CHARLESTON, W.Va. — Gov. Jim Justice signed a proclamation Tuesday scheduling a statewide vote on a road bond issue for Saturday, Oct. 7.
Voters will be asked to allow the state to sell bonds to finance as much as $3 billion in road projects to be paid off with fee and tax increases that Justice signed into law last week.
Justice said there are 500 projects, some big, some small, ready to go.
West Virginia doesn’t have a good history in passing road bond issues but Affiliated Construction Trades (ACT) Foundation Director Steve White told MetroNews Tuesday this is different.
“The money is already in place,” White said. “Because the (state) Constitution requires the public to approve a bond but we’re not asking the public for another dime. I think that’s a big difference.”
An increase in DMV fees, a recalculation of the wholesale tax on gasoline and an increase in vehicle purchase taxes were all included in a bill passed by lawmakers earlier this month that will go into effect July 1. That’s the money, $130 million a year, that will provide the annual debt service on the bonds.
That’s a message that supporters of the bond program must get across to voters, White said.
“They might think that voting (in favor) will increase taxes–it will not,” he said. “Those fees and taxes are already in place. It just allows the state to turn it into a bond (more money), in essence, get to it (the projects) a little sooner.”
Justice said he doesn’t see any way the bond vote will fail—but if it does.
“If it fails this state is history, it’s gone, that’s all there is to it,” Justice said.
The governor also signed the Parkways bill into law Tuesday that will continue the current tolls on the West Virginia Turnpike allowing the state Parkways Authority to sell bonds to pay for road construction projects in 10 counties in southern West Virginia close to the toll road.
The new law also sets up an single pay system for users of the Turnpike. An annual toll pass can cost no more than $25 a year.
The Parkways Authority, which doesn’t need voter approval, could be ready to sell its new set of bonds in four months, Parkways Authority General Manager Greg Barr said, adding, motorists can expect a toll increase with the new bonds.
“I think it’s envisioned there’s going to be some kind of toll increase but as he (Gov. Justice) said the payoff is doing $400 to $500 million in road projects and those road projects will be in southern West Virginia,” Barr said.
Justice said he wants to get the two separate bond issues to market as soon as possible.
“The reason for that is real simple–interest rates are low,” he said. “The longer we mess around with this the higher probability that interest rise and if interest rates rise it hurts us. It hurts us all over the place.”
Secretary of State Mac Warner announced Tuesday the voter registration deadline for the bond vote will be Sept. 18 and early voting would take place Sept. 22-Oct. 4.