State Treasurer Erick Russell and Gov. Ned Lamont now hope to do something similar — albeit on a smaller scale — with Connecticut’s transportation program. Rather than attacking unfunded pension obligations, this plan would erase hundreds of millions of dollars in bonded debt, the principal and interest on highway, bridge, and rail projects. The goal ultimately is to save about $70 million in annual debt service payments and use that savings to accelerate the rebuild of Connecticut’s aging transportation infrastructure. But for the initiative to be completely successful, the Department of Transportation needs to overcome a second hurdle: pushing Connecticut’s construction program to record highs. Lamont’s budget office projects the STF to close this fiscal year with a surplus of $240 million, or 11%. The Special Transportation Fund reserve, the account that holds these surpluses, is projected to approach $920 million by June 30, equal to almost 43% of this year’s STF. And while transportation fund revenues and fund balances have swelled, critics say construction work has not grown as swiftly. If Connecticut saves $60 million to $75 million annually in a transportation fund that’s already achieving big surpluses, they added, the state must leverage those resources to ensure hundreds of millions of additional dollars are invested in projects each year.
Plan to cut CT’s transportation debt could offer more than savings