Bond Financing for Transportation Programs
The Michigan Department of Transportation has authority to issue bonds for a variety of transportation programs. Bond financing allows the department to advance projects so users can enjoy the social and economic benefits sooner. Bonding for improvements with a significant useful life spreads the project costs to the users over a longer period of time.
Economic Benefits Bond financing allows the department to advance projects and complete them more quickly than with cash financing only. Economic benefits of a project are realized sooner, creating a stimulus to the state's economy. The current bond program takes advantage of historically low interest rates which offsets the inflation cost of delaying projects to future years. Refinancing existing debt with lower interest rates increases the funding available to carry out the department's other priorities.