Highway borrowing supported

BOISE — Business leaders in the Treasure Valley have added their voices to a growing chorus calling on lawmakers to borrow money to speed up highway projects.

The plan to sell bonds and repay the debt using Idaho’s share of the federal highway support is expected to be a major topic at the Legislature after it convenes Jan. 10.

The Boise Metro, Meridian and Nampa chambers of commerce said Thursday they’d support the concept, which is expected to figure prominently into Gov. Dirk Kempthorne’s legislative agenda.

Bonding allows state governments to build highways today, using the money they expect to receive in the future from the federal government.

The Idaho Association of Commerce and Industry, the most powerful business lobby at the Legislature, has already endorsed the concept. There are 14 states that use these Grant Anticipation Revenue Vehicles, or GARVEE bonds, to pay for highway construction.

Supporters say it allows the state to pay for critical infrastructure needs rather than wait until the cash comes in some time in the future, when construction costs are likely to be significantly higher.

But critics caution that borrowing to pay for highway construction forces the state to obligate money it doesn’t have, on the hopes that the federal government won’t cut off support.

“If (the economy) sputters and stalls and you still have debt that you have to take care of, you could end up in a little trouble then,” said Chris Veloz of Northwest Sales and Distribution, a member of the Nampa Chamber of Commerce.

Veloz urged lawmakers to develop their bonding plan carefully.

The chambers said the development of “an efficient transportation system is critical for economic development” and noted that it could result in the faster completion of highway projects.

Boise Democratic Rep. Margaret Henbest said the bonding proposal should include a public transportation component.

If it doesn’t, “I have a lot of trouble with that as an Ada County legislator,” she said.

Kempthorne has not said what highway projects will be in his plan, apart from upgrades to U.S. 95.