Youngstown Daily Legal News

Legislator: Revenue bonds would fund transportation projects

TIFFANY L. PARKS
Special to the Legal News
Published: February 26, 2013

In stumping for the passage of a bill that would authorize the Ohio Turnpike Commission to issue revenue bonds for infrastructure projects, Rep. Bill Patmon stressed the idea of utilizing the turnpike to the state’s advantage.

“This legislation is a means (for) Ohioans to gather significant amounts of money and filter the funds into various necessary transportation projects throughout the state,” he said.

“Placing the turnpike within the Ohio Department of Transportation will give the Kasich administration, as well as future administrations, the option of borrowing against turnpike tolls for transportation-related projects throughout Ohio.”

Patmon, D-Cleveland, who is a joint sponsor of House Bill 51 with Rep. Ross McGregor, R-Springfield, said the bill’s provisions are critical because the state’s Transportation Review Advisory Council has identified several major highway projects that are worthy of construction but don’t have revenue sources.

“The Ohio turnpike is a valuable asset when it comes to getting these transportation projects finished in a timely manner,” he said.

HB 51, which has gained the support of the Ohio Contractors Association and the International Union of Operating Engineers, has had two hearings before the House Transportation subcommittee and was scheduled for a second hearing before the House Finance and Appropriations committee Wednesday.

The proposal calls for the turnpike commission to be renamed the Ohio Turnpike and Infrastructure Commission and states that infrastructure projects would have to first be approved by TRAC and then be recommended by the director of the Ohio Department of Transportation and then evaluated and approved by the commission.

HB 51 would separate commission duties related to turnpike projects and infrastructure projects.

An analysis of the proposed legislation states that infrastructure projects would have to generally relate to public highway construction or improvements and have an anticipated economic or transportation-related impact on the turnpike and infrastructure system.

OCA President Chris Runyan said the association participated in the Ohio Turnpike Opportunity Analysis and is pleased with the outcome.

“The resulting Jobs and Transportation Plan acknowledges the desires of the majority opinion to retain oversight of the turnpike with the existing Ohio Turnpike Commission yet achieves a new funding mechanism to meet a portion of the unfulfilled transportation infrastructure needs that have been presented to (TRAC) over the years since it began taking input on statewide transportation needs,” he said.

“That means jobs — construction jobs, material supply jobs and other induced jobs — as well as improvements to the transportation network.”

Mark Totman, IUOE legislative director said enacting HB 51 would help move Ohio forward.

“HB 51 is a win, win and win for all of Ohio. First, the state keeps a valuable asset, the turnpike,” he said.

“Second, the bonding against the future tolling revenue of the turnpike will create the necessary funds for ODOT’s most important projects throughout Ohio that would otherwise be postponed for decades. These projects are needed for Ohio to retain and attract new business, now and in the future.”

Most importantly, Totman said, the bill would carve out thousands of jobs in an industry that has taken an economic blow.

“These construction jobs are high paying with excellent benefits that obviously will help in Ohio’s economic recovery for years to come,” he said.

While the introduction of HB 51 has been met with praise from various organizations and lawmakers, others have pointed to a detail missing from its provisions.

“When the proposal was announced in mid-December, administration officials indicated 90 percent of the turnpike bond proceeds would be used to fund projects in northern Ohio. When the language was introduced in the House of Representatives, this important policy initiative was absent,” said Joseph D. Roman, president and CEO of the Greater Cleveland Partnership.

“We acknowledge the Ohio turnpike is a state asset, yet the vast majority of non-through traffic originates or reaches its destination in the northern portion of the state.”

Roman said Northern Ohioans have paid to develop the turnpike over the last 60 years and should receive a disproportionate share of the benefit from HB 51.

“The Ohio Jobs and Transportation Plan is a wise move by state leaders to better leverage the Ohio Turnpike,” he said. “While outlining our support, we have reservations about the lack of language in the bill outlining the portion of turnpike bond proceeds that must be spent in Northern Ohio.”

In a statement with three other lawmakers, Rep. Matt Lundy, D-Lorain, also noted the bill’s lack of language regarding revenue being spent in Northern Ohio.

“My constituents are concerned this is just another empty promise by Gov. Kasich,” he said.

“The turnpike has created jobs for many in the local communities surrounding it throughout the years, helping to support the local economy. Now Gov. Kasich is turning his back on the promise he made to these communities.”

During recent testimony before the legislature, Lundy said ODOT Director Jerry Wray began to back away from the notion of spending 90 percent of turnpike bond proceeds in one area of the state.

Runyan offered his thoughts on the swirling debate.

“I have been fortunate in my nearly 30-year career to participate in a number of statewide planning activities,” he said. “One question I have never heard in that debate is, ‘What area is receiving the most? The issue has been, ‘Where are the needs?’ For that reason, I would ask you to consider trusting the transportation planning process and refrain from applying arbitrary restraints on where these dollars should be spent.”

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