Jindal proposes borrowing funds for rural road repairs
Gov. Bobby Jindal said Monday he wants to borrow money to generate $325 million in repairs to rural roads across Louisiana.
Jindal said the plan, which would require bonds to be issued, would pay for resurfacing and other improvements on nearly 1,000 miles of roads that are not eligible for federal matching dollars.
What roads would be affected in the Baton Rouge area is unclear.
The Governor’s Office issued a two-page news release about the proposal at midafternoon Monday when many state officials were off work celebrating Mardi Gras.
The proposal is likely to be a key topic during the 2012 legislative session, which begins March 12.
“The reality is that many of our rural roads have not received any significant repairs in over 30 years due to a lack of funding,” the governor said in a prepared statement.
“That’s unacceptable and we have a solution to bring more dollars to these projects and make sure every part of our state has a solid infrastructure,” he said.
Jindal’s proposal would tap into a little-known pot of money called the State Highway Improvement Fund, which was set up to finance improvements for roads not eligible for federal dollars.
The fund generates about $50 million to $60 million per year, according to Jodi Conachen, director of communications for the state Department of Transportation and Development.
The money comes from commercial vehicle registration and license fees.
Jindal wants to use half of the fund to both issue the bonds, which is a form of borrowing, and to pay them off over the years.
The action would allow the state to generate spending for the roads over three consecutive years — $100 million, $100 million and $125 million, Conachen said.
Total borrowing costs are unclear.
However, Conachen said the bonds would be paid off in 20 years, which officials said would be less than the life of the roads being upgraded.
Jindal’s office said the bill will be sponsored by House Appropriations Committee Chairman Jim Fannin, D-Jonesboro.
Fannin did not return a call for comment on Monday.
Legislation spelling out the proposal has not been filed.
Senate Transportation Committee Chairman Robert Adley, R-Benton, praised the proposal.
“I think this is the right thing to do and I fully support it,” he said.
Adley said rural roads that would be affected were a frequent topic during a recent series of hearings statewide held by the Senate and House transportation committees.
“Everywhere we went we kept telling the people that we need to bond out that money,” he said of the fund.
The state has been plagued by highway problems and driver complaints for years, and has a $12.4 billion backlog of work now.
However, efforts to address the issue have failed, in part because Jindal and many lawmakers are opposed to any tax hikes to do the work, including any increase in the state gasoline tax.
Scattered legislative efforts to tackle the issue have gone nowhere.
In addition, even if tax hikes suddenly generated political support in the Legislature, no such action could happen during the 2012 regular legislative session because of restrictions in the state constitution.
Jindal said wear and tear on the roads stem from hurricanes and other natural disasters, the state’s agricultural industry and, in the case of northwest Louisiana, the Haynesville Shale boom — a major natural gas discovery.