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Ohio should invest in public infrastructure to build a
strong economy
By Amanda Woodrum and Zach
Schiller, Policy Matters Ohio
Special to The Truth
Right now, in Columbus,
legislators are debating the merits of increasing Ohio’s gas
tax to invest more in Ohio’s roads, bridges and public
transit systems. In the long term, better roads and public
transit strengthen Ohio’s economy and help workers be more
productive by making it easier for them to get to their
jobs. These investments also create good
construction-related jobs in the short term.
In most states across the
nation, investment in public infrastructure remains at lower
levels than in 2000, even as the economy rebounds from the
last two recessions. The share of Ohio’s economy generated
by state and local capital spending fell by .5 percent
between 2002 and 2016, from a share of 2.21 percent of
Ohio’s 2002 gross domestic product to 1.72 percent in 2016,
according to a new report released last week by the Center
on Budget and Policy Priorities. Making matters worse,
federal capital spending has also been on the decline, going
from 1 percent to 0.5 percent of national GDP over the last
35 years. The federal gas tax was last increased in 1992,
more 25 years ago.
Ohio’s public transit
systems have been in crisis for decades. The state of Ohio
has underinvested in public transportation for nearly
three-quarters of a century. The state spends just over 60
cents per resident on public transit, making Ohio 40th in
the nation for its commitment to public transit.
With a $1 billion hole in
the state transportation budget, Ohio’s bridges and roads
are also in dire straits. Eighteen percent of Ohio’s nearly
123,000 miles of public roads are in in poor condition, and
it’s costing each Ohio driver $545 per year, according to
the American Society of Civil Engineer’s Infrastructure
Report Card.
Governor Mike DeWine has
called for an 18-cent per gallon increase in the gas tax to
maintain and repair Ohio’s infrastructure. The Ohio House
just passed a transportation bill that increases the gas tax
by 10.7 cents per gallon and sets aside $100 million for
public transportation. The measures are now being considered
in the Ohio Senate.
“Ohio’s underinvestment in
public infrastructure shows in the state of our roads,
bridges and public transit systems,” said Policy Matters
Senior Researcher Amanda Woodrum. “We have to raise the gas
tax to maintain our roads. We also need to set aside some of
that revenue for public transit. That way we can reduce wear
and tear on our roads while helping people get to work and
cutting our carbon emissions.”
Public transportation is the
link to jobs, schools, and grocery stores for people who
cannot afford or are unable to drive. Going forward, Ohio’s
transportation budget needs to be more balanced. The State
of Ohio routinely spends less than 1 percent of its
multi-billion transportation budget on public transit. For
context, federal spending on transit accounts for
approximately 20 percent of the federal transportation
budget. The average state spends 18 percent of its
transportation dollars on transit. Ohio can and should do
better.
Many states struggle to
repair and expand their transportation infrastructure
because they have failed to increase gasoline or other fuel
taxes in recent years. Ohio has not increased its gas tax
since 2005 and is one of 18 states that have gone more than
a decade, according to the Institute on Taxation and
Economic Policy.
In its most recent report
card on the condition of America’s infrastructure, the
American Society of Civil Engineers gave U.S. infrastructure
a D+ or “poor” rating. The engineers noted that Ohio has
serious challenges beyond transportation. For example, 412
of Ohio’s 1,407 dams are high-hazard potential. Ohio has
$14.58 billion in wastewater infrastructure needs over 20
years. The state’s schools have an estimated $683 million
gap in school capital expenditures.
The time is right for Ohio
to invest in infrastructure because such investments will
improve the economy, both now and in the future; and
opportunities to finance these investments abound. What’s
more, well-designed investments in parks, libraries,
schools, and better roads and public transit can improve
Ohio quality of life and advance equity by ensuring that
people – no matter their skin color, income level, or
neighborhood - have access to building blocks of thriving
communities like good roads, schools, and hospitals.
“Every state needs
infrastructure improvements in order to maintain functioning
public services and build a strong economy. But rather than
investing in infrastructure, many states have cut taxes or
offered corporate subsidies in a misguided approach to
boosting economic growth,” said Elizabeth McNichol, Senior
Fellow at the Center on Budget and Policy Priorities and
author of the report. “This pattern of neglect by states has
serious consequences for the nation’s growth and quality of
life as roads crumble, school buildings become obsolete, and
outdated facilities jeopardize public health.”
Contact Amanda Woodrum at
awoodrum@policymattersohio.org?subject=
or Zach Schiller
zschiller@policymattersohio.org?subject=Release%3A
216.361.9801
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