Brady PieperOhio is proposing the issuance of bonds to fund public infrastructure projects for the first time since 2014.
Voters in Ohio will have the opportunity to decide on a major infrastructure funding initiative this coming Election Day—the Local Infrastructure Bond Amendment, or State Issue 2. The proposed constitutional amendment, referred to voters by the state legislature, would authorize $2.5 billion in bonds to support infrastructure projects throughout Ohio’s communities.
By presenting State Issue 2 before voters, legislators are proposing an amendment to the Ohio Constitution that authorizes the issuance of bond shares to fund state, regional and local infrastructure projects and initiatives. Ohio will lay State Issue 2 out before voters on Election Day, May 6.
If Ohio voters were to approve the issue, the state would issue $2.5 billion in general obligation bonds to fund public infrastructure and capital improvement projects over 10 years. The first round of bonds, $250 million, would kick off in fiscal year 2026-27 and mature for up to 30 years.
The issuance of bonds would allow the state to pursue capital improvement and local infrastructure projects without raising residents’ taxes.
The proposed funding would also continue the state’s Capital Improvement Program (CIP), which has historically financed local improvements through general obligation bonds.
The state CIP supports a wide variety of infrastructure projects, including roads, bridges, transportation systems, water management, solid waste disposal, stormwater systems and sanitation. CIP-funded projects may also acquire new equipment and technologies, construct new facilities, enhance existing infrastructure and ensure public health, safety and welfare.
The Ohio Public Works Commission estimates 56.7% of the proposed funding would support roads, 18.3% would support the water supply, 13.9% will fund wastewater management and a combined 11.1% will cover bridges, culverts and stormwater utilities.
If the bond language is approved by voters, local municipalities, such as corporations, counties, townships or other government entities, can apply for funding opportunities from the CIP.
Additional information on the proposed bond language, including bill analysis and estimated bond funding details, can be found in the state Legislative Service Commission’s Redbook on the Department of Development.
Beyond grants and loans, Ohio provides financial support for municipalities, contractors and developers that improve infrastructure and housing availability.
In a partnership between Gov. DeWine and the Ohio Department of Development, the state offers tax credits for local infrastructure projects through the Transformational Mixed-Use Development Program. Delivering $100 million in tax credits this year, the program funds the renovation of abandoned buildings to retail, office, residential, recreation, structured parking and other mixed-use developments.
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