Connecticut’s drive to issue more transportation bonds

The fiscal accountability report, published Nov. 20, projected that Connecticut will issue $1.3 billion of Special Tax Obligation bonds to fund transportation in fiscal year 2026, and $1.4 billion in the next two fiscal years. In FY 2025, the state plans to issue $1 billion. Connecticut’s transportation bonds are issued from a Special Tax Obligation lockbox. Its most recent transportation deal, for $768.78 million of new money bonds, priced on Wednesday. For years, the state’s transportation borrowing has lagged behind both the legislature’s authorizations and the governor’s borrowing targets. When Lamont took office in 2019, there was a $3.8 billion backlog of bonding approved but not issued, according to the CT Mirror. That backlog has grown to $6.3 billion. “It is our hope — we have had many meetings over the last couple of years — that we could see our transportation bonding spending go up,” Horn said.

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