STARK CO ENGINEER KEITH BENNETT COMMENTS ON HB 62
UPDATE: 03/19
STILL TIME TO VOTE IN SCPR POLL (SEE APPENDIX)
SCPR STARK COUNTY POLL RESULTS TO DATE
(HOUSE BILL 62)
Oelslager is Chairman of the House Finance Committee
There is a tug of war going on between members of the Ohio General Assembly (overwhelmingly controlled by Republicans) and newly sworn-in Republican governor Mike DeWine.
DeWine's position: (from the Cincinnati Business Courier)
DeWine is proposing that the additional revenues in his request be split 60%/40% between state and local government.The first-year Republican’s request would raise about $1.2 billion annually, with DeWine billing the new money as vital to maintaining safe roads and protecting Ohio’s economy. An Ohio motorist with a vehicle that averages 30 miles a gallon who drives 15,000 miles annually would pay an extra $90 a year if lawmakers approve DeWine’s request. (excerpt, emphasis added, SCPR taken photo added)
According to the Ohio Department of Transportation (ODOT), if DeWine's request is not funded in full there will be consequences for all Ohio political subdivisions including, of course, Stark County.
ODOT lists 20 Stark County project funding factors that may be affected in there is a revenue shortfall on ODOT funding needs.
Here are three of the 20 Stark County project to give readers a flavor of what the ramifications might be if DeWine's proposal is not agreed to by the OGA.
It appears that the Ohio General Assembly (OGA) is going to rebuff the governor if House Bill 62 is approved as written in that it provides for a 10.7 cent increase with the state/local gov't split being 55%/45% rather than that being proffered by DeWine.
The Stark County Political Report (SCPR, The Report) has repeatedly criticized Oelslager and his fellow Republican Kirk Schuring (with their combined 60 years, more or less, as OGA members playing musical chairs in switching House and Senate seats) for being ineffective in protecting Stark County interests given their legislative longevity.
One of those criticisms has been their failure to protect Stark County local government (and, of course, all Ohio local governments) from the draconian cuts initiated by former Republican governor John Kasich and approved by the Republican-dominated OGA in 2010.
Oelslager, currently chairman of the House Finance Committee and formerly a chairman of the Senate Finance Committee, if he gets his way as THE ONLY PRIMARY SPONSOR of HB 62 (the bill dealing with DeWine's request for a gasoline tax increase) in changing the DeWine recommended split so that local governments will more state tax imposed dollars and thereby correcting a degree of his and Schuring's past failures.
Under the provisions of HB 62 if adopted by the Ohio Senate and signed by Governor DeWine, counties would receive $6 million more beginning in July, 2019, $11 million beginning in July, 2020 with a continued escalation through July, 2022.
Kudos to Oelslager for picking up on reversing the slide in state funding to local government.
Hopefully, the Ohio Senate (which begins considering HB 62 today) with strong input by (serving in the Senate again as Stark County's senator) Kirk Schuring will maintain the increased funding to local governments.
"Time is running out ... says the Ohio Municipal League (OML) for local governments (focusing on cities, of course) to weigh in on ODOT funding, to wit:
[T]ime is running out for local officials to voice their support of the Governor's original 18-cent gas tax increase. The bill must be sent to the desk of Gov. DeWine by the end of this month. We urge our members to continue to contact their Senators and urge that the initial 18-cent gas tax increase be restored.Here is what Stark County Engineer has to say about HB 62 and the position of the OML, to wit:
Keith A. Bennett <kabennett@starkcountyohio.gov>
To: Martin Olson
Mar 18 at 8:51 AM
Martin,
As originally proposed the fee would be split between ODOT and Local Agencies, 60 – 40 and included indexing the tax to inflation in subsequent years. The last time the Ohio gas tax was increased in 2005 and there has been no indexing for inflation. Due to the rising cost of construction materials and labor in the past 14 years, our buying power has been reduced by 50%. Our revenue remains flat while prices increase every year. It has been determined that County Engineers have a funding deficiency of 60% comparing our current revenue to current needs.
HB 62 which is being considered by the Senate reduced the Governor’s request to a proposed gas tax increase of $0.107 per gallon and a split between ODOT and Local agencies of 55 – 45. More importantly, it does not include indexed increases due to inflation. ODOT has stated that at this level they will be able to continue to maintain their infrastructure but it would not provide sufficient funding to complete major projects necessary for safety and capacity that are planned around the State. The other concern for counties with a lower tax and lower percentage spilt would be a reduction in discretionary funding that ODOT provides to the locals. ODOT currently provides discretionary funds to the Metropolitan Planning Organizations around the State (SCATS in Stark County) as well as funding to CEAO. Stark County relies heavily on both of these funding opportunities to fund larger maintenance / rehab / replacement projects. We utilize our gas tax and license fee revenue to provide our local match for these projects. Any reduction in these discretionary funds directly affects our department.
All that being said, we agree with the Ohio Municipal League and their support of the Governor’s original proposal.
However, regardless of the final increase in gas tax, it is imperative that some type of inflation indexing be included. Without the indexing, the increased revenue would quickly be lost to inflation of materials and labor costs and we’ll be right back to our current situation – insufficient funding to maintain our current infrastructure.
Sincerely,
Keith
As seen in the chart at the beginning of this blog, the continuing polling by the SCPR shows that over 50% of Stark Countians responding to the poll support DeWine's 18 cent a gallon increase adjusted annually for inflation.
But it appears that members of the House side of the Stark County delegation have not picked up on the majority desires of what appears to be a representative sampling of the druthers of Stark Countians on the increase of funds for the Ohio Department of Transportation favoring the DeWine request in the biennial (two years) funding of Ohio highway construction and maintenance as evidenced by how they voted in the House on HB 62, to wit:
(that part of the vote which shows how Stark Countians voted)
So in the name of accountability, if the funding increase as proposed by Governor DeWine proves to be prophetic in defining "the real needs" of ODOT to boost highway construction and maintain existing roadways, then, the fault will be those 72 representatives (including Reggie Stoltzfus [R, the 50th], Thomas West [D, the 49th] and, of course and most assuredly Finance Committee chairman Scott Oelslager (R, the 48th).
We shall see how this battle plays out.
Readers can depend on the SCPR analysis of the contending factors so that they as citizens and voters know whom to fault or praise when the results are known of whether the governor is correct or that the Legislature has properly discharged its "check and balance" function in a manner that provides needed funding of Ohio's transportation infrastructure at an efficient and effective level.
APPENDIX (VOTE ON OHIO TRANSPORTATION BUDGETING AS IT AFFECT STARK CO. HIGHWAYS)
THE POLL
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