State Issues Lottery Bonds to Fund Transportation, Campus Improvements, and Economic Development

(SALEM) - Governor Ted Kulongoski has announced that the state of Oregon has issued $153.6 million in lottery revenue bonds to fund critical projects in transportation, economic development, and maintenance of facilities on state university campuses. “Today’s action is an exciting example of how Oregon is investing in its future,” Governor Kulongoski said.

“These bonds will help Oregon become more competitive by strengthening our transportation system and our education system, while creating new jobs and new opportunities for thousands of Oregonians.” ConnectOregon: About $72.1 million of the bond proceeds will pay for transportation projects under “ConnectOregon,” the Governor’s program to upgrade ports, rail facilities, airports and other non-highway projects around the state.

About $2.0 million of the proceeds of the Series B Bonds will fund loans for eligible infrastructure improvements.

Today’s bond issue represents the second and final installment of the $100-million ConnectOregon program for this biennium. “ConnectOregon has been tremendously successful in communities both large and small, both urban and rural,” the Governor said.

“By improving transportation, we help Oregon companies move their products more efficiently and more economically, which is good for Oregon’s economy. This is why I’ve asked the legislature to approve ConnectOregon II, which will invest another $100 million in solving transportation needs around the state.” South Metro Commuter Rail Project: About $35.4 million of the bond proceeds will finance a 14.7-mile commuter rail line that serves Beaverton, Tigard, Tualatin and Wilsonville in Washington County.

The Governor expects the federal government to contribute $58.8 million to bolster state and local contributions, bringing the total cost of the project to $117.3 million. “This project is an excellent way to help reduce traffic in the Portland area, and to help commuters save time and money,” the Governor said. Higher Education Facilities The bond issue will raise about $18.8 million to help address a backlog of deferred maintenance for buildings and other facilities on five campuses of the Oregon University System.

Another $30 million from other sources will augment that investment. “Oregon can no longer put off important maintenance needs at our universities,” the Governor said.

“We just cannot afford to not let the quality of education suffer because of crumbling buildings and worn-out facilities. This bond issue is an important step toward making our campuses fully serviceable and our colleges competitive.” Governor Kulongoski has proposed substantial new investments in the campuses of Oregon’s community college and universities in the coming biennium.

His budget for 2007-09 includes $174.3 million to fund capital construction at community colleges and $594.5 million for construction projects at university campuses. “These investments will not only strengthen the quality of education that our students receive, but also create more solid, family-wage jobs,” the Governor added. Economic development: a partnership with local communities About $30.7 million of the proceeds from the bonds will be used to continue supporting the Oregon Certified Industrial Site program.

The effort, initiated by Governor Kulongoski in 2003, has resulted in 50 industrial sites across Oregon being certified as ready for development.

The funds have been used to conduct environmental studies, clean up contaminated areas known as “brownfields,” provide loans to local governments for construction of roads, water and sewer systems, and telecommunications systems so that communities are ready for existing and new businesses.

Oregon business leaders continue to emphasize the need for additional “shovel-ready” sites as a way to attract new businesses to Oregon. “This program is a partnership that includes the state of Oregon, local governments, and the people in our communities,” the Governor said.

“We’ve attracted wonderful new companies to Oregon, and they’ve brought thousands of new jobs and major investments to our state—companies like Amy’s kitchen, Lowe’s, Royal Caribbean, Yahoo, Wachovia, Google, MathStar, and Genentech. That’s no accident. It’s the result of a partnership among state government, local government, and business leaders. I believe that partnership will accomplish even greater things in the future.