Wyden Announces $103 million in Build America Bonds to Support Creation of 3,500 Oregon Jobs
Wyden-Authored Program Will Help Fund Infrastructure Projects in Hard Hit Areas and Provide Jobs in Oregon and Across Nation
Washington, D.C. - Continuing efforts to get much-needed funding for the infrastructure and employment projects that will serve as the backbone of our economic recovery, U.S. Senator Ron Wyden (D-Ore.) announced that 29 Oregon counties and four cities will be able to issue more than $103 million in Recovery Zone Economic Development Build America Bonds to finance projects at a lower borrowing cost. Recovery Zone Bonds are a special form of Wyden's Build America Bonds which can be issued in areas hit particularly hard by the economic crisis, creating jobs in places where they are needed most.
"Making this substantial amount available to the nation's hardest hit areas will surely speed up improvements to the nation's aging infrastructure and ailing economy," Wyden said. "Oregon in particular will see many jobs created and communities improved as these bonds are used to finance bridge, road, water, school, and transit projects all over the state."
Included as part of the American Recovery and Reinvestment Act of 2009, Build America Bonds offer American institutions and individuals the ability to purchase a uniquely crafted bond that gives holders a federal tax credit in addition to their bond interest, or gives purchasers a higher interest rate in exchange for allowing the issuer to receive the tax credit as a direct payment. This will help local governments obtain financing for economic development projects, such as public infrastructure development, at lower borrowing costs.
Recovery Zone Economic Development Bonds offer a higher tax credit or federal subsidy rate than traditional Build America Bonds - roughly 45 percent of the interest - which will make it easier to attract investment for infrastructure, job training, education, and economic development to areas of the country that need it most. These bonds will make green lighting projects that create jobs in these areas more likely and could make the difference in whether these projects come to fruition at all.
Build America Bonds are already making it easier for cash-strapped state and local governments to access capital and create jobs. More than 9.5 million have already been issued since the passage of the ARRA in February and millions more are expected in the coming months. A diverse group of public entities throughout the country such as the states of California and Louisiana, the New Jersey Turnpike Authority, the University of Virginia, the Utah Transit Authority, St. Paul, Minnesota, and the Milan Area School District in Michigan are just some of the issuers of Build America Bonds.
"One of the calling cards of this economic downturn has been difficulty in getting financing for public projects," Wyden continued. "Build America Bonds are being used across the country to help get the funding flowing to these projects and will help turn our economy around. The use of these bonds has already created jobs. This will help to create more."
The U.S. Treasury also announced today $15 billion in traditional, tax-exempt bonds known as Recovery Zone Facility Bonds that can be used by private businesses to finance capital projects. Oregon is expected to receive $155 million in funding allocation for these bonds.
(The following list of counties, cities and authorization amounts was provided by the U.S. Department of the Treasury.)
| Area | Residual | Recovery Zone Economic Development Bond | Recovery Zone Facility Bond |
| Clackamas County, OR | Residual | 8,879,000 | 13,319,000 |
| Columbia County, OR |
| 1,059,000 | 1,589,000 |
| Coos County, OR |
| 694,000 | 1,040,000 |
| Crook County, OR |
| 1,950,000 | 2,925,000 |
| Curry County, OR |
| 504,000 | 756,000 |
| Deschutes County, OR |
| 10,795,000 | 16,192,000 |
| Douglas County, OR |
| 6,961,000 | 10,441,000 |
| Eugene city, OR |
| 7,389,000 | 11,083,000 |
| Grant County, OR |
| 280,000 | 419,000 |
| Harney County, OR |
| 62,000 | 93,000 |
| Hood River County, OR |
| 79,000 | 119,000 |
| Jackson County, OR |
| 7,937,000 | 11,906,000 |
| Jefferson County, OR |
| 1,336,000 | 2,003,000 |
| Josephine County, OR |
| 1,280,000 | 1,921,000 |
| Klamath County, OR |
| 911,000 | 1,367,000 |
| Lake County, OR |
| 166,000 | 248,000 |
| Lane County, OR | Residual | 8,986,000 | 13,480,000 |
| Lincoln County, OR |
| 428,000 | 642,000 |
| Linn County, OR |
| 3,234,000 | 4,850,000 |
| Malheur County, OR |
| 259,000 | 388,000 |
| Marion County, OR | Residual | 2,412,000 | 3,618,000 |
| Multnomah County, OR | Residual | 3,624,000 | 5,435,000 |
| Polk County, OR | Residual | 752,000 | 1,129,000 |
| Portland city, OR |
| 13,548,000 | 20,323,000 |
| Salem city, OR |
| 2,002,000 | 3,002,000 |
| Tillamook County, OR |
| 952,000 | 1,429,000 |
| Union County, OR |
| 1,187,000 | 1,781,000 |
| Wallowa County, OR |
| 504,000 | 756,000 |
| Wasco County, OR |
| 321,000 | 481,000 |
| Washington County, OR | Residual | 12,844,000 | 19,267,000 |
| Wheeler County, OR |
| 17,000 | 26,000 |
| Yamhill County, OR |
| 2,098,000 | 3,147,000 |
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