Taft blames uncertainty for Issue 1 defeat

Backers of the issue said the proposal was a key to jump-starting the state.
By JEFF ORTEGA
VINDICATOR CORRESPONDENT
COLUMBUS -- Uncertainty on the economy among voters likely led to Tuesday's defeat of a proposed $500 million statewide bond issue geared toward high-technology job development, Gov. Bob Taft says.
"I believe Issue 1's failure is a sign of the times -- a very difficult political and economic environment that we are facing," a somber Taft said late Tuesday at a downtown hotel.
"I think there is an irony here, because with Issue 1 we sought to improve Ohio's economy," the governor said. "Yet, economic uncertainty undoubtedly played a significant role in its defeat."
"Many Ohioans are anxious about the job market, and in these uncertain times, a majority of voters were reluctant to approve new government spending," Taft said.
Backers of the bond issue said the proposal was a key to jump starting the state's economy.
Details of proposal
Under the proposal, the state would have sold $500 million in bonds to be spread out over 10 years to benefit research and development or the commercialization of new products in health care, advanced manufacturing and other high-tech growth areas.
Issue 1 was part of the governor's proposed $1.6 billion Third Frontier Project, Taft's initiative to create high-paying, high-tech jobs in the Buckeye State.
Backers had been running an active campaign, showing television advertisements in support of Issue 1 in every corner of the state.
Brian K. Hicks, the campaign manager for the pro bond issue Yes On Issue 1 Committee, said backers raised $3.1 million in support of the issue and spent about $2.8 million to $2.9 million.
Taft said that he understands the concern of voters, but that Issue 1 was the right thing for the state to pursue.
"We cannot allow economic uncertainty to paralyze our state; we must continue to invest in the future," Taft said.
Not likely again
The governor said he doubts his administration will propose another bond issue to support high-tech job development. Taft said he would continue to try to improve business conditions in the state, particularly for manufacturers.
"We are an important manufacturing state," the governor said. "We need to remain an important manufacturing state."
Ads for passage of Issue 1 -- there were $2.8 million worth of them -- stressed that the program would not raise taxes.
However, one opponent said voters saw it as a corporate giveaway and were not fooled into thinking the state would not eventually have to pay for the bonds Issue 1 would have sold.
"This is too far," state Rep. Tom Brinkman, a Cincinnati Republican, said. "When people hear the words 'no taxes,' they realized, 'How is it going to be paid back?' I took it people were smarter than that, and they were."
Organized opposition to Issue 1 included the Ohio Farm Bureau Federation and the Ohio Farmers Union. The state farm bureau said the state could better help the economy by working on tax policy and reforming civil-litigation laws.
On the Net:State Issue 1: http://www.yesonissue1.comOhio Farmers Union: http://www.countrylovin.com/ofu/index.htmOhio Farm Bureau Federation: http://www.ofbf.org