Ryan Questions Kasich Turnpike Bonding Plan
WASHINGTON – U.S. Rep. Tim Ryan, D-13 Ohio, expressed concern Tuesday over Ohio Gov. John Kasich’s proposal to use the Ohio Turnpike to raise nearly $1.5 billion in bonds to be used for transportation projects throughout the state. The congressman stated his concerns in a letter regarding Ohio House Bill 51 he to state Rep. Ron Amstutz, R-1 Wooster, chairman of the Finance and Appropriations Committee in the Ohio House of Representatives, and state Rep. Representative Vernon Sykes, D-44 Akron, ranking member of the committee.
In the letter, the congressman's written testimony on the legislation, Ryan said he had “significant concerns” about proposals that will allow turnpike revenue to be used for projects other than the turnpike, which he called “a powerful engine of development for northern Ohio.” When Kasich proposed the plan under consideration, he claimed that 90% of the funds would be used for northern Ohio, the congressman noted.
“Yet the transportation budget under consideration contains no guarantee that these funds will be used on projects in northern Ohio,” Ryan warned. Kasich's own transportation director “rescinded previous promises to dedicate any new revenue obtained from the Ohio Turnpike to those regions supporting the road. This sends a troubling message about the intentions of the turnpike bonding plan,” the congressman said. He also is concerned that the plan does not include any caps on tolls and that the budget “makes no additional investments in public transportation or other modes of transportation that could lead to economic development and job creation” in Ohio’s cities.
“With companies like General Motors transporting the Chevy Cruze across Ohio, and being the largest single source of income for the turnpike, now is not the time to jeopardize what we already have -- affordable, reliable transportation across the northern part of Ohio -- in return for one-time revenue,” he said. “Raiding the Tturnpike’s coffers for one-time revenue would be a tragic case of revenue-hungry politicians in Columbus ‘eating the seed corn’ at the expense of future generations of Ohioans.”
The full text of the letter follows:
Thank you for allowing me the opportunity to submit this testimony. For nearly 60 years, the Ohio Turnpike has been one of the most reliable, best maintained roads in the state of Ohio. Because most toll revenue of the asset is used for its maintenance, the Ohio Turnpike has a higher level of quality than most roads under the Ohio Department of Transportation's supervision. The Ohio Turnpike has bipartisan support to remain in its current form, and serves as a vital business asset to ship goods all across this country.
Over the past two years, a number of proposals to alter the Turnpike have been discussed which I believe would have a detrimental impact on the quality of the road, ultimately harming Ohio’s economy. I have spoken out many times against the Kasich Administration’s early discussion of privatization and other changes to the Turnpike that could result in a raid of its assets. Several members of the Ohio Congressional Delegation have expressed concern over the State’s potential plans for the Turnpike as well. Now that privatization has been ruled out, we are seeing another proposal that attempts to fix a problem that does not exist.
I question whether the Governor's plan to load Ohio with nearly $1.5 billion in new bonding debt is the prudent, long-term financial decision for funding transportation projects in our state, and I have significant concerns about proposals that will allow turnpike revenue to be used for projects other than the turnpike. The Ohio Turnpike is a major boost to the economies of both the Mahoning Valley and northern Ohio. When Governor Kasich proposed the current plan he claimed that 90% of the funds would be used in Northern Ohio. Yet the transportation budget under consideration contains no guarantee that these funds will be used on projects in northern Ohio. Governor Kasich's own Director of Transportation rescinded previous promises to dedicate any new revenue obtained from the Ohio Turnpike to those regions supporting the road. This sends a troubling message about the intentions of the turnpike bonding plan.
The Ohio Turnpike has been a powerful engine of development for northern Ohio which the Governor’s plan now jeopardizes. I am further concerned that the Governor’s plan does not include any caps on tolls and that the transportation budget makes no additional investments in public transportation or other modes of transportation that could lead to economic development and job creation in our cities. With the many cities in Ohio that are still struggling, job creation should be issue number one.
We also need to ensure that the economic recovery of the state stays on track. With companies like General Motors transporting the Chevy Cruze across Ohio, and being the largest single source of income for the Turnpike, now is not the time to jeopardize what we already have -- affordable, reliable transportation across the northern part of Ohio -- in return for one-time revenue.
Ohio has a turnpike that is safe, reliable and financially stable. We have problems in the state that desperately need our attention--job creation, school funding, and poverty to name just a few. Raiding the Turnpike’s coffers for one-time revenue would be a tragic case of revenue-hungry politicians in Columbus ‘eating the seed corn’ at the expense of future generations of Ohioans.
I hope you will reconsider this shortsighted plan by instead allowing the Turnpike’s revenue to continue to benefit the Turnpike and its users.
Published by The Business Journal, Youngstown, Ohio.
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