Ohio lawmakers push new oversight of JobsOhio liquor-profit spending

COLUMBUS, Ohio (WSYX) — There is a bipartisan effort at the Ohio Statehouse aimed at increasing transparency and oversight of JobsOhio, the private nonprofit that manages the state’s liquor profits to fund economic development projects.

State Representatives Tristan Rader (D–Lakewood) and Justin Pizzulli (R–Scioto County) announced the JobsOhio Transparency Act on Thursday, saying the measure is designed to ensure public accountability for billions of dollars in state-controlled revenue.

“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.”

Rader pointed to recent concerns about spending decisions, including a $60,000 payment to The Callout Podcast hosted and produced by Krisanthe Vlachos. The podcast has been linked to the resignation of former Ohio State University President Ted Carter.

Rader and Pizzulli also raised questions about a decision last year by the Ohio Controlling Board to approve a 15-year extension of JobsOhio’s contract — despite it not expiring until 2038 — allowing the organization to retain more than $10 billion in future liquor profits without additional payment.

The lawmakers say JobsOhio originally paid $1.5 billion in 2013 for a 25-year lease of the state’s liquor enterprise.

According to research cited by lawmakers, only about 25% of JobsOhio’s incentives have led to economic development that would not have otherwise occurred.

“The people of Southern Ohio deserve a fair shake from JobsOhio,” Pizzulli said. “There must be public accountability and real transparency to deliver results for our constituents.”

The proposed legislation would introduce several new oversight measures, including:

• Requiring JobsOhio to publicly disclose all corporate sponsorships and media partnerships, including costs, recipients, and any potential conflicts of interest
• Mandating audits by the Ohio Auditor of State every two years, including details on salaries and staffing
• Requiring annual testimony from JobsOhio’s chief investment officer before state finance committees
• Giving the General Assembly — not the Controlling Board — authority over future extensions or restructuring of the state’s liquor profit agreement
• Requiring independent valuations and public hearings before any future contract changes
  The bill also formally states that JobsOhio must use state liquor profits “in a manner that is responsible and prudent” and free from waste, fraud, or abuse.

A JobsOhio spokesman shared the following statement with ABC 6 on Friday:

JobsOhio does not generally comment on the details of pending legislation.

Overall, as a private nonprofit economic development corporation, JobsOhio has been committed to clearly and consistently reporting business metrics and financial information since its inception in 2011. This transparency has earned JobsOhio numerous recognitions, including Candid’s Platinum Seal of Transparency for the last seven years, which places JobsOhio in the 1% of 1.8 million nonprofits for transparency and public disclosure of information. In addition, JobsOhio has been accredited by the Standards of Excellence Institute, meeting the nonprofit sector's most stringent public disclosure, accounting, human resources, and compliance standards.

JobsOhio has also sought to demonstrate this commitment in recent days through our swift and transparent disclosure of JobsOhio’s interactions with entities associated with former Ohio State President Ted Carter.

JobsOhio remains committed to sharing as much information as possible with the public and policymakers, while maintaining Ohio’s competitive advantage when seeking to attract economic development investments to Ohio.