Ohio voters approve Issue 2, allowing state to borrow $2.5B for infrastructure
May 6—Ohio voters approved a state constitutional amendment Tuesday to allow the state to issue up to $2.5 billion in bonds for infrastructure improvements.
The Associated Press declared Issue 2 victorious before 9 p.m. Tuesday. As of 8:48 p.m. the measure was passing with 67.5% of the vote and over 30% of statewide precincts reporting, according to the Ohio Secretary of State's office.
"Ohioans understand that our local roads and bridges and other basic infrastructure need ongoing improvement," said Sam Rossi, spokesman for pro-Issue 2 campaign the Strong Ohio Communities Coalition.
"Our campaign was bolstered by strong bipartisan support from Ohio's elected lawmakers and a broad nonpartisan coalition that included leaders on behalf of business, labor, agriculture, transportation, public safety and local governments.
There was no formal opposition to Issue 2.
Issue 2 is a request from the state in the form of a constitutional amendment to issue up to $2.5 billion in bonds to help pay for local infrastructure projects over the next decade.
Approval on May 6 would amend the Ohio Constitution, as the state generally needs constitutional approval in order to go into large amounts of debt.
The bonds, if approved by a simple majority of voters, would go toward the State Capital Improvement Program and could only be used on roads, bridges, water treatment and supply systems and solid waste disposal facilities, according to the legislature's nonpartisan analysis.
The state first issued a lump sum of general obligation bonds to fund SCIP in 1987. The approach has been approved by voters thrice since. The pending approval would be the biggest in state history, which lawmakers said was necessary due to inflation driving up the cost of projects.
According to Ohio Public Works Commission Director Linda Bailiff, this bond approach has proven to be a successful, responsive way for local governments to make headway on infrastructure projects.
"About 18,860 projects have been funded since the program's inception," Bailiff told lawmakers late last year. "Depending on the year, for every $1 of program funds another $2 to $3 is leveraged in other local, state, and federal sources."
The state government has gone back to voters three times for permission to issue more general obligation bonds, most recently in 2014, says information from the League of Women Voters of Greater Cleveland.
Supporters say the state capital improvements program does not increase taxes, generally has bipartisan approval and reduces pressure on local jurisdictions to raise taxes for infrastructure improvements.
The AP says that under the measure, up to $250 million of the total general obligation bonds authorized can be issued each year over 10 years, creating an estimated 35,000 construction jobs.
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