AN EVALUATION OF INNOVATIVE HIGHWAY FINANCING TECHNIQUES FOR INDIANA

This paper evaluates the major innovative financing techniques associated with federal funds, and their applicability for highway projects in Indiana. Before any innovative financing techniques could be applied, the impact analysis on the project's economic parameters had to be performed. The evaluation of the use of a specific financing technique involves the computation and analysis of financial performance measures such as net present value and annual debt service of the agency, as many financing tools incur debt. In addition, the impact on user benefits and total project cost are studied. Possible revenue sources for debt service payment also are identified, and from a legal perspective, factors such as eligibility, authorization parties, and administration of financing assistance are addressed. The paper primarily focuses on major innovative financing techniques associated with federal funding: the Test and Evaluation Project 045, Grant Anticipation Revenue Vehicle Bonds, the Transportation Infrastructure Finance and Innovation Act, and the State Infrastructure Bank. Data from two proposed projects are used as case studies in the analysis.