The Associated Press

COLUMBUS - Nearly $10 million in penalties paid by the nation's second-largest local phone company will help Ohio sell itself as a great place to do business.

State officials last week formed the Ohio Business Development Coalition, a nonprofit group to promote the state.

The Ohio Department of Development expected $8.1 million from SBC Communications Inc., agency spokesman William Teets said. But interest building since 2000 increased that to $9.9 million, Cleveland-based SBC spokeswoman Caryn Candisky said.

The money comes from fines and unclaimed refunds in a customer fund that SBC created because of a Public Utilities Commission of Ohio audit covering 1999 and 2000 that found poor service after SBC acquired Ameritech.

The fund also has been used on projects to benefit customers, such as high-speed Internet lines.

"The program will help benefit the economy and help people and businesses across the state," Candisky said.

Gov. Bob Taft's office hopes state lawmakers eventually will take over support of the development group, spokesman Orest Holubec said.

"Selling Ohio's economy must happen every month, every week and every day," the Republican governor told the Legislature in his annual State of the State address in January.

"We'll partner with foundations, businesses and local economic development groups, and in future budgets we'll seek your help to tell our story."