Gov. Ted Strickland and state Republican legislative leaders announced a bipartisan agreement this morning to spend $1.57 billion during the next five years to stimulate Ohio’s moribund economy.

The Democratic governor had announced a $1.7 billion bond package in his State of the State address in February, with the goal of creating at least 80,000 new jobs. The governor vowed to put it on the ballot himself this fall if necessary.

But after House Speaker Jon Husted, R-Kettering, and Senate President Bill M. Harris, R-Ashland, made it clear they opposed borrowing that much money, the leaders agreed on a compromise economic-stimulus package.

The new plan calls for investing the $1.57 million in many of the same areas the governor had proposed, including local road, bridge and water projects and advanced energy work.

The plan still calls for $970 million in bonds, but unlike Strickland’s initial proposal to back $1.5 billion in debt with general revenue funds, the new plan calls for just $200 million in tax revenue-backed debt. The rest will be borrowed against sources including future liquor profits and excess Ohio turnpike money.

The remaining money comes from a $230 million raid of the Ohio Tobacco Prevention Foundation and $370 million in future tax revenue spread over five years.

Strickland said the new deal is projected to create about 57,000 jobs over five years, rather than the more than 80,000 jobs his original plan had envisioned. But Strickland said the new number is conservative and doesn’t include potential new jobs from private investment expected from the plan.

For example, the plan calls for investing an additional $120 million in a state tax credit to preserve historic buildings, which the leaders say spurs private development.

There also is $250 million targeted for a internship and cooperative-education program designed to keep more college graduates in Ohio that requires a dollar-for-dollar match from the private-sector.

Husted and Harris also stressed that the new plan would result in lower interest costs from less borrowing over time and would allow money to be spent more quickly for maximum impact.

“This bipartisan jobs-stimulus plan will create jobs, make us a leader in emerging industries and establish the foundation for long-term growth and prosperity in Ohio,” Strickland said.

“I am pleased to stand in support of a bipartisan jobs package that relies less on debt, that ensures stimulus dollars can be released before the end of the year and which wisely targets investments where they can make the most difference to our overall state economy,” Harris said.

“I can support this plan – it invests in people and it creates real jobs because it requires private-sector investment in the economy,” Husted said. “The plan does not mortgage Ohio’s future, it invests in it.”

Husted and Harris said the legislature will pass needed legislation to implement the bulk of the package, and the $400 million in proposed borrowing will be placed on the Nov. 4 ballot for voter approval.

Reaching an agreement will avoid having Strickland tackle the daunting task of collecting 402,000 signatures to put the issue on the November ballot, and then fighting Republicans to pass it.

A Dispatch Poll of nearly 4,500 registered Democrats and Republicans before the March 4 primary showed a small majority of Democrats said they at least "probably" would vote for Strickland’s proposal, while nearly half of Republicans said they would at least "probably" vote against it.

However, a quarter or more of each party's respondents said they don't know enough about the idea to take a position.

The Ohio economy continues to languish compared with other states' when it comes to jobs, population growth, income and many other key economic indicators.

In fact, Ohio was one of three states that lost jobs last year, trailing only Michigan; led the nation the home foreclosure rates at the end of 2007; and is third-to-last in population growth after adding a meager 3,404 residents.

That trend has continued into 2008, with the state losing 11,600 jobs in February after adding 13,500 jobs in January, according to the most recent state reports.

Lawmakers from both sides of the aisle were praising the plan.

“The best part about it is it gets the money into projects on the street very soon rather than having to wait a complete year or more,” said Rep. Dan Stewart, D-Columbus.

Rep. Jay Hottinger, R-Newark, the chairman of the House Finance Committee, agreed, but is leery of the governor’s prediction of 57,000 new jobs.

“I don’t think we can empirically with much credibility or evidence project (job numbers),” he said. “We don’t know how many jobs. We know this is a positive thing for Ohio’s economy and job creation. But I certainly don’t want to be associated with putting any number to it.”