FISCAL NOTE

Date Requested: February 21, 2017
Time Requested: 01:08 PM
Agency: Highways, Division of
CBD Number: Version: Bill Number: Resolution Number:
1544 Introduced HB2606
CBD Subject: Roads and Transportation


FUND(S):



Sources of Revenue:

Other Fund State Road Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


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


The passage of this HB 2606 would eliminate the cessation of tolls language in the current statute and the Parkways Authority would maintain the “status quo” of collecting tolls on the Turnpike once the bonds are paid in full in May 2019. The Parkways Authority currently receives no funding from the State or the Federal government for maintenance, operation or capital repairs. Tolls (“user fees”) provide the funds for maintenance, operations and capital repairs of the West Virginia Turnpike and free up tax dollars to be used by the West Virginia Division of Highways (WVDOH) for all of the other highways and bridges in West Virginia. If the Parkways Authority is restricted to the use of only $55 million of the revenue that it collects it will have no way to finance maintenance of its day to day operations or its own capital needs at the same “level of service” that exists today. This “level of service” includes state of good repair for both bridges and pavements, snow removal and ice control operations, incident management, etc. To maintain this level of service, the DOH would make up the difference in funding.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
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):






Memorandum


In Fiscal Year 2016/2017, West Virginia Parkway Authority's budget for toll and other revenues is $89 million. These funds are used for capital improvements on the Turnpike such as highway, bridge and facilities repairs and annual operational and renewal and replacement expenses. If this bill were to pass with the provision to spend only $55 million per year on the West Virginia Turnpike, placing the rest of the toll revenue proceeds in a special revenue account, there would not be adequate funds to maintain current operations on the Turnpike and or perform capital repairs on its road, bridges and facilities to meet the current “level of service.” Using a total revenue of $89 million per year and the restriction of using only $55 million on the WV Turnpike, the net difference of $34 million per year would be additional funds needed from the WVDOH to maintain the same level of service.



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