The Oklahoma Turnpike Authority (OTA) is poised to re-enter the municipal bond market with a substantial $1.3 billion offering aimed at further financing a highly debated expansion project while simultaneously refunding previous debt. Set for the week of January 27, subject to favorable market conditions, this bond deal includes approximately $1.087 billion in tax-exempt second senior revenue bonds and an additional $223.3 million intended for debt refinancing. This ongoing financial maneuver is crucial as it seeks to fund the ambitious ACCESS Oklahoma initiative, officially launched by Governor Kevin Stitt in February 2022.
The ACCESS Oklahoma program targets the expansion of existing toll roads and the construction of new ones, with initial estimates for the total cost outlined at $5 billion. However, those projections have ballooned to an eye-watering $8.2 billion. The OTA recently approved a toll increase to cover these growing expenses, resulting in an outcry from lawmakers advocating for enhanced legislative scrutiny over toll adjustments. This reaction underscores the contentious nature of Oklahoma’s transportation financing and the complexities involved in managing public expectations while pursuing infrastructure improvements.
In October 2023, the OTA successfully sold an initial tranche of $500 million in bonds for the ACCESS program, receiving favorable ratings of Aa3 from Moody’s and AA-minus from both S&P Global Ratings and Fitch Ratings, all reflecting stable outlooks. These ratings not only signal confidence in the OTA’s capability to manage its debt but also highlight the importance of these bonds in securing funds for essential infrastructure development. However, the route to this financing was impeded by legal disputes initiated by property owners impacted by the expansion efforts. The Oklahoma Supreme Court ultimately sided with the OTA, paving the way for further bond issuances.
Despite the green light from the courts, opposition groups such as Oklahomans for Responsible Transportation remain fiercely critical of the ACCESS program. They are advocating for a thorough third-party feasibility study and compliance review prior to the issuance of new bonds. Additionally, these groups demand a halt on any future bond sales until a comprehensive state audit of the OTA, mandated by Oklahoma Attorney General Gentner Drummond, is conducted. This ongoing push for scrutiny emphasizes the growing concerns over the management of public funds and the accountability of state agencies involved in infrastructure projects.
As the Oklahoma Turnpike Authority prepares to navigate this significant bond offering, the implications extend well beyond mere financing. The ACCESS Oklahoma program’s ambitious goals and escalating costs evoke critical discussions around transportation infrastructure, fiscal responsibility, and public accountability. With looming challenges and growing opposition, the OTA’s decisions in the coming weeks will be pivotal. The interplay between funding mechanisms, legislative oversight, and community concerns will undoubtedly shape the landscape of Oklahoma’s transportation future for years to come.