Bond vs. Pay-Go

Details

• Alternative Title:
  Bonding vs. Pay-Go
• Creators:
  Glover, Brianne A ; Steadman, Maxwell P. ; Prieto, Bill ; Kuzio, Jacqueline A. ; Countouriotis, Alexandria K.
• Corporate Creators:
  Texas A&M Transportation Institute
• Corporate Contributors:
  Michigan Department of Transportation ; United States. Department of Transportation. Federal Highway Administration
• Subject/TRT Terms:
  • Bonding
  • Payment
  • Revenues
  • Costs
  • Financing
  • Finance
  • Economic conditions
  • Savings
  • Construction
• Publication/ Report Number:
  SPR-1754
• Resource Type:
  Tech Report
• Geographical Coverage:
  United States
• Edition:
  Final Report, 10/30/2023 – 7/31/2025
• Corporate Publisher:
  Michigan Department of Transportation. Research Administration
• Abstract:
  This research examines the value of financing infrastructure improvements through bonding versus a program of pay-go improvements. Postponed construction becomes more costly in nominal terms because inflation raises the cost of construction over a longer period before construction begins. However, postponements can also create a variety of other situations. For example, postponements add to the level of damage that must be repaired when projects are subsequently let to contract. Both methods of finance encounter factors such as availability of funds and fiscal stability, inflation, population growth, as well as congestion growth rates, to name a few. While there is no one-size fits all answer, understanding how these factors influence the outcomes and when they may be applicable, allows policy makers to make more informed decisions for the future.
• Format:
  PDF
• Funding:
  2023-0460
• Download URL:
  https://rosap.ntl.bts.gov/view/dot/86968/dot_86968_DS1.pdf
• File Type:
  [PDF - 1.83 MB]
• Collection(s):
  US Transportation Collection
• Main Document Checksum:
  urn:sha-512:e6779d9d9a7c9ea13ac15d3b4b77c2301f7b24a46f274f6e84489cf60897d17ad8df4167b9cfe8eef4f6f7bd65c2367c0dfc506a20e3e496b48acb36439328ec