The Transportation Trust Fund Authority's (TTFA) financial planning
includes short, medium, and long range elements. Planning
for the Authority's next bond sale usually
begins two to three months ahead of the planned bond sale
date. The Authority works with the Office of Public Finance and the Office of the Attorney General to develop a detailed
plan for sizing and structuring the pending bond sale. If it is determined it is in the best interest of the State to sell bonds on negotiated basis, the Authority also seeks sizing and structuring guidance from its assigned underwriter. On
March 1 each year, the Authority must submit a Financial
Plan to the Legislature that shows how the Authority intends
to finance the NJDOT/NJ TRANSIT Capital Program for the upcoming
FY. This annual Financial Plan
includes estimated appropriation revenue, bond proceeds, investment
earnings, and expenditures. The Authority also develops a multi-year
projection model to determine the Trust Fund long-range
At its October 2016 meeting, the TTFA issued $3.2 billion in Federal Highway Reimbursement Revenue Notes, including $2.7 billion in indirect GARVEE bonds (2016 Series A) and a $.5 billion bank loan (2016 Series B). (See the GARVEE section of this website). These resources are projected to fully cover the TTFA’s cash expenses from fiscal year 2017 through fiscal year 2018.
Prior to this, the TTFA authorized the sale of the remaining $626.8 million of new money Transportation Program Bonds under the prior re-authorization in December of 2015. In November of 2014 the TTFA authorized the total sale of $1.062 billion in new money bonds, including $326 million in bond cap carry forward. The sale was comprised of $764.1 million of 2014 Series AA Transportation Program Bonds and $297.5 million of 2014 Series BB Transportation Program Notes.
Additionally, the TTFA terminated existing Letters of Credit on the 2009 Series C and 2009 Series D Variable Rate Transportation System Bonds totaling $297.5 million and re-marketed the two bonds under the 2009 Series C&D Transportation System Bonds. Previously, the TTFA authorized the sale of $849.2 of 2013 Series AA new money Transportation Program Bonds.
The Authority submitted a FY 2017 Financial Plan to the Legislature which outlines how it will finance NJDOT/NJ TRANSITs requested $2.0 billion capital improvement program.
Annual Financial Plan
FY17 TTFA Financial Plan
Long-Term Financing Capacity
The Authority's financing capacity is constrained by the relationship
between its long-term revenue stream and its debt service schedule. Investors who are buying Authority bonds with maturities up to 31 years want reasonable assurance there will be funding available to pay principal and interest when they become due.
The Authority must not only consider its own debt service schedule
but also the debt service payments made by NJ TRANSIT from Transportation
Capital Program appropriations.
While these debt service payments are not legal obligations of the Authority, they cannot be reimbursed by the Authority using bond proceeds. These payments must be
financed with the TTFA's appropriation revenue.
The Authority must compare the sum of its own debt service and
NJ TRANSIT's Economic Development Authority (EDA) on NJ Transit's behalf
with the dedicated appropriation stream in
order to determine long-term financing capacity.
The June 2012 Financing Plan reflected in the TTF reauthorization statute (P.L. 2012, c. 13) which expired on June 30, 2016, included the issuance of $3.5 billion in new debt from fiscal year 2013 through 2016. That debt was financed with current interest bonds with maturities of up to 31 years. These resources were to be supplemented by pay-as-you-go funding, interest earnings, and bond premiums.