State Takes On First $800 Million In New Road Repair Debt
First installment on $3.5 billion of 'bonding' will cost taxpayers $565 million in interest
The Michigan Department of Transportation has finalized plans to borrow the first $800 million out of an eventual $3.5 billion in new road repair debt, according to a state press release.
The borrowing will be done by selling state bonds over the next few years, with an expectation that the debt will be paid off over 25 years.
Gov. Gretchen Whitmer said the new borrowing will let the state rebuild major highways “without an increase at the gas pump,” meaning a gas tax increase.
The press release did not include how much this will cost in interest, but previous reports indicate taxpayers will pay $565 million on just the first $800 million.