State of Ohio
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Infrastructure Program

The Ohio Public Works Commission is responsible for administering two infrastructure programs, the State Capital Improvement Program (SCIP) and the Local Transportation Improvement Program (LTIP). These programs are run concurrently. To apply for funding the applicant submits an application to the appropriate District Public Works Integrating Committee (DPWIC) according to that district’s schedule.

State Capital Improvement Program

The State Capital Improvement Program was created in 1987 and renewed in 1995 and 2005 by amendments creating Sections 2k, 2m and 2p, Article VIII of the Ohio Constitution. These Constitutional provisions allow the State to use its general revenues as debt support to issue general obligation bonds up to $120 million annually and then up to $150 million beginning July 2011. Eligible applicants are counties, cities, villages, townships, and water and sanitary districts (ORC 6119 or 6117). Eligible projects are for improvements to roads, bridges, culverts, water supply systems, wastewater systems, storm water collection systems, and solid waste disposal facilities.

Funding is provided through grants, loans, and loan assistance or local debt support. Grants are available for up to 90% of the total project costs for repair/replacement, and up to 50% for new/expansion. Loans can be provided for up to 100% of the project costs. Grant/loan combinations are also available. There is no minimum or maximum loan amount. The term of the loan cannot exceed the useful life of the project, or thirty years, whichever is less. The minimum term is one year. The District will recommend the rate of interest for each loan in whole percent increments from 0 to 3 percent. Once the project is completed a final amortization schedule is provided requiring payments every January and July until the term of the loan expires. Loans may be paid in full with no prepayment penalty.

Loan Assistance is a grant that pays for the interest on a public or private loan during the construction period plus one year. This assistance can be used on bond/note issuances or loans initiated up to twelve months prior to the date of the Project Agreement. OPWC may also pay a one-time infusion of funds called a Credit Enhancement to enhance an applicant’s ability to secure affordable debt. The OPWC may pay the premium for a bond insurance policy which would improve the applicant’s credit or bond rating. This category of funding may be applied for as part of a project that is a grant, loan or grant/loan combination but needs to be a separate application for administrative purposes.

A portion of the SCIP funds is set aside for two specific programs that are administered directly by OPWC rather than the districts. The $15 million Small Government Program is a “second chance” for selected village and township projects that have not been funded through the Districts, and the $3 million Emergency Fund is for those projects that address immediate health and safety threats.

Local Transportation Improvement Program

The Local Transportation Improvement Program was created by the legislature in 1989 and currently provides approximately $55 million in gasoline tax receipts annually (the equivalent of one cent). Since the use of such receipts is constitutionally limited to roads and bridges only counties, cities, villages and townships may apply for these funds. Applicants may apply for grants up to 100% of the project cost.