For informational/historical purposes only.

The Ohio Department of Transportation & The Office of Governor Bob Taft
March 20,  2002



COLUMBUS (March 20, 2002) Governor Bob Taft today outlined Ohios agenda to improve the states return of federal transportation dollars at a meeting of elected officials and transportation industry stakeholders. Ohio Department of Transportation Director Gordon Proctor also attended the event.

"We need to rebuild our transportation network to meet the demands of the Third Frontier,"

Taft said. "Our transportation needs are great because we carry so much of Americas traffic. We must reconstruct and revitalize our roads, highways, railroads and ports to keep Ohio competitive in the 21st Century."

Taft has urged Congress to restore full highway funding for next year, reversing a proposed reduction of nearly $9 billion for Federal Fiscal Year 2003. The proposed cut would reduce Ohios federal highway dollars by $234 million.

Taft also wants the current federal funding formula rewritten, so that Ohio and other states will not be penalized for using ethanol. In addition, he wants Ohio and other donor states those that contribute more federal gas tax to the federal Highway Trust Fund than they receive to be guaranteed a 95 percent rate of return on their tax dollars. Currently, Ohio receives approximately 88 cents for each dollar in federal highway taxes it sends to Washington, which costs the state $140 million in federal funding.

Ohio incurs an "ethanol penalty" of approximately $160 million. Ethanol is taxed at 13 cents a gallon compared to the federal tax on gasoline of 18.4 cents a gallon. For every gallon of ethanol sold in Ohio, the state contributes 5.4 cents less to the Highway Trust Fund. In addition, 2.5 cents of the ethanol tax is diverted from the Highway Trust Fund and placed into the Federal General Revenue Fund.

Taft emphasized his goal to keep all of the ethanol tax in the Highway Trust Fund, allowing Ohio to receive an estimated increase in federal funding of approximately $50 million annually. The Governor also wants Ohio to join a multi-state coalition of donor states to assist the states delegation in advocating for more federal transportation dollars for Ohio.

Federal Funding Agenda Goals