Two state lawmakers said Thursday that Colorado legislators will seriously consider using bonds to pay for big statewide transportation improvements when the legislature convenes next month.
Rep. Joe Rice, a Littleton Democrat, and Rep. David Balmer, a Centennial Republican, said issuing bonds or certificates of deposit — which work like bonds but do not require voter approval — are among the only viable options for getting large amounts of cash quickly to make repairs and upgrades to Colorado’s roads and bridges.
Such a proposal would require the state to go into debt to get money for improvements upfront while paying off the debt over time, much like buying a house. It would be similar in concept to Referendum D — which voters narrowly rejected in 2005.
“Why are we doing our transportation projects with 100 percent equity, with pay-as-you-go?” Balmer asked rhetorically Thursday at a meeting of the legislative committee charged with finding ways to stimulate Colorado’s economy. “Other states don’t do it that way. We will never catch up on transportation projects without using leverage.”
Balmer said long-term projected state revenue growth would be enough to cover the bond payments.
Rice, however, said the state must be careful not to tie up all its annual transportation budget in making bond payments. He said lawmakers should still look at other ways — perhaps a gradual car registration fee increase or “congestion” tolling on highways — to raise extra money for road projects.
“I certainly agree that bonding is going to be part of what we do in the short- to medium term,” Rice said. “But it also has to be coupled with something else because we can’t just mortgage out our future.”
Balmer said he would not support any proposal that raises taxes or fees, and an Oct. 17 poll by Ciruli and Associates showed little voter support for a tax or fee hike or tolling.
John Ingold: 303-954-1068 or jingold@denverpost.com
