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
Annual Financial Plan
The Authority submitted a FY 2021 Financial Plan to the Legislature which outlines how it will finance NJDOT/NJ TRANSITs requested $2.0 billion capital improvement program.
TTFA FY 2021 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.
The Authority issues long term bonds with maturities up to 31 years and structures the debt service on its bonds to provide reasonable assurance that its long-term revenue stream will satisfy debt service payments over the life of its bonds.
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.
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.