Last week Ohio voters decisively with bipartisan support approved Issue 2; the Local Public Infrastructure Bond Amendment ultimately allowing the Ohio State government to issue 2.5 billion dollars to fund public, local, and critical infrastructure projects.
What is Issue 2?
Issue 2 marked the fourth renewal of the State Capital Improvement Program (SCIP) allowing them to issue 250 million dollars annually in bonds for the next ten years. These funds are allocated to many various infrastructure projects such as repairing and constructing roads, bridges, and wastewater treatment facilities. Additionally the money will be used to improve water supply and storm water management systems.
Where is all this money coming from?
This program has been designed to not increase Ohio residents taxes. With the funding coming from existing state revenues for bond repayment and specifically general obligation (GO) bonds. GO bonds are backed by raised funds, the full faith and credit of the issuing government, and existing tax revenues.
Benefits
With growing infrastructure demands and rising construction costs the program allows all 88 of Ohio’s counties to have access to much needed funds to further maintain and improve essential public infrastructure. Which will in return ensure the safety of Ohio residents while also providing around 35,000 jobs in construction across the state.
Disadvantages
Although the authorization of up to 250 million dollars annually in GO bonds does not introduce new taxes it does in return increase state debt and fiscal responsibility. Additionally, although SCIP funds all of Ohio’s 88 counties, there remains a potential for uneven fund distribution, leading to concerns regarding equitable distribution among smaller communities.
In truth, Ohio infrastructure will greatly benefit from the renewal of SCIP and the passing of Issue 2.
