Ben McCullough for State Representative

The Innovative Economy

The first question that comes to mind in evaluating Northwest Ohio's economy is: "how can we innovate while maintaining our current strongholds, like agriculture?" Certainly we must encourage the jobs of today, such as manufacturing, and I will support these hard-working Americans every day. Yet to enter an innovative economy, we must build on our strengths so that our region can set the standard for economic growth, jobs, and services.

But we must consider the facts to recognize the problem. One important way to judge the health of an area is to analyze the unemployment rate. The Ohio unemployment rate is 6.1%, seasonally adjusted 5.3%. This is above the United States rate of 5.1%, seasonally adjusted 4.8%, according to the Ohio Department of Jobs and Family Services.

Look at how our district compares: all 3 counties are above both the national and Ohio rates; with Defiance County at 6.5%, Williams County at 6.8%, Fulton County even higher at 7.0%. Compare this with Union County, which has used incentives to bring skilled workers with a Honda plant, and the rate is only 5.2%. The difference doesn't seem large until we realize that each percentage point represents hundreds, even thousands in some cases, of workers who are searching. The numbers don't even count the unemployed who have given up looking for work.

The good news is, however, that we have what it takes to do better. Consider first what we have: we are a viable, industrial hub in a strategic location. We can serve as a link for all major Midwestern cities. Our major highways, including the Ohio Turnpike, and location along the Michigan-Indiana border are things that should be utilized to their fullest. Moreover, we have many small private businesses and factories that could complement future industry. If new industries grow, the old ones will also benefit.

So the time is now to decide: should our area focus on becoming a hub for agriculture or industry? My answer is: both. Look at the statistics. Regardless of the opportune location and abilities we posess, Defiance, Fulton and Williams counties rest in the "middle of the pack" in statewide unemployment. OK is not good enough when our possibilities are extraordinary. We must first understand that the future, jobs, and innovation are tied into education.

Then, we must look at the possibilities that other regions have presented for us. In central Ohio, a Honda plant was brought through incentives to Marysville in Union County, lowering the unemployment rate to below the state average and providing innovative, skilled career options to the people. Why can't our area model one like Marysville? Services, industry, and renewable energy are areas with great potential for us, if companies are given the incentives to locate here. Bringing an automobile plant that produces hybrid vehicles would say a lot about our values as a region. This would provide skilled labor opportunities for our people - and the jobs of tomorrow. In addition, growth in the education and medical fields will increase reasons for new workers to locate here.

Better medical facilities can thrive with hard work to attract quality doctors, dentists, veterinarians and more. We need to draw them here for the good of our people. Incentives and research opportunities can be provided in a closer partnership with nearby Toledo's facilities. Looking to the world-class hospitals of Toledo, as well as OSU and Cleveland Clinic for inspiration, can yield similar results here. Technology and staff must be increased to attend to the life-threatening needs of our people that are under risk because of expensive and untimely transportation. The general health of our people will improve if we have the awareness that comes from the backbone of research in our own backyard.

We have the means and productivity to move our agricultural economy forward. Prices have risen for all sectors to farm, and subsidies are just not enough to rely on. For farmers to gain more from their fields, they will be encouraged to support a new ethanol refining industry. Most scientists agree that the exciting possibilities for ethanol can reduce our dependency on foreign sources of fossil fuels, and aid our environment. There are plans for an ethanol plant in Hicksville, but they have been redtaped. The time is now to move forward on this project. We should be supporting such projects in our area because private investment means that people are taking the initiative to move Northwest Ohio forward. This kind of economy defines the innovation we should be seeking and providing incentives to develop. Therefore, I propose a renewable energy-powered ethanol refinery within our district to create jobs and spawn growth. Let us be sure to not limit ourselves to ethanol, but to explore, research and encourage all renewable energies in our area. This would bring the future of America's clean, domestic energy to the national forefront: right here.

Statewide, we also can improve on spending. According to the Wall Street Journal, state spending has increased faster in Ohio than any other state. To pay for this grand spending increase, tax increases have been the norm, including the 20% hike of sales tax in 2003. With all of this increased revenue and spending, one would expect that Ohio's economy would be booming. Yet we still rank in step with states much smaller than us, like North Dakota, when it comes to economic growth. And the tax burden continues to be shifted to middle class families.One in four Ohio workers earns less $9.28 an hour, according to a 2005 Policy Matters press release. It is clear that there is something fundamentally wrong with the way Ohio does business.

As I mentioned before, one way to ignite economic growth to our area is through incentives for businesses to locate here. Yet why is it that in 2001, six of the top 100 corporations in Ohio paid only $50 in taxes? This kind of tax abatement is extreme, and businesses threaten to leave if the abatement is decreased. We must provide incentives that are fair, and encourage corporations to stay consistent with their "good neighbor in the community" pledges (see H.B. 286).

Job creation must be the focus in our area, and at the statewide level. In 2000, Ohio had over 645,000 high school students and 650,000 college students. We will need to create over 300,000 jobs per year if we are going to retain these students in Ohio when they graduate. The good news is, with a tax reform package passed in 2003, the conditions are superb for new businesses to locate here and foster new jobs. A recentreport on private capital investment in Ohio by Site Selection magazine showed that Ohio led the Midwest in new plants and expansions in 2005 and was the second in the US behind Texas. Capital investment is essential in keeping Ohio facilities competitive with other manufacturing facilities around the world. Further, we cannot expect the best and brightest skilled workers to remain here when, for example, we rank 32nd in demand for technologically skilled jobs. We can increase the need for these jobs through investing to bring the future of America's economy here, as I have outlined above. An integral part in maintaining a lead, then, all goes back to educating the next generation of our workforce. These improvements include expanding the palate of course offerings, aiding students who want to compete in areas like math and science, and making college tuition more affordable.

There are a myriad of other possible improvements. First, we should not allow politicians to give themselves pay raises before raising the pay of you, the Ohio worker. Second, we cannot continue rewarding companies who outsource jobs to Asia and elsewhere overseas. Especially in Northwest Ohio, industrial areas in Defiance and Fulton are hemorrhaging jobs for that very reason. I'll ask the politicians: what is American about cutting good, American jobs? Third, we need to make taxes in Ohio fair and equitable. This means following the "ability to pay" principle, to ensure that all people pay their fair share. Those who do not have the ability to pay should never have to shoulder more of the tax burden.

But my original idea to you, as stated in the introduction to my Roadmap, is the creation of a new, independent board to review state spending. This board could oversee and look at state spending, across the board, and see where cuts can be made in the workforce, spending, or programming. It would establish a culture of performance budgeting, which means new spending would not simply be for, say, 100 computers. Rather, it would allocate money to organizations that prove their value, and for specific goal-oriented purposes. We pay a great deal in taxes already: the least we can do is spend wisely so we get the most "bang for our buck." One idea this board could use is placing a sunset provision on all state tax credits, grants, and incentives so they are periodically reviewed. Again, we need to ensure that our tax dollars are spent in programs that actually create some jobs (see H.B. 110). The creation of this one new group is not new bureaucracy because its purpose is to cut needless bureaucracy and save the state millions of dollars, like similar groups do successfully in Texas and New Mexico. There is a reason why their economies are growing, and Ohio's is not. We must pass this proposal in the General Assembly. (See H.B. 110 for a similar purpose)

The Innovative Economy means looking at "what's next" through careful planning and analysis, then following through with all the necessary encouragement for businesses to locate in Northwest Ohio. We also must work at the statewide level to ensure equity, and reward those who define the American spirit by creating jobs and moving Ohio into the future. This process has worked exceedingly well in other regions, and can do the same for ours. All we must do is take the initiative to look forward: and I will work hard to take us there.