DALLAS — The North Carolina House has put onto the fast track a proposed $1.7 billion, six-year road expansion and rebuilding program that would be funded in part with $400 million of bonds if approved as part of a possible $2.85 billion general obligation bond referendum in November.
The GO bond measure, HB 943, was announced by House leaders on Aug. 3 and passed by the House Finance Committee the next day. The House is expected to adopt the measure and send it to the state senate by early next week.
The $1.7 billion of total funding in the six-year transportation plan includes $400 million of the state GO bonds and $216 million per year from ending the diversion of dedicated road taxes to the state police budget.
The House's infrastructure bond plan would provide $2.46 billion of proceeds to public and higher education, the state's community college system, and local water and sewer projects.
The state's GO bonds carry triple-A ratings from the three major agencies.
Rep. Dean Arp, the Republican whip in the House who is the main sponsor of the GO bond bill, said issuing bonds now would allow the state to take advantage of low interest rates and construction costs.
"Who in here thinks that the cost of construction is going to be lower than it is now?" Arp said in a House speech outlining the proposal. "Who in here thinks that the cost of money is going to be cheaper than it is now?"
The $400 million of dedicated bond proceeds would go to road and bridge projects that can get under way soon, Arp said.
"We believe this proposal puts forward a great plan that both the Senate and the governor can pivot to and come together around," he said. "I think the time is right to do a very fiscally sound and fiscally wise policy."
Gov. Pat McCrory said the new House plan provides "common-sense, long-term solutions" to the state's infrastructure needs. McCrory earlier this year proposed the Connect NC, a $2.85 billion GO bond program that dedicated $1.4 billion of the proceeds to roads and bridges.
"We're pleased that the Connect NC bond proposal continues to gain momentum," he said. "The House proposal aligns with our plan to invest in North Carolina with a prudent, conservative approach that takes advantage of historically low interest rates and doesn't raise taxes."
Lawmakers and McCrory have not agreed on a state budget for fiscal 2016, which began July 1. The state is operating under a temporary budget.
Republican leaders in the North Carolina Senate last month proposed a 10-year road plan funded by ending the diversions of road taxes as in the House measure. The Senate plan does not include the GO bonds.
"We believe there's a better way to achieve this goal than the proposal to borrow $1.4 billion to be spent on a few piecemeal projects," said Sen. Bill Rabon of McCrory's Connect NC proposal.
Rabon, the co-chairman of the Senate Transportation Committee, said more than 300 projects in the existing long-range, data-based plan have a higher priority than those on the proposed bond-financed list, he said.
"We share the goal of finding ways to shrink the gap between our critical transportation needs and our limited funding," said Rabon. "But skipping hundreds of needed projects in favor of old politically connected plums is a step in the wrong direction."
The bond election would be held Nov. 3 during the state's municipal contests. However, many rural areas have no elections scheduled. Special referendums would have to be called in those districts.
