FISCAL NOTE
Date Requested: February 21, 2017
Time Requested: 01:36 PM |
| Agency: |
Transportation, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2716 |
Introduced |
SB381 |
|
|---|
| CBD Subject: |
Roads and Transportation |
|---|
|
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 passage of SB381 would eliminate the cessation of tolls language in the current statute and the Parkways Authority would maintain the “status quo” of collecting tolls on the Turnpike once the bonds are paid in full in May 2019. The Parkways Authority currently receives no funding from the State or the Federal government for maintenance, operation or capital repairs. Tolls (“user fees”) provide the funds for maintenance, operations and capital repairs of the West Virginia Turnpike and free up tax dollars to be used by the West Virginia Division of Highways (WVDOH) for all of the other highways and bridges in West Virginia.
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):
Memorandum
In Fiscal Year 2016/2017, the budget for toll and other revenues is $89 million. These funds are used for capital improvements on the Turnpike such as highway, bridge and facilities repairs and annual operational and renewal and replacement expenses. In 2009, the Parkways voted to approve the first across-the-board toll increase on the WV Turnpike in 28 years. Toll revenues had decreased over the years and, coupled with an increase in the costs to repair, rehabilitate and reconstruct the Turnpike’s aging bridges, roadways and facilities, this resulted in a significant backlog of essential deferred maintenance and capital needs which are the repairs necessary to operate and maintain the Turnpike in good repair, working order and condition in future years. With these additional funds, the Authority pledged $335 million for essential deferred maintenance and capital costs, including $242 million for paving needs. As of 2016, this pavement program has been successful and is on target. Currently, of the 116 bridges on the WV Turnpike, it is estimated that 80% of the bridge decks will need to be replaced over the next 30 years with the first bridge deck replacement taking place in 2016. By 2020, the average bridge deck age will be 38 years, 23% of the bridges will exceed their expected deck life of 40 years and 94% of the bridges will be over 35 years old. At the end of the 30 year planning period, if no further bridge decks are replaced, 81% of the Turnpike bridge decks will be over 60 years old.
If this bill were to pass and thus, the tolls remain in place, the operation and maintenance of the existing Turnpike at its current level of service and address its capital investment program, the revenue stream would be needed for the WV Turnpike and the WVDOH would not be impacted financially.
Person submitting Fiscal Note: Lorrie Hodges
Email Address: lorrie.a.hodges@wv.gov