Exploring the Third Frontier:

Constitutional and Fiscal Implications of Issue 1

State Issue 1, a constitutional amendment on the November 4th ballot, would broaden the ability of the state, public universities, and local governments to issue bonds for research, development and technology commercialization. This report from Policy Matters outlines how the amendment will mean important changes in public sector ability to help private economic development.  The amendment, part of the Taft Administration's “Third Frontier” economic development program, would authorize the state to issue up to $500 million in bonds.

Approval of Issue 1 would open a new era in Ohio’s economic development policy.  Both state and local governments would be empowered to devote more resources to research and product commercialization efforts and to engage in partnerships with the private sector that are far closer than those that exist today.  This white paper from Policy Matters Ohio summarizes the proposed amendment, explains how bond proceeds might be used, examines trends in the state's debt service levels, and explores how the amendment will change the state constitution.  Policy Matters does not take a stance for or against passage of Issue 1.