State Should Use $100 Million from Budget Surplus to Finance I-49

Treasurer Kennedy Says I-49 Critical Component of Rebuilding Process

BATON ROUGE, LA – Louisiana should dedicate $100 million from the announced $827 million budget surplus from last fiscal year to fund Interstate 49 North and South, according to State Treasurer John Kennedy.

“Louisiana cannot afford to push I-49 to the side,” said Treasurer Kennedy. “Improving our infrastructure is a critical component of the rebuilding process, and completing I-49 should be at the top of our list.”

The completion of I-49 North and South depends on the Federal Highway Administration funding 80 percent of the cost of the interstate with a required state match of 20 percent. If Louisiana put up $100 million for I-49, it could generate as much as $500 million total for the project including federal dollars. This funding could pay for the completion of I-49 North (roughly $400 million) and would provide at least $100 million for I-49 South.

To generate additional state funding for I-49 over the surplus dollars, Treasurer Kennedy says Louisiana is still authorized to issue bonds backed by a portion of excess annual unclaimed property collections. Act 256 of the 2005 Regular Legislative Session enables the state to use up to $15 million in excess annual unclaimed property collections to issue up to $150 million for I-49. The Treasury collected $48.3 million in unclaimed property this past fiscal year, up to $15 million of which could be used for this purpose.

“I-49 is a critical part of the solution to many of the problems the state still faces,” said Treasurer Kennedy. “In addition to creating jobs and expanding trade, one of the most important reasons for completing I-49 is hurricane evacuation. After the multiple evacuations we witnessed last year, it became quite evident that we need to increase the capacity and connectivity of our north and south corridors.”

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