|
May 2011 | |
Dear Friends:
Rain, rain, go away; fill our budget for another day.
Ohio's soggy spring weather is not unlike our state budget. It's been a long, muddy slog, but there are signs of brighter days ahead.
In this edition of our newsletter, we highlight the state budget and revenue situation, discuss likely changes for key economic development programs, explore opportunities in the new area of public-private partnerships and provide an update on our firm.
As always, please feel free to contact any of us at Hicks Partners if we can be of help.
Brian K. Hicks
President & CEO |
|
Budget Forecast | |
Budget Blues Continue, But Skies May Be Brightening
Governor Kasich's austere budget priorities were approved largely intact by the Ohio House of Representatives on May 5. With party-line approval in the House, budget action now shifts to the Ohio Senate.
The Senate is expected to consider the budget through early next month allowing plenty of time for differences with the House to be reconciled in June.
Unlike budget deliberations of the past several years, more revenue will be available to budgeters as they move closer to the end of the fiscal year. According to the Office of Budget and Management, total state tax collections are running more than $840 million, or 6.1%, ahead of FY2011 estimates. All major revenue sources - particularly sales and personal income taxes - are exceeding expectations, offering rays of hope to the many groups experiencing painful budget reductions, including schools, children's health programs and local governments. | |
|
|
Ohio Third Frontier - Changes Are Coming | | |
The Kasich administration is moving to put its mark on the successful Ohio Third Frontier (OTF) Project. While final details are still being developed, several important actions have occurred in the past few months, including:
- Creating a new program, Ohio New Entrepreneurs Fund (ONE Fund), to fund entrepreneur "boot camps" which will begin this summer.
- Reviewing OTF's focus areas for program improvements. Battelle is leading these reviews and have already reported on the Advanced Materials and Biomedical clusters and will soon offer a review of Advanced Energy and Instruments, Controls and Electronics focus areas. The most significant outcome so far is the recognition of "technology convergence" where cluster grants actually support foundation technologies of other clusters. Battelle used the example of how grants in the advanced materials area support aerospace, biomedical and advanced manufacturing.
- Finalizing loan terms for an OTF cluster grant applicant that could pave the way for a new program. Similar to private sector Revenue Participation Notes, this loan will provide up to 50% of eligible project costs up to $1 million with 0% interest rate for six years. Annual payments will not begin until after the end of the project's second year. Payments will be equal to 4% of the annual revenue from the project or product, up to a maximum of $1,175,000.
- Exploring ways to better match Entrepreneurial Signature Program funded companies and research institutions with potential Ohio customers and companies which will license or use the developing technology.
- Placing a higher priority on technology "pull" from the private market, rather than technology "push" from researchers.
While the OTF review is ongoing, a few things are clear: Third Frontier leaders are laser focused on near term job creation and there is growing support for claw backs as part of funding commitments. OTF is also receptive to new ideas such as loans and other innovative ways to provide funding to companies.
For more information on the coming changes to the Ohio Third Frontier program, or to discuss how Hicks Partners can help your company win Third Frontier funding, please contact Emily Turner.
|
|
Statehouse Focuses on Jobs | | |
JobsOhio Moving Forward Despite Challenges
While some are challenging the constitutionality of JobsOhio, the state's new private economic development entity, the Kasich administration is moving forward with all deliberate speed to get the new organization up and running.
Administration leaders are determining which existing economic development programs should be moved into JobsOhio and which ones should be transferred to other state agencies. Legislation to implement these transfers will be needed in the coming months.
Financing for JobsOhio is currently being debated by the Ohio General Assembly as part of its operating budget deliberations. Under the Governor's plan, JobsOhio will be financed, in part, by leasing revenue generated by the state's liquor taxes. After paying down approximately $700 million to existing liquor backed debt and providing a one-time
payment of $500 million for the state's general fund, approximately $100 million annually will be available for JobsOhio.
Governor, Battelle to Convene Energy Summit
Governor Kasich and Battelle will convene the "Ohio Governor's 21st Century Energy & Economic Development Summit," at The Ohio State University on September 21 - 22. According to the joint announcement by the state and Battelle, the summit's purpose will be to "develop a 21st-century energy policy for Ohio that will support the state's long term economic growth and job creation."
Given our experience in energy policy and economic development matters, Hicks Partners expects to be actively engaged as details of this event come together during the coming months. Please contact Tony Brigano or Brian Hicks if you would like more information about the summit.
|
|
Partnership Possibilities | | |
Public Private Partnership Possibilities Prominently Promoted
The State of Ohio has begun to explore how to monetize certain state assets and provide services more efficiently through innovative public-private delivery mechanisms.
In addition to the sale of five state prisons which has been widely reported, and the lease  of liquor profits to fund the new JobsOhio organization, other areas for public-private partnership include sale and/or lease of the Ohio Lottery, Ohio Turnpike and other transportation related assets.
In fact, the Ohio Department of Transportation is seeking a consultant to help develop policy for the comprehensive implementation of public-private partnerships. ODOT seeks to identify the types and categories of appropriate PPP's; determine financial, economic, technical and legal factors; and develop a list of likely projects for public-private collaboration. ODOT expects to have its study completed in 4-6 months with initial PPP opportunities underway by fall.
Please contact Brian Hicks or Zach Holzapfel to see how Hicks Partners can help your company capitalize on the coming PPP opportunities.
|
|
New Faces, New Spaces | | |
New Faces
Hicks Partners is pleased to welcome two new members to our team.
 Longtime Statehouse aide Anthony Brigano joined Hicks Partners as a Government Relations Manager in February. In this role, Tony will develop government relations strategies for public and private-sector clients and represent matters before the Governor's office, state and local agencies, the Ohio General Assembly and members of Congress.
Tony has extensive experience in the executive and legislative branches of government, having served as a Constituent Aide and Director of Public Inquiries for the Governor of Ohio, Senior Legislative Aide to two State Representatives, a Caucus Policy Aide to the House Minority Leader and most recently as a Policy Aide to Ohio Speaker of the House William Batchelder.
Brigano has been involved in numerous policy issues, including energy, agriculture, natural resources, labor and housing matters. As a Legislative Aide to the Chairman of the House Public Utilities Committee, Brigano was deeply involved in the comprehensive electricity and energy policy revisions for the State of Ohio during 127th General Assembly. At Hicks Partners, Brigano will focus on energy and economic development related issues.
Stacy Schad recently joined the firm as Executive Assistant. Stacy comes to Hicks Partners from the Governor's Office of Faith-Based and Community Initiatives, where she served as Communications and Operations Manager. As Executive Assistant, Stacy will coordinate all aspects of the firm's office and provide clients and staff ongoing communications, marketing and event support.
New Spaces
Hicks Partners has relocated to 21 East State Street, Suite 2200, Columbus Ohio 43215. This ideal Capital Square location will allow the firm to continue to grow and provide a bird's eye view of government on behalf of our clients.
 | | Bird's Eye View From Our New Office |
|
| |
Hicks Partners, LLC www.hickspartners.com 800-556-0227 |
|
|
|
|
|
