By Hilary Russ
NEW YORK (Reuters) - Connecticut Governor Dannel Malloy said on Wednesday that he wants to create a "lock box" for transportation funding because states that do not invest in infrastructure will face long-term economic struggles.
The Democratic governor called transportation infrastructure "one of the largest challenges we face – something that has held us back for decades and that, left unfixed, would hamper our economy for decades to come."
His remarks were given to the press before his speech to lawmakers during his state of the state address on Wednesday after he was sworn in for his second four-year term earlier in the day.
Malloy said the state should craft a vision for the next 30 years to transform its roads, bridges, bikeways, ports, buses and rails into a best-in-class system.
His proposed "lock box" would ensure that every dollar raised for transportation is actually spent on transportation projects. Borrowing for such projects should include a promise to bondholders that certain funds will be used only for that purpose, he said.
It was not clear how he will propose to pay for these projects, but he mentioned that state gasoline taxes will "soon fail to cover current investments, let alone the new ones we need to make."
Raising the funds could be difficult for a state facing wide budget gaps.
The legislature's budget analysts have forecast a $1.3 billion deficit for fiscal 2016, with the shortfall to grow to nearly $2 billion by fiscal 2018, for the state's nearly $20 billion general fund budget.
Malloy will propose his two-year budget plan to the state legislature in February, when he said he would release more details about transportation funding.
Connecticut has made investments in transportation, sending nearly $1.2 billion of general fund revenue to the state's special transportation fund in the past four years, he said.
The state has widened Interstate 84, replaced bridges and added new tracks and signals to train systems.
But more is needed, Malloy said. Crumbling and congested roads and bridges cost Connecticut drivers $4.2 billion annually in lost time, fuel and other costs.