FISCAL NOTE

Date Requested: February 05, 2020
Time Requested: 12:52 PM
Agency: Highways, Division of
CBD Number: Version: Bill Number: Resolution Number:
2936 Introduced SB695
CBD Subject: Roads and Transportation


FUND(S):

State Road Fund

Sources of Revenue:

Special Fund

Legislation creates:

Creates New Program



Fiscal Note Summary


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


    Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
    
    Senate Bill 695 would significantly decrease the flexibility the Division of Highways (DOH) has to allocate state funds to highway projects. It uses a vague measure of 70% of core maintenance to require up to 80 million dollars of State Road Funds be diverted to contract work under the direction of County Commissioners. DOH currently spends all of the money allocated for maintenance, there is not enough of money to complete the work that needs to be done. In addition, this bill limits DOH's ability to move personnel, equipment and funds to the areas of greatest need in emergencies.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2020
Increase/Decrease
(use"-")
2021
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):


    Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
    
     Estimated total costs are unpredictable. SB695 diverts State Road Funds to contracts that are chosen by outside entities. It uses 70% of core projects measure to trigger the diversion. The work must then be contracted which would typically cost 3 to 4 times as much based on recent maintenance costs.



Memorandum


    Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
    
    SB695 intent is to enhance the maintenance and repair of the State's roads and highways. However, it diverts up to $80 million State Road Fund dollars to a special fund that will be used based on County Commissioners recommendations, to build highway projects by contract. This will decrease available fund to be used for routine maintenance that can be accomplished by DOH forces. DOH already has maintenance contracts in place and has utilized them, however, the unit costs are 3 to 4 times more than inhouse costs.



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