Columbus, Ohio – The state of Ohio today sold $240 million in Ohio bonds, half of which will function as the first installment of the $1.57 billion Jobs Stimulus Plan proposed by Governor Ted Strickland and passed by the Ohio Legislature in June.

 

The plan aims to create 57,000 jobs for Ohioans while laying the foundation for future economic prosperity.

 

All of the proceeds from the bond sale will be used to invest in Ohio’s infrastructure through the completion of road, bridge, and water and sewer projects in communities throughout the state.

 

“The sale of $240 million in Ohio bonds in a difficult market speaks to the strong fiscal management and high credit worthiness of our great state,” Strickland said.  “This is just the first step in implementing a jobs plan to create thousands of jobs throughout our state by investing in critical infrastructure and fast-growing parts of Ohio's economy.”

 

Despite the recent volatility in the municipal bond market, this transaction excited a high level of interest by retail investors who purchased over $190 million of bonds, a record for the state of Ohio.   The cost of borrowing for the bond sale is 5.22%, which is less than the average borrowing cost of high quality municipal bonds over the past 25 years.

 

The Public Works Commission’s distribution of these funds—through its existing public works process—allows the state of Ohio to partner with local communities to respond to the effects of the current economic downturn. 

 

“Especially at this time, we are pleased that these funds will allow for positive benefits to Ohio’s economy to start almost immediately,” said Mike Miller, director of the Ohio Public Works Commission.  “These investments allow Ohio to quickly infuse resources into local communities to meet the critical infrastructure needs throughout the state.”

 

The Jobs Stimulus Plan makes major investments in workforce, infrastructure and new and emerging industries that will spur job creation in Ohio.

 

New and Emerging Industries

Bio-based Products, $50 million -- will help support and grow an industry that aims to produce polymers, plastics and other crucial modern materials out of Ohio-grown crops.

 

Biomedical, $100 million -- will help create jobs through spurring a part of Ohio's economy that saves lives and leads to medical advances.

 

Advanced and Renewable Energy, $150 million -- will create new jobs by making Ohio a powerhouse of renewable and advanced energy production such as wind, solar and clean coal.

 

Infrastructure

Logistics and Distribution, $100 million – will help spur job creation through investing in infrastructure that can be used to expand and support businesses that move and distribute products. Ohio’s central location in the nation makes it a perfect location for a growing logistics and distribution industry.

 

Local Infrastructure, $400 million – will be used to help build important local infrastructure projects such as roads, bridges, sewers and water systems.

 

Clean Ohio Conservation, $200 million – will fund the preservation of farmland and greenspace.

 

Clean Ohio Revitalization, $200 million –will help revitalize our cities and industrial areas by brownfield clean up and transformation into new residential and business development.

 

Historic Preservation Tax Credit, $120 million – will revitalize historically significant buildings that expand the tax base of the local community.

 

Workforce

Higher Education Workforce Initiative, $250 million -- aims to keep more college-educated Ohioans in the state by linking them with good internships, cooperative education programs and jobs while they earn their degrees. Matched with private sector investments, this will make Ohio a leader in higher education and job creation efforts.

 

 

“With these investments, we have one common purpose: create good jobs for Ohioans and build a new prosperity for all of Ohio,” Strickland said.