OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.J.R. 8 Bill Analysis
135th General Assembly
Click here for H.J.R. 8’s Fiscal Note
Version: As Reported by Senate Rules and Reference
Primary Sponsors: Reps. Oelslager and Troy
Effective date:
Jeff Grim, Research Analyst
SUMMARY
▪ Proposes a constitutional amendment to extend the State Capital Improvement Program
with the issuance of an additional $2.5 billion of general obligation bonds to fund local
infrastructure capital improvements.
DETAILED ANALYSIS
State Capital Improvement Program – new bond authority
The resolution proposes to amend the Ohio Constitution by authorizing the issuance of
additional general obligation bonds and other general obligations of the state to finance or assist
in the financing of local public capital improvement projects. Bonds issued for similar purposes
over the years are used to fund the State Capital Improvement Program (SCIP). 1 Under the
resolution, eligible recipients are municipal corporations, counties, townships, or other
governmental entities designated by law. The state may participate in these capital improvement
projects by providing grants, loans, or contributions to the local subdivisions.2
Permitted projects under SCIP
The capital improvement projects funded by the bonds are limited to roads and bridges,
waste water treatment systems, water supply systems, solid waste disposal facilities, and storm
water and sanitary collection, storage, and treatment facilities, including related or incidental
This analysis was prepared before the report of the Senate Rules and Reference appeared in the Senate
Journal. Note that the legislative history may be incomplete.
1 Article VIII, Sections 2k and 2s, Ohio Constitution, for examples.
2 Proposed Article VIII, Section 2t(E), Ohio Constitution.
December 18, 2024
Office of Research and Drafting LSC Legislative Budget Office
real property related to the project. The cost of acquisition, construction, reconstruction,
expansion, improvement, planning, and equipping are also included.3
Amount of obligations
The proposed amendment limits the bond issuing authority to not more than $2.5 billion.
Up to $250 million principal amount of state general obligations may be issued in each of the ten
fiscal years of issuance. If annual limits are not reached, the amount not issued may be issued in
a subsequent year and does not count towards that fiscal year’s limit.4
No obligations may be issued, however, until all of the state’s obligations authorized
under past amendments for the same purpose have been issued.5 The most recent SCIP bond
issuance was approved by voters in 2014, as Article VIII, Section 2s. Section 2s authorized a total
of $1.875 billion of general obligation bonds for public infrastructure capital improvements.
The 2s bonds are issued by the Ohio Public Facilities Commission. The proceeds of the 2s bonds
are allocated among the state’s district public works integrating committees by the Public Works
Commission.6 As of November 2024, approximately $340 million is left to be issued under the
Article VIII, 2s authorization.
Maturity of obligations
Each issue of general obligations must mature within 30 years from the date of issuance.
If the obligations are issued to retire or refund other obligations, the obligations must mature
within 30 years from the date the debt being retired or refunded was originally issued.7
Debt service
Because the debt being issued is backed by the full faith and credit of the state, the
General Assembly must provide by law for sufficient funds (such as excises, taxes, and other
revenues) to pay the required debt service. The General Assembly also must establish a bond
retirement fund. No further act of appropriation is necessary for these purposes.
The resolution prohibits fees and taxes received in connection with the use of public
highways by motor vehicles from being pledged to the payment of debt service on the general
obligations authorized under the amendment.8
3 Proposed Article VIII, Section 2t(A), Ohio Constitution.
4 Proposed Article VIII, Section 2t(B), Ohio Constitution.
5 Proposed Article VIII, Section 2t(B), Ohio Constitution.
6 R.C. 151.01, 151.08, 164.03, and 164.08, not in the resolution.
7 Proposed Article VIII, Section 2t(C), Ohio Constitution.
8 Proposed Article VIII, Section 2t(D), Ohio Constitution.
P a g e |2 H.J.R. 8
As Adopted by the House
Office of Research and Drafting LSC Legislative Budget Office
Tax exemption
The resolution states that the obligations, their transfer, and the interest or other income
from the obligations, including any profit made on the sale, exchange, or other disposition of
them, are free from state taxation.9
Election and effective date
The resolution provides that the proposed constitutional amendment will be submitted
to the electors at the special election to be held on May 6, 2025. If approved by a majority of the
electors voting on the proposal, the constitutional amendment will take effect immediately.
HISTORY
Action Date
Introduced 11-12-24
Reported, H. Finance 12-04-24
Passed House (87-4) 12-04-24
Adopted House (87-4) 12-04-24
Reported, S. Rules & Reference --
ANHJR0008RS-135/ts
9 Proposed Article VIII, Section 2t(F), Ohio Constitution.
P a g e |3 H.J.R. 8
As Adopted by the House