FISCAL NOTE
Date Requested: February 06, 2019
Time Requested: 12:43 PM |
| Agency: |
Highways, Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3066 |
Introduced |
SB538 |
|
|---|
| CBD Subject: |
Roads and Transportation |
|---|
|
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.
For both regularly funded projects and Roads to Prosperity funded projects, SB538 bill allows the Division of Highways (DOH)to contractually obligate no more than $350 million on any one design-build project for fiscal years beginning after June 30, 2019. Current law requires limits to be tracked by expenditures to projects. Using project expenditures as fiscal year limits is very difficult as varying projects have variable expenditure curves. Using contractual obligation amounts as limits allows DOH to more accurately predict and adhere to requirements of the law.
This bill provides that design-build projects funded by the Roads to Prosperity bonds do not count against the annual cap on the design-build program. During the years of the Roads to Prosperity program the size of the DOH programs will increase significantly. The use of design-build as a contract delivery tool is necessary to deliver the large number of projects contained in these programs and will exceed the current limits established by law. By allowing this change, the Division of Highways will be able to deliver the programs within the proposed limits.
The bill includes a new subsection (c), which ensures that Roads to Prosperity Highway Program design-build projects are not counted toward the total yearly aggregate obligation limits applied to "regular program" projects. The per project caps for the Roads to Prosperity projects will also have a $350M cap.
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 |
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.
There is no additional expense with SB538.
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.
SB538 does not have a fiscal impact in that it does not require any additional work by DOH to implement.
Person submitting Fiscal Note: Lorrie Hodges
Email Address: lorrie.a.hodges@wv.gov