Gov. John Kasich’s privatized development agency might soon have the funding it needs to become Ohio’s economic engine. Earlier this week, JobsOhio proposed paying the state $1.4 billion for the rights to Ohio’s liquor profits for the next 25 years. JobsOhio will sell long-term bonds backed by future liquor profits to pay the $1.4 billion.
Kasich won the authority to lease Ohio’s liquor profits to JobsOhio in last June’s state budget process, in a move supported by OSCPA.
Kasich ultimately looks to dismantle the Department of Development in favor of beefing up JobsOhio and its efforts to attract and retain business in Ohio.
The Kasich administration will ask the state Controlling Board on Monday to approve two contracts. One would allow JobsOhio to officially assume all job-creation and -retention responsibilities from the Department of Development, worth about $2.8 million. The other will affirm the Department of Commerce is to manage the state’s liquor operations. JobsOhio would be responsible for paying the department for its services.
The Kasich administration will submit legislation – to be introduced by Republican State Representatives. Christina Hagan of Stark County’s Marlboro Township and Mike Dovilla of Berea – that would, among other things, transform the Development Department into the renamed Ohio Development Services Agency.
That bill also would streamline Ohio’s process for approving tax credits, allowing them to go into effect for businesses before they are approved by the Ohio Tax Credit Authority. Credits would go into effect as soon as they are recommended to the credit authority by the JobsOhio chief and Development Services Agency director to help expedite economic development efforts.
The bill would phase out the Development Authority Finance Advisory Council and allow the Development Services Agency to submit loan requests directly to the Controlling Board.
Read the full article from the Columbus Dispatch.