Governor Ted Strickland, Ohio Senate President Bill Harris and Ohio House Speaker Jon Husted recently announced a $1.57 billion jobs stimulus package that aims to create new jobs while setting the foundation for future economic prosperity. The plan estimates that 57,000 jobs will be created.  This package was previously introduced in a different form in Governor Strickland’s 2008 State of the State address. 

With the exception of the Clean Ohio program, this bipartisan package will not be required on the November ballot, allowing the positive benefits to start immediately.

The economic package creates major investments in workforce, infrastructure and new and emerging industries that will spur job creation in Ohio.

This package calls for $250 million over the next five years to build a jobs pipeline for students – a resource that will greatly expand internships and co-op programs that place Ohio at the forefront of job creation. Moreover, attracting students and graduates to Ohio will serve a critical role in this effort.

The proposal’s investments of $1.57 billion, which represent approximately $700 million in less debt than the original proposal, will be funded through a combination of bond sales, existing revenue and other sources.

The details of the bipartisan economic package are:

New and Emerging Industries
Bio-based Products, $50 million - will help support and grow an industry that aims to produce polymers, plastics and other crucial modern materials out of Ohio-grown crops.

Biomedical, $100 million - will help create jobs through spurring a part of Ohio's economy that saves lives and leads to medical advances.

Advanced and Renewable Energy, $150 million - will create new jobs by making Ohio a powerhouse of renewable and advanced energy production such as wind, solar and clean coal.

Infrastructure
Logistics and Distribution, $100 million - will help spur job creation through investing in infrastructure that can be used to expand and support businesses that move and distribute products. Ohio's central location in the nation makes it a perfect location for a growing logistics and distribution industry.

Local Infrastructure, $400 million - will be used to help build important local infrastructure projects such as roads, bridges, sewers and water systems.

Clean Ohio Conservation, $200 million - will fund the preservation of farmland and greenspace.

Clean Ohio Revitalization, $200 million - will help revitalize our cities and industrial areas by brownfield clean up and transformation into new residential and business development.

Historic Preservation Tax Credit, $120 million - will revitalize historically significant buildings that expand the tax base of the local community.

Workforce
Higher Education Workforce Initiative, $250 million - aims to keep more college-educated Ohioans in the state by linking them with good internships, cooperative education programs and jobs while they earn their degrees. Matched with private sector investments, this will make Ohio a leader in higher education and job creation efforts.

The plan, expected to take five years to completely unfold, will be funded from the following eight sources:

• $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.

Additional information will be available in the upcoming months as the Ohio legislature draft laws and rules for the new Ohio stimulus package.  At this time, it is unknown if the incentives will come in the form of tax credits or grant money. 

If you have any questions on this new stimulus package or would like to speak with a local legislator or the local Governor Representative, please contact Theresa Mullen, State & Local Tax Leader at 330.497.2000.