What would Ohio Issue 2 do?

Issue 2 is a constitutional amendment to allow the state government to issue $2.5 billion in general obligation bonds over ten years—no more than $250 million per year—to assist local governments in paying for public infrastructure projects. The funding would be provided through the State Capital Improvement Program (SCIP).[1]

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What is SCIP? — SCIP provides financial support to local governments for projects like roads, bridges, sewers, stormwater systems, and waste facilities.[1] According to the Ohio Public Works Commission, SCIP has funded 4,543 projects across the state's 88 counties between fiscal years 2017 and 2025.[2]

What is a general obligation bond? — In Ohio, a general obligation bond, also called a GO bond, is a type of loan the state can use to fund public projects. GO bonds are backed by the government’s ability to repay the loan using tax revenues. This doesn’t mean taxes will increase, but the government’s ability to raise taxes if needed is what gives bondholders confidence—rather than relying on physical collateral.[3] Sen. Brian Chavez (R-30), who supports Issue 2, said, "The program does not create any increase in taxes because the funds to retire the bonds are built into the state budget planning."[4] State Rep. Ron Ferguson (R-96), who opposes Issue 2, said, "We’re in this time where we should be making tax dollars stretch as far as possible to provide as many good, solid services for people as possible and I don’t think this is the most efficient way to do that."[5]

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Who can receive SCIP funding? — SCIP funding is available to local government entities, defined as counties, cities, villages, townships, sanitary districts, and regional water and sewer districts.[6]

What types of projects can SCIP funding be used for? — SCIP funding can be used for capital improvement projects, specifically for building, improving, or planning roads and bridges, wastewater treatment systems, water supply systems, solid waste facilities, flood control systems, and stormwater or sanitary sewer systems. It also covers the land, buildings, and equipment needed to support those projects.[6]

What types of financial assistance does SCIP provide to local governments? — SCIP provides funding to local governments through grants, loans, and loan assistance:[7]
  • Grants can cover up to 90% of the cost for repair or replacement projects, and up to 50% for new construction or expansion.
  • Loans can cover up to 100% of project costs, have 0% interest, and can have terms of 1 to 30 years, not exceeding the project’s useful life.
  • There is no minimum or maximum loan amount, and recipients may repay the loan early without a penalty.
  • After the project is completed, the commission provides a final loan schedule. Loan payments are due twice a year—in January and July—until the loan is repaid.