Gov. Justice says amendment will accelerate projects
BY DAVID BEARD
The Dominion Post
Gov. Jim Justice, along with other state political and business leaders, touted the benefits of the road bond amendment — up for a vote on Oct. 7 — during a statewide media conference call hosted by the West Virginia Press Association Thursday afternoon.
“I really believe that it is the single biggest vote West Virginians have made in the his- tory of the state,” Justice said. If voters approve the bond amend- ment, it will be the “launching pad for a future for West Virginia beyond belief.”
Justice ran for office on the premise that the state needs im- mediate jobs in order to revive, he said, and the many road pro- jects on the books could do that if they could be funded. The $1.2 billion bond would provide a one-time infusion to get that rolling.
Based on a Duke University study, he said, the list of projects funded by the bond should gen- erate 48,000 jobs, with the associated taxes and spending from those workers pouring into the state economy, he said.
The state constitution requires voters to approve bonds, thus the statewide Oct. 7 special election.
Legislation passed during the 2017 session provides four fund- ing buckets for the bond’s debt service, Justice said. The privilege tax — a sales tax on vehicles — was increased from 5 percent to 6 percent; and the wholesale gaso- line tax, DMV fees and turnpike tolls were all increased.
All told, they are expected to generate about $130 million per year.
And, of course, the bond will produce better roads, he said. “Better roads bring us a better way of life.”
Justice and Transportation Secretary Tom Smith fielded a question from The Dominion Post about two recurring criticisms voiced by bond opponents.
One criticism is that there’s no guarantee that the recent tax and fee hikes will be used to pay the bond debt. That’s wrong, they said. Bond investors want the bond’s revenue sources tied down before they lay down their money. Those revenues must go to the bond debt.
The other criticism is that it would be better to use the money directly on road jobs rather than on interest-bearing, long-term debt. That’s also wrong, they said.
If we use the money pay-go, as it’s sometimes termed, Justice said, “all of us are going to grow old and die before those roads are finished.” And there won’t be the immediate surge of jobs and associated revenue.
Smith added that bond rates stand at about 3-4 percent now, so it’s a perfect time to bond and leverage the low rates for a massive influx of funds.
He compared it to a homeowner taking a mortgage. If you take a mortgage, you can move into your home now. If you try to pay as you go, it may be years or never.
Justice also shot down the notion that the bond will lead to more tax hikes. The hikes were approved during the session and those are the funds that will be used, he said.
The list of planned bond projects takes up about 16 pages of small print. Among them are 37 projects for Monongalia County, 19 for Preston and one combined Mon-Preston project. Marion County has 17.
Some resurfacing projects have already started, Smith said, along with some purchase-order paving on secondary roads using new tax money that’s not yet going to debt ser- vice. If the bond is approved, the lion’s share will start next spring.
It’s been asked if all of those 48,000 jobs will go to West Virginians. “We’re trying every way we possibly can to fill every job with a West Virginian,” Justice said, partly by accelerating training and emphasizing on-the-job training.
Realistically, he said, some workers will come from out of state. But they’ll still pay West Virginia payroll tax, shop in West Virginia stores, stay in West Virginia hotels and maybe like West Virginia enough to move here. “We’re going to benefit from an out-of-state worker dramatically.”
And maybe some expa- triate West Virginians will return home if jobs open, he said.
Tourism Commissioner Chelsea Ruby said roads are absolutely vital to the industry. People may come once, but bad roads will de- ter them from coming back. The national average tourist length of stay of just over four days, she said. Here, it’s only 2.7 days.
Her department wants to promote regional tour- ism, she said, and good roads will encourage them to drive from site to site.
Commerce Secretary Wood Thrasher said, “We are in an economy that des- perately needs stimulated,” and the bond projects will do that. It will also com- plete major highways that will open access for people to come here and open new sites for development.
Chris Hamilton, representing the West Virginia Coal Association and the Business and Industry Council, said both organizations “wholeheartedly embrace this initiative. … We frankly don’t see a down side.”
Mike Clowser, executive director of the West Vir- ginia Contractor’s Associ- ation, has long fought for better infrastructure to promote progress. Agreeing with the others, he said the bond will provide immediate jobs and longrange benefits.
Monday is the voter registration deadline for the special election. Absentee voting is under way and runs through Oct. 2. Early voting runs Sept. 22-Oct. 4. The secretary of state reports that many counties need poll workers, and those interested are encouraged to contact their county clerk.
The Mon County clerk’s number is 304-2291-7230. The Preston clerk’s number is 304-329-0070. The Marion clerk’s number is 304- 367-5440.