In an effort to enhance economic development through investment in transportation projects, the State of Louisiana created the Transportation Infrastructure Model for Economic Development (TIMED). The program is the single largest transportation program in the history of the State of Louisiana. The $3.5 billion program includes 16 specific transportation projects that include four-laning 500 miles of State highways, widening and /or new construction on the three major bridges and improvements to both the Port of New Orleans and Louis Armstrong International Airport.[89]
Initially, it was anticipated that the 16 specific projects included in the TIMED program would all be let for construction by 2005 before a $.04 per gallon tax would expire. However, in light of higher project costs, the Louisiana Department of Transportation and Development (DOTD) estimated that the TIMED program would not be completed until at least 2031 using traditional pay-as-you-go funding. Recognizing that completion of the TIMED projects was vital to the State's economic development, DOTD commenced a plan to accelerate completion of the remaining projects of the TIMED program. The goal of this stepped-up plan is to complete the TIMED program in 10 years. It is estimated that the remaining cost of the TIMED program from April 2003 is approximately $2.5 billion in 2003 dollars.[90]
As part of its implementation strategy to accelerate the remaining TIMED projects, the DOTD in December 2001 selected the Louisiana TIMED Managers (LTM) as the consultant team to assist with management of the program. LTM, serving as an extension of the DOTD staff, is a joint venture of Parsons Brinckerhoff, Gulf Engineers and Consultants, and the LPA Group. The multidisciplinary team is responsible for the financial management of the entire program as well as design management, right-of-way acquisition and relocation, construction engineering, and inspection. LTM is contractually obligated with incentives to achieve the TIMED program objectives and expedite completion of the TIMED program.[91]
The accelerated implementation of the remaining $2.5 billion TIMED program will be funded through a combination of revenue bonds and pay-as-you-go funding. About 83 percent of the program costs will be funded from revenue bond proceeds with pay-as-you-go funding accounting for the remaining 17 percent. The sources of the pay-as-you-go funds are the monthly collections of the Act No. 16 taxes and interest earnings on the TIMED fund balance. Legislation passed in 1998 extended the $.04 per gallon tax until all TIMED projects are complete and all outstanding bonds or other indebtedness issued for the TIMED projects have been paid in full, whichever is later.[92]
DOTD and LTM continue to work closely to move the completion of the TIMED program forward. By bonding and taking advantage of low interest rates, this program is saving money and delivering critical infrastructure projects to the people of Louisiana much sooner. The optimal mix of pay-as-you-go financing and debt financing is enabling completion of the remaining TIMED projects within a 10-year timeframe, and helping to drive Louisiana's economic development.[93]