A $1.5 billion bond could pay for about 17 much-needed road and highway construction projects and spark economic growth in a number of areas around West Virginia, state Transportation Secretary Paul Mattox told a joint meeting of the House and Senate Transportation committees Thursday.
Mattox said the Division of Highways has been unable to begin the shovel-ready projects because federal and state funding has dried up in recent years.
A $1 billion bond would pave the way for significant progress, while a $1.5 billion bond would clear the way for even greater construction, Mattox said.
"The Division (of Highways) Corridor H in its entirety in the next eight years," Mattox said. "This would complete the Appalachian Highway System in West Virginia."
To pay off the bond, state officials would have to find significant revenue sources, Mattox said.
"To finance a $1 billion bond you would need a new revenue stream of roughly $65 million to $75 million per year for the next 30 years," he said.
But before selling any bonds at all, state officials would need approval from voters. And proposals to pay off the bonds could be unpalatable to Gov. Earl Ray Tomblin and the public at large.
One proposal is to raise fees at the Division of Motor Vehicles. Mattox said that would bring in about $40 million per year.
Tomblin vetoed that plan during the 2011 regular session.
Sen. Mike Hall, R-Putnam, has expressed interest in securing more funding for state roadways. Last year, he focused much of his energy on a plan to redo U.S. 35 in Putnam and Mason counties. Funding for the road was never finalized.
Hall said Thursday interest rates are at historic lows and that something needs to be done before those rates go back up.
"We have a window of opportunity that will probably stay with us for awhile," Hall said. "But it will get away from us in a couple years, so I think we need to take action this year. I would hope we can do that to put something before the public as soon as possible"