FISCAL NOTE

Date Requested: January 13, 2020
Time Requested: 01:06 PM
Agency: Highways, Division of
CBD Number: Version: Bill Number: Resolution Number:
1454 Introduced SB315
CBD Subject: Roads and Transportation


FUND(S):

State Road Fund

Sources of Revenue:

Other Fund Special Road Repair Fund

Legislation creates:

Creates New Revenue, Creates New Fund: Special Road Repair Fund



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 315 would significantly increase funds available to the Division of Highways (DOH) for road maintenance functions. Because a portion of the funding is a percentage of severance taxes, DOH is unable to determine how much funding would be available upon full implementation.



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 0 200,000,000 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 315 provides severance tax revenues to be deposited into a Special Road Repair Fund. It is noted $200,000,000. million will increase in FY2021. Upon Full Implementation, DOH is unable to determine the estimated total revenue.



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 intent of SB 315 is clearly to create a Special Road Repair Fund initially funded by the Rainy Day Fund and thereafter by severance tax proceeds. This recognizes some of the funding shortfall identified by Governor's Blue Ribbon Commission on Highways. The sections of the bill creating contracting authority for the DOH are not necessary since the DOH already contracts for labor, materials and equipment under existing law. If adequate funds are available through the prescribed severance tax funds, the DOH will be able to significantly increase it's road maintenance efforts.



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