As a candidate for governor, John Kasich wasn"t shy about his opinion of the Ohio Department of Development: It should be dismantled and its job creation functions should be taken over by a newly created privatized, corporate board.
The idea, Kasich said, was to get around some of the deal-making slowdowns caused by the pace of government and instead speed up the process with a business-minded operation working on behalf of the state.
Efforts to create the non-profit entity began almost immediately after Kasich took office in 2011. The very first bill introduced in the House of Representatives began to lay the groundwork for JobsOhio.
What ultimately was created is a non-profit corporation that is independent of state government but operates with state government.
Kasich"s early pitch was that he would chair the board. The governor isn"t on the JobsOhio board of directors. Its nine members, though, represent a broad cross section of industry, the medical community and academia.
"They are our state"s economic development entity,” said Kasich spokesman Rob Nichols, describing JobsOhio"s role with the administration.
JobsOhio doesn"t have the ability to award state grants or tax credits, but as it works with companies it can recommend to the Development Services Agency, the successor to the Department of Development, that such aid be considered, said JobsOhio spokeswoman Laura Jones.
JobsOhio has a lease with the state to run Ohio"s liquor operations through its subsidiary, JobsOhio Beverage System. It sold bonds against those liquor revenues to raise money for its own operating expenses.
With that revenue, JobsOhio will be able to offer loans and grants on its own, too, Jones said.
On its website, JobsOhio touts its efforts, saying it worked with 277 companies in 2012 that committed to creating nearly 21,000 new jobs and retaining more than 54,500 other jobs, successes it outlines in its annual report.
But the agency has faced criticism, too, over its lack of transparency. That remains part of a dispute with state Auditor Dave Yost, whose staff subpoenaed records from JobsOhio in March 2013 that it said the state should have access to for an audit. It sought to audit proceeds from the bond sales, which Yost said flowed directly from public money.
JobsOhio and the Kasich administration contend that the auditor was overstepping his authority, seeking access to records from a private corporation that did not deal with state dollars.
JobsOhio complied with the auditor"s subpoena, delivering records on March 19, 2013. But Chief Investment Officer John F. Minor Jr. also stated clearly in an accompanying letter that JobsOhio did not agree with the auditor"s interpretation of the law.
Minor, in fact, said JobsOhio would ask the General Assembly for legislation that makes clear that as a private company, it is out of the state auditor"s reach.
That"s something the Kasich administration said it would support and legislative leaders have expressed a willingness to consider.
Meanwhile, JobsOhio also announced that it would refund $1 million in startup money it got from the state in 2011 and any grant money it received since July 2011 to do economic development work for Ohio either as the JobsOhio Beverage System or its predecessor, the Ohio Business Development Coalition.
"Upon doing so, there will be no more public funds at JobsOhio," Minor said in a news release.
Still unresolved is a lawsuit by the left-leaning group ProgressOhio that questions the constitutionality of the development corporation. But in the meantime, JobsOhio appears to be up and running.
Kasich promised to dismantle the Department of Development and privatize job creation efforts. The state"s job-creation efforts now flow through the private JobsOhio. Other functions of the Department of Development now are handled by the revamped Development Services Agency.
Granted, the ProgressOhio legal action is still in the court system, but for now, we can set the Kasich-O-Meter at Promise Kept.