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Ohio transportation budget authorizes public-private option

Gov. John Kasich signed a $6.8 billion transportation and public safety bill into law Wednesday, March 31. The law permits the state to partner with private groups to complete road work.

The budget bill doesn’t include any reference to leasing the Ohio Turnpike to a private group, but it remains a point of interest for the governor.

Kasich floated the idea of privatizing the 241-mile roadway early this year. He said handing over the turnpike, which is made up of Interstates 76, 80 and 90, could result in the state pocketing as much as $2.5 billion.

In the past, Kasich said if the state cannot secure that amount he probably wouldn’t go through with the idea.

HB114 allows the state to solicit partnerships for projects. Private groups can also propose partnerships unsolicited.

A private entity is authorized to pay construction costs for a public infrastructure project. In return, private groups partnering with the state get permission to keep toll revenue.

During the past few years, Indiana Gov. Mitch Daniels leased the Indiana Toll Road for $3.85 billion. In Pennsylvania, former Gov. Ed Rendell sought to hand over responsibility for the Pennsylvania Turnpike.

Officials with the Ohio Department of Transportation say the state will soon begin studying projects that would benefit through a public-private partnership.

In addition to possibly pawning off the turnpike, the governor’s overall agenda for the state includes selling five state prisons.

OOIDA is opposed to the sale or lease of public roadways. The Association belongs to a coalition called Americans for a Strong National Highway Network, which also advocates against this form of privatization.

The Ohio transportation and public safety budget allocates $1.6 billion for road maintenance and construction. Other provisions in the budget include allowing commercial drivers to register their vehicles online, elimination of shipment fees for radioactive materials by truck and rail, and the elimination of late fees for drivers’ licenses.

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

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