Modification of Transportation Funding

The legislature, during the 2012 session, put forth HB 173, Transportation Funding Modifications, an important bill that will reduce our State bonding authorization for roads by $130 million. Essentially this means we are self-imposing a lower credit limit so we eliminate the possibility of over extending ourselves with road debt. Rather than have outside financial entities or economic circumstances dictate our credit and debt, we are self-regulating our credit limit. The best guarantee against future economic crisis is to ensure our budgets are sustainable.

The bill also gives UDOT increased flexibility to move funding around within their budget for various projects by extending the road budget process out for a period of three fiscal years. Often projects on the list are in different phases of readiness due to design, environmental impacts and other factors. This will allow UDOT to move projects ahead that are shovel ready over other projects that still need design; resulting in lower construction costs and other savings. It is anticipated that with this flexibility, UDOT will be able to complete additional transportation projects while at the same time reducing our overall bonding debt.

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