COLUMBUS — The speaker of the Ohio House questioned Thursday whether the state can borrow its way to prosperity.
His remarks came a day after Gov. Ted Strickland proposed a $1.7 billion economic stimulus package. Under the governor’s plan, Ohio would borrow the money and invest it in things such as alternative energy and biotechnology to create an estimated 80,000 jobs.
Putting the bond issue on the ballot would require a 60 percent approval from the House and Senate, which both have Republican majorities.
Both House Speaker Jon Husted and Senate President Bill Harris spoke Thursday at an Associated Press seminar for reporters.
In addition to being skeptical about the number of jobs — Husted said if Ohio borrowed $5 billion, it could solve the unemployment problem — the speaker said there is a fundamental difference between him and the governor.
Instead of borrowing, the state should adopt a pay-as-you-go policy, Husted said.
Husted said the House will approve a stimulus package, but it is unclear whether the governor’s plan will be part of it. While Husted did not go into detail, he said he would prefer to use additional revenue from new or expanding companies to invest in the sorts of programs Strickland suggested.
Harris also was cool to the idea of borrowing so much money. He said the state’s stimulus plan was the tax reform package approved in 2005, which once fully implemented in two years will give Ohio the lowest business taxes in the Midwest.
Republicans also are concerned that borrowing $1.7 billion will threaten the new homestead property tax cut for senior citizens. That program was financed when Ohio sold its interest in the tobacco settlement and reduced its debt. Strickland’s plan would raise the state debt above the level it was at before the tobacco revenue sold off.
Husted said the governor is sending mixed messages on debt. Nine months ago, it was bad. Now the governor is saying it’s OK.
Strickland, who spoke before the lawmakers, said the bond issue would not threaten the property tax break and will remain under the legal limit. He said the economic consequences of the investments he is proposing will last long after the money is spent.
Husted and Harris also questioned Strickland’s proposal to take control of the Department of Education. The governor proposed creating a director of education to run the department instead of the state superintendent.
Husted said that before he would support the move, he would need concrete assurances that the governor would not use the new director to end Ohio’s school choice program. Harris said he is not totally against it, but he wants to see the details, and he, too, is concerned about school choice.
soravecz@tribune-chronicle.com
