Some Ohio lawmakers had heralded Gov. Bob Taft's Third Frontier Project as the key to economic development for the state.

But voters either didn't get that message or weren't buying it because they turned thumbs down on the issue Tuesday by a vote of 52 percent to 48 percent.

The issue would have allowed state lawmakers to borrow $500 million to create jobs, recruit researchers and develop new products.

Brian Hicks, campaign manager for Issue 1, called the vote "disappointing."

"Obviously, we were very close," he said. "We think that we effectively got the message out to most areas, but were less effective getting it out to rural areas."