Road Bond Refinancing Latest Mark of Responsible Government

Road Bond Refinancing Latest Mark of Responsible Government

by Governor Joe Manchin

This week, I joined members of the legislature to officially announce the refinancing of debt from General Obligation road bonds - a move that will save our state millions of dollars and leverage critical federal funding for major highway projects, benefiting West Virginians for many years to come.

While our state began issuing these bonds in 1998, the General Obligation road bonds were originally authorized by the legislature in 1996 pursuant to the "Safe Roads Amendment of 1996." These funds were to be used specifically for matching federal funds and general highway construction projects across the state.

After closely monitoring the financial markets, we decided that this is the perfect time to take advantage of low interest rates. With the refinancing, approved by the legislature during the most recent special session, West Virginia will realize almost $19 million in savings - a great stride in our efforts to achieve a better financial future for the Mountain State.

Most importantly, with federal matching funds used on most state road construction projects based on the federal formula of an 80/20 percent match, the bond refinancing is expected to leverage an estimated $75 million in federal dollars for major highway construction projects coordinated through the West Virginia Division of Highways.

During the first months of my administration, I have spoken often about the importance of ensuring that we utilize the taxes paid by our citizens in an efficient and more effective manner. From the very beginning, I expected West Virginians to hold me accountable for bringing a new era of responsibility to state government and that is why I am committed to reporting our progress to you.

The steps taken this week are just the beginning of our "Responsible Government" initiative, as we work together to identify opportunities to achieve substantial cost savings within state government. Just as these actions will result in a substantial savings for the state, West Virginians can expect to see an even greater cost savings - at least $1.5 billion - with statewide approval of the Pension Bond Amendment on June 25 and refinancing of our state pension debt.

As a result of the legislature and my administration working together, the state saved $19 million this week and can put at least $75 million towards new roads in the future. In my book, that's very good news for all West Virginians.

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