A variety of factors have negatively affected the ability of traditional transportation revenues to provide needed transportation infrastructure and maintenance. In this environment, states are turning to a host of innovative finance mechanisms-such as bonding and debt instruments; federal debt financing, credit assistance and fund management tools; and public-private partnerships-to help leverage traditional funding sources. Some of these tools require state authorizing legislation before a DOT can use them; this gives the legislature an ongoing role in-and additional oversight of-transportation finance.
Some transportation finance mechanisms require state legislatures to enact authorizing legislation before a DOT can use them, and some states require further legislative approvals for the use of certain innovative financing tools. | Some states also require further legislative approvals of the use of certain innovative financing tools. For example, of the 31 states and Puerto Rico that had enabling statutes for public-private partnerships (PPPs) as of April 2011, nine states required a form of legislative approval for at least some PPP projects; in addition, Utah and Puerto Rico required legislative approval to convert existing facilities to privately operated toll roads. Likewise, at least four states require further legislative approval or appropriation before grant anticipation revenue vehicle (GARVEE) debt can be issued. Colorado law explicitly delegates this authority to the executive branch, but authorizes GARVEE debt only up to a specified level and requires additional legislative approval for the DOT to exceed the cap; California also statutorily limits GARVEE issuance. |