Louisiana to use $255M short-term loan to finance projects
BATON ROUGE - Louisiana will use a $255 million bridge loan to pay for ongoing construction projects, amid deep state budget troubles that could make traditional long-term borrowing more expensive.
The Bond Commission and the joint House and Senate budget committee agreed Thursday to use short-term financing to keep dollars flowing to the construction work.
Without new money, Treasurer John Kennedy says the state would run out of money for the economic development projects, roadwork, building repairs and other construction in March or April.
Louisiana traditionally finances items in the state construction budget by selling bonds to investors for upfront cash, with the debt paid off over decades.
But the state's financial adviser warned the state's budget uncertainty could worry investors and force up interest rates, making it more costly for long-term borrowing.