanding debt, a debt that costs taxpayers about $3 billion to pay down each year.

http://www.nj.com/news/index.ssf/2008/10/state_approves_plan_to_borrow.html

[Guest]

Maybe Obama could redistribute some of that wealth to NJ!