W.V. Concerned About Transportation Bond Debts
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Posted: 11:22 AM Sep 10, 2008
W.V. Concerned About Transportation Bond Debts
CHARLESTON, W.Va. (AP)
The bankruptcy of the federal highway trust fund has sparked concerns among states that they could be on the hook for bond debt originally set to be paid off with dollars from Washington.
Reporter: TOM BREEN - Associated Press Writer
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The bankruptcy of the federal highway trust fund has sparked concerns among states that they could be on the hook for bond debt originally set to be paid off with dollars from Washington.

Twenty-one states and the Virgin Islands have issued about $18 billion in Grant Anticipation Revenue Vehicle, or GARVEE, bonds. The bonds are issued with the expectation that states will have enough future highway funding to pay off the debt.

States may not have to worry right now as Congress is expected to plug the hole in the highway fund's budget with short-term cash.

Joe Deneault, chairman of West Virginians for Better Transportation, says the problem shows the need for long-term changes to road funding.