Testimony in Support of HB 386 - Tom Balzer, Ohio Trucking Association (2/12/2020)

Summary

Testimony in support of HB 386 by Tom Balzer, President and CEO of the Ohio Trucking Association (OTA) and Ohio Association of Movers (OAM), to the House Economic and Workforce Development Committee, dated 2/12/2020. The testimony states that HB 386 establishes the Commercial Truck Driver Student Aid Program, which appropriates $5 million to provide students attending CDL school with a combination of grants and loans. It cites the American Trucking Association for a current driver shortage of over 60,000. It also says funding was eliminated from the OhioMeansJobs Workforce Development Revolving Loan Program in the most recent operating budget (HB 166).

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Full text

HB 386
House Economic & Workforce Development Committee
2/12/2020

Chairman Zeltwanger, Vice Chair Powell, Ranking Member Sobecki and members of
the House Economic and Workforce Development Committee, my name is Tom Balzer and I
am the President and CEO of the Ohio Trucking Association (OTA) and Ohio Association of
Movers (OAM). Collectively, we represent over 1,000 trucking, moving, logistics, and
warehouse companies and allied vendor members. 78% of our members have fewer than 50
trucks. I would like to thank you for this opportunity to present testimony in support of HB
386, which establishes the Commercial Truck Driver Student Aid Program.
Many of you have likely heard from businesses in your districts about the challenges
associated with finding qualified drivers to transport their goods. According to the American
Trucking Association, the current driver shortage is over 60,000 and it could grow to over
160,000 by the year 2028.1 This is a problem sweeping the nation and by passing HB 386,
Ohio will be one of the first states to address it by eliminating the financial barrier many
individuals face when trying to attend CDL school.
The Commercial Truck Driver Student Aid Program will address the need for
qualified drivers by creating a dual scholarship and loan program. HB 386 was carefully
crafted to ensure enrollees have stake in the process, while also eliminating the financial
barriers facing Ohioans attempting to pursue a career in one of Ohio’s most in-demand
professions. The Commercial Truck Driver Student Aid Program appropriates $5 million to
provide students attending CDL school with a combination of grants and loans. Measures have
also been added to the bill to incentivize drivers to remain in Ohio once they complete their
CDL training. Furthermore, the bill ensures that students attend only those schools that are
certified by the Department of Higher Education.
There are few state resources specifically designed to offer financial aid to students
pursuing CDL training. In fact, in the most recent operating budget (HB 166), funding was
eliminated from the OhioMeansJobs Workforce Development Revolving Loan Program,
which was primarily used by students attending CDL school. This funding was use for the
TechCred program, which is certainly a worthy program. However, it is important to note,
CDL training does not qualify as a “microcredential” under the TechCred program. We hope

1 ATA Truck Driver Shortage Analysis 2019 -
https://www.trucking.org/ATA%20Docs/News%20and%20Information/Reports%20Trends%20an
d%20Statistics/ATAs%20Driver%20Shortage%20Report%202019%20with%20cover.pdf

655 Cooper Rd.
Westerville, OH 43081
614-221-5375
www.ohiotrucking.org
HB 386 will help fill the financial void left by the elimination of the revolving loan program
for those individuals seeking to attend CDL school.
Some of you may be aware that HB 222 is also pending before this chamber. During
sponsor testimony on HB 386, there were questions on how HB 222 compares to HB 386. HB
222 establishes a tax credit aimed at encouraging trucking companies to invest in driver
training. The training provided by trucking companies are often referred to as “finishing
programs” and are designed to go above what is taught in CDL schools. Encouraging more
businesses to offer these programs will result in more, highly-qualified drivers operating in
Ohio. As expressed above, HB 386 is designed to remove the financial barriers facing
individuals hoping to attend CDL schools. Not only do these schools cost $5,000 to $10,000,
but often they require an individual to quit their current place of employment adding to the
financial burden. Once trained, these individuals will quickly receive offers from established
trucking companies, or they have the option to become an independent contractor.
Committee members may also hear that there is no driver shortage in Ohio. In addition
to claiming the driver shortage is a myth, some also suggest that the real problem facing the
transportation industry is low wages and poor working conditions. We encourage you to speak
to any business in your district that relies on the transportation industry an ask if they are
having a hard time finding drivers. We are confident the response will be a resounding “yes.”
We also agree that turnover or churn in the industry is high; however, it shouldn’t be
surprising. A driver with a CDL and an excellent safety record is in extremely high demand.
This demand is not only from the trucking industry, but also other industries like construction
or oil. Churn is not a bad word; instead, churn tells me that drivers are gaining experience and
getting better jobs. Due to the high demand, truck drivers make an excellent salary and
companies offer comprehensive benefits. The U.S. Department of Labor places the median
pay for drivers at over $43,000, and this can grow to much more.2 Pay for drivers is often
based on production, so entry level drivers can expect to make an increased wage shortly after
entry into the industry. Salaries for drivers can even top $100,000 per year.
The Commercial Truck Driver Student Aid Program created in HB 386 will create
opportunities for Ohioans seeking higher paying jobs without saddling them with debt. This
important legislation will also ensure Ohio’s industries in need of drivers have access to
qualified CDL holders. I urge your support.
Sincerely,

Thomas A. Balzer, CAE
President and CEO
Ohio Trucking Association/Ohio Association of Movers

2United States Department of Labor - https://www.bls.gov/OOH/transportation-and-material-
moving/heavy-and-tractor-trailer-truck-drivers.htm

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