FISCAL NOTE
Date Requested: January 11, 2023 Time Requested: 10:46 PM |
Agency: |
Highways, Division of |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1665 |
Introduced |
SB110 |
|
CBD Subject: |
Roads and Transportation |
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|
FUND(S):
State Road Fund
Sources of Revenue:
Special Fund
Legislation creates:
Increases Existing Expenses, 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 110 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 the West Virginia Division of Highways (DOH) can budget for use by local DOH County Organizations.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2023 Increase/Decrease (use"-") |
2024 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.
Senate Bill 110 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 respective 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 Senate 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 the respective County Commission. The work from the "Special Road Fund" may not required to qualify as "core" activities.
Person submitting Fiscal Note: Lorrie Hodges
Email Address: lorrie.a.hodges@wv.gov