Ohio governor's budget proposes DOT tolls, P3s, local toll authorities

A transport bill proposed as part of Ohio Governor Ted Strickland's 2010 budget would give municipal governments and regional organizations the power to form a toll authority, generically named a Transportation Innovation Authority (TIAs).  Ohio TIAs appear to be somewhat similar in concept to Regional Mobility Authorities (RMAs) in Texas which although not officially described, are in fact, toll authorities. Their objectives are improved "transit and infrastructure."  They are able to use their existing powers which include taxes but also "toll collection."  (D59 Executive Budget for FYs 2010 and 2011)

In addition the budget proposes with a certain sweeping wordiness:

"By developing new financing tools for state and local governments, including tolling options, the Executive Budget will develop and construct multiple modes of transportation, manage congestion, extend the life of Ohio's existing infrastructure, expand investment in the Department of Transportation's State Infrastructure Bank, and increase the ability of the state and local governments to partner with the private sector in new infrastructure development opportunities... This new opportunity will allow local governments and organizations to leverage their financing authorities jointly for appropriate intermodal, roadway, bridge, public transit and intercity rail projects spanning jurisdictions..." (D62) (BREATHE AGAIN)

The budget bill if adopted also will give Ohio DOT "the authority to use tolls on new infrastructure capacity to invest in more transportation projects." (read: roads)

"This authority would only be available for new capacity, not existing roads, bridges or other infrastructure..." (D62)

Among the priorities of the state Department of Transportation is listed: "create innovative financing tools such as Public Private Partnerships(PPP), Transportation Innovation Authorities (TIA), and Tolling (with capital T)." (p931 in pdf)

Because only roads with tolls offer the prospect of being financially self-sufficient or profitable these generic "mobility" or "innovatory financing" authorities turn out to be toll authorities, while sometimes also tapping tax monies.

Role for the Turnpike?

We asked George Distel executive director of the Ohio Turnpike Commission where this initiative came from and where it's going. He said he doesn't know but his message to legislators is: "The Turnpike Commission is experienced in tolling, we operate toll facilities effectively and efficiently and we stand ready to help."

Distel said Ohio needs to investigate how regional toll authorities work out - from states like Texas, Florida and California.

He told us he's sure the legislature will give the Governor's tolling proposals "close scrutiny" but he doesn't care to predict how it will come out.

BACKGROUND: Ohio has 11.5m people, seventh largest state of the US, but its population has been virtually static this decade.  Only Delaware County in the northern suburbs of the state capital Columbus and Warren County northeast of Cincinnati have grown substantially. It is the third state in manufacturing.

see http://obm.ohio.gov/SectionPages/Budget/FY1011/ExecutiveBudget.aspx

TOLLROADSnews 2009-02-13