FISCAL NOTE

Date Requested: January 18, 2018
Time Requested: 10:20 AM
Agency: Highways, Division of
CBD Number: Version: Bill Number: Resolution Number:
1740 Introduced SB295
CBD Subject: Counties


FUND(S):

State Road

Sources of Revenue:

Special Fund

Legislation creates:

Creates New Revenue, Increases Existing Expenses



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.
    
    The West Virginia Department of Transportation, Division of Highways (WVDOH) is responsible for the construction, maintenance and operations of the road system in the State of West Virginia which represents over 92% of the road system in the State. This legislation has the potential to be very beneficial from a financial standpoint as it will bring new revenue to be utilized on the road system in West Virginia. The only potential direct costs attributed to the legislation will be the time necessary for the WVDOH to review county plans and resolving potential conflicts. The WVDOH may incur additional routine maintenance costs such as pothole patching, mowing, ditching, snow removal and ice control for any new roadways incorporated into the State Highway System. These costs may be offset by any improvements made to the existing roadway network under this legislation.
    
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2018
Increase/Decrease
(use"-")
2019
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):


    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.
    
    The WVDOH prepares a Long Range Transportation Plan (LRTP) as well as the six year transportation program of capital projects called the Statewide Transportation Improvement Program (STIP). The LRTP identified a gap in funding needed to operate and maintain the road system in the State at $1 billion per year. The proposed legislation provides an opportunity for additional revenue to address these highway needs. The legislation proposes the County prepare a plan of projects, but does not refer to WVDOH plans which include plans prepared by the State’s metropolitan planning organizations which may require additional resources, but is difficult to estimate. Submission of county plans and resolving potential conflicts with ongoing initiatives will require additional labor hours, but this cannot be estimated given the uncertainty of the number of counties that would be willing to participate. However, this cost is anticipated to be minimal.
    
    It is assumed the revenues generated through legislation will fully fund the capital plan of projects including the planning, engineering, right-of-way and construction costs or will assist in funding existing WVDOH priority projects such that there is no material effect on the WVDOH’s existing capital improvement program.
    
    



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.
    
    It is important to note §7-20-36 states all road construction projects under this article, including related infrastructure, if any, are public improvements subject to §21-1C-1 and either §5-22-1 or §17-2D-1. Improvements subject to §21-1C-1 essentially incorporates the WV Jobs Act into the project phase(s). The inclusion of this provision would not allow federal-aid highway funding to be utilized in conjunction with the revenue from this legislation.
    The legislation as drafted states the Division of Highways is not responsible for financing, constructing, installing or maintaining related infrastructure which may be located on a Division of Highway’s right-of-way.
    
    Future maintenance and operation costs of new roads brought into the state road system is difficult to determine without a prescribed list of new roads to be incorporated. Also, should a project from the county road construction plan propose to reconstruct an existing WVDOH road and/or bridge, then the WVDOH would receive the benefit of an improved asset and thus, should expect lower maintenance costs associated with the particular road segment.
    
    



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