Gene Krebs says it well: Don’t Bail Out ODOT- an op-ed from Greater Ohio

"“Fix it First” – that is, dedicating resources to fix existing roads and streets before building new – is another action item that aligns with the ODOT report; however, if we are serious about “fix it first” then we also need to require ODOT to pay for the maintenance of state highways that pass through cities, instead of stopping maintenance at a city’s edge. This suggestion did not make the report. However, it was one of the main points made by Mayor Jay Williams of Youngstown at our Restoring Prosperity Summit held on September 10, 2008. Our initial findings and policy recommendations are contained in a preliminary report that was released at the Summit – Restoring Our Prosperity: The State Role in Revitalizing Ohio’s Core Communities. (You can find the full report at www.greaterohio.org.)

The primary funding mechanism recommended in the Task Force report is an increase in the gasoline tax, with the suggestion that the revenue from that special tax be used to secure bonds as part of a capital bond financing program run by the Ohio Transportation Finance Commission. Both the proceeds of the bonds and the revenue would be made available for all transportation modes. But gasoline consumption is going down; no surprise as Hummers are traded for Hondas. Every time you trade in a car that gets 20 mpg for one that gets 30 mpg, ODOT loses a lot of revenue from you. According to ODOT’s latest business plan there will be a $3.5 billion deficit by 2015 for transportation in Ohio.

Do we really want to increase taxes on a declining revenue source? ODOT would have an even larger vested interest in keeping us in cars and burning as much gasoline as possible. Furthermore, most other states are incentivizing reductions in Vehicle Miles Traveled (VMT’s). Once again, Ohio is heading down a regressive path here.

Since we did not examine ODOT’s management issues, how do we know that there are no cost savings in the ODOT system? How do we know that this increase in gasoline tax, expansion of toll roads and increases in car registration fees generates the right amount of revenue? What is the right amount?

The proof is in the funding. The funding mechanisms recommended by the Task Force will not put Ohio on the path to long-term prosperity. ODOT doesn’t need a bailout. What it needs is greater accountability and performance criteria on infrastructure investments so it is truly transformative in meeting Ohio’s economic, social, and environment/energy goals..."