Transportation-related contractors in the Midwest may find that the state as well as local governments in Nebraska could soon have more funding available that will help accelerate transportation projects throughout the state. Nebraska Gov. Pete Ricketts this week announced his support for creating a transportation infrastructure bank.
Not only would the transportation infrastructure bank initiative provide funds to fast-track some much-needed road construction, but it also would also provide qualifying Nebraska counties matching funds to assist them with bridge repair needs. On the economic development side of the initiative, Ricketts says the infrastructure bank would also fund transportation projects that will help promote expansion of existing industry while attracting new business to the state.
Ricketts noted that unlike other states that increase debt to build roads, Nebraska has historically prioritized transportation funding, using a pay-as-you-go system.
The proposal, which would allow for a design-build method for contracting for transportation projects instead of the current, more time-consuming design-bid-build method, would allow for borrowing $150 million from state cash reserves to fund the three programs included in the infrastructure bank.
They include:
- The Accelerated State Highway Capital Improvement Program that would fast-track highway capital improvement construction projects;
- The Economic Opportunity Program would allow for connection of new business and expanding existing businesses and industries to the state’s transportation network; and
- The County Bridge Match Program would feature criteria developed by the Nebraska Department of Roads for additional funding in county road systems to replace deficient bridges by providing matching funding for county governments.
Allowing use of the design-build process for construction could reduce by 2-4 years the usual 7-12 year timeframe for completing major construction projects.
The transportation infrastructure bank initiative gained support throughout the state when discussed at legislative transportation hearings, according to state officials. Hearing participants favored initiatives that will help expedite construction and repair of critical road and bridge projects statewide.
With the backing of the governor and business and civic leaders, Transportation and Telecommunications Committee Chair Sen. Jim Smith plans to introduce the legislation following the State of the State address on Jan. 14