INDIANAPOLIS (AP) - Indiana’s top transportation official wants the state to take a new approach to paying for road projects because of concerns about debt payments.
Department of Transportation Commissioner Karl Browning tells the Indianapolis Business Journal (https://bit.ly/11qPlmC ) Indiana shouldn’t commit to any more public-private partnerships known as “availability payments” because it’s a lot like borrowing.
Availability payments are annual payments that come from available budgeted revenue sources. A developer can use a government’s long-term commitment of annual payments to finance a project.
The mechanism was used to finance section five of the Interstate 69 project and Indiana’s share of the Ohio River bridges project.
Browning says he would support a public-private deal for new construction if it can be sustained by a known revenue source, such as tolls.
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