FISCAL NOTE
Date Requested: March 10, 2025
Time Requested: 12:34 PM |
| Agency: |
Highways, Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1932 |
Introduced |
SB55 |
|
|---|
| CBD Subject: |
|
|---|
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FUND(S):
Special
Sources of Revenue:
Special Fund
Legislation creates:
Increases Existing Expenses, Decreases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This 2025 bill is in response to a 2016 Legislative Report claiming that the DOT has no formula in place to allocate and distribute road funds amongst districts and counties. SB55 would require the WVDOH to develop a formula for the allocation and distribution of road funds to each county. The bill defines "Road Funds" as federal or state funds appropriated or otherwise available to the DOH for new construction, maintenance and new capacity improvements. The DOH utilizes both federal and state revenues for construction, operation and maintenance of the State Road Network. Federal monies used by the DOH have restrictions to certain activities and asset management goals. These are not amenable to county specific goals. DOH State Funds for maintenance are distributed based on a formula that accounts for some of the parameters identified in the Bill.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
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):
SB55 would have no impact on existing revenue or costs. It would alter how monies are allocated. The bill would change how construction and operational monies are allocated. This bill would exhibit a crushing impact on the flexibility to conduct major initiatives by distributing all monies to each county each year. Larger more costly projects would require many years for a county allocation to fund the project. Larger projects that may have been scheduled for completion in a matter of years could take decades to complete.
Since the issuance of the references 2016 Report, the DOH has employed a formula for core maintenance activities as detailed in our 237 budget line item. Certain expenses, such as regional offices, cannot be efficiently allocated on a county by county basis. Other expenses, such as the Corridor H project, require a fiscal focus on one project expected to generate decades of beneficial effects. Including development projects such as Corridor H enhancements in an overly-formulaic annual budget list would effectively strip those districts of any opportunity to garner necessary maintenance, preservation, rehabilitation and replacement projects pursuant to the PMS (Pavement Management System) or BMS (Bridge Management System). Furthermore, Federal grant opportunities and funds are normally project-specific that use cost/benefit analysis based on conditions, best asset management practices, and data driven calculated need.
Memorandum
The bill would require deployment of measures such as population and economic activity to distribute funds. However, population and economic activity are not direct measures of road impacts. The DOH formula accounts for direct measures such as traffic, truck traffic, climate, material costs, etc. to distribute funds. DOH believes these direct measures are more appropriate. The current DOH formula also recognizes certain fixed costs required for overhead, administrative, and facilities infrastructure that are not included in the currently proposed bill.
Person submitting Fiscal Note: Chris Alder
Email Address: chris.r.alder@wv.gov