Article published April 02, 2008
State leaders strike accord on $1.57 billion economic stimulus package
BY JIM PROVANCE
BLADE COLUMBUS BUREAU CHIEF
COLUMBUS — Gov. Ted Strickland struck a deal with Republican legislative leaders Wednesday morning on a $1.57 billion job-creation package that requires less borrowing than the governor originally proposed.
"These are not likely to be minimum-wage jobs," said Mr. Strickland, a Democrat. "They will likely pay a living wage and be beneficial to those that have them."
The overall package is smaller than the $1.7 billion package Mr. Strickland proposed more than a month ago, and it counts on a total of $970 million in new borrowing as opposed to $1.5 billion under the governor’s original proposal. Voter approval on Nov. 4 will be required for $400 million of the borrowing.
The money would be invested in port infrastructure, development of bio-products like polymers and plastics from Ohio crops, bio-medical research and development, and renewable and advanced energy like wind, solar, and cleaner coal technology.
It will also invest in a private-public partnership to create internships and jobs to encourage college graduates to stay in Ohio, clean up old industrial sites, preserve open space, and develop recreational opportunities.
The plan breathes new life into the new Ohio Historic Preservation Tax Credit program that rewards private investment in the renovation of historic structures as part of larger economic development projects.
The first-come, first-served program proved surprisingly popular, running out of money just eight months into its two-year budget. The new jobs package would make another $120 million available, matching what has already been awarded to projects.
But applicants, which include the endangered Seneca County Courthouse in Tiffin, will now have to compete with other projects across the state over which will provide the most economic benefit in terms of generating jobs and future tax revenue.
To help pay for all of this, the revised plan would drain another $230 million from the state’s anti-smoking efforts, leaving just $40 million in what was once envisioned to $1 billion endowment for the foundation. The fund had initially been filled with proceeds from the state’s settlement with major tobacco companies, but lawmakers had siphoned so much of it away that it is now nearly gone.
Mr. Strickland pointed to voters’ passage of a ban on smoking in indoor public places as well as the state’s more recent investments in expanded health care for children and some adults in defending the move.
In addition to the $970 million in new borrowing, the plan relies on liquor profits, future general tax revenue transfers, "excess’’ Ohio Turnpike revenue, and public works funding previously approved by voters.
Spending could begin immediately after lawmakers approve the bill in coming weeks and the timetable is no longer entirely dependent on voter approval of the borrowing package in November.
House Speaker Jon Husted (R., Kettering) and Senate President Bill Harris (R., Ashland) have expressed concern since the day that Mr. Strickland first unveiled his jobs proposal that it would require too much long-term borrowing.
"If it had gone to the ballot, there’s a chance it wouldn’t pass, and then we’d have nothing," said Mr. Husted. "If it passed, it would take time to issue bonds and to pass legislation to enact it, so before anything would have been out the door, it would be at least a year from now."
Contact Jim Provance at: jprovance@theblade.com or 614-221-0496.
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