Ohio motorists' rough rides on the state's aging highways may get a bit smoother in the next few years, thanks to a multibillion-dollar boost from a U.S. Senate committee this past week. While crafting the new six-year highway funding bill, the Environment and Public Works Committee increased Ohio's share by $2.1 billion, to $7.9 billion.
But that may not even be the best news: The committee also increased the rate of return Ohio gets on gasoline taxes collected here from 90.5 percent to 95 percent, which should bring an extra $50 million-plus a year - and finally begins to correct a glaring bureaucratic inequity that has made Ohio a gas tax "donor" state.
Since the federal highway trust fund was set up in 1956, Ohio has gotten back far less than it contributes to the fund through gas taxes - typically 88 cents to 90 cents on the dollar. Meanwhile, states such as nearby New York and Pennsylvania have been raking in $1.21 and $1.17, respectively, for each dollar they contribute.
Credit for addressing this inequity belongs largely to Sen. George Voinovich, R-Ohio. He complained mightily about Ohio's paltry share while he was governor, and hasn't stopped complaining as senator. As he pointed out, Ohio has the nation's fourth-largest interstate network and fifth-largest traffic volume, so a large portion of the nation's goods pass through the Buckeye state. It shouldn't be carrying so much of the load for other states.
The full Senate is expected to go along with the plan, and the House is reportedly considering an even bigger boost for Ohio and other "donor" states. That's great, as long as they figure out how to pay for it without increasing the federal budget deficit. There's some talk of raising the gas tax rate or indexing it to inflation.
Ohio's $2.1 billion boost also depends on pending energy legislation that would correct a nonsensical disincentive against the use of environmentally friendly ethanol in gasoline. To encourage its production, ethanol is taxed at 13 cents a gallon, compared to 18.4 cents a gallon for gasoline. That means the more ethanol a state uses, the proportionately less per gallon it gets back from the highway fund. Ohio uses more ethanol than any state except Illinois and Minnesota, so its "reward" is less money.
A fix appears likely. With Voinovich's prodding, Congress has begun to see the light on trust fund equity. The rest of Ohio's delegation should keep the pressure on to make sure the state finally gets a fair shake in highway funding.
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