Ohio Needs a New Approach to Economic Development–Old Approaches No Longer Work
With the loss of more than 400,000 jobs since 2006, Ohio must reform the way it approaches economic development if is to effectively compete against states and countries that want our jobs and businesses. Replacing Ohio’s government-based economic development efforts with a pioneering new private sector approach, modeled after business, will enable Ohio to become more proactive, competitive, and better respond to emerging and promising opportunities. The end goal is to transform Ohio’s economy and accelerate job growth in the state.
The three steps to economic development reform are:
1) Create JobsOhio: JobsOhio, a private not-for-profit, will work at the speed of business and be free from bureaucratic delays and restrictions that are more common for government agencies;
2) Provide sustainable funding: Ohio’s Liquor Enterprise will provide JobsOhio with an ongoing revenue stream to fund economic development activities well into the future. Private investors will be more likely to invest in JobsOhio knowing there is a long-term commitment to Ohio’s job-creation efforts;
3) Equip JobsOhio with the best talent & tools: JobsOhio will attract top talent and manage a balanced economic development toolbox emphasizing return on its investments.
1. Create JobsOhio. JobsOhio will inject new, needed life into Ohio’s economic development efforts. House Bill 1 created JobsOhio, a new approach rooted in an understanding of how businesses create jobs. As a private not-for-profit company, JobsOhio will be more nimble, flexible and responsive than state government in responding to job-creators.
2. Provide sustainable funding. JobsOhio needs reliable, dedicated funding for job creation: JobsOhio creates the vehicle for economic development reform and dedicating Ohio’s liquor profits as its independent and primary funding source will give it the fuel it needs to advance job creation.
Transferring Ohio’s Liquor Enterprise to JobsOhio makes sense.
State funding for economic development goes up and down with the economic cycle. Transferring Ohio’s Liquor Enterprise to JobsOhio will provide a source of sustained economic development funding that is not dependent upon the state’s general revenue fund.
The sale of liquor is a consumer business. Profits of the business should be reinvested to help boost private sector business activity instead of helping to grow government. Private investors will be more likely to invest in JobsOhio if they are confident in its stability and revenue. The Department of Commerce will continue to operate the system, creating a seamless transition for consumers, producers and retailers – there will be no change in regulation or permitting.
Step 3: Arm JobsOhio with the best talent and tools. JobsOhio will hire top talent and build an economic development toolbox to grow net new job creation. JobsOhio will be led by a chief investment officer and staffed with experienced industry professionals who use their strengths to provide businesses with the financing and resources they need to grow and thrive. JobsOhio will build a team and tools designed for success.
The JobsOhio team will have the experience and ability to identify potential projects, understand the needs of customers, structure deals innovatively and take risks appropriately. New ideas program ideas will be offered including a Refundable Retention Tax Credit to help retain key Ohio businesses.
Connect and Engage…
In the coming weeks, the Ohio Legislature will make a choice on the direction of Ohio’s future. Special interests groups around the state have spent millions to make their opposition to the Ohio Jobs Budget known. Now, One Ohio United wants to give you the opportunity to make your opinion known…
- Watch Our Ad: "Four Lines"
- Watch Our Ad: "Facts"
- Support the Ohio Jobs Budget
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