School Rebuilding Plan Should Translate Into a Building Bonanza for Contractors
Kegler Brown Construction Newsletter November 1, 1999
On September 9, 1999, Governor Bob Taft unveiled "Rebuilding Ohio's Schools: A 12-Year Commitment." The Governor has proposed a plan to provide $10.2 billion in state funding to help rebuild Ohio schools. Roughly, $6 billion will be derived from the issuance of general-obligation bonds. In the Nov. 2nd election, voters approved a constitutional amendment, State Issue 1, permitting the State to issue bonds. The passage of Issue 1 was a critical component for allowing the State to assist local school districts achieve their school facility needs. The proceeds will be used for repairing, improving, expanding and rebuilding Ohio's school facilities. Without the passage of Issue 1, the Governor's package would have been in jeopardy.
The Governor proposes the following guide for implementing his plan:
- $9.9 billion for classroom facilities assistance;
- $195 million for emergency assistance; and,
- $65 million for a permanent improvement trust fund
While the Issue 1 bond money will not be the only revenue source for the Governor's plan, it comprises approximately 60% of the funding source. Roughly, 20% will come from cash appropriations and interest earnings, while 25% will be derived from the tobacco settlement lawsuit.
Issue 1 and the State's plan should create billions of dollars in additional construction work for Ohio contractors.