By PHIL KABLER
Charleston Gazette-Mail
CHARLESTON, W.Va. — A day after announcing he would let the “travesty” of the $4.225 billion state budget bill become law without his signature, Gov. Jim Justice returned to the governor’s reception room Thursday under happier circumstances, to sign what he called “landmark” legislation to raise about $140 million a year for highways construction (Senate Bill 1006).
“It’s a truly monumental day, and that’s all there is to it,” a noticeably more upbeat Justice said Thursday. “It’s nice to think about putting a whole lot of orange barrels out there.”
The legislation is part of a three-pronged effort to issue up to $2.8 billion in bonds to fund Justice’s road-building initiative, which he has said will stimulate the state economy by creating thousands of construction jobs.
State voters will decide in an Oct. 7 referendum whether to authorize the sale of general obligation bonds that would be paid off using revenue from the increase in gas taxes and Division of Motor Vehicle fees that will go into effect July 1 under the new legislation, according to Nick Casey, Justice’s chief of staff.
Casey said that date, a Saturday, was chosen for the referendum election because it will not require closing schools that serve as polling places, and because the West Virginia University football team is playing an away game that day. The Marshall University football team also is away that day.
Because 90-day notice is required for referendum elections, the governor will have to sign a proclamation setting that Oct. 7 election by July 7.
During the 20-day special session, legislators also approved a yet-unsigned bill authorizing the state Parkways Authority to retain and increase tolls on the West Virginia Turnpike to finance a separate bond issue, which Parkways general manger Greg Barr said earlier this week could go to market as early as this December.
Additionally, during the regular session, the Legislature approved legislation raising the cap on the amount of GARVEE bonds the state may issue from $200 million to $500 million. GARVEE bonds are essentially backed by future federal highways appropriations.
Casey said state officials are working with bond counsel to get the GARVEE bond issue ready to go to market.
In signing the roads bill Thursday, Justice said Transportation Secretary Tom Smith has 500 road projects around the state “in motion, on the books, and in the works,” ready to proceed as the bond revenue becomes available.
Thursday’s brief bill signing ceremony followed Justice’s announcement Wednesday that he would allow the budget bill to become law without his signature. That was during a 35-minute news conference where Justice criticized legislators from both parties and both houses for failing to agree on a revenue plan that would have avoided what he called devastating spending cuts.
“I was not happy. We missed a lot of opportunities,” Justice said of Wednesday’s announcement. “One thing we did not miss an opportunity on is roads.”
The bill signed into law Thursday makes changes to the way the wholesale portion of the state gas tax is calculated, amounting to a roughly 3½-cent-per-gallon increase.
That is projected to raise about $60 million in the 2017-18 budget year, which begins July 1, and about $65 million the following fiscal year.
It also increases the privilege tax on motor vehicle purchases from 5 percent to 6 percent, projected to raise about $41 million a year, and increases a number of DMV fees to raise about $40 million a year.
Of those, the most significant increase raises the fee for Class A registration for passenger vehicles from $28.50 to $50, to raise $28 million annually.
The legislation also imposes new registration fees of $100 for hybrid vehicles, and $200 for alternate fuel vehicles, to help offset lost gas tax revenue. However, those fees will produce nominal amounts of new revenue, at least initially, according to projections from the DMV.
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