Ohio Issue 2 EXPLANATION

Proposed Constitutional Amendment

TO FUND PUBLIC INFRASTRUCTURE CAPITAL IMPROVEMENTS BY PERMITTING

THE ISSUANCE OF GENERAL OBLIGATION BONDS

Proposed by Joint Resolution of the General Assembly

To enact Section 2t of Article VIII of the Constitution of the State of Ohio

The purpose of this amendment is to ensure public health, safety, and welfare, create and preserve jobs, enhance employment opportunities, and improve the economic welfare of the people of Ohio by improving public infrastructure.

The amendment authorizes the State of Ohio to issue general obligation bonds to pay for or help local governments pay for public infrastructure capital improvements. Projects would be limited to roads and bridges, waste water treatment systems, water supply systems, solid waste disposal facilities, and storm water and sanitary collection, storage, and treatment facilities, including real property or interests in real property, facilities and equipment related or incidental thereto, and the cost of acquisition, construction, reconstruction, expansion, improvement, planning and equipping.

The Ohio Constitution currently contains a provision authorizing the State of Ohio to issue bonds to finance public infrastructure capital improvements for local governments through the State Capital Improvements Program.

The proposed amendment limits bond issuance to $2.5 billion over a ten-year period, with no more than $250 million in each of the first ten fiscal years. Any principal amount that could have been issued in a prior fiscal year, but was not issued, may subsequently be issued. No general obligations for public infrastructure capital improvements may be issued under this amendment until the existing authority to issue state infrastructure bonds under Article VIII, Section 2s of the Ohio Constitution has been exhausted. These general obligations must mature no later than thirty (30) years after their date of issuance, and any refunding obligations must mature no later than the permitted maturity date for the obligations being refunded.

This amendment also authorizes the General Assembly to pass laws providing for its implementation. The laws must establish a procedure for incurring and issuing obligations and provide for the use of Ohio products, materials, services, and labor to the extent possible in any project financed, in whole or in part, under the section.

If approved, the amendment would take effect immediately.

As certified in Columbus, Ohio on the 12th day of February by the secretary of the Ohio Ballot Board to the Secretary of State of Ohio as the explanation prescribed by the Ohio Ballot Board, acting pursuant to Article XVI, Section 1 of the Ohio Constitution and section 3506.062 of the Revised Code of Ohio, of this constitutional amendment proposed by the General Assembly for submission to the Ohio electorate to be held on May 6, 2025.

Link to explanation

Link to House Joint Resolution 8 

State Issue 2 - Argument FOR

Approving Issue 2 will continue the State Capital Improvements Program, which has existed since 1987, and help support the completion of critically important road, bridge, sewer, and other infrastructure projects in local communities, with zero increase in taxes.

Issue 2 brings needed repairs. To keep us safe and to maintain our quality of life, local communities need help to fix deteriorating roads, bridges, and other facilities. Issue 2 renews a 38-year highly successful program to help local governments with these vital improvements.

Issue 2 is a tried-and-true success for Ohio. First authorized in 1987, voters have renewed it three times—1995, 2005, and 2014.

All 88 counties benefit, and thousands of jobs are created. Every Ohio county has benefited from this program, which has produced more than 19,000 grants and loans for essential, locally selected projects. Issue 2 will help thousands more projects be completed that wouldn’t be otherwise and support tens of thousands of jobs throughout Ohio. An objective grant allocation process assures fairness so that communities both large and small receive funding.

Zero increase in taxes. Funds to repay project bonds are already built into state budget planning, so Issue 2 won’t increase your taxes. And Ohio’s strong finances and excellent bond ratings make possible a modest increase in funding for these capital improvements. Issue 2 also reduces pressure to raise local taxes.

Bipartisan support. Issue 2 is strongly backed by Democrats and Republicans, local government groups representing counties, townships, and cities, and Ohio businesses and professional associations. The Senate (30-1) and House (87-4) overwhelmingly voted to place the program’s continued existence on the ballot this May.

Issue 2 is a proven, affordable program that’s good for our local communities. Help build a stronger Ohio and create jobs by voting YES.

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Prepared by: Representative Scott Oelslager, Representative Daniel Troy, Senator Brian Chavez, and Senator Hearcel Craig

State Issue 2 - Argument AGAINST

Issue 2 allows the state to issue more general obligation bonds, increasing indebtedness to pay for public infrastructure capital improvements. As a result, all Ohio taxpayers will be paying interest on those bonds to cover local government projects including roads, bridges, waste water treatment systems, water supply systems, solid waste disposal facilities and storm water and sanitary collection, storage and treatment facilities. These are community-based projects from which many Ohioans may not see a direct benefit and which local governments should prioritize and pay for using locally-raised dollars.

The state government has gone back to voters numerous times for permission to issue more general obligation bonds, most recently in 2014. Issue 2 represents an increase in the amount of borrowed money and spending on local infrastructure as compared to previous years, now totaling 2.5 billion dollars.

Though the newly issued bonds will pay for projects over the next decade, it may take up to three times that long to pay them back as outlined in the full text of House Joint Resolution 8, which placed Issue 2 on the ballot: "Each issue of obligations issued under this section shall mature in not more than thirty years from the date of issuance, or, if issued to retire or refund other obligations, within that number of years from the date the debt being retired or refunded was originally issued."

Prepared by the Ohio Ballot Board in the absence of any submission in opposition, as required by Ohio Revised Code Section 3505.063.

Link to actual text