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