Borrowing Against Future Revenues to Expand Salt Lake City Rail

Salt Lake City is aggressively expanding its light rail network thanks to a voter approved tax increase. This post wonders whether the city could follow mimic a proposed plan in Los Angeles to speed up the use of those taxes.
March 20, 2011, 5am PDT | Nate Berg
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"The good news for the UTA is that the 2006 sales tax increase does not sunset (by contrast, the Measure R sales tax increase approved by voters here is scheduled to expire in July 2039). However, a substantial portion of that revenue source will be tied up in paying for FrontLines 2015.

But what if there were a way to borrow cheaply against those future revenues, so that those crucial projects could move forward right away? So that Utahans can immediately begin to reap the benefits of a clean and convenient transit system serving the all reaches of the Salt Lake metro area."

The idea is to replicate the 30/10 plan, an idea being pushed in L.A. that would cram 30 years of transportation projects into 10 by borrowing against tax revenues that would be collected for transportation projects over a long period of time.

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Published on Wednesday, March 16, 2011 in The Source
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