FISCAL NOTE

Date Requested: February 23, 2017
Time Requested: 01:12 PM
Agency: Highways, Division of
CBD Number: Version: Bill Number: Resolution Number:
2655 Introduced SB421
CBD Subject: Governor -- Bills Requested By


FUND(S):



Sources of Revenue:

Other Fund State Road Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    The proposed legislation, SB421, revises the amount in aggregate of the outstanding federal Grant Anticipation Notes from $200 million to $500 million to be reimbursed from federal funds made available to West Virginia Division of Highways from the Federal Highway Administration



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


    The proposed legislation essentially increases the aggregate amount of outstanding notes from $200 million to $500 million for Grant Anticipation Revenue Vehicle (GARVEE) Bonds. The use of GARVEE Bonds is a financing tool available to State DOTs that allows State DOTs to pay the capital cost of a federal aid eligible project over an established financing period by committing its existing and future annual federal aid funds. The increase in the aggregate amount does not provide any additional federal aid funding to the WVDOH and any costs associated with the increased aggregate amount of outstanding notes would only occur should bonds be issued. These costs would be part of the established annual payment for principal and interest on the bonds and administrative costs.



Memorandum


    



    Person submitting Fiscal Note: Lorrie Hodges
    Email Address: lorrie.a.hodges@wv.gov