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Michigan embezzler

Surprisingly, a D.C. think tank recently concluded a study into the performance of State Economic Development Agencies similar to the JobsOhio plan that Governor Kasich wishes to implement.  (A copy of the study after the jump)

“Rather than making economic development activities more effective, privatization often is little more than a power grab by governors and powerful business interests.”—Good Jobs First.

It’s findings found, shall we say, a few  problems:

  • The idea of privatizing economic development isn’t new, but over twenty years old;
  • The trend nationally is that States are actually going from privatizing entities back to a public entity;
  • Privatized entities have all had at least some of the following problems:
    1. Misuse of taxpayer funds;
    2. Excessive executive bonuses;
    3. Questionable subsidies given to members of the entity;
    4. Conflicts of interest in subsidy awards;
    5. Questionable claims of effectiveness;
    6. Resistance to accountability

Thank goodness, we don’t have a Governor that’s shown a tendency to pay people exorbitant salaries, dismissal of transparency, and a tendency to engage in cronyism by appointing his biggest donors and personal friends… to usher in JobsOhio, or else JobsOhio might be doomed to fail from the start.

But it worked in Indiana, right?

A former budget official in Indiana told a reporter that “most of
the numbers [IEDC] gave us were either not true or could not be substantiated,” adding that he considered IEDC “a political organization that really only served to make it seem like the governor was doing something about the economy.”

Funny, the same thing could be said about JobsOhio…

So what was the Kasich’s Administration reaction to yet another report detailing, state by state, how privatizing economic development functions has not resulted in an inherently better results, but instead created more problems than they solved?

"Ohio’s government-run economic development efforts have failed Ohio’s taxpayers for far too long because they’ve failed to produce the job-creating results our state so desperately needs. A private sector approach can be more accountable to taxpayers because it can more adroitly respond to Ohio’s economic needs and be as nimble as the businesses it seeks to help thrive, retain and recruit.

"That accountability includes being a good steward of both the public’s trust and its resource and there’s a strong commitment to making sure that happens." [Source: Columbus Dispatch Daily Briefing Blog, 1/12/11]

What’s that saying about people who refuse to learn the lessons of history?

Good Jobs First Power Grab Study

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  • Fotogirlcb2002

    Theres so much info here its hard to comment–but I can tell you folks from past times — privitizing is always used as propaganda to the public in a ploy to save money– as you show here it very rarely does. The first view they get is the first “contract” and it shows a savings — but they never see the next contract where all the costs increase– this has happened in the past with state agencies . Most people well not know that several private ( very large) construction companies plan to present a plan to take a lot of jobs away from ODOT. Yes in the beginning it will look great ( most things look better on paper)but it will end up costing more– and would you be surprised to find these same companies give large amounts of money to campaigns. There is of course a lot of inside workings that cant be explained here as to why it costs more.and I must add these companies never compare apples to apples its always apples to oranges.Some jobs that state agencies do are NOT in the private sector to compare with.What bothers me about this JobsOhio thing is –it comes right back to the governor and hes already said he wont tell about all the bonuses — right there is cause for concern. Believe me when he does away the Dept of Development there will be no more competition– no more contracts out for bid — it will just be whoever he decides can have the work– the “ol buddie system” at its best.

  • Charles In OH

    This report only serves to bolster what Kasich fully intends. Now he has a study to affirm that his policies can have the desires he seeks.

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