The “Roads to Prosperity” program consists of three types of bonds: GARVEE Bonds, General Obligation Bonds and WV Turnpike Bonds.
Grant Anticipation Revenue Vehicle Bonds, better known as GARVEE Bonds, are funds that are pledged as a result of future Federal funding for infrastructure. In West Virginia, Governor Justice had the foresight to propose legislation to increase the amount the state is authorized to incur in GARVEE Bonds from $200 million to $500 million during the 2017 regular legislative session. This substantial increase allowed the state to bond construction on half-a-billion dollars in road work.
To provide for General Obligation Bonds, the West Virginia Legislature passed the “Roads to Prosperity Amendment” during the 2017 regular legislative session which authorized a constitutional referendum to be placed for a vote by the citizens of West Virginia. This amendment to the state’s constitution was to allow the state to purchase $1.6B in general obligation bonds, and it overwhelmingly passed by the voters in October 2017. This debt is considered a general obligation debt of the State of West Virginia.
During the 2017 Legislative Session, key legislation was passed providing additional revenue from the tolls on the West Virginia to be utilized on capital improvements through the issuance of bonds. These improvements are mandated to occur within a 10-county area: Fayette, Greenbrier, Kanawha, McDowell, Mercer, Monroe, Nicholas, Raleigh, Summers and Wyoming Counties.