11/28/06-A leading highways official in West Virginia this month told lawmakers they need to come up with an additional $350 million a year to keep up with needed road construction and maintenance in the state.
State Highway Engineer Marvin Murphy told an interim committee that the agency is considering tax and fee increases and other funding measures that could generate about $200 million more for the road fund each year.
Among the proposed revenue enhancers is renewing a 5-cent-per-gallon fuel tax that is set to expire next summer, and allowing the wholesale tax to increase an expected 3 to 4 cents per gallon next year. Increasing fees for license plates and driver’s licenses also was mentioned, The Associated Press reported.
In addition, coming up with new funding sources for agencies that tap into the road fund could draw consideration. Those agencies include the West Virginia State Police and the Public Service Commission weight enforcement section.
Other funding sources previously mentioned include privatization of the West Virginia Turnpike and adopting a similar test program used in Oregon to charge drivers for road use by the mile instead of the gallon.
Supporters say that state lawmakers should look for new ways to pay for roads, including using the state’s general revenue fund.
“We can’t carry the water if you don’t give us a bucket,” Delegate Richard Browning, D-Wyoming told The AP. “If we just sit back and raise $3 million here, or $4 million there, that’s not going to cut it.”

11/6/06-The special legislative session this week in West Virginia won’t include discussion about changing the state’s fuel tax or vehicle privilege tax, despite a new tax report in the state suggesting those taxes be revamped to help pay for transportation projects.
Commissioned by Gov. Joe Manchin, the tax modernization report released early this month includes an entire section devoted to possible changes to the state’s road fund.
The report’s recommendations include extending the state’s 5-cent-per-gallon fuel excise tax that is scheduled to end next year, the Charleston Daily Mail reported. Other recommendations that aren’t on the agenda this week involve vehicle taxes and road funding revenue.
Escalating costs for highway construction and dwindling sources for traditional state road funds have left lawmakers to scour far and wide for answers to how they will pay for road projects.
Financial estimates indicate the state will need at least $20 billion during the next 20 years to complete the 170 road projects the agency has on the books. The state has enough funding to complete about 8 percent of the work.
A spokeswoman for the governor said road funding isn’t on the agenda because legislators won’t be able to devote enough time on the issue to solve anything. Instead, they will focus on matters that can be voted on rather quickly, the Daily Mail reported.
Road funding is expected to draw much consideration during the regular session that starts in January.

10/18/06-The Finance Subcommittee C met this week to brainstorm new ways to raise money for road and bridge work. Large trucks were mentioned as an ideal source for added revenues.
Escalating costs for highway construction and dwindling sources for traditional state road funds have left lawmakers to search far and wide for answers.
A report from the West Virginia Division of Highways shows that the state must come up with innovative ways to fund highway construction.
Financial estimates indicate the state will need at least $20 billion during the next 20 years to complete the 170 road projects the agency has on the books. The state has enough funding to complete about 8 percent of the work.
To help counter funding shortages, Sen. John Yoder, R-Jefferson, suggested sending all profits from table gaming at the state’s racetracks to the state’s road fund, The Charleston Gazette reported.
Delegate Richard Browning, D-Wyoming, proposed sending a portion of severance taxes to roads in coal-producing counties.
The 5 percent motor vehicle privilege tax accounts more than $155 million annually for roads in the state.
Other funding sources mentioned include privatization of the West Virginia Turnpike and adopting a similar test program used in Oregon to charge drivers by the mile instead of the gallon.
Collecting additional user fees for hybrid or alternative fuel vehicles also could be tapped to offset the decline in fuel tax collections, The Gazette reported.
The director of the West Virginia University Bureau of Business and Economic Research, Tom Witt, said the ideal road user fee would rely on such vehicles as large trucks. He said the fee should be based on the vehicle’s weight, mileage traveled and number of axles.
With a special session scheduled for next month, some proposals are expected to advance to the full Finance Committee for consideration.

9/14/06-A report from the West Virginia Division of Highways shows that the state must come up with innovative ways to fund highway construction.
Financial estimates indicate the state will need at least $20 billion during the next 20 years to complete the 170 road projects the agency has on the books. The state has enough funding to complete about 8 percent of the work.
The state highways commissioner, Paul Mattox, told a legislative interim committee last week that the state cannot rely on the traditional road fund sources of fuel and privilege taxes and federal highway funds to complete needed road and bridge work.
“We’ve got to look at other sources of revenue, and they have to be significant sources of revenue,” Mattox told lawmakers, The Charleston Gazette reported.
One possible solution mentioned would be to use half of increased property tax collections from development agencies along new highway corridors to fund roads.
Another alternative would be to allow voter referendums on user fees that would be used to finance road bonds, The Gazette reported.
Other ideas being floated include tweaking fuel tax rates and partnering with private groups to operate toll roads, The Associated Press reported.
Mattox said part of the problem is that costs for road construction have increased at the same time state road fund collections have decreased.
Our road fund keeps eroding. Our need is great, and our resources continue to dwindle,” he said.
To make matters worse, West Virginia is one of only four states where county governments do not help cover the costs of state-maintained roads.

5/31/06-The head of the West Virginia Department of Transportation said the state’s tax on fuel could soon become a thing of the past.
Transportation Secretary Danny Ellis recently told lawmakers that with road building costs on the rise and fuel tax collections expected to lag in the next few years, the state will need to find alternative sources to pay for road and bridge work.
The state’s 27-cent-per-gallon tax on diesel and gasoline generates about $320 million annually. That amount is expected to drop to $260 million a year by 2009, The Charleston Gazette reported.
Ellis said part of the blame for the projected dip is high fuel prices. To combat the pain at the pump, drivers are expected to travel less and drive more fuel-efficient vehicles.
“We’re going to reach a time in the future where the (fuel) tax will be antiquated,” Ellis told The Gazette.
Transportation officials told the Finance Subcommittee C there are 11 options for generating road funding. One option would be to renew a 5-cent-per-gallon fuel tax before it expires Aug. 1. The tax, which is part of the state’s 27-cent tax, brings in about $55 million annually. The revenues are used as a match for federal dollars.
Another option mentioned calls for eliminating the highway agency’s transfer payments to the State Police, Public Service Commission’s weight enforcement division and the Department of Environmental Protection for waste tire removal. The transfers amount to $13.3 million a year.
Vehicle registration and/or driver’s license fees also could be increased. In addition, the state sales tax on materials used for road and bridge work could be removed. A portion of property tax collections also could be used for funding.
One other option would be to close the state’s Division of Motor Vehicles’ regional offices. The division’s operating expenses are $36 million a year, The Gazette reported.
If all 11 options were approved, the WVDOT would have as much as $233 million added to its coffers, The Register-Herald reported.