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SALT LAKE CITY - House and Senate Republicans and Gov. Jon Huntsman have agreed to approve the issuance of state bonds to fund road improvements.
The Salt Lake Tribune reports they have agreed to borrow roughly $3.3 billion through the bonds.
The money will pay for reconstruction of Interstate 15 in Utah County, the Mountain View Corridor, which would run between Salt Lake and Utah counties, and the Southern Parkway in St. George.
Senate Budget Chairman Lyle Hillyard, R-Logan, told the Tribune, "We've let roads go for so long that we're really in a crisis situation."
Lawmakers say they hope the bonds will create construction work and stimulate the state economy.
Utah's excellent bond rating is helping it secure the money at a good rate. Borrowing the money through state bonds means lawmakers will be close to a self-imposed ceiling on state debt. Lawmakers don't want to exceed 15 percent of the state's constitutional bonding limit due to concerns it could hurt Utah's bond rating.
Also, the Utah Department of Transportation says construction is a bargain right now. The costs of cement, steel and gas all have dropped recently.
UDOT has scaled back its original $2.6 billion plan for I-15 in Utah County by $900 million. The Mountain View corridor will cost $20 million less.
Meanwhile, UDOT has cashed its $143 million payout as part of the stimulus for transportation projects. It hopes to start spending that money next month for things like new interchanges along I-15 at 7200 South and 9000 South, more lanes on U.S. 6, bridges on I-80 in Salt Lake County, and many asphalt repairs.
Story compiled with contributions from Andrew Adams and Adam Thomas and The Associated Press.
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