Ohio would get $4B boost in jobs plan
$3.6B would go to Michigan under Obama proposal
COLUMBUS — Ohio stands to benefit to the tune of nearly $4 billion in infrastructure improvements to highways, bridges, airports, and schools as well as to keep local teachers, police, and firefighters on the job under the roughly $450 billion jobs package President Obama put before Congress.
Michigan would receive more than $3.6 billion, according to figures supplied by U.S. Senate Democrats.
“There are private companies all across America just waiting to get to work,’’ Mr. Obama told Congress and the nation Thursday night.
“There’s a bridge that needs repair between Ohio and Kentucky that’s on one of the busiest trucking routes in North America, a public transit project in Houston that will help clear up one of the worst areas of traffic in the country, and there are schools throughout this country that desperately need renovating.’’
It remains to be seen whether the package of payroll tax cuts for individuals and businesses, infrastructure improvements, unemployment benefits, and government support can win support in a debt-weary Congress.
Mr. Obama plans to visit Columbus on Tuesday as part of a road tour to sell his jobs plan to America.
He plans to visit the Fort Hayes Art and Academic High School in Columbus to highlight the school infrastructure element of his plan.
“The President’s $862 billion stimulus plan did not work, and it is time for the administration to come to the table to hear what small businesses need so that they can help get the economy moving,” said U.S. Rep. Bob Latta (R., Ohio).
He said business owners have told him that over-regulation, high taxation, the new health-care reforms, and energy costs are standing in the way of expansion.
It’s also unclear, even if Congress should approve the plan, whether Republican governors who’ve been critical of using one-time stimulus dollars to prop up budgets in the past would accept the new money.
Ohio Gov. John Kasich has turned back hundreds of millions in federal stimulus funds for passenger rail and expansion of unemployment compensation, in part out of concerns that the one-time funds would cost the state more in the long run.
Ohio’s new $55.5 billion, two-year budget contained significant pain for local governments and schools, some of it resulting from the expiration of federal stimulus dollars in the prior budget.
Kasich spokesman Rob Nichols declined to comment on the hypothetical question of whether the governor would accept stimulus money if it is offered. He said the governor was disappointed that Mr. Obama did not mention the loan guarantee that the governor has been seeking for the new Piketon uranium-enrichment plant in southern Ohio.
“Hopefully we’ll hear more when he’s in Columbus on Tuesday,’’ Mr. Nichols said. “If he’s got time on Tuesday, we can also arrange a meeting with the state budget office to show him how we closed an $8 billion shortfall while also cutting taxes. Given the $1.3 trillion federal deficit, it might generate some useful ideas.”
Toledo Mayor Mike Bell said he would “absolutely’’ take the federal money.
“I’ll accept anything to build a bridge to where we need to be,’’ he said. “I believe the economy is going to turn around. We just need the bridge to get us there. For my city, I would pursue it absolutely.’’
The mayor said he has plenty of projects he could pitch to the President to take advantage of available infrastructure dollars.
“We’ve got a lot of older buildings to restore to get energy into downtown,” Mr. Bell said. “This could help possibly with developing the airport into a major cargo hub. Anything that would help the trucking industry and railroad would be a boon.’’
State Rep. Teresa Fedor (D., Toledo) also said Ohio must not turn away the money .
“This is a hands-up,’’ she said. “We need to take advantage of that. We need investment in education more than ever. Security and protection in our neighborhoods — when more and more people are struggling, we need that public assurance.’’
State Rep. Randy Gardner (R., Bowling Green) noted that Ohio school districts still have not spent roughly $300 million that came from a second round of federal aid last year.
“Regardless of what happens at the federal level, this money should be sent in a different way to districts so that taxpayers and school boards know this is not money that should be expected in the future,” he said. “That doesn’t say I support doing this, but it suggests that we owe it to taxpayers in our communities that this money should not be expected to become part of a new higher budget.’’
The President’s proposed American Jobs Act offers $35 billion nationwide to schools to prevent the layoffs of teachers and even to hire more and to local governments to help them keep firefighters and police on the job.
Ohio would be expected to get nearly $1.1 billion to support 14,200 jobs while Michigan would get $945.5 million for 11,900 jobs.
It offers $50 billion for highway, transit, rail, and aviation infrastructure improvements, nearly $1.1 billion of which could be Ohio’s to support an estimated 13,700 local jobs. Michigan could get $901 million for 11,700 jobs.
It dangles $25 billion for the renovation of schools nationwide, including $985.5 million in Ohio and $926.3 million in Michigan to support some 12,800 and 12,000 jobs, respectively.
And $15 billion more would be used to help local communities rehabilitate vacant and foreclosed homes and businesses across the nation in hopes of supporting local construction jobs.
Of that, $696.2 million could come to Ohio and $577.2 million to Michigan.
Lucas County Treasurer Wade Kapszukiewicz, who is active with the county’s new land bank that is on pace to acquire 200 to 250 abandoned or foreclosed properties this year, said this idea appears to have bipartisan support in Congress. Even after the money is gone, he said there would be something left behind to show for it.
“It’s a way of restoring wealth to a neighborhood,” he said. “When there are vacant and abandoned homes, it’s a tragedy not just for that home and homeowner but a tragedy to everyone in the neighborhood, even those who pay the mortgage on time, keep the lawn mowed, and the garden manicured.’’
The plan proposes to spend $5 billion to upgrade the facilities and equipment at community colleges. Of that, Ohio could be in line for $148.3 million and Michigan $157.7 million.
Tougher to put a total local price tag on are the plan’s payroll tax breaks.
An extension and expansion of an existing cut for individual taxpayers is expected to amount to about $1,430 more in the paychecks of a typical Ohio and Michigan household earning $46,000 a year. Senate Democrats said halving the current 6.2 percent payroll tax paid by businesses on the first $5 million in wages paid would benefit 200,000 firms in Ohio and 180,000 in Michigan.
Contact Jim Provance at: jprovance@theblade.com or 614-221-0496.
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