DaytonDailyNews.com

COLUMBUS — Ohio is starved for new jobs and Gov. Ted Strickland's State of the State speech on Wednesday started the scramble for who has the best ideas for creating them.

The centerpiece of the Democratic governor's speech was his $1.7 billion "Building Ohio Jobs" plan to issue bonds that he said would create 80,000 jobs by investing in areas such as renewable energy and the biomedical industry.

Strickland, a United Methodist minister, even invoked Scripture, Galatians 6:9, to show how resolute he wants Ohioans to be about turning the economy around: "Let us not lose heart in doing good, for in due time we will reap if we do not grow weary."

Strickland will need cooperation from the Republican-controlled legislature to get the bond issue on the November ballot and the two leaders – House Speaker Jon Husted of Kettering and Senate leader Bill Harris of Ashland – weren't ready to sign on, at least to Strickland's plan.

"We are committed to doing a jobs package in this state that will create opportunities for people to improve their quality of life. There is no more important issue," said Husted.

Borrowing money through bonds and creating future debt might not be the right approach, however, they said.

Last December, Husted proposed a more modest approach – developing a research and development program funded from state income taxes paid on newly created jobs in the renewable energy industry. Universities and private companies working on renewable energy technologies could apply for grants.

The Ohio Constitution caps debt service at 5 percent of revenue from the state's general revenue fund sources and lottery proceeds. Keith Dailey, Strickland's spokesman, said the new bond issue would put debt service at about 4.6 percent of this total.

If that's the case, economist Edward "Ned" Hill, vice president of economic development at Cleveland State University, said it might be worth borrowing the money. If the plan works, a "bigger and healthier economy" would generate the money to pay off the bonds, Hill said.

Dailey said that if the legislature balks at putting the bond issue on the November ballot that the governor could launch a petition drive to gather signatures to put the issue before voters.

The proposal comes against the backdrop of the national and state economic slowdown that has stymied Strickland's campaign pledge to "turn around Ohio," at least in terms of creating new jobs.

Since he took office in January 2007 the state has lost about 6,000 jobs, according to federal statistics. The December unemployment rate was 6 percent, a percent above the 5 percent national average.

Strickland also called for creating a Cabinet-level Department of Veterans Affairs and using rules developed by Commerce Director Kimberly Zurz for subprime lenders to help fight the mortgage foreclosure crisis.