Governor Announces Legislation Filed to Create State Infrastructure Bank

Rep. John Lunsford to Carry Legislation to Fund Projects through Revolving Loan Fund

ATLANTA – This morning at the Georgia Municipal Association’s annual Legislative Issues Breakfast, Governor Sonny Perdue announced legislation will be filed today that will create the Georgia State Transportation Infrastructure Bank.  The legislation will be carried by Representative John Lunsford (R – McDonough).

“Local governments often find themselves short on funding for needed transportation projects,” said Governor Sonny Perdue. “The State Transportation Infrastructure Bank will allow us to support growth and our economy, funding critical transportation projects across the state.”

The Georgia State Transportation Infrastructure Bank (STIB) will make funding available to cities, counties, transit operators and Community Improvement Districts for projects, as these entities are most aware of communities’ needs for an integrated transportation system that supports local economic growth and relieves traffic congestion.

The STIB will provide low interest rate loans and flexible repayment terms.  As a revolving loan fund, dollars that are paid back will continually be made available for new transportation projects.  The STIB will be maintained and operated through the Georgia State Road and Tollway Authority (SRTA).

Projects will be selected for funding through the STIB based on criteria that promote economic development and those that provide “gap financing,” or the last bit of dollars needed to complete a project.  Eligible projects will include roads, bridges, transit vehicles and facilities, bicycle & pedestrian facilities, rail and airports.  A taskforce of state and local agencies, including SRTA, will draft the selection criteria.

The initial capitalization of the STIB will include $50 million.  This is made up of a variety of funding sources including:

• $25 million in motor fuel funds
• $4.6 million in state general funds, FY09
• $5.4 million transferred from reserve funds of the Georgia Highway Authority.   The Georgia Highway Authority is an inactive state agency.  With the creation of the STIB, these reserve funds will now be put to use for transportation projects in Georgia.
• $15 million from the OneGeorgia Authority Air Georgia funds, available to airports only.  OneGeorgia (OGA) funds for the STIB are pending approval of the OGA Board. 

If Governor Perdue’s legislation is successful, Georgia will join 32 other states that have transportation infrastructure banks, which have disbursed a total of $3.7 billion to more than 450 projects.

“I am excited to work with Governor Perdue on this cutting edge legislation to help address transportation issues in our state,” said Representative John Lunsford.

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