COLUMBUS Panel touts bond as jobs generator

Bond issue proceeds would generate millions in state income taxes, researchers say.
By JEFF ORTEGA
VINDICATOR CORRESPONDENT
COLUMBUS -- A proposed $500 million state bond issue on the Nov. 4 ballot, which backers say is key to developing high-tech jobs in Ohio, would generate 30,000 new jobs, a nonpartisan Columbus-based research organization said.
Those jobs would be part of the 96,000 total jobs to be created by Republican Gov. Bob Taft's proposed $1.6 billion Third Frontier Project, the Ohio Public Expenditure Council said. The high-tech initiative includes the Issue 1 bond request.
"The salaries of these newly created jobs will tend to be higher than the current Ohio average and will foster the demand for continuing improvement in Ohio's educational system, as the need for high-skilled workers grows," OPEC said in its report.
OPEC President Rick Yocum said the statewide average salary is $33,000. But because of the high-tech nature of the jobs that would be created by the bond issue, OPEC projects the average salary of jobs created by Issue 1 would be $55,000.
Yocum said OPEC does not make political endorsements and is not endorsing Issue 1, but he said the study, which was funded by about $30,000 from the Canton-based Timken Foundation, points in one direction.
"We need to continue to encourage Ohio-based venture capital," said Yocum.
How it would work
Issue 1 backers say the proposed bond issue would be spread out over 10 to 15 years. The proceeds could be used to support the commercialization of new products or research in health care, advanced manufacturing and other high-tech growth areas.
OPEC researchers concluded that proceeds from the proposed bond issue would more than cover the estimated $85 million in debt service payments and would generate more than $340 million in state income taxes, according to the report.
Researchers concluded that the proposed bond issue plus funding already in place would attract an additional $4.4 billion in federal and private funding, the report added.
Yocum said he believed the study's estimates were conservative.
Campaign efforts
The Yes on Issue 1 Committee said OPEC's report supports its belief that the bond issue is key to helping Ohio's economy.
"We feel very good about it," said Mary Anne Sharkey, a spokeswoman for the pro-Issue 1 campaign.
Sharkey said the campaign will be unveiling commercials next week to run throughout the state.
The only group to oppose Issue 1, so far, is the Ohio Farm Bureau Federation. It says the state could better help the economy by working on tax policy and reforming civil-litigation laws.