States Infuse Hoover Dam Bypass With Alternate Funds
Delayed reauthorization of the Transportation Equity Act for the 21st Century (TEA-21) held up the final $90-million piece of federal funding for the $234-million project. Victor M. Mendez, director of the Arizona Dept. of Transportation, and his Nevada counterpart, Jeff Fontaine, last month pledged $50 million each in GARVEE (Grant Anticipation Revenue Vehicle) bonds to keep the project moving. This stopgap use of GARVEE bonds could become more frequent as reauthorization continues its holding pattern in Congress.
"Other states will take note of Arizona and Nevada using GARVEE bonds to keep the project going," says Thomas R. Warne, a consultant and former head of the Utah Dept. of Transportation. "If it makes sense for their programs, they may pursue using GARVEE bonds as well."