Will Water-Quality Bonds Boost Ohio’s Economy?

Governor DeWine is currently in discussions with legislative leaders to place a bond measure on the fall ballot to ensure continued funding for H2Ohio, the state’s water quality initiative. A survey of economists reveals a general consensus that such bonds would benefit public health and local government costs, though experts remain divided on whether the measure will stimulate Ohio’s broader economy.

The survey, released on March 23, 2026, by Scioto Analysis, polled 17 economists to determine the potential impacts of statewide bonds for the H2Ohio program. The results indicated that 11 of the 17 economists agree that the bonds would reduce the costs associated with public health services and water treatment for local governments. Only one economist disagreed with this assessment, while five remained uncertain.

The H2Ohio initiative employs several strategies to improve water quality across the state. These include providing financial incentives to farmers to reduce agricultural runoff, investing in the restoration of wetlands, funding projects for water and sewer infrastructure, and removing dams.

Economic and Recreational Impact

While there was strong agreement regarding public health, economists were less certain about the program’s ability to grow the state’s economy. Five economists agreed that the bonds would grow Ohio’s economy, three disagreed, and six expressed uncertainty.

Regarding the outdoor recreation industry, nine of the 17 economists agreed that the bonds would increase its size. However, the level of confidence in this conclusion varied among the respondents. Of the eight economists who did not agree, seven were uncertain and one disagreed.

Some experts emphasized that the success of the funding depends on the execution of the program. Kevin Egan of the University of Toledo noted that costs would decrease only if the program spends the money wisely and actually solves the harmful algal bloom problem in Lake Erie and other lakes.

Bill LaFeyette of Regionomics highlighted the potential risks of inaction, citing the algal bloom that crippled the water supply in Toledo as an example of the costs resulting from inattention to agricultural runoff.

Reported Economic Benefits

The debate over the economic impact of the bonds follows a report released by Earth Economics and The Nature Conservancy in Ohio. The report, titled H2Ohio and the Value of Restoring Watersheds, found that the state’s water quality program focusing on agriculture and wetlands generated more than $330 million in statewide economic benefits in 2024.

Despite these reported benefits, some economists surveyed by Scioto Analysis expressed uncertainty regarding the overall magnitude and cost-effectiveness of the proposed statewide bonds.

The push for water-quality bonds comes amid broader discussions regarding the state’s fiscal priorities. The Institute on Taxation and Economic Policy previously characterized a flat tax implemented by the administration as massive tax cuts to the wealthy.