Budget Update No. 4: Transportation Budget in the books; Main Operating inches along

By Jason Warner, GOPC Manager of Government Affairs

This is the fourth in a series of articles taking a closer look as specific items contained in the Governor’s proposed budget for FY2018-19, which the legislature must pass by June 30, 2017The third article is available here

The Ohio House of Representatives and Ohio Senate sent the final version of the State Transportation Budget (HB26) to Governor John Kasich on March 29, which he then approved on March 31.  The transportation budget will take effect on July 1 and will fund transportation operations and other transportation-related functions through June 30, 2019.

Highlights of the final budget include an increase in federal flex funding for purposes of replacing Ohio’s aging public transportation fleet. Flexing federal highway dollars reallocates funding Ohio already receives. At present, the state flexes around $23 million per year for public transportation purposes. House Bill 26 increases this amount by $10 million per year, to $33 million annually. This is a significant increase in funding which will help support the purchase of new rural transit vans and full sized buses.

The conference report removed Senate provisions adding $48 million to the Ohio Public Works Commission’s Local Transportation Improvement Program (LTIP) and requiring $30 million of the forthcoming Volkswagen Emissions Mitigation Trust Fund to be sent to public transit authorities for rolling stock. Conferees also agreed to allow county commissioners to approve a $5 motor vehicle license (MVL) fee increase by resolution, but specifies that any increase must take effect after 30 days. This will allow local voters an opportunity to subject the increase to a referendum. If a referendum is approved, the increase would only take effect if it is approved by voters.

The removal of the $30 million in funding from the Volkswagen settlement came at the request of the Ohio EPA and Ohio Attorney General Mike DeWine. They indicated to the conference committee there were still issues around the settlement which needed to be worked out and cautioned that allocating money from the settlement was premature. The chair of the Senate Transportation, Commerce and Workforce Committee, Frank LaRose (R-Copley), has indicated that he wants to see the settlement money appropriated for this purpose and will work to do so either through an amendment to the main operating budget (HB49) or through stand-alone legislation. GOPC will work with the senator to ensure that this does happen.

Other highlights from HB26 include:

  • Requires the Registrar of Motor Vehicles, within 9 months after the effective date of the bill, to establish by rule the service fee that is paid to a deputy registrar, a limited authority deputy registrar, or the Registrar, as applicable, for specified services at a rate that is not more than $5.25.  The current rate is $3.75. 
  • Requires the Registrar or Motor Vehicles to conduct a study of the benefits and detriments of lowering the permanent registration fee for commercial trailers and semitrailers and streamlining the registration process. A pilot program will be conducted between January 1, 2018 and December 31, 2019 with the fees being reduced from $30 to $15 for vehicle registrations in Clinton, Franklin, Lucas, Mahoning, Montgomery and Stark counties.
  • Limits the proposal to permit the ODOT director to establish variable speed limits to a pilot program to be limited to all or part of I-670 (Franklin County), all or part of I-275 (Hamilton County) and the portion of I-90 between I-71 and the Pennsylvania border.

At the same time, the Ohio House continues its work on the Main Operating Budget (HB49). This week, the bill resumed hearings in the full House Finance Committee following a month of hearings in five subcommittees and the House Ways and Means Committee. Various interest groups and members of the public shared their views on the budget in multiple hearings during the past week, and will continue sharing their thoughts this week before the legislature goes on recess for the next two weeks to observe Easter. Also last week, the Ohio Senate Finance Committee began holding informal hearings receiving background testimony from state agencies in advance of beginning formal hearings after the House approves their version of the state budget. That is expected to occur sometime in early May.

Visit GOPC’s Transportation Modernization page to learn more about this important issue area

 

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