COLUMBUS, Ohio— Ohio lawmakers say they intend to ask voters in May to again commit more taxpayer dollars for a state program that offers billions of dollars in bond money to help local governments repair and build roads, bridges and other infrastructure.
Under the proposed ballot measure, which has bipartisan support, the State Capital Improvement Program would be allowed to issue $2.5 billion in state bonds over the next 10 years, repaid with state tax revenue. That would be up from $1.85 billion worth of bonds sold since 2014, the last time voters reapproved the program.
The money would then be offered to villages, cities and counties around Ohio via grants and interest-free loans to cover up to 50% of new or expansion projects and up to 90% of repair or replacement work.
If Ohio voters don’t approve extending the bond program, it is set to end in July 2026.
The expansion would result in more state spending, as the principal and interest on the bonds is paid for by state tax dollars. While some of the money is distributed as interest-free loans — with the state covering the interest accrued on the bonds — grants are repaid via state revenue. Income and sales taxes are the two largest sources of state revenue.
Over the past five years, those interest payments have averaged about $78.4 million per year, according to statistics provided by the Ohio Public Works Commission. Interest payments for the state’s current fiscal year – which runs from July 1 to June 30, 2025 – are projected to total $70.9 million, according to Abbey DeHart, the commission’s chief financial officer.
Which entities can apply and how they can use the funding is limited. Generally, public agencies can receive funding for roads and bridges, waste water treatment systems, water supply systems, solid waste disposal facilities, and storm water and sanitary collection, storage, and treatment facilities.
In addition, lawmakers’ plan to hold a statewide vote on the bond program during the May 6, 2025, primary election would cost the state an additional $15 million, according to Democratic state Rep. Dan Troy of Lake County, during an October news conference.
That’s because, in an election off-year like 2025, some parts of the state currently don’t have anything to vote on during the primary, so local elections offices in those areas would need to be reimbursed for the cost of staging an election just to vote on the bond program.
The proposed increase in the bond money is needed to cover the rising costs of materials, labor, and other construction costs, said Republican state Sen. Brian Chavez, a Marietta Republican, during a Tuesday news conference at the Ohio Statehouse.
Since its creation in 1987, 19,000 grants and loans have been given to local governments in all 88 Ohio counties, according to Republican state Rep. Scott Oelslager of Canton, a supporter of extending the program. That financial assistance has been used to build or improve road and bridges, culverts and stormwater systems, water supply and wastewater infrastructure, and solid-waste disposal systems.
Troy, during the news conference, said one village of 200 people in his district – which he didn’t name – had failing septic systems but couldn’t afford the $700,000 cost of installing a sewer system. But the system ended up being installed, he said, thanks to the State Capital Improvement Program, which split the cost with village residents.
“This program basically benefits entities out there that won’t be able to come up with that (money),” Troy said.
Legislative proponents of the bond program ballot issue say they haven’t heard of any opposition to the idea, and several lawmakers predicted that the full legislature will approve it during the looming lame-duck session in time to appear on the May 6, 2025, primary ballot.
“I think we’re very optimistic to get it through (in) lame duck,” Chavez said. “I think it has overwhelming support.”
The State Capital Improvement Program was approved by more than 70% of voters in 1987, then re-approved in 1995, 2005 and 2014. The closest the program came to failing a statewide vote was in 2005, when it passed with 54% of the vote.
Jeremy Pelzer covers state politics and policy for Cleveland.com and The Plain Dealer.