Adequate funding is
the key to a successful capital improvements plan. The BCEO obtains
revenue from three different levels --- Federal,
State, and Local. There are
two primary sources of local money --- gasoline taxes and license
plate fees. (See "Where The
Money Comes From" for an explanation of how these monies
are distributed by the State.) This money is designated specifically
for the County Engineer's Office for road and bridge projects
and is completely separate from the County's general fund, from
which the Engineer's Office receives no money. It is also important
to note that the Engineer's Office does not receive money from
property taxes collected. For more on why local funding is such
a critical issue, see Q&A 5 on
our FAQs page.
Annual income generated
by local funding sources averages just under $12 million. This
revenue is important as local match money for State and Federally
funded projects.
The Butler County Engineer's
Office maximizes the use of local funds by matching them with
State and Federal funds. On the average, one local dollar can
leverage three to four dollars from sources outside Butler County.
Federal
Funding
The BCEO works to leverage
outside funding whenever possible for eligible projects. As an
example, there are several categories of Federal aid, most of
which are designated for certain types of projects on specific
roads and bridges. In order to utilize these funds very strict
qualifications must be met, including the completion of environmental
studies and providing the local funding match. An average leveraged
ratio of 80 percent federal to 20 percent local is maintained
by federal aid experts at the BCEO.
The Community Development
Block Grant Program is designed to provide money for small city,
village, and township infrastructure programs that normally would
not qualify for other outside funding sources. This program is
also designed to assist with improvements to low income areas.
State
Funding
The primary source
of State funding utilized by the BCEO are Ohio Public Works Commission
(OPWC) funds, renewed by Ohio voters as State Issue 1 in November
2005.
OPWC money is designated
for the repair and replacement of existing infrastructure. The
Ohio Public Works Commission administers three funding categories
- Local Transportation Improvement Program (LTIP), State Capital
Improvement Program (SCIP), and Small Government Capital Improvement
Program. Local match money is technically not required but does
enhance the chances for receiving OPWC grants by enhancing project
viability ratings. The OPWC has divided the State into 19 separate
funding districts, and communities and qualifying agencies within
each district must vie for their share of the funding which is
allotted to their district. Butler County lies within District
10, which also includes the Counties of Warren, Clermont, and
Clinton and their communities. The Miami University Center for
Public Management and Regional Affairs serves as the manager
and liaison for all OPWC funding in District 10.
Local
Funding
The two primary sources
of local funding are gasoline taxes and license plate fees. A
much needed two cent increase was added to the State gasoline
tax in 2003. This was the first such increase in ten years. A
second two cent increase was added in 2004. However, Butler County's
status as one of the State's largest counties makes it a donor
county. When revenues are distributed by the State of Ohio, Butler
County actually gets back less than it puts in. A portion of
our gas tax money goes to smaller counties that can't generate
adequate revenues due to their limited populations. The money
that is returned to Butler County is utilized as local funds.
Many road and bridge
projects are funded one-hundred percent with local money and
are let by contract or are performed by crews from the Engineer's
Office. Non-contract projects performed by BCEO crews are known
as Force Account projects and can consist of everything from
culvert and bridge replacements and deck repairs to general and
seasonal maintenance. The Ohio Revised Code caps Force Account
projects at $30,000 per mile for paving or maintenance and $100,000
per structure (bridge or culvert). (Materials for Force Account
projects are bid through separate contracts.) If the cost estimate
for a project is over these amounts, the project must by law
be competitively bid and let as a contract to the lowest qualified
bidder.
A relatively new concept
in locally funded road construction is the Transportation Improvement
District (TID), which was enacted through state legislation passed
in 1993.The TID is comprised of a panel of local governments
charged with funding several projects in the TID-designated area,
which covers most of the southeast quadrant of the County. Innovative
financing is the key to speeding up construction of much-needed
projects for which traditional funding methods have been difficult
since most local, state, and federal budgets are already stretched.
The County Engineer serves on the TID Board of Directors.
