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CHARLESTON -- One of the last actions by the West Virginia Legislature during the resumption of its special session this week was approving $800 million in a second round of bonds for the Roads to Prosperity program.
The House of Delegates approved two resolutions Monday authorizing the state Department of Transportation to move forward with the second round of road bonds. The Senate unanimously adopted the two resolutions Tuesday.
House Concurrent Resolution 104 allows the state to take to market $600 million in road bonds. House Concurrent Resolution 105 allows the state to take an additional $200 million in bonds to market after July 1, 2020.
During the first round of Roads to Prosperity bonds, the state took $800 million to market in June of 2018, bringing in $913 million due to West Virginia's excellent bond ratings. Gov. Jim Justice, when announcing that the resolutions had been added to the special session call Friday, said he expects the state to receive additional money above and beyond the $800 million.
"There's a real chance at getting another premium with the remaining Roads to Prosperity bonds, and with our economy doing so great right now, we've got to get these bonds ready for market," Justice said.
Voters approved the Roads to Prosperity Amendment in 2017, allowing for the issuance of bonds not to exceed $1.6 billion to improve major roads and bridges as well as new road construction. West Virginia has $349 million in GARVEE bonds issued in 2017 and 2018, plus the $913 million in general obligations bonds issued last year and $172 million in 2018 Parkways Authority bonds, giving the state a total of $1.3 billion.
Department of Transportation Secretary Byrd White briefed lawmakers during legislative interim meetings Tuesday about the current status of the Roads to Prosperity program. White said the first phase started with 10 projects but dropped to seven projects which have been bid out and are progressing.
Of the three projects that didn't progress, one was federalized and the other two -- a bridge project in St. Albans and the I-70 bridges project near Wheeling -- are ongoing. The state rejected bids last August for the I-70 project after bids came in above the estimated $201 million cost for repairing 26 bridges and possible paving.
The state decided to change the scope of the I-70 project, with new bids expected to go out for both the I-70 and St. Albans projects in August and October.
"The I-70 project we think is going to run about $170 million dollars, plus some federal aid," White said. "The I-70 Wheeling bridge project we estimate to be around $210 million."
White said there are nine projects slated for the second round of Roads to Prosperity bonds, costing $660 million. White also expects the state to get a premium, as well as additional federal money to get to the $660 million needed for the projects.
In regard to secondary road maintenance, White said the state has spent $15 million on equipment to clean ditches and culverts, as well as perform patch work. White also said no bond money has been used for secondary road maintenance as of yet.
"After these projects are nailed down, we hope to use the excess bond money from the (general obligation) bonds to help us with some maintenance projects," White said.
"I'm sure that means some of the projects that were listed on those lists will not necessarily be accomplished because that money will be diverted to maintenance," Sen. Charles Clements, R-Wetzel, said.
"No sir," White responded. "Those projects are going to get done. It's only the money in excess of the costs of those projects that will be used for maintenance."
During the resumption of the special session in May and June -- originally called for education betterment at the end of the 2019 regular legislative session in March -- the legislature approved more than $148 million for secondary road maintenance projects through June 2020 using tax revenue surpluses generated during the 2019 fiscal year that ended in June.
(Adams can be contacted at sadams@newsandsentinel.com)