[Congressional Record Volume 140, Number 80 (Wednesday, June 22, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: June 22, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                             GROW OHIO FUND

                                 ______


                          HON. JOHN R. KASICH

                                of ohio

                    in the house of representatives

                        Wednesday, June 22, 1994

  Mr. KASICH. Mr. Speaker, Ohio Department of Development Deputy 
Director John Damschroder has devised a new, imaginative proposal to 
spur economic expansion and job creation in our State. The following 
article from the May 9 edition of Forbes Magazine describes his 
proposed ``Grow Ohio Fund.''

                               Mutual Aid

       John Damschroder, deputy director of the Ohio Department of 
     Development, has an idea that may well become standard fare 
     around the country. He wants the Buckeye State to create a 
     mutual fund dedicated to buying equities in companies that 
     have a significant presence--100 or more employees--in Ohio. 
     The Grow--Ohio Fund would be made available to investors 
     around the state from financial institutions licensed to sell 
     mutual funds. Equities in the fund would be traded on the New 
     York or American stock exchange or Nasdaq.
       The fund would be managed by an Ohio-based money management 
     firm for a maximum fee of three-fourths of 1 percent of the 
     funds under management, the State would get one-fourth of 1 
     percent. This revenue would be used to pay interest on bonds 
     sold to finance infrastructure projects tied to economic 
     development. ``The idea is to give Ohioans a way to vote with 
     their money for our own companies, thus strengthening our 
     state economy.'' Damschroder sees the fund ``as a barometer 
     on the Ohio economy.''
       A little over a year ago Ohio broke development ground by 
     luring companies with the promise of refunding them a portion 
     of their new employees' state income tax liability. The State 
     has attracted $1.2 billion of new investment and over 13,000 
     new jobs that it otherwise would not have had. Impressed, 
     other States are following suit with similar programs.

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