Ohio Gov. John Kasich Monday signed into law a $1.74 billion, two-year capital bill, the state’s first new capital budget since 2009.

The spending plan relies on $1.36 billion of general-fund backed bonds.

“When we started this process, we knew resources were extremely limited and the system in place to allocate funds was based primarily on power, not necessarily on prudence,” Kasich said in a statement released after he signed the bill. “I believed Ohio needed to change course to ensure we utilize these limited resources in a way that produces the greatest return on our investment, and I’m very pleased that my partners in the legislature embraced this new approach.”

The proposed capital budget includes $675 million for school facilities construction. Of that, $425 million would come from general fund-backed bonds, and the rest from lottery profits.

The bill includes $400 million for higher education projects. Another $300 million would finance local infrastructure, all of it coming from general fund bonds. Another $290 million would go to state agency facilities, mostly for renovation and maintenance, and $63 million would be set aside for a state revolving fund operated through the Public Works Commission.

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