Senate moves $7.8B budget amid issues

The Ohio Senate approved a new two-year, $7.8 billion transportation budget Wednesday that directs more funding to public transit and local projects, but still lacks a long-term plan for transportation needs in a state that touts logistics as a core economic strength.

The concerns are real, said Sen. Frank LaRose, R-Copley, chairman of the Transportation Committee.

They include: Ohio’s 28-cent motor fuel tax is inadequate for Ohio’s ongoing infrastructure costs; money needs to be spent more wisely; and drivers of alternative-fuel vehicles, such as natural gas and electric, are not paying a fair share.

Sen. Jay Hottinger, R-Newark, generally praised the budget but noted he has “some disappointment in the lack of a longer-term plan for maintaining the vast infrastructure we have in Ohio.”

“It’s going to be incumbent upon this committee in the near future to find a longterm funding mechanism.”

Sen. Charleta B. Tavares, D-Columbus, agreed that the state needs a closer examination of funding, fairness and expanding multi-modal transportation.

“We’ve got to take a look at rail,” she said. “We can’t continue to believe the only way to get to and from is a mobile vehicle.”

Gov. John Kasich proposed a new tax on compressed natural gas, but House Republicans stripped it from the budget. Senate Republicans discussed

a proposal by Sen. Bill Coley, R-West Chester, to trade a $140 vehicle registration for a fuel tax exemption, but leaders said it needs more vetting.

LaRose said he recognizes the need for a more holistic look at state transportation funding, but his committee could not accomplish that in the month it had to work on the budget.

“This requires months if not years of study,” he said. “We’re blessed geographically to be in a location where Ohio can thrive in the field of logistics. But that doesn’t just mean trucks. It’s not just add another lane, add another lane. There are smarter ways to get more out of the system we have.”

The bill also includes a natural gas fee increase to subsidize gas line expansions. The Ohio Consumers’ Counsel, which represents millions of utilities customers, opposed it.

Testifying for the counsel, lobbyist Jeff Jacobson said the bill lets the Public Utilities Commission of Ohio charge customers up to $18 a year for infrastructure, instead of the current $2, costing customers more than $50 million per year.

There are no safeguards to ensure utilities are assessing

reasonable charges, Jacobson said, and not just “ordering steak” because someone else is paying.

“We are saying to the gas utility, ‘You decide what is a worthy use of economic development dollars and we’ll trust your judgment on that.’ What could go wrong?”

LaRose said the fee increase has a diversity of support and will allow investments to “deliver natural gas so we can build factories and businesses and put fellow Ohioans to work.”

Greg Myers, executive director of the Wapakoneta Area Economic Development Council, said the biggest challenge in attracting businesses to the West Central Ohio Industrial Center is natural gas capacity.

“In the past year we have been unable to submit on three large job creation projects because our excess gas capacity could not meet their needs,” he told lawmakers in support of the fee increase.

The increase also got backing from Kenny McDonald, CEO of Columbus 2020, who stressed the importance of utility infrastructure.

“Natural gas prices are at historical lows, something that should create an additional advantage to industry in Ohio, but only if we can deliver the gas to the customer where and when they need it,” he said.

The Senate unanimously approved the transportation budget Wednesday and the House sent it to a conference committee. The chambers will work out their differences next week.

The Senate made additional changes Wednesday. They include:

Allowing the state registrar to increase deputy registrar fees, but it must be between the current $3.50 and $5.25.

The House-passed bill just set the fee at $5.25, and LaRose said there was “great debate” in the GOP caucus on what to do about a fee that hasn’t increased since 2004.

“Some recognize the need for the fee increase but (are not) the ones who make that decision,” LaRose said, adding the registrar is the expert on the matter.

Diverting $30 million of the $71 million Volkswagen emissions settlement to pay for upgrades to public transit vehicles.