Jobs package is revamped in bipartisan compromise

Funds for the internship programs in Ohio don’t depend on bond measures.

COLUMBUS (AP) — If Ohio’s students have more opportunities to work for in-state businesses while they are in school, more of them will stay in Ohio after graduation and help reverse the state’s “brain drain,” state leaders said Wednesday in announcing a plan to boost the flagging economy.

The state plans to spend $250 million over five years to create more internships and co-op programs at businesses in Ohio, which would match each state dollar with their own investments. It’s part of a $1.57 billion economic recovery plan unveiled by Democratic Gov. Ted Strickland and Republican legislative leaders.

The economic recovery plan combined elements of a $1.7 billion bond package that Strickland proposed during his February State of the State address with the ideas of House Speaker Jon Husted and Senate President Bill Harris. The Republican legislative leaders had said they could not support Strickland’s original plan because it would burden the state with $1.5 billion more in debt obligations backed by the state’s general revenue.

The compromise calls for considerably less new debt while investing in many of Strickland’s priorities including local infrastructure, land conservation and advanced energy technologies such as wind, solar and cleaner-coal.

If the package passes the Legislature, voters will be asked on the November ballot to approve $400 million in new debt: $200 million that will be paid by taxpayer funds and $200 million that will be backed by liquor sale profits.

The funds to support the internship programs are not dependent on the passage of the bond measures. The $250 million would begin being spent in July 2009.

Husted called the idea the most important element of the economic package. The plan was called for in a 10-year proposal for higher education released Monday by the Ohio Board of Regents.

Educational institutions already have co-op and internship programs, but state leaders said the infusion of money would greatly expand what’s available to students.

“You can’t build a wall around Ohio, but you can make Ohio so attractive and get people ingrained in the fabric of what they’re doing here that they don’t want to leave,” Husted said.

Leaders pointed to statistics showing that more college graduates leave Ohio than move into the state. The statistics show that 27 percent of bachelor’s graduates and 41 percent of medical school graduates leave Ohio within six months of graduation.

The state would solicit proposals from Ohio colleges and universities to spur innovative ideas on how to connect students with employers. Both college and graduate students could participate. In co-op programs, students alternate between taking courses and working for a company; internship programs are generally brief periods of employment that qualify for credit.

Husted wants the private market to determine which jobs are in the greatest demand, with the state’s resources following the lead of industry. “We know that one of the most proven and most effective strategies for keeping students here in Ohio is to link them to Ohio businesses through jobs,” said Board of Regents Chancellor Eric Fingerhut.

He said increasing college enrollment — one of his and Strickland’s goals for higher education — could be viewed as an empty goal if Ohio can’t get those graduates to stay and grow the economy.

Husted said business groups he met with were supportive of the work force plan.

“The internship is invaluable,” said Ohio Chamber of Commerce President and Chief Executive Andrew Doehrel. “If you’ve got a good intern, you’re going to keep them on. It’s a model that works.”

Doehrel said the program would not just focus on work force programs for four-year college graduates and graduate students, but also on two-year and community college technical programs in areas such as welding or aircraft maintenance.

Ohio State University Provost Joe Alutto said the program would provide incentives to businesses to have more interns.

“What you are really asking a firm to do is use their time and energy to develop an intern,” he said. “What this is doing is recognizing that there is a cost involved.”