NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

State Highway and Transportation Department (SHTD)

SUMMARY

Synopsis of Bill

Senate Bill 128 adds responsibility to the State Highway Commission for repair and maintenance of state park roads, bridges and parking areas. The bill appropriates $2.5 million in FY02 for this purpose.

Significant Issues

The following issues were raised by the department:

• •There is a current agreement in effect to provide $500.0 annually from the road fund for maintenance and repair of park roadways, bridges and parking lots.



• •Without the application of standard department design and maintenance guidelines, state park road infrastructure may require excessive maintenance expenditures.



• •The $2.5 million appropriation from the road fund will reduce the amount available for state highway system maintenance and construction, including use for federal match.

While this bill will place an additional burden on SHTD and road fund resources, it will provide significant benefits to the Energy, Minerals and Natural Resources Department (EMNRD) who administers the state parks system. This is a logical approach because SHTD has the expertise to construct and maintain roads and EMNRD could focus its resources on parks infrastructure and operations. In viewing the broader picture, this arrangement would benefit the state.

PERFORMANCE IMPLICATIONS

This bill would have a negative impact on construction and maintenance programs of SHTD because it would add significant miles to the current 12,000 mile state road system requiring construction and maintenance and would reduce the amount of resources available from the road fund for existing department road system responsibilities.

FISCAL IMPLICATIONS

This bill appropriates $2,500.0 from the State Road Fund for recurring costs. Unexpended and unencumbered balances remaining at the end of the fiscal year revert to the general fund. This bill reduces the department's available budget for existing highway system needs. This includes lost opportunity for federal match, construction, reconstruction, preservation or maintenance for the 12,000 mile state highway system.

Roads, bridges and parking lots in state park areas have not been constructed to SHTD standards which may result in greater maintenance responsibilities for SHTD.

ADMINISTRATIVE IMPLICATIONS

Maintenance of state parks road infrastructure will require SHTD to assign maintenance crews from each of the six districts to repair and maintain parks roads, requiring them to spend less time on services they presently provide for the safety of the traveling public on the existing state highway system.

TECHNICAL ISSUES

The bill as drafted requires that an unexpended or unencumbered balances at the end of FY02 revert to the General Fund. Line 23, page 2 should be amended to revert unexpended balances to the State Road Fund.

OTHER SUBSTANTIVE ISSUES

The department is currently working with the State Parks Division on state parks road maintenance issues and allocates $500.0 annually for this purpose. It is the intention of SHTD to continue development of a mutually agreeable relationship and will continue to assist the State Parks Division with its road maintenance obligations.

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