CHARLESTON, W.Va. (AP) — The far-reaching federal stimulus plan expected from President-elect Barack Obama will likely delay any serious overhaul of West Virginia's State Road Fund.
Lawmakers discussing state highway funding on Monday said they should wait to see just what the estimated $775 billion package might provide for Mountain State road projects. "All states are holding back on what they're going to do," said Senate Finance Chairman Walt Helmick, D-Pocahontas.
Obama has proposed spending the $775 billion over two years to help the nation avert a prolonged recession. About $475 billion of the funding would cover an array of infrastructure-related projects, including those involving roads and bridges.
Gov. Joe Manchin has outlined $2.2 billion in projects that would qualify for funds under the proposed terms of the stimulus. About $970 million of the state's total reflects road- and bridge-related projects, with $224 million of that coming from the West Virginia Turnpike.
But Helmick also estimate that needed repair, maintenance and building projects are about two to three years behind schedule, for lack of money. An economist updating an earlier study on the road fund's future told lawmakers at Monday's interim meeting that the fund continues to struggle to keep up with demand.
Tom Witt, director of the Bureau of Business and Economic Research at West Virginia University, said several factors bedevil the fund. They include a drop in overall vehicle registrations and the advent of alternative energy vehicles.
The main source of state money for West Virginia roads, the fund comes mainly from taxes on gasoline and diesel fuel fees on both new and transferred registrations.
Witt said the road fund's options include hiking those taxes and fees, and perhaps linking the latter to inflation rates. West Virginia has the 13th-highest gas taxation in the country, according to October figures from the American Petroleum Institute. Witt cited the 12 other states with higher rates.
Witt also said the state should study an alternative to fuel taxes that more accurately charges for using the state's roads. He noted that Oregon has been testing methods to track miles driven by individual vehicles.
West Virginia has some bright spots in its revenue and spending forecasts, Witt said. Lower gas prices should increase consumption, while falling prices for building materials amid the national recession should ease the cost of road projects.
The road fund is also reaped $311 million so far this budget year, or $2.4 million more than projected. It is expected to reach $638 million in revenues when budget year ends June 30.
