Transportation infrastructure bank proposed
Nebraska cities and counties could apply for state loans to build transportation infrastructure projects under a bill heard Feb. 3 by the Transportation and Telecommunications Committee.
LB1126, sponsored by Columbus Sen. Mike Moser, would create an infrastructure development investment program administered by the State Highway Commission with assistance from the state Department of Transportation.
Under the program, political subdivisions or certain other entities could apply to the department for loans for the construction, improvement or enhancement of roads, bridges and other transportation infrastructure.
“These loans are primarily targeted at counties and cities,” Moser said, “which may not be able to deliver the necessary projects under existing revenue sources without accumulating funds over several years or otherwise raising local property taxes.”
The commission would select projects based on criteria including economic impact, safety and local support of the project.
LB1126 would authorize the investment program to issue revenue bonds to finance the loans. Bonds would be payable solely from revenue or other investment program sources and would not be a general obligation of the state.
The bill would require the commission to adopt certain program rules and regulations by July 1, 2027, and maintain a public website for the program.
An independent accounting firm would audit the program annually, and the program would submit an annual report to the Legislature.
LB1126 also would increase the maximum fees for 90-day, 180-day and one-year permits for oversized or overweight vehicles and create a superload vehicle category with associated maximum permit fees.
The department estimates that the changes would generate an additional $2.1 million in fiscal year 2026-27 and $4.3 million in FY2027-28.
Among other changes, the bill also would:
• authorize public-private partnerships for transportation projects deemed appropriate by the department director;
• require the department to adopt procedures for receiving and evaluating unsolicited proposals;
• exempt certain routine repair and maintenance service contracts from prequalification requirements;
• increase the damage threshold at which a traffic accident must be reported to the department from $1,500 to $2,000; and
• require bicyclists to follow traffic control signal requirements.
Vicki Kramer, director of the state Department of Transportation, testified in support of the measure. Although LB1126 would not dedicate state funds to the infrastructure investment development program, she said, the department could fund it with a loan under the federal Rural Project Initiative.
That program provides low-interest financing for transportation projects in smaller communities.
“The [state] program… will allow local governments without the technical knowledge and financing experience of Nebraska’s larger cities and counties to access financing opportunities,” Kramer said.
Matt Tondl testified in support of the bill on behalf of the Greater Omaha Chamber. He said the proposed transportation infrastructure bank would help fill funding gaps at the city and county level.
“Many of their transportation needs are not massive megaprojects but critical corridor improvements, bridge replacements and safety projects that are well understood but difficult to advance using the current funding climate and limited financing tools,” Tondl said.
Testifying in opposition to LB1126 was Beth Bazyn Ferrell of the Nebraska Association of County Officials. She said counties would support the measure if it were amended to require superload vehicles to receive a separate county permit before driving on county roads.
The committee took no immediate action on the bill.
