Stowsentry.com - Governor, GOP compromise on stimulus package

by Marc Kovac

Capital Bureau Chief

Columbus -- Gov. Ted Strickland and Republican legislative leaders have unveiled a compromise job stimulus package that would require less state borrowing to accomplish while still creating tens of thousands of new Ohio jobs.

The $1.57 billion initiative, supported by Senate President Bill Harris and House Speaker Jon Husted, would target funding to logistics and infrastructure improvements and work force training and related efforts.

Additional monies would go to the Clean Ohio program (continuing funding that is set to expire this year), advanced energy and historic preservation.

The governor and Republican legislative leaders believe the package will create about 57,000 jobs -- a number they said was conservative.

"This is in response to a national economic downturn that has affected every state and cost the nation jobs," Strickland said, calling the revamped package a "bipartisan victory for the people of Ohio."

He added, "We will invest in job-creating industries, in our communities and in our infrastructure and in our work force."

The funding would come from:

* $184 million from liquor-backed proceeds through the Department of Development, and another $200 million in comparable proceeds, pending voter approval.

* $370 million in general revenue fund transfers in coming fiscal years.

* $66 million in existing coal development authority funds.

* $230 million in Ohio Tobacco Prevention Foundation funds.

* $200 million in excess Ohio Turnpike revenue.

* $120 million in previously authorized public works funding.

* $200 million in general revenue bonds, pending voter approval.

The proceeds from those sources would be dedicated to:

* $100 million for logistics and distribution improvements.

* $50 million for bio-products and $100 million for bio-medical.

* $150 million for advanced and renewable energy, including

wind, solar and clean coal.

* $400 million for public works projects.

* $400 million for Clean Ohio programs.

* $120 million in historic preservation tax credits.

* $250 million for higher education work force programs.

The compromise changes the approach the governor outlined in his State of the State address earlier this year, which entailed about $1.7 billion in bonds and the creation of a projected 80,000 jobs.

The compromise package will save the state about $1.7 billion in general revenue dollars and will be quicker to implement than the bond structure originally outlined by the governor.

Funding for some initiatives could be available before the end of the year.

Husted and Harris said they planned to move the package expeditiously through their respective chambers. They plan to be done by the summer break.

"We are going to work to get this done as soon as possible," Husted said. "We don't want to prohibit debate and discussion. I know that the members of the General Assembly will have questions... but we feel we can work through those things very quickly."

Marc Kovac is the Dix Newspapers Capital Bureau chief. E-mail him at mkovac@dixcom.com. His Capital Blog can be found online at blogs.recordpub.com/capitalblog.