FISCAL NOTE
Date Requested: January 09, 2020
Time Requested: 11:28 AM |
| Agency: |
Highways, Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1226 |
Introduced |
SB162 |
|
|---|
| CBD Subject: |
|
|---|
|
FUND(S):
State Road Fund
Sources of Revenue:
Other Fund State Road Fund
Legislation creates:
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 162 would significantly decrease the flexibility the WV Division of Highways (DOH)has to allocate state funds to highway projects. It uses a vague measure of 70% of core maintenance to require up to 80 million dollars of State Road Funds be diverted to contract work under the direction of County Commissioners. DOH currently spends all of the money allocated for maintenance; there is not enough money to complete the work that needs to be done. In addition, this bill limits DOH's ability to move personnel, equipment and funds to the areas of greatest need in emergencies.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2020
Increase/Decrease
(use"-") |
2021
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.
Estimated total costs are unpredictable. Senate Bill 162 diverts State Road Funds to contracts that chosen by outside entities. It uses a 70% of core Projects measure to trigger this diversion. The work must then be contracted which would typically cost 3 to 4 times as much based on recent maintenance contracts.
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.
Senate Bill 162 intent is to enhance the maintenance and repair of the state's roads and highways. However, it diverts up to $80 million State Road Fund dollars to a special fund that will be used based on County Commissioners recommendations, to build highway projects by contract. This will decrease available fund to be used for routine maintenance that can be accomplished by DOH forces. DOH already has maintenance contracts in place and has utilized them, however, the unit costs are 3 to 4 times more than inhouse costs.
Person submitting Fiscal Note: Lorrie Hodges
Email Address: lorrie.a.hodges@wv.gov