The Idaho House this morning has moved the subject of the $82 million GARVEE (Grant Anticipation Revenue Vehicles)bonding program to the top of its calendar. GARVEE bonds are a debt financing instrument that has a pledge of future Federal-aid and is authorized for Federal reimbursement of debt service and related financing costs. GARVEE bonds generate up-front capital for major highway projects that the state may be unable to construct in the near term using traditional pay-as-you-go funding approaches.
“By the end of this construction season, 130 lane miles of road will have been improved with the aid of GARVEE,” Rep. George Eskridge, R-Dover, told the House.
With inflation rates for construction materials, the projects will cost less if built with the bonds, Eskridge said, than if they were built years later when funding becomes available.
Some lawmakers feel this could cause trouble in the future though, as it is essentially buying on credit. We'll follow this and update you.