FISCAL NOTE
Date Requested: February 13, 2017
Time Requested: 01:25 PM |
| Agency: |
Highways, Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1399 |
Introduced |
HB2353 |
|
|---|
| 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 proposed legislation, HB2353, is requesting the West Virginia Division of Highways (WVDOH) develop a formula for the allocation and distribution of road funds among the Districts and Counties. The recommendation was identified in the Independent Audit Report submitted Joint Committee on Government and Finance. The legislation defines “Road Funds” as federal or state funds appropriated or otherwise available to the WVDOH for the purpose of New Construction, Maintenance, or New Capacity Improvements. The WVDOH utilizes both federal and state revenues for the construction, operation, and maintenance of the transportation network in the State. The use of State Road Fund dollars has flexibility in use based on the WV State Code. The federal aid funding apportioned to the State each year by the Federal Highway Administration defines the eligibility criteria for each fund source provided to the WVDOH. Also, current federal transportation legislation, Fixing America’s Surface Transportation Act (FAST Act), continues the use of performance measures in the investment decision process. The proposed legislation also provides for a public involvement process to seek comments and recommendations regarding the proposed use of funds.
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):
In consideration of the proposed legislation not generating additional revenue, and the fact the WVDOH currently uses various methods/formula for allocation of both federal and state funding, the modification of these existing processes is not anticipated to have any significant additional costs, just simply administrative changes. These funds can be characterized as being used for routine maintenance or for capital improvement to the transportation network.
The WVDOH currently allocates routine maintenance funding (pothole patching, mowing, cleaning ditches) to each of its Districts and each organizational unit within a District (counties, expressways, etc.) based on a formula developed in 2007 with adjustments for inflation. Modifying or updating the existing methodology would not have a material financial impact considering the overall amount of revenue does not change, just the distribution.
The distribution of capital improvement funds are based on a variety factors such as asset inventory (lane miles, number of bridges, etc.), asset condition, operations, safety, economic development, and equity. Modifying or updating the existing methodology would not have a material financial impact considering the overall amount of revenue available does not change, just the distribution.
Memorandum
Person submitting Fiscal Note: Lorrie Hodges
Email Address: lorrie.a.hodges@wv.gov