The Ohio Senate is considering legislation to amend the Ohio Constitution, permitting local governments to borrow from a “Bond Bank” for infrastructure construction projects.
House Bill 54, which passed the House (93-1), is sponsored by Representative Bill Blessing (R, Cincinnati) and Representative Theresa Gavarone (R, Bowling Green). If signed into law, the bill would create the State Bond Bank to issue tax-exempt bonds, to be re-paid by local government borrowers. The localities would “pool” their needs rather than enter into smaller, uneconomical debt, creating economies of scale. The Ohio Treasurer would administer the funds. The Ohio Senate Finance Committee has held four hearings on the bill.