JobsOhio controversy prompts legislative action

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(The Center Square) – The involvement of an Ohio non-profit group in a controversy that led to the resignation of The Ohio State University’s president has prompted proposed legislation to increase oversight of the agency.

The proposed JobsOhio Transparency Act follows the resignation of former Ohio State University President Ted Carter last week over an “inappropriate” relationship with a podcaster. JobsOhio announced that it had paid the woman $60,000 for a series of four podcasts, but only one of those was produced.

JobsOhio is a private nonprofit funded “from the JobsOhio Beverage System liquor enterprise we purchased in 2013 and still manage today,” the group states on its website. No taxpayer funds are used.”

In a news release, State Reps. Tristan W. Rader, D–Lakewood, and Justin Pizzulli, R–Scioto County, said the organization is a “state-created entity that oversees Ohio’s liquor profits to finance economic development projects.”

The podcast controversy has prompted the need for more scrutiny of JobsOhio, the legislators said.

“The state created JobsOhio to create jobs in Ohio using liquor revenues that belong to Ohioans,” Rader said in a statement. “Every dollar JobsOhio spends should be in the service of that goal, but recent revelations have cast serious doubt on whether that is the case. “

He called Carter’s resignation, “a national embarrassment” adding, “Ohioans deserve answers about JobsOhio’s involvement.”

The bill would require JobsOhio to disclose all corporation sponsorship and media partnerships “and whether any public employee or official was involved in the arrangement,” the legislator said.

It would also require the state auditor to audit the agency every two years.

“The audit shall include the average salary of JobsOhio employees, the total number of employees, and the number of employees that make at least four times the median Ohio income,” the legislators said.

JobsOhio is not required to hold open records or release records detailing expenditures, the lawmakers said.

According to the Ohio Legislative Service Commission, in 2021 “less than 60% of JobsOhio’s liquor profits actually go to economic development incentives,” said Rader and Pizzuli..

Former Ohio Gov. Jon Kacich is among those who have been publicly criticizing JobsOhio.

“As the governor who created JobsOhio, I was extremely disappointed by the sponsored podcast, which struck me as a misguided and weak attempt to deal with workforce issues, particularly those involving our veterans,” the former governor posted on social media. “What concerns me most is the possibility of mission drift. JobsOhio was created for one purpose and one purpose only: to create jobs for Ohio.”

The podcast “was clearly a failed attempt,” Kasich wrote.

“I hope and pray there are no other signs of JobsOhio drifting from its original mission,” he said. “It must remain singularly focused on creating jobs for Ohio and on watching every nickel of the money that flows into the organization.”

JobsOhio did not immediately respond to a request for comment from The Center Square.