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Ohio bill would privatize Turnpike, lottery

A bill in the Ohio Senate would hand over possession of the state’s turnpike and lottery in return for a bundle of cash. The Owner-Operator Independent Drivers Association is critical of plans to redirect resources from infrastructure to other pet projects.

Sen. Kevin Coughlin, R-Cuyahoga Falls, is the sponsor of a bill that would allow the state to privatize the Ohio Turnpike and Ohio Lottery. However, the influx of revenue for the state from leasing the Turnpike and selling or leasing the lottery would not be routed solely to transportation projects.

Proceeds from sale or lease deals would be used to set up scholarships for the top one-third of high school graduates. Before revenues can be directed to education the state would first be required to pay debt charges on all outstanding bonds, notes and other obligations issued in connection with the Turnpike.

OOIDA Director of Legislative Affairs Mike Joyce said the Association takes issue with redirecting resources to funds totally unrelated to the cost that would be incurred by truckers and other highway users.

“They can do some things to clean up some of the debt problems without having to go to the extreme of selling or leasing an asset,” Joyce said.

The Ohio Turnpike Commission would be eliminated once control of the Turnpike stretching from the Pennsylvania border to the Indiana line is transferred to a private entity.

The Turnpike Oversight Committee would be set up to oversee the operation of the northern Ohio tollway once it is taken over. The panel must review and approve plans for operation and maintenance of the Turnpike, as well as inspect road work.

An agreement between the state and a private entity to operate the Turnpike must also include unrestricted access for emergency personnel and the U.S. military. In addition, any lease deal could not exceed a term of 50 years. After that, operation of the Turnpike would be returned to the state.

Joyce said that while the bill appears to give some oversight to the state, it shares some resemblance to the Indiana Toll Road deal.

“We’ve seen this before. It certainly sounds like this is a remake of the Indiana model,” Joyce said. “This doesn’t work out well for highway users. States that pursue this path in the end will have regrets.”

Among the roadblocks to enacting the legislation is a potential public vote on the issue. The Ohio Constitution designates the lottery as a function of state government. Voters would be required to approve an amendment to permit private operation of the lottery, as well as using lottery profits for higher education.

Coughlin’s bill – SB224 – is in the Senate Finance & Financial Institutions Committee.

To view other legislative activities of interest for Ohio, click here .

Editor’s Note: Please share your thoughts with us about the legislation included in this story. Comments may be sent to [email protected] .

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