ROADS

 

A $1.01 billion road plan was enacted by the Legislature in HB 1629 and funded in HB 1881. The two-phase plan provides for a combination of lease-back bond and cash funding of specific highway improvements throughout the state. It will nearly double the amount spent for state highway construction over the next five years:

  • $34.9 million in new revenues are provided to ODOT for highway projects included in the plan. HB 1629 states legislative intent to appropriate $40 million annually to ODOT during FY'99, FY'00, FY'01 and FY'02 to continue funding of the plan.

  • $50 million in Rainy Day funds were appropriated for highway projects included in the plan. HB 1629 states legislative intent to appropriate $50 million in Rainy Day funds in FY'99 and $52.55 million in FY'00 and FY'01 to continue funding the plan. Also, the bill states legislative intent to appropriate $10 million in Rainy Funds in FY'99 for highway projects in Oklahoma and Tulsa counties.
  • The Oklahoma Capitol Improvement Authority is authorized to issue $300 million in bonds to construct highway improvements authorized in the plan. Under "lease-back" provisions, OCIA will sell 10-year bonds to provide construction funds. OCIA, in partnership with ODOT, will construct the road improvements. OCIA will lease the road improvements to ODOT until the bonds are retired, when ownership will be transferred to ODOT. HB 1629 states intent that the Legislature will provide funds to ODOT in the future for lease payments to OCIA for retiring the bonds. Bonds are anticipated to go to market in late FY'98, with some construction beginning in the fall of 1998.

  • Intent language in HB 1629 provides for Phase Two funding of $300 million for the road plan beyond FY'00. Of the amount, $150 million would be provided from additional appropriations and $150 million would be provided via a second OCIA lease-back bond issue.

  • The bill provides for equitable distribution of new road funds across the state's eight transportation districts. Of the $710 million Phase One funding, up to 20% each is allocated to Districts 4 and 8 (which include Oklahoma and Tulsa counties) and at least 10% is earmarked for remaining districts. Of the $300 million Phase Two funds, up to 18% is set aside for Districts 4 and 8, at least 9% is allocated to remaining districts and 10% is set aside for contingencies.

  

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