I've started this string based on a post from another unrelated string to keep that one on subject. Plus, I think this issue of Ohio's Constitutional restriction is a discussion point that deserves its own string anyway...

 

 

For what it's worth. Ohio Revised Code 5101.05 prohibits the use of highway funds (fuel and licensing taxes) for non-highway purposes. 

 

http://onlinedocs.andersonpublishing.com/oh/lpExt.dll?f=templates&eMail=Y&fn=main-h.htm&cp=PORC/27775/27777/27795

http://onlinedocs.andersonpublishing.com/oh/lpExt.dll?f=templates&eMail=Y&fn=main-h.htm&cp=PORC/2c3ac/2c68f/2c6a6

 

This has been in effect since 1948.  Perhaps it's time to turn on the heat in having it changed?  Does anyone have any info on limits on transportation funding in other states?

 

An interesting example is Michigan, where they have the same constitutional restriction on the use of gas taxes as we have. But they found an old state law that refers to railroads as a public highway! That allows them to use a small portion of their gas taxes to fund rail and transit programs.

 

In Oregon, which also has a constitutional restriction on the use of gas taxes, that state uses the portion of non-highway generated gas taxes for non-highway uses (namely funding passenger rail services). What sources of gas taxes are non-highway? Lawnmowers, chainsaws, landscaping, farm equipment, etc. Oregon officials calculated that the amount totaled about $7 million per year.

 

So I did a little back-of-the-envelope figuring for Ohio, using a per-capita calculation, and estimated that somewhere between $20 million and $30 million per year is generated from non-highway generated gas taxes in this state. That's a pretty sizable sum. If you use some or all of it to issue and retire a bond issue, that can mean an even larger amount up-front.

Michigan also has a constitutional cap on the percentage of transportation funds that can be used for transit.  By law, the State may spend no more than 10% of its transportation budget on transit.  Back in the late 1990s, the gas tax was increased, but it was all dedicated to highway construction, so Michigan actually spends only about 8% of its transportation budget on anything other than road-building.

 

An interesting example is Michigan, where they have the same constitutional restriction on the use of gas taxes as we have. But they found an old state law that refers to railroads as a public highway! That allows them to use a small portion of their gas taxes to fund rail and transit programs.

 

 

Gee maybe we have a similar state law that refers to railroads as highway?  That would seem much to convenient, but who knows?  I'm guessing it would'nt be posted online though? ;>)

Actually, the Ohio Constitution and the Ohio Revised Code are both online.  Unfortunately, highway and railroad appear to be distinct and separate as defined.

 

http://www.legislature.state.oh.us/constitution.cfm?Part=8&Section=02i

 

The Ohio Constitution doesn't include the word "rail."  And Ohio Revised Code Section 5501.01 appears to distinguish between rail and highway:

 

[quote](A) "Transportation facilities" means all publicly owned modes and means of transporting people and goods, including the physical facilities, garages, district offices, and other related buildings therefor, and including, but not limited to, highways, rights-of-way, roads and bridges, parking facilities, aviation facilities, port facilities, rail facilities, public transportation facilities, rest areas, and roadside parks. 

(B) "Public transportation" means publicly owned or operated transportation by bus, rail, or other conveyance, which provides to the public transit or paratransit service on a regular and continuing basis within the state, and may include demand-responsive transportation, subscription bus service, shared-ride taxi service, car pools, van pools, or jitney service. "Public transportation" does not include school bus transportation or charter or sightseeing services. 

(C) "Road" or "highway" includes all appurtenances to the road or highway, including but not limited to, bridges, viaducts, grade separations, culverts, lighting, signalization, and approaches on or to such road or highway.  [/quote]

Ultimately, this is an almost five-plus decades old law that does not meet the intermodal transportation needs of today's world.  It should be changed.