Biennial Budget Now in Place

Two years ago, I described the Transportation Budget approval process as being Ohio’s version of “Dante’s Inferno.” Thankfully, this year’s passage through the Ohio Legislature and on to the Governor’s desk for adoption was far from that. Not to say there were specific issues that required much time and effort to advocate either for or against, it was just that the entire atmosphere was less heated and acrimonious.

I credit much of this to the collaborative working relationship OCA has developed with ODOT. This is best demonstrated by the bill’s passage by an 87 to 3 vote in the House of Representatives, a 32 to 0 vote in the Senate, and no line item vetoes by the Governor.

House Bill 54, as the budget was known as, allocates $4.8 billion to the Ohio Department of Transportation in State Fiscal Year (SFY) 2026 and $4.5 billion in SFY 2027. In reviewing the bill, the bump in SFY 2026 can be attributed to an aggressive program to increase truck parking throughout the state that is being financed through various one-time sources such as the Petroleum Activity Tax and operational savings.

Given that ODOT programs all its funds it anticipates receiving through state motor-fuel user fees and the federal highway trust fund, the money debate was still not a cut-and-dry topic. ODOT’s Director Pamela Boratyn made it very clear that the Department is approaching a tipping point where funding for system maintenance needs will soon outpace available revenue. The first part of the program to see a dramatic reduction would be the Major/New projects as identified by the Transportation Review Advisory Council (TRAC).

This impending shortfall was also emphasized in OCA’s testimony before both House and Senate committees. It did spur further discussion on topics such as indexing or increasing the current gas tax, tolling, higher registration fees and direct usage fees on electric vehicles. However, for all the talk, no changes were made to the current revenue structure or amounts.

There were a number of policy changes made that will be beneficial to the highway construction industry. OCA and ODOT worked in a collaborative manner to achieve these mutually beneficial goals.

ODOT was granted permanent authority to use Indefinite Delivery/Indefinite Quantity contracts for maintenance activities such as guardrail repair, highway lighting and traffic signal maintenance. This authority allows contractors to become more engaged in work that has been traditionally performed by ODOT.

Our smaller contractors can now perform up to $10 million worth of work before a financial audit is required to obtain their certificate of qualification from the Department.

A Road Safety Pilot Program was established that permits speed compliance in construction zones. While cameras can be used, the law prohibits the use of any device that would result in an individual being issued a citation, summons, or ticket by any entity other than a peace officer who is physically present at the time of the offense.

The Department also gets the opportunity to study its pavement selection process, study additional alignments for a U.S. Route 23 to Interstate 71 connector north of Columbus and see if there is a viable route for an I-73 corridor between Toledo and Chesapeake.

Along with items that were passed in the bill, others didn’t make it – some we were thankful for, others we wished had been included. The Ohio Turnpike & Infrastructure Commission had initially asked for its competitive bid threshold to be increased from $50,000to$250,000. That provision did not survive. An effort we applauded was to enable ODOT to increase accountability for utilities when their facilities are not relocated in a timely manner. ODOT was seeking authority to send any fines or delay costs not reimbursed by a utility to the Attorney General for collection. Unfortunately, that one didn’t make it through the legislative process.

These are just a few of the policy actions contained in the bill. As for now, the largest unknown is federal funding. In 2026, the federal transportation funding bill will be up for reauthorization. The Trump Administration has not yet signaled its preferences for what reauthorization may hold in store. As is typical, ODOT will be conservative in its estimates until leadership knows it doesn’t have to be. More to come as debate begins on the federal transportation bill of the future.