Brady PieperOhio is authorizing the issuance of $2.5 billion in general obligation bonds to fund public infrastructure and capital improvement projects—the state’s first bond authorization since 2014.
The new bond funding, approved by Ohio voters in the May 6 election, will support the state’s public works projects over the next 10 years, including road maintenance, drinking water and public health initiatives, all without raising residents’ taxes.
Earlier this year, state lawmakers proposed the funding to voters through State Issue 2, or the Local Infrastructure Bond Amendment, which kicks off 10 years of debt service to fund a backlog of capital improvements. Concluding its approval, State Issue 2 creates a constitutional amendment that authorizes an additional round of bond funds for the state’s emerging infrastructure needs.
The new funding is designed to continue the statewide Capital Improvement Program (CIP), which delivers funding to local municipalities and partners to enhance, expand and upgrade the state’s roadways, public services and transportation networks.
The $250 million-a-year bond funds will support local projects on roads, bridges, wastewater treatment systems, water supply networks and stormwater infrastructure. The investment in public infrastructure and services is anticipated to keep Ohio competitive, encourage economic development and expand opportunities for existing businesses, according to the Public Works Commission.
The state’s proposed CIP estimates nearly 57% of the funding will support roads, over 18% will be directed to the water supply, nearly 14% will fund wastewater management and a combined 11% will encompass bridge, culvert and stormwater utility projects.
Public works officials note several previous projects conducted and funded through the existing CIP, such as the West 130th Street bridge reconstruction project in Cuyahoga County and the Greenhill & Hornwood Water Main Replacement Project in Montgomery County.
Typically, the state’s CIP is updated around every 10 years to address new and emerging needs for the residents, communities and businesses.
With State Issue 2 approved, municipalities, and other government entities may apply for critical infrastructure funding and CIP opportunities. Concluding review by state committees, the Ohio Public Works Commission will administer program funding to advance local infrastructure and capital projects.
This approval will mark the fourth time voters have endorsed bond sales for infrastructure projects since 1987. While also the largest of the bond initiatives, State Issue 2 is anticipated to combat the rising costs of inflation on current and future infrastructure projects.
Ohio also provides financial assistance and tax credits for infrastructure projects and housing developments. This year, the state’s Transformational Mixed-Use Development Program is providing $100 million in support to construct retail, office, residential, recreation and other mixed-use developments.
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