April 18, 2008

Massachusetts governor unveils $3.8-billion bond proposal for repair of more than 400 bridges

Boston

Massachusetts Governor Deval Patrick plans to unveil a US$3.8 billion bond proposal to repair 411 deteriorating bridges throughout the state over the next eight years, a project he will argue not only improves road safety but also pumps cash into the economy to buffer Massachusetts from a recession.

The massive repair and reconstruction of bridges in virtually every corner of the state would create 23,000 direct construction jobs, according to a preliminary draft of the governor’s plan, according to a recent report in the Boston Globe.

The proposal will be introduced at a major speech this morning at MIT’s Sloan School of Management, the first economic outline Patrick will present since the legislature defeated his plan to create tens of thousands of jobs by licensing three casinos around the state. Those briefed on the plans say the bridge-repair blueprint will be the centerpiece of today’s speech.

“He will talk about the need to invest in our infrastructure in order to maintain our competitiveness and grow our economy,” said Cyndi Roy, a Patrick spokeswoman who declined to comment further.

The move could prove controversial. It would add to a state debt burden that is already the highest per capita in the country. Patrick plans to pay for the projects by floating bonds in the next eight years, which would need legislative approval and would renew debate over how deeply the state should go into debt, and how vital the bridge repairs are.

There are already several other major bond projects before the Legislature, including US$2 billion targeted for higher education and US$1.4 billion for environmental projects. In addition, a US$3.5 billion transportation bond bill approved by the state legislature would help fund 397 additional bridges.

The administration plans to argue that embarking on the projects now will save money in the long run, because construction costs are escalating.

The borrowing plan would front-load state indebtedness, resulting in an accelerated schedule for new debt that would restrict the ability of future state leaders to borrow.

DCN News Services

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