CHICAGO — Ohio would create up to 24 new bond-issuing authorities across the state with the ability to impose tolls to finance transportation projects under a bill the House passed last week.
The measure would also allow the new authorities to enter into public-private partnerships for the construction and operation of the transportation projects.
The bill now heads to the Senate, where it is expected to pass with some possible modification.
Under HB 166, the Ohio Department of Transportation would establish up to 24 so-called transportation innovation authorities, which would be made up of representatives from one or more local government districts. The authorities would be able to set up tolls to pay for select projects and issue bonds backed by the toll revenue.
Each authority, which would be made up of one or more local government entities, would also have the ability to share its tax revenue among its fellow entities.
“There are so many projects out there that need dollars, and there’s only so many dollars that ODOT has,” said Paula Putnam, public information officer for the department. “This program should help tremendously.”
Gov. Ted Strickland proposed the new initiatives last year as part of his two-year, $6 billion transportation budget. The budget also called for expanding ODOT’s own power to impose tolls and issue bonds, but that will likely be postponed for awhile, according to a legislative aide.
“Given the current economic situation, it was determined that’s not the best place to be going right now,” said Jason Warner, aide to Rep. Ross McGregor, a chief sponsor of HB 166. “It may be something we look at down the road. If this program proves very fruitful, we can possibly apply it on a statewide basis.”
Ohio currently has only one toll road, the 241-mile Ohio Turnpike, which runs along the northern part of the state. The Turnpike is operated by the Ohio Turnpike Commission, which is the only state body with the authority to toll.
Under the pending legislation, ODOT would create up to two regional authorities in each of its 12 districts to generate new revenue for infrastructure projects across the state, many of which have been delayed for years due to lack of funding.
For example, a new authority could advance a long-planned project to widen a section of Interstate 70 that runs through Springfield from four to six lanes by imposing tolls along the four-lane stretch and issuing bonds in anticipation of the revenue.
“The tolling has to be specifically related to that project,” Warner said. “What we wanted to avoid was to create an incentive where they could set up an authority and use the money for any project they wanted.”
As it stands now, the bill gives preference to projects in areas that already have roads, water, and sewer infrastructure in place — a provision that is seen as favoring urban areas. An amendment that was voted down on the House floor last week would broaden ODOT’s power to select the project without the infrastructure criteria.
“There’s going to be some discussion of that in the Senate,” Warner said. “But it should move fairly swiftly [through the Senate]. We’ve been working all along with senators on drafts of the legislation.”
