Lawmakers question JobsOhio's contract renewal request 14 years before it expires

COLUMBUS, Ohio (WCMH) -- A private entity called JobsOhio, which gets its millions of dollars of funding through the state, is looking to ensure continuity in funding 14 years before its contract expires.

The Ohio Controlling Board needs to approve it, but members on both sides of the aisle have pushed for deferral on the approval.

“We're pushing back as we're asking questions,” Rep. Jay Edwards (R-Nelsonville) said. “And one of the big questions is why? Why do they need this now?”

“We'd like to understand how JobsOhio's success is measured. I would like to understand how decisions are made, how money is allocated,” Rep. Bride Rose Sweeney (D-Westlake) said.

What is JobsOhio?

JobsOhio was created to support “high growth business investments and job growth,” back in 2011 though legislation at the Ohio Statehouse. JobsOhio does not only incentivize projects, but spokesperson for JobsOhio Ryan Squire said they also work to make sure companies meet some metrics or maintain accountability.

JobsOhio currently has an agreement to lease state liquor profits for the next fourteen years, or until 2038, for its funding. But it is trying to lock down a new lease agreement now.

“They’ll argue it's not state money because they buy out the liquor profits and they buy the rights to them," Edwards said. "In my opinion, it's still state money and those are those are the for profits that belong to the state. We delegate those to them.”

That’s why Edwards said he is looking for more transparency in where the money is spent.

Despite JobsOhio being created via legislation, it is a private company and is not subject to public records requests, salaries are not posted on Ohio Checkbook and members are not required to file finance disclosures.

“I don't think there's anything nefarious going on,” Edwards said. “I don't throw allegations out there, but I would actually think it's more of a protection for them to make sure we're giving comfort to Ohioans, to make sure that the people that are working there aren’t vested in the companies that they're investing in and giving these resources to.”

Squire said it is an “old talking point” that there is no transparency in the way JobsOhio works. He points to their website, for example, where he said they publish all of their monetary contributions. Squire said the reason they cannot be eligible for public record requests is to protect confidential company information. But Sweeney said sometimes it does prove difficult to get information, even as an elected official. Edwards agreed.

“It's been frustrating, but that's not a reason to just say ‘no,’” Edwards said. “We're trying to get the questions asked. I'm trying to figure out, you know, if it's the best thing and if the timing is right to do this right now.”

“We need to have these discussions because we're talking about a very serious decision and actually get feedback and not just rush through this process,” Sweeney said. “And every time you talk about kind of pulling up the hood up of JobsOhio, I don't have access to that information.”

Why ask to renew the contract 14 years early?

Squire said they have some agreements with companies that extend into the 2050s, for example, and that’s why there is the need to ensure continuity in funding now. Plus, he said 75% of the money they have in the bank is already committed to various projects.

“I don't hold it against them for wanting this so early. But I think that, you know, it's our right to ask questions,” Edwards said.

“I don't have a problem with starting these conversations now, given that we're 14 years away, but that does not mean that we have to rush this process,” Sweeney said.

Spokesperson for Governor Mike DeWine, Dan Tierney, said the contract extension would not change any of the terms, and he said it is a worthwhile investment.

Tierney points to investments like Intel as an example of why JobsOhio is valuable.

"With an agreement that keeps the terms the same, there’s not really a reason to wait,” Tierney said.

Plus, Squire said the landscape for economic investments is getting more competitive.

“More and more states are in competition, which means the projects are getting more expensive,” he said.

“I understand the premise of JobsOhio is that they are a private entity that can give us a competitive advantage,” Sweeney said. “I understand that that is its purpose. What I'm asking for is this one time to allow us to have the public discussion and to continue to go forward.”

Squire said JobsOhio gets about $200-250 million a year from the JobsOhio Beverage system that owns and operates the liquor enterprise.

Sweeney said one of her objections is how it is being done. 

"My decision to ask for a deferral is really on not believing in the good work that JobsOhio has done. I've seen it with my own eyes, especially in my local community in Cuyahoga County," she said. "But I disagree with the fundamental principle that we should be making a 15-year, $10 billion decision through the Controlling Board."

She said this should not fall under the preview of the Controlling Board, though this process was permitted in the state’s operating budget. Sweeney said the public should be able to have more information and more input.

“I really believe for good government and just simply me representing my constituents at the statehouse that we should have some kind of public process, some kind of ability for the public to hear what we're hearing behind the scenes,” Sweeney said. “As with any other decision we'd make of this magnitude.”

The decision about whether to do this also comes as JobsOhio is under scrutiny for the areas of the state it focusses on. Edwards said in Southeast Ohio, where he is from, he is not seeing an equitable investment. He said it is not for a lack of trying; Edwards said he has sat with JobsOhio “many-a-times, been told ‘no’ many-a-times, sometimes told yes.”

“For the amount of money, they're spending per Ohioan compared to the amount of money they're spending in areas that I'm from, it's much lower,” he said. “And I would argue because of our poverty rate and unemployment rate, you know, we deserve more and more money and more and more of a look than these other organizations and these other parts of the state.”

But Tierney said both DeWine and JobsOhio are focused on economic development across the state, including Appalachia and Southeast Ohio.

“We are certainly not leaving any area of Ohio behind through JobsOhio or anything else our admiration had done,” Tierney said. “There’s no evidence for that.”

The next Controlling Board meeting is scheduled for Sept. 9.