|Date Requested:February 02, 2011
Time Requested:04:12 PM
| FUND(S) |
6700-16 STATE ROAD FUND
Sources of Revenue
Legislation creates:Neither Program nor Fund
Effect this measure will have on costs and revenues of state government.
The legislation would allow the Department of Transportation (DOT) to borrow $65 million from the Rainy Day Fund or to use the Fund as surety. Repayment to the Rainy Day Fund would be by the Department of Revenue using the surpus of income tax revenue generated by the citizens of Putnam and Mason County.
If passed, the DOT could complete the upgrade of US 35. The Division of Highways (DOH) would be responsible for:
1. Repaying $100 Million from the sale of Garvee bonds. This would create an approximate $15 Million loss in the State Road Fund for nine years.
2. Paying almost $13 Million in 2012/2013 in engineering contingencies.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||12,334,000||15,000,000|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||0|
3. Explanation of above estimates (including long-range effect):
Estimated Total to Complete US 35 is $200,334,000
DOH would need to sell Garvee Bonds twice in 2011:
Spring/Summer 2011 77,000,000
Fall 2011 23,000,000
Total Garvee Bond $100,000,000*
Sen Byrd Earmark 23,000,000
Rainy Day Fund** 65,000,000
DOH Engineering Contingencies in 2012/2013 12,334,000
Annual Repayment Plan for 9 Year Garvee Bonds* 15,000,000
**Repayment of the Rainy Day Fund would be from the surplus income tax collected from the citizens of Putnam and Mason Counties.
There is question on whether the proposed bill is in the correct section of Code. TThe new article is 17-16A which governs the West Virginia Parkways Authority (WVPA). The legislation, however, does not involve the WVPA but instead directs the Division of Highways to construct Route 35.
To borrow from the Rainy Day Fund or to use it as surety could potentially jeopardize the State's rating if future bonding would be needed by any government entity.