BOND-ISSUE FINANCING OF ARTERIAL HIGHWAY IMPROVEMENTS

ADVANTAGES IN THE USE OF CREDIT FINANCING TO ACCELERATE THE IMPROVEMENT OF ARTERIAL HIGHWAY FACILITIES WILL INCREASE THE SAVINGS AND OTHER BENEFITS DERIVED BY HIGHWAY USERS, GENERATE INCREASED TRAFFIC ON THE ARTERIAL SYSTEM, AND PROVIDE ADDITIONAL REVENUES FOR ITS SUPPORT. HOWEVER, A PRICE IS PAID IN THE FORM OF INCREASED TOTAL COSTS BECAUSE OF INTEREST CHARGES. THE RECENTLY PUBLISHED REPORT, "HIGHWAY NEEDS OF THE NATIONAL DEFENSE" REVEALED THE FACT THAT, AS OF 1948 AND AT 1948 PRICES, PROPOSED IMPROVEMENTS ON THE NATIONAL SYSTEM OF INTERSTATE HIGHWAYS WILL COST OVER $11 BILLION, OF WHICH NEARLY $6 BILLION ARE NEEDED TO IMPROVE THE 34,000 MILES OF RURAL SECTIONS AND $5.3 BILLION ARE NEEDED FOR THE PROJECTED URBAN SYSTEM OF 3,500 MILES. WHEN ADJUSTMENTS ARE MADE FOR PREDICTED PRICE LEVELS AND ADDITIONAL CAPITAL OUTLAYS DURING THE PERIOD OF AN IMPROVEMENT PROGRAM, IT IS ESTIMATED THAT THE PROPOSED IMPROVEMENT OF THE INTERSTATE SYSTEM COULD BE ACCOMPLISHED, AND THE SYSTEM MAINTAINED AND OPERATED, BY A 15-YEAR PROGRAM REQUIRING AVERAGE ANNUAL EXPENDITURES OF $702 MILLION. A PROGRAM ACCELERATED TO COMPLETION IN 12 YEARS WOULD COST $845 MILLION A YEAR; ONE LENGTHENED TO 20 YEARS COULD BE FINANCED AT $566 MILLION A YEAR. ANALYSIS OF THE DATA REGARDING THE COSTS OF PROPOSED IMPROVEMENTS ON THE INTERSTATE HIGHWAY SYSTEM INDICATES THAT THEIR AVERAGE INVESTMENT LIFE WOULD BE IN EXCESS OF 50 YEARS, ESTIMATED VALUES BEING 50 YEARS FOR THE RURAL SECTIONS AND 58 FOR THE URBAN. THE ADOPTION OF AN 8-YEAR CONSTRUCTION PROGRAM WILL BE FINANCED OUT OF BONDS ISSUED FOR 30-YEAR TERMS AT 2 PERCENT INTEREST. /AUTHOR/

  • Supplemental Notes:
    • Vol 29, pp 20-43, 8 FIG, 10 TAB
  • Authors:
    • St, CLAIR GP
  • Publication Date: 1950

Media Info

  • Monograph Title: Proceedings of the Twenty-Ninth Annual Meeting of the Highway Research Board Held at Washington, D.C. December 13-16, 1949.
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00201033
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: Jul 25 1971 12:00AM