| Ohio Jobs Package to Cost $5000 more per Ohio Job |
| Monday, April 7, 2008 10:37:13 AM - Middletown Ohio |
by John Beagle
Remember that $1.7 Billion Ohio Jobs Proposal that was to bring 80,000 jobs to Ohio? Well now its only going to cost $1.57B but it also is only going to bring in 57,000 new jobs.
Originally, the stimulus package would cost $22,500 per job. Now we are looking at a price per job increase to $27,543.86 per new job. A $5000+ per job increase.
Photo: Speaker of the House, Jon Husted
Gov. Ted Strickland, Speaker Jon Husted, District 37 (he gets roads and development money in his district) and Senate President Bill Harris this week came to agreement on a revamped jobs package that will total $1.57 billion. The three leaders agreed to compromise on Gov. Strickland's original $1.7 billion proposal that relied on new bonding authority after legislative leaders expressed serious concerns over borrowing so much money.
The new proposal will focus on infrastructure (roads, bridges, etc.), redevelopment of old industrial sites, renewable energy (wind, solar, etc.), a new internship program aimed at keeping more college grads in Ohio and the preservation of historic Ohio buildings.
Some of the money will come from bonds. Putting Ohio closer to the constitutional debt cap limit of 5 percent of revenue from Ohio's general revenue fund. The bonds will have preexisting revenue sources such as profits from state liquor sales and excess revenue from the Ohio Turnpike.
Economists have expressed skepticism as to the true economic impact of the Governors proposed jobs package. In the long run, jobs will go to the locations with the greatest resources not one-time cash incentives. A government can only temporarily prop up itself. A government can only generate financial incentives for so long.
Edward Hill, VP of Economics at Cleveland State University disagrees. He said it might be worth borrowing if the plan works for a bigger and healthier economy.
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