Measure J was LA Metro's "Plan B" for accelerating the Measure R funded transportation program. "Plan A" was the federal TIFIA loan program as well as a new class of federal bonds called QTIBs or qualified investment bonds. (Measure J, which failed to get the two-thirds majority required to pass on last November's ballot, would have extended the Measure R sales tax for 30 years to enable Metro to bond against a longer revenue stream.)
Congress adopted a robust TIFIA loan program last year — the largest transportation infrastructure financing fund in U.S. DOT history — providing $1.7 billion in capital over two years, up from $120 million in FY2012. But Congress never did adopt the new class of QTIBs, which would have allowed issuers to finance more than twice the dollar value of capital improvements than is possible with traditional tax-exempt bonds. The federal government would subsidize the interest by providing investors with tax credits in lieu of interest payments.
Metro's gone back to Washington to advocate for this bonds, which are being rebranded as America Fast Forward, arguing they would provide a more reliable funding stream for transportation projects than the current Highway Trust Fund.
Congress has authorized qualified tax credit bond programs in excess of $36 billion for forestry conservation, renewable energy projects, energy conservation, qualified zone academies and new school construction. America Fast Forward Transportation Bonds would represent a sixth class of these bonds.
As proposed by Metro, America Fast Forward Transportation Bonds would be authorized in the amount of $4.5 billion annually from 2013 to 2023 in total.
Read Metro's brochure here.
Congress adopted a robust TIFIA loan program last year — the largest transportation infrastructure financing fund in U.S. DOT history — providing $1.7 billion in capital over two years, up from $120 million in FY2012. But Congress never did adopt the new class of QTIBs, which would have allowed issuers to finance more than twice the dollar value of capital improvements than is possible with traditional tax-exempt bonds. The federal government would subsidize the interest by providing investors with tax credits in lieu of interest payments.
Metro's gone back to Washington to advocate for this bonds, which are being rebranded as America Fast Forward, arguing they would provide a more reliable funding stream for transportation projects than the current Highway Trust Fund.
Congress has authorized qualified tax credit bond programs in excess of $36 billion for forestry conservation, renewable energy projects, energy conservation, qualified zone academies and new school construction. America Fast Forward Transportation Bonds would represent a sixth class of these bonds.
As proposed by Metro, America Fast Forward Transportation Bonds would be authorized in the amount of $4.5 billion annually from 2013 to 2023 in total.
Read Metro's brochure here.
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