Trying to do the impossible, with the inadequate
By Jim Surber 

Although some people believe that everyone affiliated with government is an irresponsible collector and spender of the taxpayers’ money, it is not always the case. 

Managing public money is a lot like managing a personal or family budget, when looking at it over a long time. There are times when your available income meets or exceeds your need, and times when it does not. 

It is the latter case where the similarities between government and private finances diverge, due to how additional government funding is obtained. 

It has been accurately said that before government can provide any service to the people, it first must take money from the people. Government services are a wide variety of things, perceived by people as either necessary or unnecessary, but the one that I am most familiar with is very necessary, specifically local roads and bridges. 

Ohio is different than most states in that it has four distinct divisions of road authorities: state, county, township and municipal. Many states do not have township roads, and all rural roads not under state jurisdiction are county roads. 

Bridges are more complicated. The state, through the Ohio Department of Transportation, is responsible for bridges on state highways, and all bridges on state highways passing through a city or village. Townships, through their Boards of Trustees, are not responsible for bridges (in Ohio, any structure over 10 foot span) on Township roads and that responsibility belongs to the County. The County, through its Board of Commissioners and County Engineer, is responsible for all bridges on County and Township roads and those in municipalities that are on a “through County road,” or a road that enters, passes through, and exits a corporation. Municipalities are responsible for bridges not on a state highway or a through county road. 

The basic funding for local bridges and roads comes primarily from state tax on motor fuels and annual state motor license fees. A third source is local permissive license fees, from $5 to $20 per licensed vehicle, that can be levied by municipalities, townships or counties either administratively, or by a vote of the people. 

Ohio fuel tax is a fixed amount of 28 cents per gallon on gasoline and diesel, regardless of the retail price. This makes highway revenues totally dependent upon the number of gallons sold. About 51% of this revenue goes to the state (ODOT), 13% to municipalities, 11% to counties, 6% to townships, and the remaining 19% to the state for the Highway Patrol, debt service, and other state agencies. 

The tax was last increased in 2005, and before that in 2004, 2003, and 1993. At the time of the last fuel tax increase, gas could be purchased for $1.73 per gallon (Jan. 2005), while today it is double that amount or more. 

In the last seven years, more fuel-efficient vehicles and other factors have resulted in a relatively static number of gallons of fuel sold statewide. As a result, most County Engineers are operating today on the same amount of revenue, or less, than was received in 2006. License revenues have also remained static over the same period. 

But during this period the cost of asphalt paving has increased by 55% or more, and the price of bridge materials by 32%. Townships and municipalities have sustained similar revenue losses in addition to the recent 50% cuts in local government funding imposed by the Governor and Legislature. 

Those responsible for local roads and bridges find themselves now in very challenging times. Roads and bridges are like other structures in that if required maintenance is deferred for too long, a point is reached where costly reconstruction, or failure are the only options remaining. They are also the people’s assets, with proper repair necessary for commerce and public safety, and it is ultimately by the people that adequate funding is provided through increased taxation. 

At present, taxes weigh heavily and generally negatively on the minds of practically everyone, much more than in any other time in my recollection. 

That is why all those of us in the “road business” now have such a big responsibility and obligation. We must manage available revenue as tightly and efficiently as possible; hopefully earning the respect of our local taxpayers as well as their understanding that local roads and bridges belong to them and are very necessary. 

Until that time we can only keep trying to do the impossible, with the inadequate. The alternative is to preside over the demise of local transportation.