Ohio Job Stimulus Plan (2008)

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Governor Ted Strickland has proposed a Job Stimulus Plan to the legislature, which asks for $1.57 billion in bonds. The stimulus aims to create 57,000 jobs directly, as well as energy restructuring for greater energy efficiency.[1]

If the legislature does not pass the measure, Strickland plans to gather signatures to place it on the ballot for voter approval.

The jobs package would provide about $400 million to clean brownfield sites to make them suitable for redevelopment, $120 million to restore historic buildings, and $400 million for public works such as the repair of bridges and sewers.

It also would provide $250 million for internships and programs to keep Ohio college graduates in the state, about $50 million to develop bioproducts from Ohio crops, $100 million for biomedical research and development, $100 million for transportation and distribution infrastructure, and $150 million for renewable and advanced energy like solar, wind, and clean coal technology.[1]

Contents

Status

This measure has been approved by the Senate and in the House.

Funding

Among the funding sources for the stimulus package are profits from state liquor sales, general fund revenue transfers in upcoming fiscal years, Ohio Tobacco Prevention Foundation funds, Ohio Turnpike revenue, public works funding and general obligation bonds.[2]


Controversy over anti-tobacco money:

The Ohio Tobacco Prevention Foundation is not happy with Strickland's plan to take money from their bank account to fund the job stimulus plan and have reportedly transfered funds to other anti-smoking groups, even after recieving warnings not to from the governor's office. Strickland's chief lawyer, Kent Marcus, placed phone calls to the three charities that the board identified as possible recipients of the "cash stash".

A public-policy official with one health group said, "They've got everybody scared. They don't want a debate on this. They want everybody to shut up." She spoke confidentially because she had been told not to comment publicly.

Strickland spokesman Keith Dailey said the purpose of the phone calls "was to ask them not to participate in what we deemed to be an inappropriate action by the foundation."

The foundation's attempt to hide anti-smoking money from the governor was trumped the next day by hastily passed legislation ordering the state treasurer to seize $230 million from the foundation.

The foundation sued, asking the Franklin County court to block state government from taking most of its endowment.

The Tobacco Prevention Foundation received help Monday, when the American Legacy Foundation - a Washington anti-smoking group created from the tobacco settlement - joined the case against the state. Legacy was among the three groups the foundation had identified as possible recipients of its money. It claims to have a legal contract to receive the $190 million that was transfered.[3]

The money has been frozen in litigation after the foundation asked for a restraining order when a similar bill in the Senate was passed. But attorneys for the state filed papers on May 6, 2008, asking the lawsuit be dismissed because the bill had received the governor's approval.[4]

Support

Strickland, a Democrat, and House Speaker Jon Husted and Senate President Bill Harris, both Republicans, have said the bipartisan jobs initiative is needed to shore up the state's ailing economy and that it will benefit all Ohioans.[3]

Opposition

Critics of the measure say severe cuts to anti-smoking programs will erase progress that has been made reducing adult and youth smoking rates.

"When you stop running these programs, the benefits wear off over time and smoking rates move back to the previous levels," said Sen. Dale Miller, Democrat of Cleveland, who voted against legislation to liquidate the anti-tobacco fund. Miller is also a foundation board member who voted to move the money out of the government's reach.[3]

References

  1. 1.0 1.1 ToledoBlade.com: "Governor says Ohio must promote own jobs stimulus plan, energy bill", The Toledo Blade, April 11, 2008
  2. BizJournals.com: "Strickland, Ohio Republicans compromise on jobs package", Business Courier, April 2, 2008
  3. 3.0 3.1 3.2 Cleveland.com: "Ohio anti-tobacco group nearly alone in money battle", The Plain Dealer, April 22, 2008
  4. BizJournals.com: "Governor OKs tobacco fund liquidation; state moves to dismiss suit", The Dayton Business Journal, May 7, 2008

See also

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