The New Jersey Turnpike Authority can proceed at full speed with its $7-billion capital program, thanks to being the nation’s first transportation agency to sell more than $1 billion in taxable bonds that come with a 35% reimbursement from the federal government under the American Recovery and Reinvestment Act. The Build America bonds (BABs) will contribute $1.375 billion to the authority’s 10-year capital program, along with $375 million sold in traditional tax-exempt bonds.
BABs allowed the authority to diversify its investor base and raise critically needed funds. “Without this financing we would not be able to proceed in any way with our capital program,” says Diane Gutierrez-Scaccetti, the authority’s executive director. “We would have had to stop construction. It was equally as critical to have an interest rate we believed was within our means.” Because of the new program, “We were able to do both things,” she adds.