Bond and note issues are used to augment tax and registration fee monies. In recent years they have been critical to maintaining funding levels for the highway and bridge program on the state trunkline system. In 2006 bond and note issues were also used for the “Jobs Today” program to help provide funding for local governments to use in match money for federal funds. Bond proceeds are not routed through the MTF and their values are over and above amounts reported for the MTF. Each bond program is accounted for in a separate Surface Transportation or Comprehensive Transportation Program Bond Proceeds Account.

Bond and note proceeds in recent years are shown in Figure 10. In 2006 and 2007 bonds generated $245 and $309 million respectively. Another $309 million of issues are scheduled for 2009. As of Sept. 30, 2005, total bond and note balances for the combined CTF and STF totaled $1.575 billion. Debt service on STF bonds totaled $72.7 million in 2004, and reached $114.1 million in 2005. Debt service is scheduled to total $160 million in 2007, $180 million in 2008, $205 million in 2009, and then average about $220 million until 2019. As a percentage of projected STF revenue each year the bond debt service is approximately 10 percent after 2008.[28] However, as a percent of the five-year plan, capital program (expansion and preservation) for highways the STF debt service rises to 22.1 percent in 2009 and 24.1 percent in 2010. These are quite high debt levels, but at least through 2003, rank just 21st in the country. Also, all neighboring states but Wisconsin had considerably higher debt levels.

Figure 10

Figure 10 - click to enlarge