Date Requested:January 15, 2014
Time Requested:12:26 PM
Agency: Highways, Division of
CBD Number: Version: Bill Number: Resolution Number:
2014R1251 Introduced HB4187
CBD Subject: PAY OFF TURNPIKE BONDS EARLY
FUND(S)
Sources of Revenue
Other Fund DOH Funds
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The West Virginia Legislature‚Äôs Performance Evaluation and Research Division (PERD) recently prepared an analysis of the potential impacts of the tolls being removed from the West Virginia Turnpike as required by State law in 2019. The report is titled Agency Review, Parkways Authority, Department of Transportation, Audit Overview and includes a determination of the cost to the State to operate and maintain the Turnpike as a toll-free road at the same level of maintenance and operation as the current remaining toll-free interstates in West Virginia, which is the responsibility of the West Virginia Division of Highways (WVDOH). They concluded the estimated cost to the State would be $30.4 million per year. The Parkways Authority has an estimated cost to be $59 million per year based on the maintenance and operational standards established by the Parkways Authority. It is important to note the $30.4 million cost is based on a level of service for the condition of assets for the Turnpike to be consistent with the other WVDOH maintained and operated interstate mileage.
    Since the Turnpike assets are currently supported by the existing tolls, the elimination of the tolls may require the WVDOH to make up the funding gap. The WVDOH would then evaluate the Turnpike assets in comparison to the condition of the its existing interstate assets and prioritize maintenance and operational improvements accordingly.
    The PERD report also addresses personnel impacts to the Parkways Authority and the cost for the State Police currently assigned to the Turnpike. It is currently assumed these costs, should they desired for continuation, would not be incurred by the WVDOH should the Turnpike become a toll-free road. It is also assumed the cost to dismantle the existing toll booths and reconstruct any portion of the roadway at these locations would be performed by the Parkways Authority with previous revenue from the tolls.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2014
Increase/Decrease
(use"-")
2015
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
3. Explanation of above estimates (including long-range effect):
    


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