West Virginia Executive Spring 2018 | Page 31

[ politics ] West Virginia’s Road to Prosperity KATLIN SWISHER Infrastructure and job creation: these are two topics at the top of nearly every- one’s list of priorities when it comes to addressing West Virginia’s current eco- nomic struggles. The state needs jobs, which require business start-ups and expansions and out-of-state companies relocating to West Virginia. In order to draw businesses—and people—here, the state’s struggling infrastructure must be addressed. In light of these needs, West Virginia has taken action to pave the way for eco- nomic recovery across the state through three different bonding strategies: gener- al obligation bonds, which were created through Governor Jim Justice’s Roads to Prosperity initiative; turnpike bonds; and Grant Anticipation Revenue Vehicle, or GARVEE, bonds. Through these three types of bonds, the state will invest $2.8 million into more than 600 transporta- tion projects over the next four years. Given the current shape of the state’s roadways, these projects can-not begin soon enough. “We have not really invested in our roads as we should have over the last decade,” West Virginia Department of Transportation (DOT) Secretary Tom Smith says of the state’s infrastructure challenges. “We’ve gone from 12th worst in the country for bridges to fifth worst, and the surfaces of our roads are continu- ing to decline. Governor Justice believes we can kick-start the economy again by really focusing on transportation and taking care of all this, which we’ve been letting slide. I think 2018 will be a banner year for us as far as having a lot of actual construction.” General Obligation Bonds The Roads to Prosperity general ob- ligation bond, which passed with 72.85 percent of the vote in a statewide special election on October 7, 2017, totals $1.6 billion for major regional transportation projects and improvements. The bonds will be sold in four installments: $800 million in May 2018, $400 million in May 2019, $200 million in May 2020 and $200 million in May 2021. This year’s $800 million bond sale is the largest for transportation purposes in West Virgin- ia’s history, according to Smith. “That is an eye-popping number,” he says. “We intend to put that $1.6 billion out on the street. It will be very signifi- cant for projects all over the state.” About 40 projects will be funded through the general obligation bonds. The first project will be widening the West Virginia Turnpike on I-77 near Tamarack and Beckley’s Harper Road exit, which is set to begin this summer. The second project will focus on alleviating rush- hour congestion in the Kanawha Valley by constructing a companion bridge ad- jacent to the Nitro-St. Albans bridge, and I-64 in that area will be widened to six lanes. In addition, 25 bridges on I-70 near Wheeling will also see improvements through a $170-180 million contract, and $200 million will support improvements to smaller, less traveled roadways. Both the Wheeling and Kanawha Valley proj- ects will be under contract by summer. However, because the contractor will manage the design, construction will not begin until later. Turnpike Bonds The $500 million turnpike bonds will allow the DOT to use toll revenue from the West Virginia Turnpike to support projects in 10 Southern West Virginia counties: Fayette, Greenbrier, Kanawha, McDowell, Mercer, Monroe, Nicholas, Raleigh, Summers and Wyoming. “These are the 10 counties most af- fected by the tolls on the turnpike for the last 50 years,” says Smith. “We think it is a very good gesture on the Legislature’s part, and we are happy to be a part of a project that puts money back into 10 counties that have been so affected over the years.” The turnpike bonds will support smaller projects, including bridge replacements, roadway improvements and slide correc- tions. The first project, anticipated to begin this summer, will include route im- provements such as adding truck climbing lanes, widening curves and fixing slides on Route 10 from Man to Kegley. The first installment of turnpike bonds will be sold this summer. WWW.WVEXECUTIVE.COM SPRING 2018 29