Democratic gubernatorial candidate Ed FitzGerald is calling on Republican Gov. John Kasich to veto a bill that would prevent State Auditor Dave Yost, a Republican, from fully auditing JobsOhio, following months of controversy surrounding the private nonprofit entity.
"I further encourage the Governor to return to negotiations with Auditor Yost, with the explicit goal of establishing an open and transparent process by which the people of Ohio can be sure JobsOhio is spending our tax dollars efficiently, and that the program is doing what it is supposed to be doing: creating Ohio jobs," FitzGerald said in a statement. "The people’s money is the people’s business, and this bill, which slams shut the door on accountability, is simply unacceptable."
Yost claims he can audit JobsOhio's liquor profits, which add up to $100 million a year, and private funds, such as donations.
But the bill effectively defines JobsOhio's liquor profits as private funds that can't be audited by the state
auditor. Under the proposal, Yost could only audit liquor profits and excise taxes that JobsOhio owes to the state, with all other funds effectively deemed private.
JobsOhio was established by Kasich and Republican legislators in 2011 to replace the Ohio Department of Development.
Yost argues the liquor profits are intrinsically public money because the money would be in public hands if JobsOhio wasn't handling operations.
But other Republicans, led by Kasich, say
opening JobsOhio to full audits would slow down the agency, hindering its
ability to quickly react to economic changes and tides. Kasich has often said the private nature of JobsOhio allows it to move at the "speed of business," which he claims fosters stronger economic development in Ohio.
Democrats have pushed back against the notion, saying JobsOhio's private nature only makes it more difficult to hold the state government accountable. With the latest bill, Democrats, who have now taken to dubbing the agency "RobsOhio," say their concerns are being vindicated.
But the bill could have far-reaching effects beyond JobsOhio that would effectively disallow the state auditor to audit privately funded accounts in any institution that receives public funding.
Despite Yost's pleas to involve him in the process, the auditing bill was passed through the Ohio House and Senate in just two days without his input.
Democrats were quick to criticize the bill, asking what JobsOhio has to hide.
Kasich is expected to sign the bill to make it law.
JobsOhio isn't the only privatization scheme pushed by Kasich. He also sold the Lake Erie Correctional Institution, a northeastern Ohio prison, to the Corrections Corporation of America. So far, inmate reports and inspections have largely found deplorable conditions at the Lake Erie facility ("From the Inside," issue of May 29).