CHICAGO - Ohio would launch a new bond program backed by toll revenues under a proposal proposed by Gov. Ted Strickland.
The governor also called for expanding the state's authority to enter into public-private partnerships as another way to raise new money for the transportation system.
The proposals are part of Strickland's $6 billion, two-year transportation budget proposal unveiled last week. Lawmakers will debate the budget and are expected to approve a final spending plan by the end of March.
Ohio currently operates only one toll road, the 241-mile Ohio Turnpike that 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 Strickland's proposal, the Ohio Department of Transportation would be allowed to toll as a way to generate revenue for new infrastructure projects across the state, many of which have been delayed for years due to lack of funding.
The move to expand the tolling authority to ODOT is partly modeled on recommendations stemming from a new report by a statewide transportation task force. The group recommended that the Ohio Turnpike Commission be expanded into a finance commission with the authority to issue bonds backed by toll revenue for projects statewide.
The task force also recommended the state start a bond program that would be backed by a new motor fuel tax.
Strickland used the task force recommendations to "flavor" some of his budget proposals, said Scott Varner, spokesman for ODOT.
"The governor's office is looking at each proposal separately, and some we have used to help shape our budget," Varner said.
Instead of expanding the Turnpike Commission's ability to issue bonds for a greater number of projects, Strickland has opted to expand ODOT's authority to toll, according to Varner. "This is how we've addressed the tolling issue," he said.
If lawmakers approve the plan, ODOT would be allowed to impose tolls and issue bonds backed by the toll revenue for new statewide infrastructure projects. On a local level, the department would be able to partner with any local government - including county and regional transportation systems and port authorities - to form a so-called Transportation Innovation Authority to finance new projects.
In both cases, ODOT would administer the tolls and issue the bonds, Varner said.
"It would be for new projects, capacity-adding projects," he said. "We're not looking at tollbooths on existing roadways but using tolling for potential expansion or new roadways. For example, for building a truck-only lane on an interstate."
Strickland is also asking legislators to approve a proposal allowing state and local governments to enter into public-private partnerships. Varner said the state is not entertaining any big privatization plans now, but is considering a number of smaller P3 proposals such as allowing private companies to operate rest stops or set up solar or wind-generating equipment along state-owned roads.
Another proposal would expand investment in ODOT's State Infrastructure Bank, allowing Ohio to offer more loans to local governments for regional transportation projects.
The state's highway system is currently funded with gas tax revenue from a state tax of 28 cents per gallon of gas in addition to the federal tax of eighteen cents per gallon. The money can only be used for highway-related projects. The revenue dipped 1.5% in 2008, according to the transportation task force.
For non-highway related transportation projects, Ohio uses general fund money, and that funding has declined to $16.4 million in 2008 from $43.3 million in 2001, according to the task force.
