Kansas issues $400 million in highway construction bonds
Topeka The Kansas Department of Transportation has issued a state record of $400 million in highway construction bonds to take advantage of the suspension of a state law limiting the agency's debt burden.
Kansas transportation secretary Mike King also says favorable market forces warranted issuing the bonds.
The 2015 Kansas Legislature and Gov. Sam Brownback agreed to suspend for two years a provision forbidding the transportation department's aggregate bond debt service to exceed 18 percent of the agency's annual highway revenue.
The Topeka Capital-Journal reports that the bond transaction in early December and pushed borrowing in the 10-year, $7.8 million T-Works program to $1.2 billion.
King says department advisers recommended a large bond offering because the state's cost to secure capital could rise unexpectedly.