Last week, a report from Alabama Daily News via the Bond Buyer revealed that the Alabama Highway Authority is selling $730 million in bonds to fund 80 miles of the West Alabama Corridor project.
The debt is to be repaid from Rebuild Alabama Act gas tax revenue over 20 years.
The announcement caught many by surprise, including Lt. Gov. Will Ainsworth, who has very publicly criticized the project.
During an appearance on Mobile radio FM Talk 106.5's "The Jeff Poor Show," State Sen. Chris Elliott (R-Josephine) discussed that obligation, calling it an "aspirational project" being handled in a "very fiscally irresponsible manner."
"At least, you know, two and a half [governor terms]," he explained. "This is a 20-year bond issuance. And so what she's doing is obligating these funds for 20 years past the expiration of her term — 20 years. And it is half of all that is allowed to be borrowed against from the Rebuild Alabama Act. And that's what makes this so offensive to those of us who supported increased transportation funding to accomplish many of the projects that need to be done around the state, like the ones we just talked about at the opening of the segment. I mean, those are all huge economic development projects that need to happen around the state. You look at Huntsville, the Lilly announcement, Space Command, FBI, the Toyota Mazda that's already there. You look at all, you know, you look at all of the projects in South Alabama."
"You look at projects all over the state that are dying for increased infrastructure investment," Elliott added. "And we've decided, the governor has decided to spend it on this aspirational project and to do so in what I think is a very fiscally irresponsible manner. And so that's when the next governor and the next ALDOT director are going to have to sharpen their pencil and say, what is this going to cost for us to get out of this mess? And is it worth us getting out of this mess? And what's the opportunity cost of us not doing that?"
Jeff Poor is the editor-in-chief of 1819 News and host of "The Jeff Poor Show," heard Monday-Friday, 9 a.m.-noon on Mobile's FM Talk 106.5. To connect or comment, email [email protected] or follow him on Twitter @jeff_poor.
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