MAXIMIZING THE USE OF PRIVATE CREDIT MARKETS FOR TRANSIT INVESTMENTS

The opportunities created by the 1982 Surface Transportation Assistance Act are examined to increase the role of private capital markets in financing transit investments. These opportunities include: the potential for more extensive grant anticipation financing using the Section 9 block grant as a credit source, the potential impact of contract authority flowing from Highway Trust Fund dollars on financing options available to grantees under the Section 3 discretionary program, and the potential impact of federal funding under the 1982 Surface Transportation Assistance Act on the terms and availability of credit for the non-federal portions of transit capital budgets. The impact of these opportunities on future applications of existing financing tools to transit capital projects is examined. Existing credit instruments, such as dedicated tax revenue bonds, transit revenue bonds, service contract bonds, general obligation debt, toll revenue bonds, and grant anticipation notes are described and examples are cited. The conclusions reached indicate that the 1982 Surface Transportation Assistance Act will permit opportunities for longerterm grant anticipation financing and should favorably influence the terms and availability of credit for the non-federal portions of transit capital budgets. Realization of these opportunities can be expected to reduce overall project costs by allowing construction schedules to be optimized and interest costs to be lowered.

Media Info

  • Media Type: Print
  • Features: References;
  • Pagination: pp 37-42
  • Monograph Title: State and local finance issues : roads and transit
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00392960
  • Record Type: Publication
  • ISBN: 0309037247
  • Files: TRIS, TRB
  • Created Date: May 31 1985 12:00AM