California's AB 680 was premised on the notion that privately developed tollroads should not require any contribution of public funds. A corollary to this principal was that opportunities for private investment should only be offered for projects that were low on the State's priority list, reserving for traditional public financing the most urgently needed projects. Since that time States have come to understand that there are few new projects that can be financed solely on the basis of toll revenue. States are also recognizing that, given the overall inadequacy of public dollars, combining public and private investment dollars in highly congested corridors is the most effective tool to advance these urgent projects over the shortest time horizon.
Today, most State laws permit public contributions to PPP projects in the form of grants or loans, and authorize the State to cooperate with the private sponsors in obtaining needed TIFIA credit support or private activity bond allocations.