Another concern is the acceleration’s impact on future state work programs. Except for the impact of the federal stimulus funding, the department has been enduring declining revenues for years. Furthermore, for the past two years, the state Legislature has approved raids on the state highway trust fund. The first attempt was vetoed by former Gov. Charlie Crist (I), but this year, legislators carried out a $150-million raid—impacting an estimated $334 million in projects—by attaching the highway funding to education spending and making it difficult to veto.

If state politicians continue to look to the state road fund to solve the state’s budget gaps, Burleson said, “This [acceleration] program won’t work.”

Prasad countered that these contracts will be safe from the impact of any future raids but added, “There may be other projects that would then have to be deferred.”

The estimated $1.2-billion cost for the expedited projects equates to more than half the current year’s work program, estimated at $2.2 billion.

Prasad said some of the projects would be bidding as early as October, though the “vast majority” will do so between January and March 2012. The secretary expects all projects to start construction by next summer.

Innovative Financing Trend
Likosky sees the Florida initiative as a step toward industry acceptance of private-sector investment in transportation and other infrastructure sectors.

“There’s a clear signal from Washington that grants, formulas and earmarks are not going to be adequate to the needs,” he says. As a consequence, “The more that the states can try to make a [private] market for this, instead of [initiating] a series of one-off deals, the better off they’re going to be.”

A state “multipurpose bank,” serving multiple state needs, would be preferable, Likosky adds.

“What [Gov. Rick Scott] is proposing, which is an integrated package, is an important step toward that [concept] that has to be appreciated in the current funding climate,” he says.

The cost ranges of the accelerated projects will attract various financing approaches, says Mike Kehoe, vice president of finance for PCL Construction Enterprises, Denver, who led his company’s effort to secure funding for the I-4 Connector project in Tampa.

The smaller projects, such as the $13-million project in Polk County, may require contractor self-funding.

“The small ones are more easily financed by a contractor’s balance sheet,” Kehoe says. “We’ve heard that most large infrastructure banks want to play in the $20-miliion to $25-million space. If you can get a finance or credit facility requirement above that, you’ve got a good opportunity.”

The time frame for financing is also critical to repayment. Five years is the “sweet spot,” says Kehoe. “Anything beyond that takes on more of a risk profile.”

David Morgan, PCL’s director for finance and administration, says the trend toward broader DOT acceptance of private-sector financing is definitely on its way.