Research Briefing

Ohio Bearing Large Burden Of Obama’s Agenda

“[T]he president will travel to Columbus, Ohio, to mark the groundbreaking of the 10,000th Recovery Act road project . . .” (Mike Allen, Politico “Playbook,” 6/17/10)

MISSPENT STIMULUS FUNDS HAVE NOT HELPED OHIO

Ohio’s Unemployment Rate Stands At 10.7%. (Bureau Of Labor Statistics, BLS.gov, Accessed 6/18/10)

• Since Obama’s Stimulus Was Passed, Almost 128,000 Ohioans Have Lost Their Jobs. (Bureau Of Labor Statistics, BLS.gov, Accessed 6/18/10)

The Unemployment Rate For Columbus, Ohio Stands At 9.4%, Up From 7.8 Percent When The Stimulus Was Passed. (Bureau Of Labor Statistics, BLS.gov, Accessed 6/18/10)

• Since Obama’s Stimulus Was Passed Columbus, Ohio Has Lost 19,000 Jobs. (Bureau Of Labor Statistics, BLS.gov, Accessed 6/18/10)

Ohio Officials “Passed Over Some Shovel-Ready Projects” To Use Millions Of Dollars In Stimulus Funds On “Planning And Preliminary Studies.” “An Associated Press story that came out last week found that state transportation officials passed over some shovel-ready projects to steer about 7 percent of the $774 million to planning and preliminary studies. . . Among the studies being funded are $20 million for a highway project on the eastern corridor of Cincinnati and $20 million for the so-called three-mile “opportunity corridor” that would connect the city of Cleveland’s university district to Interstate 490. An additional $10 million statewide would go simply toward “project plans/design” for the Ohio Department of Transportation.” (Jessica Wehrman, “Republicans Oppose Strickland Using Stimulus Dollars For Studies,” The Dayton Daily News, 4/20/09)

And Stimulus Funds Went To Ten Phantom Districts In Ohio. “You might be a stimulus fan, you might be a stimulus foe, but you've got to admire the sweep of stimulus spending in Ohio. It has provided more than $1.2 million and added three jobs in Ohio's 21st Congressional District. Never mind that there is no such district. There also isn't a 20th, 49th, 54th, 56th, 69th, 85th, 87th or 99th, even though the federal government's Web site for tracking stimulus money lists them as getting funding. And there most certainly is not a district numbered ‘00,’ even though the government's Web site says it got $1.86 million, which helped create or save eight jobs.” (Stephen Koff, “Stimulus Is Working In Ohio- Even In Phantom Districts,” The Cleveland Plain Dealer, 11/17/09)

Ohio Stimulus Project Touted By Biden Fails To Create Jobs. “Last July, Vice President Joe Biden stood in front of a hulking, five-story abandoned factory in Northside with good news: The federal government had approved $1.6 million in stimulus money to help transform the American Can Building into new stores and apartments.  The project would create 100 construction jobs - proof, Biden said, that the stimulus was putting people to work.  Seven months later, the project remains stalled, and has yet to make good on that promise.”  (Gregory Korte, “Northside Stimulus Bogs Down,” The Cincinnati Enquirer, 2/7/10)

AND OBAMACARE WILL ONLY MAKE MATTERS WORSE FOR OHIO JOB CREATORS

In Lorain County, Threat Of Obama’s Medical Device Tax Caused One Of Their Largest Businesses To Stop Hiring. “[I]n the short run, some of his policies could cost existing jobs, especially health-care reform, if it is enacted. One of the few large businesses that has prospered in Lorain County in recent years has been Invacare, a maker of home medical devices, such as walkers and wheelchairs… The company has 1,300 employees in Lorain County but has stopped hiring in anticipation of a tax on medical devices that was proposed to help pay for the president’s health-care reform plan.” (Michael A. Fletcher, “Assessing Obama’s Promises Of Jobs In A Hub Of Manufacturing,” The Washington Post, 1/22/09)

Columbus, OH-Based American Electric Power Took A $21 Million Hit From ObamaCare. “American Electric Power said Thursday its first-quarter profit dropped 4 percent as the lingering effects of the recession continue to hurt power demand. … AEP recorded a $21 million charge because of the recently enacted federal health care overhaul. AEP and other companies currently receive a government subsidy to keep prescription drug benefits for retirees. They have been able to deduct their expenses, but that ends in 2013 under the recently passed legislation.” (Mark Williams, “AEP 1Q Earnings Drop 4 Percent,” The Associated Press, 4/29/10)

CEO Of Cleveland’s Invacare Says Medical Device Tax Is Like “Throwing A Hand Grenade” Into Health Care Industry. “The law includes a 2.3% excise tax on the sale of all medical devices except for consumer goods, such as contact lenses and hearing aids. . .Among established medical device companies, Invacare Corp. of Elyria, the world’s largest wheelchair maker, has been a vocal opponent of the tax. Invacare CEO A. Malachi Mixon III in a January interview with Crain’s went so far as to say the tax was the equivalent of ‘throwing a hand grenade in the middle of the health care economy.’” (Chuck Soder, “Tax On Medical Device Manufactuers Could Be Taxing,” Crain’s Cleveland Business, 3/29/10)

AND NEW ENERGY TAXES WOULD HIT STATES LIKE OHIO THE HARDEST

Since Ohio Receives More Than 85 Percent Of Its Energy From Coal, “Cap-And-Trade” Program Would Result In “Massive Increases For All Consumers.” “The resolution states that Ohio receives more than 85 percent of its electricity from coal… ‘Thus, the cap-and-trade program will result in massive increases for all consumers because the cost to produce electricity from coal will be markedly higher,’ the resolution states.” (Carl E. Feather, “Resolution Opposing Cap And Trade Adopted By Ohio Senate Tuesday,” The Star Beacon (OH), 7/1/09)

Job Losses In Ohio Alone On Account Of “Cap-And-Trade” Could Amount To More Than 111,000 By 2035. “As the economy adjusts to shrinking gross domestic product (GDP) and rising energy prices, employment will take a big hit in Ohio. Beginning in 2012, job losses will be 62,595 higher than without a cap-and-trade bill in place. And the number of jobs lost will only go up, increasing to 111,989 by 2035.” (David Kreutzer, et. al., “Impact Of The Waxman-Markey Climate Change Legislation In Ohio,” The Heritage Foundation, 8/19/09)

And Cap-And-Trade Legislation Would Reduce Ohio’s “Gross State Product By $17.96 Billion In 2035.” “Implementing Waxman-Markey would put a chokehold on Ohio's economic potential, reducing gross state product by $17.96 billion in 2035.” (David Kreutzer, et. al., “Impact Of The Waxman-Markey Climate Change Legislation In Ohio,” The Heritage Foundation, 8/19/09)

The Two Largest Manufacturing Sectors In Ohio Would Face Most Severe Consequences Of Cap-And-Trade. “The current two largest sectors, chemical manufacturing and transportation manufacturing, show decreases in output of 6.1% to 6.7% and 8.0% to 8.5%, respectively in 2030. All manufacturing sectors will suffer output losses of between 5.4% and 6.0% by 2030, while output from energy intensive sectors falls between 10.7% and 11.7%.” (Press Release, “Economic Impact On The State From The Waxman-Markey Bill, H.R. 2454 Proposed Legislation To Reduce Greenhouse Gas Emissions – Ohio,” National Association Of Manufacturers, 2009)