Colorado governor signs $645 million roads bill

A much-ballyhooed deal to fund Colorado transportation work is officially wrapped up.

Gov. John Hickenlooper on Thursday, May 31, signed into law a bill to pay for transit, road and bridge projects throughout the state.

“This bill certainly doesn’t cover all the projects we need to tackle, but is a great start and one of the largest commitments to transportation from the general fund,” Hickenlooper said at the bill signing ceremony in Loveland, Colo.

The approved deal, SB1, was the culmination of House Republicans and Democrats in both chambers reaching agreement on a long-term deal to help the state address a 10-year, $9 billion backlog in transportation needs.

About $645 million in one-time transportation appropriations will be allotted over the next two years.  The infusion of revenue comes from the state’s general fund.

The Colorado Department of Transportation will receive 70 percent of the funds. The remaining 30 percent will be split for local road projects and local transit or “multimodal” projects.

“This is going to help us reduce congestion,” Rep. Faith Winter, D-Westminster, said in recent remarks. “We need a critical investment in transportation that reaches all four corners of the state and includes roads, highways and transit. SB1 is a critical step forward.”

More money could be on the way
Also included in the deal is a 20-year investment of general fund money in bonds.

Specifically, the plan calls for purchasing $2.34 billion in bonds for transportation work. The state would owe up to $3.25 billion in borrowing over two decades.

Most of the bond money – 85 percent – would be allotted for state highway projects. Transit would claim 15 percent.

In addition, SB1 authorizes a public vote on whether to tap bonds to pay for transportation work. Passage of the fall 2019 ballot question would allow the state to borrow the additional $2.3 billion in bonds.

The question would be removed from next year’s ballot if petition drives being pursued by outside groups are approved on the upcoming November ballot. One effort calls for raising the state’s sales tax to generate up to $1 billion annually for roads. A separate attempt would use general funds to sell bonds to raise $3.5 billion.

To view other legislative activities of interest for Colorado, click here.