BOISE, Idaho — Officials with the Idaho Transportation Department say the state has saved $13.1 million in interest costs after refinancing bonds designates to improve the state’s aging highways.

ITD announced Thursday it worked with the Idaho Housing and Finance Association to refinance $101 million of debt by reducing interest rates from 4.5 percent to 2.3 percent.

Known as “Grant Anticipation Revenue Bonds” — or GARVEE bonds — these bonds allow states to pay for new road projects and repay it with future federal highway payments. It’s a shift from a pay-as-you-go method because it allows states to fund critical transportation projects without putting up the cash first.

Earlier this year, lawmakers approved an additional $300 million in GARVEE bonding authority. That’s on top of the $857 million approved in 2005 to add relief to six traffic corridors.

SHARE
Author photo
The AP is one of the largest and most trusted sources of independent newsgathering. AP is neither privately owned nor government-funded; instead, as a not-for-profit news cooperative owned by its American newspaper and broadcast members, it can maintain its single-minded focus on newsgathering and its commitment to the highest standards of objective, accurate journalism.