Garvee Bonds

Garvey may have been that guy who used to play for the Dodgers, but GARVEE is something much different. The North Carolina Aggregates Association reports that Grant Anticipation Revenue Vehicle (GARVEE) bonds have been approved in their state. More than a dozen states already use the procedure, which Congress authorized in 1995. It allows states to issue special bonds to pay for federally approved transportation projects. Because the bonds are repaid with future federal money, they don’t effect the state’s credit or impose an ordinary state debt. Sort of like using a Visa card to put a highway on sale. Your comment?