Ohioans might get a second chance to decide whether to provide an additional $500 million for the next seven years to the Third Frontier Project, a program designed to spur the development of high-tech research and industry in the state.
In 2003, voters rejected a similar proposal by a margin of less than 2 percent, according to the Ohio Secretary of State's Web site. But this time, more would be at stake -the funding is part of a $2 billion bond package proposed by Gov. Bob Taft, Ohio Senate President Bill Harris, R-Ashland, and Ohio House Speaker Jon Husted, R-Kettering.
The initiative also includes $150 million for seven years to prepare sites for industrial development and $1.35 billion for 10 years to renew the State Capital Improvement Program, also known as state Issue Two. Issue Two, which provides money for infrastructure such as bridges and roads in the state, was approved in 1987 and renewed in 1995.
To appear on the ballot, the proposed initiative must pass the House and the Senate each with a two-thirds majority.
Providing Issue Two funding for basic infrastructure would assist more traditional industries, while Third Frontier funding will help Ohioans compete in a high-tech, knowledge-based economy, Taft spokesman Mark Rickel said.
They've been brought together because they share the same objective
and that's creating jobs Rickel said.
But critics say tying the Third Frontier Project funding with that of Issue Two is a politically motivated ploy to institute unpopular policies. State Rep. Chris Redfern, D-Catawba Island, called Issue Two one of the most successful programs the state has ever had and said tying Issue Two funding to the Third Frontier Project places the popular program at risk.
It's a hell of a gamble
Redfern said. The Third Frontier Program doesn't have the same kind of support that exists across the state for Issue Two.
In addition, the Third Frontier funds would not benefit areas that need additional funding most, and instead would go primarily to Cincinnati, Cleveland and Columbus, Redfern said.
We need to make sure these dollars are spent in places like Athens County and other economically distressed areas and not in the pockets of wealthy consultants in Columbus
Redfern said.
Though many major recipients of Third Frontier Project investments are in the larger Ohio cities, they collaborate extensively with companies in other areas, said Bill Teets, spokesman for the Ohio Department of Development, which administers the program.
One example of this collaboration is Diagnostic Hybrids Inc., a biotechnology company in Athens. With a $400,000 grant, the company is collaborating with the University Hospital Research Institute in Cleveland to develop new processes for producing flu vaccines, Teets said.
Recently, the company also received $1 million from the state to partner with Ohio University in a successful effort to develop new tests to identify thyroid disease, said David Scholl, president and CEO of Diagnostic Hybrids.
This is a program that's crucial to furthering the process of nurturing small businesses
Scholl said about the Third Frontier Project.
So far, the Third Frontier Project has put about $18 million into early stage venture capital funds, which have used only one-third of that total and generated a combined return of more than $150 million. Although these figures are promising, determining the project's success rate since its inception in 2002 is difficult because the program is still in its infancy, Teets said.
One of the things we're doing right now is looking at ways we can measure success
he said.
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