FISCAL NOTE
Date Requested: March 04, 2026
Time Requested: 01:24 PM |
| Agency: |
Parkways Authority, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1142 |
Engrossed |
HB4421 |
|
|---|
| CBD Subject: |
Roads and Transportation |
|---|
|
FUND(S):
Toll Road Revenues
Sources of Revenue:
Other Fund Toll Road Revenues
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.
This Bill does affect the general revenue of the State of West Virginia upon the cessation of tolls in 2052. The removal of the tolls would (i) eliminate revenue realized by the West Virginia Parkways Authority (the “Authority”), 75% of which are derived from out-of-state travelers and commercial vehicles, that are currently used to pay the operation and maintenance, renewal and replacement, and capital improvement expenses of the West Virginia Turnpike, (ii) shift the burden of such expenses to the State of West Virginia and its taxpayers and (iii) result in employment uncertainty and the layoff of a significant portion of Authority’s 435 employees (not including State Police, Public Service Commission, or Tamarack employees). By way of example, for Fiscal Year 2026, the West Virginia Turnpike’s operation and maintenance expenses will be approximately $64,135,000, renewal and replacement expenses will be approximately $31,971,000 and capital improvement expenses will be $44,030,000, not including the toll and travel plaza expenses. Further, the Authority previously received a $750,000,000 estimate for the cost of removing the toll plazas and reconfiguring the existing roadways to conform to interstate standards without the toll plazas. All the expenses provided above would be expected to significantly increase due to inflation between now and implementation of this Bill and, because of the elimination of toll revenues, all such expenses would be borne by the State and its taxpayers.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
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.
See Fiscal Note Summary above for information regarding the fiscal impact of this bill on the State of West Virginia.
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.
As proposed in House Bill 4421, the cessation of tolls and the transfer of Authority assets will effectively transfer the burden of operations, maintenance and capital improvement expenses on the State and its taxpayers. Currently, 75% of tolls revenues come from out-of-state and commercial vehicles. The West Virginia taxpayers will also absorb the cost of removing the tolls from the West Virginia Turnpike.
For Fiscal Year 2026, the West Virginia Turnpike’s operation and maintenance expenses are estimated to be approximately $64,135,000, renewal and replacement expenses are estimated to be approximately $31,971,000, and capital improvement expenses are estimated to be $44,030,000, not including travel plaza expenses.
The Authority’s consulting engineers projected that for Fiscal Year 2052 (when the Series 2021 Bonds would mature and no longer outstanding), West Virginia Turnpike’s operation and maintenance expenses will be approximately $91,500,000, renewal and replacement expenses will be approximately $60,800,000 and capital improvement expenses (less toll and travel plaza expenses) will be approximately $100,700,000, adjusting for inflation. If tolls are not being collected at this time, presumably the State and its taxpayers would bear the burden of such annual costs.
The Authority has received relatively recent estimates for the cost of removing the toll plazas and reconfiguring the roadways to conform to interstate standards without the toll plazas and that figure is $750,000,000. The work involved includes not only removing the visible structures but filling in the tunnels underneath that emanate from each Plaza Administration Building and go out to the far toll booths. The Authority maintains more than 100 bridges on the West Virginia Turnpike, a number of which have been replaced. However, many existing bridges predate the interstate upgrades that took place in the 1970s and 1980s. There are also two original bridges remaining on the Turnpike, Bluestone Southbound (1952) with a total replacement cost of approximately $50,000,000 and Yeager Southbound (1952) with a total replacement cost of approximately
$66,000,0000, without adjustments for inflation. These are just some of the extra costs that would be incurred by the DOH and eventually passed on to the taxpayers of West Virginia.
The U.S. Department of Transportation, Federal Highway Administration provides the State with certain federal matching funds (“FHWA Matching Funds”), calculated by the number of lane-miles of interstate roadways in the State, including the West Virginia Turnpike, to be used for maintenance expenses. The West Virginia Department of Transportation currently receives FHWA Matching Funds for the 442 lane-miles of the West Virginia Turnpike, but the Secretary has discretion regarding the allocation of such funds as long as West Virginia Turnpike is kept in good repair. Currently, because the West Virginia Turnpike is supported by toll revenues and kept in good repair, the Authority (and by extension, the West Virginia Turnpike) does not receive any such FHWA Matching Funds; rather, they are allocated by the Secretary for other interstate maintenance projects across the State. By eliminating the tolls as proposed by House Bill 4421, a significant portion of such FHWA Matching Funds would have to be allocated by the Secretary to keep the West Virginia Turnpike in good repair and would further strain the federal dollars received by the State to maintain its interstate highways.
Person submitting Fiscal Note: Robin Shamblin
Email Address: rshamblin@wvturnpike.com