FISCAL NOTE

Date Requested: March 16, 2021
Time Requested: 11:40 AM
Agency: Highways, Division of
CBD Number: Version: Bill Number: Resolution Number:
3387 Introduced HB3200
CBD Subject: Roads and Transportation


FUND(S):

State Road Fund

Sources of Revenue:

Special Fund

Legislation creates:

Increases Existing Expenses



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. House Bill 3200 will take existing state road funds and place them in a "Special Road Fund". The use of the funds will then be mandated to be by contract and under the recommendation of the local County Commission. This will reduce the funds for the West Virginia Division of Highways (DOH) can budget for use by local DOH County Organizations.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2021
Increase/Decrease
(use"-")
2022
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 80,000,000 80,000,000 80,000,000
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. House Bill 3200 would significantly decrease the flexibility the DOH has to allocate state funds for highway projects. It uses a vague measure of 50% of "core" projects to trigger the use of the "Special Road Fund". It would then use the funds by contracting to complete projects recommended by the County Commission. These may be projects that are not "core" projects. Additionally, the cost to contract for this work will create expenses not originally budgeted. The DOH would have to budget for these potential costs and use monies normally allocated to DOH County Budgets for these contracted maintenance projects. This will have the effect of decreasing the core activities that the DOH can fund in a given Fiscal Year.



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. The bill uses "core" activities at 50% to trigger use of the "Special Road Fund", however, the monies expended from the "Special Road Fund" are required to be by contract and as recommended by County Commission. The work from the "Special Road Fund" is not required to qualify as "core" activities.



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