RECENT TRENDS IN HIGHWAY BOND FINANCING

THE POSTWAR NEED FOR HIGHWAY MODERNIZATION HAS CAUSED AN INCREASING TREND TOWARD THE USE OF CREDIT FINANCING. DURING THE 5-YEAR PERIOD, 1946 TO 1950, THE STATES, INCLUDING SPECIAL STATE AUTHORITIES AND COMMISSIONS, ISSUED $1,059,000,000 IN HIGHWAY BONDS (NOT INCLUDING REFUNDING ISSUES); THE COUNTIES AND OTHER LOCAL RURAL UNITS ISSUED $444,000,000; AND THE URBAN PLACES $685,000,000, MAKING A TOTAL OF $2,188,000,000. THE AMOUNT OF ALL HIGHWAY AND STREET DEBT OUTSTANDING AT THE END OF 1950 WAS APPROXIMATLY $4.5 BILLION. THE STUDY OF INDIVIDUAL ISSUES IN NUMEROUS STATES DISCLOSES WIDE VARIATIONS IN METHOD AND A TENDENCY TO EXPERIMENT WITH DIFFERENT FORMS OF CREDIT FINANCING. THE TOLL-ROAD MOVEMENT CONTINUES VIGOROUSLY; BUT NEW HAMPSHIRE AND NEW YORK HAVE TAKEN STEPS TO AVOID THE HIGH DEBT-SERVICE CHARGES ASSOCIATED WITH TOLL REVENUE-BONDS BY GENERAL-OBLIGATION FINANCING. LIMITATIONS ON DEBT AND THE DIFFICULTIES OF AMENDING STATE CONSTITUTIONS HAVE BEEN AVOIDED IN SOME STATES, NOTABLY FLORIDA AND PENNSYLVANIA, BY THE CREATION OF SPECIAL STATE AUTHORITIES WITH THE POWER TO BORROW. IN OTHER STATES, THE CREDIT OF COUNTIES AND CITIES IS UTILIZED IN THE DEVELOPMENT OF URBAN EXPRESSWAYS AND LIMITED-ACCESS HIGHWAYS, BY THE ISSUE OF LIMITED-OBLIGATION BONDS SECURED BY ROAD-USER TAXES AND OTHER PLEDGED REVENUES. TRADITIONAL METHODS OF STATE-HIGHWAY BOND FINANCING ARE BEING USED WITH CONSPICUOUS SUCCESS IN A NUMBER OF STATES, AMONG THEM MARYLAND AND MASSACHUSETTS; BUT EVEN IN THIS FIELD A CHOICE IS OFFERED BETWEEN LIMITED-OBLIGATION AND GENERAL-OBLIGATGION BONDS. NORTH CAROLINA AND WEST VIRGINIA DIFFER FROM OTHER STATES BY USING THEIR BOND-ISSUE FUNDS TO IMPROVE THEIR SECONDARY-ROAD SYSTEMS. /AUTHOR/

  • Supplemental Notes:
    • Vol 31, pp 1-25, 7 FIG, 26 PHOT, 9 REF
  • Authors:
    • Duzan, H C
    • McCallum, W R
    • Todd, T R
  • Publication Date: 1952

Media Info

  • Monograph Title: Proceedings of the Thirty-First Annual Meeting of the Highway Research Board, Washington, D.C., January 15-18, 1952
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00201035
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: Aug 1 1971 12:00AM