The Ohio House last Thursday passed legislation that would allow the state to issue $1.5 billion of bonds backed by a new Ohio Turnpike credit.
The Senate is expected to consider the measure this week.
House Bill 51 allows the Ohio Turnpike and Infrastructure Commission to issue $1.5 billion of bonds — subordinate to $540 million of outstanding debt — backed by future toll revenues. It’s part of Gov. John Kasich’s plan to leverage a total of $3 billion for infrastructure transportation projects across the state without raising fuel taxes.
Critics last week protested that the bill does not include language that restricts the authority from spending bond proceeds outside of northern Ohio, where the 241-mile toll road is located.
Kasich has pledged to spend 90% of bond proceeds on projects in northern Ohio, but has reportedly said that including the language in any legislation would affect the bond sale.
An amendment to the House bill added last week requires that a project have a “nexus” to the Turnpike in order to tap the bond money, but critics said the word nexus was too vague.
“While the requirement of a nexus to the Turnpike will naturally allocate the majority of the proceeds to northern Ohio, let there be no mistake, a rising tide lifts all boats,” Rep. Ross McGregor, R-Springfield, chairman of the House Finance and Appropriations subcommittee on transportation, said in a statement.
