by Sam Hieb
The Winston-Salem Journal mentions the fact that funding for major road upgrades in the Triad will be be paid with —you guessed it —-bonds—– but the High Point Enterprise elaborates in today’s editorial:
The state will issue a type of bond called a Grant Anticipation Revenue Vehicle, or GARVEE bond, that doesn’t require voter approval each time state officials elect to use them. They are bonds that officials plan to repay with revenues expected to be made available in the future by the U.S. Department of Transportation.
….We fear that with today’s economic uncertainties, use of GARVEE bonds is a much riskier financing arrangement than it was even just a few years ago. Until the federal government gets its finances in order and because North Carolina’s budget and economic woes remain, too, state officials must use great caution when borrowing money, even when it’s to be spent on beneficial infrastructure projects.
Kinda like when I got the notice informing me that my mortgage had been bought by —you guessed it —- Fannie Mae. Makes me wonder if we’re ever going to learn in this country. Usually that’s a rhetorical thought, but the consequences are bearing down on us quickly.