|
Akron
Beacon Journal...
Liquored up for jobs
How
the governor wants to fund his plan for economic development
Published on Friday, Mar 25, 2011
John Kasich promised a bold new plan for job creation. Last month,
lawmakers did their part, approving the creation of JobsOhio. The
private, nonprofit corporation, its board headed by the governor, will
take over the economic development duties of the state Department of
Development. Now Kasich has gotten bolder. His budget plan, unveiled
last week, proposes that JobsOhio lease the state’s liquor distribution
monopoly to generate an estimated $6 billion during the next 20 years
to 25 years to fuel the new development entity.
How much JobsOhio will pay to take control of the distribution monopoly
remains to be determined. Whatever the amount, it must borrow the money
to do so, floating $1.2 billion in revenue bonds, backed by future
liquor profits. Of that sum, $700 million will go for covering existing
bonds now depending on liquor revenue. The remaining $500 million will
be used to help balance the state budget, the kind of ‘’one-time’’
money Kasich and fellow Republicans cudgeled during their campaigns.
All this fiscal maneuvering will leave holes, eventually. The Division
of Liquor Control has sent a significant share of its profits ($228
million last year) to the state’s General Revenue Fund to help pay for
a variety of state services. Once JobsOhio gets into gear, that money
no longer will be available to the general fund. Which invites the
question: If job development is so important, why not raise directly
sufficient revenue to achieve the goal?
A $6 billion revenue flow also invites renewed questions about bringing
necessary transparency and accountability to JobsOhio. Lawmakers made
adjustments as the bill moved to passage. Still, the legislation fell
short of requiring complete adherence to open meetings, open records
and ethics laws, all but shouting: Watch out for the coming scandal.
Ohioans deserve to know they are investing wisely in long-term
strategies that recognize job creation is mostly a matter of nurturing
new companies, building on existing strengths. The state can ill afford
to spend $6 billion in what amounts to ‘’smokestack chasing,’’ frantic
bids to lure large manufacturing operations. What the economic data
show are that over time, expanding firms and startup companies with
local roots offer more solid prospects.
Read it at the Akron Beacon Journal
|
|
|
|
