![]() Should the Investment Management Board determine to provide funds in accordance with the directives in HB4187, and all parkways bonds are paid off or defeased as a result, tolls are then mandated to be removed in 2014 at that point pursuant to West Virginia Code 17-16A-18 andĤ. ![]() Neither the Parkways Authority, under its enabling legislation nor the Secretary of Transportation under West Virginia Code 5F-2-2 have any clearly enumerated authority to borrow funds other than those which are generated by the issuance of bonds andģ. The provisions of HB4187 prohibit the Parkways Authority and the Secretary of Transportation from issuing any refunding or other types of bonds andĢ. Important points to note that are special issues not captured elsewhere in this Fiscal Note are as follows:ġ. See Memorandum below for information regarding the fiscal impact of this bill on the State of West Virginia.īased on conversations with Parkways General Counsel and Parkways Bond Counsel, House Bill 4187 presents a number of significant legal issues and flaws in drafting including some which involve the constitutionality of certain provisions of the proposed legislation. In their report, PERD stated that the Legislature needs to be aware that under new federal regulations, if it is decided to continue tolls on the Turnpike, the State could, within certain parameters, use excess toll revenues on other state roads.Įxplanation of above estimates (including long-range effect): ![]() The Turnpike miles are already a part of the apportionment formula for Federal-Aid Highway funding therefore no additional federal highway funds would be apportioned to the State if the Turnpike becomes a toll-free road. The cost to dismantle toll booths and reconstruct the toll plaza entrances is an estimated $23 million, the State would likely have to address whether or not it will continue subsidizing Tamarack the current $1 million per year, and the Courtesy Patrol fund could incur additional costs of $420,000 to provide courtesy patrol along the Turnpike, according to DOH estimates. In addition, PERD stated that 231 people could be laid off from the Parkways Authority, the direct loss of income to the local economy would be over $9 million, and 31 State Police personnel on the Turnpike could be lost if the Legislature does not appropriate the $2.7 million in personnel and operational costs currently paid for the Turnpike State Police detachment by the Parkways Authority. The $30.4 million cost identified by the DOH is based more on reactive and “funds availability” criteria. This proactive approach obviously saves money in the long term due to extending the life of bridges and road surfaces rather than having to replace them before the end of their life-cycle. The Authority has concluded that it will cost $59 million per year based upon engineering analysis which reflects proactive and needs-based maintenance in order to maximize full life-cycle benefits of the highway and bridge assets. PERD used a methodology not based on how much will be needed as determined by the Authority, but rather at a cost derived from what DOH has indicated their costs are for the interstates they maintain. They concluded that the cost to the State to operate the Turnpike as a toll-free road at the same level of maintenance as its other interstates is an estimated $30.4 million per year. The West Virginia Legislature’s Performance Evaluation and Research Division (PERD) completed an agency review of the Parkways Authority in January 2014. Thus, no State tax or general revenue dollars are used in the maintenance or operation of the Turnpike or in paying debt service on Turnpike bonds issued by the Authority. ![]() At present, the West Virginia Turnpike is operated and maintained by the Parkways Authority with Turnpike toll revenues paid by the users of the highway. This bill would not only affect the missions and functions of the West Virginia Parkways Authority, but also, have a profound effect upon all the assets and funds of the Authority and upon the obligations of the State of West Virginia. Legislation creates: Neither Program nor FundĮffect this measure will have on costs and revenues of state government. Sources of Revenue: General Fund,Other Fund Tolls IMB funds FUND(S): Toll road revenues WV Investment Management Board WV Division of Highways
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