Source: http://www.wvlegislature.gov/Fiscalnotes/FN(2)/fnsubmit_recordview1.cfm?RecordID=20055945
Timestamp: 2018-02-17 23:48:43
Document Index: 455313983

Matched Legal Cases: ['§17', '§17', '§17', '§17', '§17', '§17', '§17', '§17']

Adoption of this legislation in its present form would render the Parkways Authority and could also render the WV Division of Highways without funds to operate the West Virginia Turnpike after February 1, 2020. This 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. 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. 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. In the scenario created by this version of House Bill 4269, the Parkways Authority would even be left without funds to accomplish the legislative mandate of removing the toll facilities, a task that would cost an estimated $20 million dollars.
There is a technical defect found in this bill under §17-16A-18(b) which mandates that, effective February 1, 2020, the Parkways Authority or its successors shall discontinue, remove and not relocate all toll collection facilities on the West Virginia Turnpike as it existed on June 1, 1989. The original intent of this section as previously adopted in the earlier 1989-90 version (when first enacted) was to remove, no later than February 1, 1990, the side tolls on the Turnpike, with the exception of North Beckley (Route 19), leaving the three mainline toll barrier facilities intact and the North Beckley Toll Plaza intact. By amending this section of the statute, it appears to mandate that tolls/toll facilities will/must be removed from the Turnpike no matter whether the Parkways Authority is expected to maintain the road or if it is turned over to the Secretary of Transportation (Division of Highways). In other words, these changes conflict with §17-16A-18(a) which says when the “bonds secured by West Virginia Turnpike toll revenues have been paid … if then in good condition and repair to the satisfaction of the Commissioner of the State Division of Highways, (the Turnpike) shall be transferred to the State Division of Highways and shall thereafter be maintained by the State Division of Highways free of tolls.” Also, the committee amendment to House Bill 4269 included an additional provision that “money to maintain the highway is in place” before tolls must be removed. Regardless of these two provisions, the proposed changes to section (b) [West Virginia Code §17-16A-18(b)] removes any ability of the Secretary of Transportation/Commissioner of Highways to factor in the condition of the highway and funding available to the DOH when determining whether to accept the maintenance obligation of the West Virginia Turnpike.
The bill suggests changes to §17-16A-10(i) by adding the following language: “…bonds may not be issued on any parkways project related to the West Virginia Turnpike or which would use West Virginia Turnpike toll revenues as a funding stream for the bonded indebtedness…” This change to the bill does not appear to be necessary since the existing statutory language in §17-16A-11(d) reads as follows: “…the Authority may not issue parkway revenue bonds under this section for projects on the West Virginia Turnpike after June 30, 2010…” As currently constituted, the Parkways Authority is prohibited by statute from issuing new debt with regard to the 88-mile West Virginia Turnpike (the Turnpike being defined in its enabling legislation as beginning in Charleston to a point approximately one mile south of the intersection of Interstate 77 and U.S. Route 460 near Princeton in Mercer County, West Virginia, which road is presently a part of the federal interstate highway system). It also states in the existing legislation, under §17-16A-10(h), that “the proceeds of the bonds of each issue shall be used solely for the payment of the cost of the parkway project or parkway projects for which bonds were issued…” and in §17-16A-2 “…that only the revenues of the project or projects for which bonds are issued shall be obligated to pay the debt service on the bonds…” In 2010, Senate Bill 427 was enacted which again renamed and reorganized the West Virginia Parkways Authority. This bill gave the Parkways Authority the authorization to construct new toll road projects by issuing bonds secured with toll revenues; however, bonds sold for new toll road construction cannot be used for the West Virginia Turnpike pursuant to Section §17-16A-10(a) which states that “the Parkways Authority is authorized to provide by resolution for the issuance of parkway revenue bonds of the state for the purpose of paying all or any part of the cost of one or more parkway projects: Provided, That this section shall not be construed as authorizing the issuance of parkways revenue bonds for the purpose of paying the cost of the West Virginia Turnpike…”
If the Turnpike tolls were eliminated after re-payment of the bonds in 2019, as targeted by this House Bill 4296, the State of West Virginia would not only lose in excess of $85 million annually in toll revenues now used to operate and maintain the 415 lane miles of interstate highway, 116 bridges, three travel plazas and one welcome center (Princeton, WV) currently operated and maintained by the Parkways Authority, it would also represent the loss of approximately 387 jobs (most with benefits) currently held by the various toll, maintenance and administrative personnel of the Parkways Authority. Most of the annual Turnpike toll revenue comes from out-of-state passenger and out-of-state commercial vehicles (approximately 76% of all Turnpike toll revenue). Without the toll revenue, the cost of operating the West Virginia Turnpike would shift to the taxpayers.
Therefore, if the bill became law, the WVDOH appears to be mandated to maintain and operate the Turnpike with no toll revenues to support those operations. Since there are no replacement revenue sources, the State Road Fund would likely be the only source of revenue available to the DOH to provide funding. The WV Secretary of Transportation has reported that the State Road Fund is funded primarily by the gas tax and revenues from that source are currently stagnant and in danger of dwindling even further as people drive less and use more fuel-efficient cars. In terms of buying power, the same dollars in that Fund now buy 30% less than they did in 1998. Meanwhile, federal funds are also dwindling. To return from a 31-year repaving schedule, the current situation, to a more ideal 12-year rotation, the Division of Highways would need an additional $700 million of funding on average per year to augment the revenue needed for statewide funding. West Virginia Secretary of Transportation Paul Mattox also reported the following:
•	The federal highway authorization bill is on its seventh temporary extension through the end of March 2012.
The cost to operate and maintain the Turnpike can be broken down into three major areas: Roadway/Facilities Maintenance (routine); capital improvement; and, renewal and replacement. To broaden the scope and magnitude of the cost to maintain the Turnpike, the following more detailed information is provided: