Passenger rail, unemployment and COBRA changes included in transportation budget

Gov. Strickland signed the state’s $9.2 billion transportation budget, vetoing 13 provisions from the bill that had emerged from the General Assembly after months of hearings.

One of the more controversial provisions relates to Amtrak intercity rail passenger service. House Bill 2 clears the way for the Ohio Department of Transportation and the Ohio Rail Development Commission to apply for a share of $9 billion in federal stimulus funds for passenger rail development. Approval by a 5-2 supermajority of the state’s Controlling Board will be required to release funds received from the federal government for rail infrastructure improvements.

Among the vetoed provisions are:

• A proposal requiring local governments using economic stimulus money for construction projects to reimburse utilities for the cost of relocating service lines
• A freeze of permit fees that the Department of Transportation charges the trucking industry for moving oversize or overweight cargos

Two non-transportation related provisions were included in HB 2 in the eleventh hour. The first ensures the federal government will pay 100% of the cost of administering extended unemployment compensation benefits. Benefits were also increased $25 per week and extended an additional 20 weeks.

An emergency clause was inserted into the bill during conference committee that allows for an extension of health insurance coverage for employees who lose their jobs to become effective immediately. Under the plan, laid-off workers who opt to continue health care coverage at their own cost under COBRA will only pay 35%. Federal stimulus dollars will be used to pay the remaining 65%.

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