COLUMBUS, Ohio — Ohio voters will decide next May whether to renew a state bond program that offers billions of dollars to help local governments repair and build roads, bridges and other infrastructure.
Ohio lawmakers, during what’s expected to be the final day of their two-year session on Wednesday, gave final approval to a May 6, 2025 primary election ballot measure to issue $2.5 billion in State Capital Improvement Program 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. Proponents, which include members from both parties, say they’re now seeking $650 million more in bond money to cover the rising costs of materials, labor, and other construction costs.
If approved next year, the bond money would be offered to villages, townships, cities, counties, and water and sewer districts around Ohio through 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 the proposed constitutional amendment to extend the bond program, it is set to end in July 2026.
There are limits on which entities can apply and how they can use the bond money. 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.
Increasing the amount of bonds sold would result in more state spending, as the principal and interest on them is paid for by state tax dollars. While some of the money is distributed as loans that must be repaid (albeit without interest), grants are repaid via state revenue, and the state covers the interest accrued on the bonds.
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, Abbey DeHart, the commission’s chief financial officer, previously stated.
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.
The ballot measure was authorized through House Joint Resolution 8, which passed the Senate 30-1 on Wednesday. The legislation passed the House 87-4 earlier this month. Under the Ohio Constitution, the legislature has the power to submit proposed constitutional amendments to the state’s voters without the involvement of Gov. Mike DeWine.
Supporters of the bond program say it helps local governments cover the cost of important infrastructure projects that they otherwise couldn’t afford. No one testified against HJR8, or a similar resolution debated in the Senate, during legislative committee hearings.
One of the few lawmakers who voted against the bond measure, Republican state Rep. Ron Ferguson of Jefferson County, said he opposed it because historically, counties like his haven’t received their fair share of the bond money.
On Wednesday, lawmakers also approved a separate bill that, among other things, provides $15 million in state funding for cover the cost of holding an election on the bond measure in parts of the state where nothing else is on the primary election ballot in 2025, an election off-year.
Jeremy Pelzer covers state politics and policy for Cleveland.com and The Plain Dealer.