An Ohio University school will receive a grant more than twice the size of its proposed budget cuts for the upcoming fiscal year, but officials say these funds will not be used to fill the deficit.
OU’s Voinovich School of Leadership and Public Affairs will receive $894,358 in federal funds from the Economic Development Administration to support small business growth in Southeast Ohio.
The grant will help the school “to leverage private investment, expad business assistance, create jobs, bring new products to market, and improve the economy in Southeast Ohio,” according to a news release.
“These resources will keep students in the region and bolster Ohio University’s reputation for innovation and economic leadership,” said U.S. Sen. Sherrod Brown in the release. “As we focus on both economic recovery and building new businesses, organizations like the Voinovich School and Ohio University keep jobs in the community while generating regional development.”
Brown helped the Voinovich School secure the grant.
The Economic Development Administration expressed interest in the school’s plans several years ago but didn’t have funding available, said Michael Finney, associate director of operations for the Voinovich School.
“This is something we applied for two years ago,” Finney said. “With the help of Senator Brown’s office and others, they were able to break that logjam and bring that project to the top of the queue and get it funded. When you have a U.S. senator contact you, the federal agencies have to respond.”
The school will use the funds to provide various services to small businesses, including helping with patents and marketing, determining markets for new products and creating business plans for startup companies.
“This is tailored to what the business needs to move their idea, product, whatever it is, through the commercialization process,” Finney said. “We expect these dollars will lead to the creation of jobs and creation of companies in Southeast Ohio in the next couple years.”
The proposed grant agreement still needs to be evaluated and signed, but the school is already moving ahead with its plans, he said.
Budget reductions targeting the provost’s office listed a $45,000 cut for the Voinovich School for the upcoming fiscal year. Gov. John Kasich’s budget proposal, released last month, also completely eliminated the $326,000 line item for the school next year.
However, the areas affected by the cuts and those affected by the grants are separate, Finney said, adding that the budget cuts will be seen in the school’s operating account and academic areas, while the grant only applies to the services offered to businesses.
“These monies do not replace in any way the budget cut from the university,” Finney said.
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