|In 2013, private nonprofit JobsOhio acquired Ohio's liquor sales business, gaining a revenue stream to fund economic development activities.|
|The nonprofit JobsOhio Beverage System operates the liquor business, and related nonprofit JobsOhio carries out development programs.|
|Beverage System operating income||$221,034,000||$235,247,000|
|Funds granted from Beverage System to JobsOhio||$220,000,000||$90,000,000|
|Number of projects negotiated with JobsOhio||286||330|
|Company commitments for new job creation||21,377||23,602|
|Company commitments for capital investment||$6,100,000,000||$6,700,000,000|
Companies expanding in Ohio promised in 2015 to create a record number of about 23,600 new jobs in the coming years, the statewide private economic development agency JobsOhio announced Tuesday.
Businesses that receive state tax credits or reach grant or loan agreements with JobsOhio make promises for adding jobs and spending capital in exchange for the financial incentives.
Commitments for new job creation grew 10 percent last year from the year before. Also, planned investments in building facilities and equipment reached a record high $6.7 billion in 2015 since JobsOhio was formed in 2011, according to the nonprofit, which released its annual report Tuesday.
These figures stem from a total of 330 business projects that worked with JobsOhio or one of its six regional partners to secure funding from state or local governments or from JobsOhio’s coffers. JobsOhio regional partners include Dayton Development Coalition and REDI Cincinnati.
Here are three key reasons that at least companies working with JobsOhio (which is not inclusive of all new or expanding business deals in the state) are upping their plans for hiring and spending:
1. JobsOhio is growing. While the private nonprofit was created in 2011, it became funded in 2013 by liquor sales in Ohio.
“In 2015 we substantially invested in our organization by adding professionals to our targeted industries, doubled the size of our marketing group, and enhanced our sales and development teams,” said spokesman Nick D’Angelo.
2. More companies took advantage of available funding. JobsOhio and partners negotiated deals with a total 330 projects last year, compared to 286 in 2014, according to the economic development agency which leads efforts to recruit businesses to Ohio.
Most businesses counted among the 330, including those new to Ohio and existing businesses that qualify, received some kind of tax break from a state or local government or a grant or loan from JobsOhio. Ohio Job Creation Tax Credits are approved by the public entity Ohio Tax Credit Authority.
This news outlet previously reported Ohioans are foregoing more money every year for cash incentives used to lure job-creating projects from businesses in competition with other states to the tune of $83.8 million last budget year.
3. The economy is better. Ohio’s economy grew 3.6 percent in 2014 to state domestic product valued at an estimated $583.3 billion, according to the most recent Ohio Development Services Agency research on the topic. This Gross Domestic Product is a measure of goods and services produced in Ohio.
The average number of Ohio residents employed last year reached approximately 5.4 million people, up nearly 4 percent from a post-recession low of 5.2 million in 2010. However, the level of employment in Ohio has yet to surpass the average pre-recession amount of 5.7 million working residents in 2007, according to statistical estimates tracked by Ohio Department of Job and Family Services.
“The labor market is certainly in a better state than it was five years ago and I think it will continue to improve,” Janet Harrah, senior director of the Center for Economic Analysis & Development at Northern Kentucky University and a Cincinnati-area economist, told this reporter in February.
— By Chelsey Levingston, staff writer
THREE WAYS THIS MATTERS TO YOU
1. YOUR COCKTAIL CREATES JOBS. Liquor sales in Ohio are now privately owned by the nonprofit JobsOhio Beverage System, which like other businesses, pays costs of operations, debt and remits sales taxes collected. Net profits are used to fund economic development programs such as grants and loans to companies expanding in Ohio.
2. TAXPAYERS FUNDED THE START-UP. Even though JobsOhio is a private entity and paid Ohio to buy the liquor business, taxpayers did help provide funding in the beginning and still collect payments from JobsOhio on an annual basis. While Columbus-based JobsOhio leads the state’s economic development efforts, it partners with six regional groups that received a collective $24 million for two years ending in 2013 from the Ohio Third Frontier Commission to add new responsibilities when JobsOhio was created in 2011, according to Ohio Development Services Agency.
JobsOhio received an additional $1 million in startup funds from the state’s general fund that was paid back, according to development services.
3. BUSINESS DEALS. Previously, efforts to recruit and retain businesses in Ohio was run publicly, with Ohio Development Services agency (formerly known as Ohio Department of Development) in charge. Now, economic development in Ohio is run by a private nonprofit that leads negotiations with companies to add jobs or keep jobs in Ohio. JobsOhio partners with regional agencies such Dayton Development Coalition and REDI Cincinnati and local government for business recruitment and retention too.