Chris Runyan
OCA President
The Transportation Investment Advocacy Center (TIAC), which is a subsidiary of the American Road & Transportation Builders Association (ARTBA), recently released an insightful report on the status of local transportation funding initiatives voted upon by the electorate in early November. As has been typical of past elections, Ohio’s 122 county, city, village and township transportation infrastructure measures voted upon were the most of any state in the country. Ohio voters approved 94%, in-line with previous years. The majority of ballot initiatives were in the form of new or renewed property taxes, but there were a number of sales/income taxes, bonds and other taxing mechanisms on the list. The total amount of dollars generated was not specified but it is clear from the election results that the citizens of Ohio realize and support the maintenance and improvement of their highway transportation system – this at the level of government closest to the people.
This support is in addition to Ohio’s motor-fuel user fee that was increased effective July 1, 2019, and the additional federal funding that was approved for expenditure just earlier this year. Due to the impacts of COVID and changing commute patterns resulting from work-from-home allowances, both combining to lower vehicle miles of travel, the state increase is just now coming into the full force and effect as traffic volumes return to prepandemic levels. Allowing for time to get projects through the delivery pipeline, the impact of the federal funding increase has only recently begun to be realized.
Finally, the Ohio Public Work Commission has the continuing statutory authority to issue $200 million in bonds through State Fiscal Year 2026 for its State Capital Improvement Program.
With all these funding stars aligning through these multiple-year programs, it is anticipated that project opportunities will be coming to every corner of Ohio. Heavy/ highway construction projects will be coming your way.
While government and even the private sector seem to be willing to dole out the dollars for construction, headwinds persist in the form of inflationary costs, breaks in the supply chain for materials and equipment, new or expanded regulatory mandates and finding and retaining employees needed to get jobs done. While we have seen and dealt with each of these issues in the past, I can never recall a time when all have come together at a single point in time to make successfully bidding and constructing projects this difficult.
While I cannot provide a “magic bullet” answer that overcomes each of these challenges, I can say that many construction support organizations, such as OCA, Associated General Contractors of America (AGC) and ARTBA, are putting tremendous time and efforts in to mitigate the negative impacts each of these issues are having on your business. I hope you are tracking the efforts being made on the industry’s behalf through the many different newsletters, bulletins and articles being written that highlight what is being done and the successes and roadblocks that are encountered.
As we enter into the new year, for the federal government – with the House being controlled by the Republicans by a thin margin, the Senate being controlled by the Democrats by a razor-thin margin and a Democratic administration – there is no anticipation that many of the legislative changes put in place during the past two years will be modified. Most pundits are predicting legislative gridlock. At the state level, one-party government will continue as we have seen for quite a number of years. Thankfully, Michelle Holdgreve, OCA’s Director of Legislative Advocacy, keeps an ever present watch over the latest happening at the statehouse and is quick to identify bills both helpful and harmful to the industry.
Our hope is, as we break into the new year of 2023, inflation cools, kinks in the supply chain continue to loosen and the commitment of infrastructure funding along with attractive employment wages and benefits draw a new crop of construction professionals to the industry. There is always hope for the future!