FISCAL NOTE
Date Requested: February 08, 2019
Time Requested: 11:28 AM |
| Agency: |
Highways, Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2777 |
Introduced |
HB2944 |
|
|---|
| CBD Subject: |
Real and Personal Property |
|---|
|
FUND(S):
State Road Fund
Sources of Revenue:
Special Fund
Legislation creates:
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.
HB2944 requires Division of Highways (DOH) to establish a pilot program in DOH District Four to determine whether requiring contractors to pave sections of roadway and maintain them for sever years thereafter is cost effective for the DOH and convenient for the public. It is anticipated, based on past experience, that the contract cost will be significantly higher. Thereby, reducing the number of road miles that can be maintained in a Fiscal Year.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2019
Increase/Decrease
(use"-") |
2020
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
3,400 |
431,800 |
| 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.
Full implementation costs $431,000 is based on a 10 mile pilot program. This additional cost is the difference between DOH District 4 maintenance cost and private contractor costs.
The fiscal note breakdown for HB2944 does not allow DOH to show the estimated costs for seven years.
Full implementation costs is distributed as shown below:
FY2020
$3,400 - Mowing
FY2021
$3,400 - Mowing
FY2022
$173,000 - Ditching and Mowing (Ditching is a three year cycle program)
FY2023
$16,000 - Mowing and Patching
FY2024
$22,000 - Mowing and Patching
FY2025
$190,000 - Ditching, Mowing and Patching
FY2026
$24,000 - Mowing and Patching
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.
To implement this program state wide would devastate the maintenance budget for each district.
The current DOH budget can fund the $431,800 seven year pilot program. However, the current budget cannot fund the $43,000 per road mile increased required if the program is extended beyond pilot stage. DOH maintenance budgets would need to be significantly increased approximately by $43,000 per road mile.
Person submitting Fiscal Note: Lorrie Hodges
Email Address: lorrie.a.hodges@wv.gov