Legislation to borrow up to $3 billion over the next 10 years for highway construction in North Carolina cleared the state Senate with unanimous support Wednesday evening.
The bill heads now to the House, where identical legislation has already cleared several committees.
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Senate Bill 758 wold let the state issue up to $300 million a year in special indebtedness, paid back in later years by the state's Highway Trust Fund. Because it's not tied to the state's general fund, the debt wouldn't have to be approved by voters, which caused an issue for some, including State Treasurer Dale Folwell, who has called for a referendum.
The total payback cost, including interest, based on predictions from the General Assembly's fiscal research office, would be about $4.7 billion. That assumes the maximum of $300 million in debt is issued for each of 10 years and that the borrowing comes with a 15-year maturity and at 6 percent interest.
Projects would be selected through the state's Strategic Transportation Investments program, which ranks projects. The bill focuses on regional and district level projects, and supporters said it should benefit rural North Carolina.
Transportation Secretary Jim Trogdon promised legislators in committee that "we'll use it wisely, but we'll use it to the great benefit of our state."