FISCAL NOTE
Date Requested: February 13, 2017
Time Requested: 03:50 PM |
| Agency: |
Highways, Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1504 |
Introduced |
SB210 |
|
|---|
| CBD Subject: |
Counties |
|---|
|
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 West Virginia Department of Transportation, Division of Highways (WVDOH) is responsible for the construction, maintenance and operations of the road system in the State of West Virginia which represents over 92% of the road system in the State. Through its planning process, the WVDOH completed a Long Range Transportation Plan (LRTP) identifying needs within the State which identified over $1 billion per year in needs. This legislation will be very beneficial from a financial standpoint as it will bring new revenue to be utilized on the road system in West Virginia. The only potential direct costs attributed to the legislation will be the time necessary for the WVDOH to review county plans and resolving potential conflicts. The WVDOH may incur additional routine maintenance costs such as pothole patching, mowing, ditching, snow removal and ice control for any new roadways incorporated into the State Highway System. These costs will depend upon the type and length of the facility being incorporated into the system. It is anticipated these costs will be minimal.
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
The WVDOH prepares a Long Range Transportation Plan (LRTP) as well as the six year transportation program of capital projects called the Statewide Transportation Improvement Program (STIP). The LRTP identified a gap in funding needed to operate and maintain the road system in the State at $1 billion per year. The previous Governor’s Blue Ribbon Commission made recommendations for additional revenue at $750 billion per year for preservation of the existing system and $380 billion per year for expanding the highway system (such as 4 lane highways). The proposed legislation provides an opportunity for additional revenue to address the highway needs. The legislation proposes the County prepare a plan of projects, but does not refer to WVDOH plans which include plans prepared by the State’s metropolitan planning organizations which may require additional resources, but is difficult to estimate. Submission of county plans and resolving potential conflicts with ongoing initiatives will require additional labor hours, but this cannot be estimated given the uncertainty of the number of counties that would be willing to participate.
It is assumed the revenues generated through legislation will fully fund the capital plan of projects including the planning, engineering, right-of-way and construction costs or will assist in funding existing WVDOH priority projects such that there is no material effect on the WVDOH’s existing capital improvement program.
The legislation as drafted states the Division of Highways is not responsible for financing, constructing, installing or maintaining related infrastructure which may be located on a Division of Highway’s right-of-way.
Future maintenance and operation costs of new roads brought into the state road system is difficult to determine without a prescribed list of new roads to be incorporated. Also, should a project from the county road construction plan propose to reconstruct an existing WVDOH road and/or bridge, then the WVDOH would receive the benefit of an improved asset and thus, should expect lower maintenance costs associated with the particular road segment.
Person submitting Fiscal Note: Lorrie Hodges
Email Address: lorrie.a.hodges@wv.gov