Diebold’s international HQ’s is presently located in Green, Ohio near Canton—a region where the company started some one-hundred and fifty-two years ago.  It’s been at its present location since 1972.  While Kasich dithers on making any decision on the casinos, thus delaying billions in construction and new jobs, he’s rushing to declare victory over keeping Diebold in Ohio.

Today the Cleveland Plain Dealer reports that Governor Kasich and Diebold will announce that the State is giving $55 million (what budget deficit?) in tax incentives to essentially finance Diebold’s planned new $100 million world headquarters (the company wants to build a corporate campus as opposed to their current arrangement.)

The current facility employs 1,900 at its sites in Stark and Summit counties.  What does Diebold get and promise in return, according to the Plain Dealer?

Pending approval by state and local governments, Diebold’s total incentive package could end up around $100 million, the company says. State officials declined to comment on the specifics in that package.

In return, the company would agree to employ about 1,500 people in Ohio for 18 years.

In other words, Diebold could layoff 400 employees in the next 18 years and still keep the State and local incentives.  The State, alone, is paying $55 million, more than half the estimated costs of the project, in return for a promise that the company won’t lay off more than 400 employees in the next eighteen years.  Local incentives cover the rest of the costs.  We’re not even paying to keep jobs, just mitigate how much we’re willing to lose under this deal.

The package relies on the same legislation that was passed this year that made the American Greetings deal possible, HB 58.  Governor Kasich will talk about how the company was “planning to move” and even had an incentive package offer from either North Carolina or Virginia.  Of course, it’s not like Diebold and other companies wouldn’t learn they need to get such an incentive package in order to qualify for the massive tax savings offered in that bill.

Was Diebold seriously considering leaving Ohio?  We know that at least one State gave them a package deal, but American Greetings made the same argument even though they were supposedly thinking of leaving Ohio over a municipal tax they don’t even incur and was considering a State that just enacted a massive tax increase the company would have had to pay.  That’s the problem with programs like that created by HB 58.  It creates a roadmap in which companies with over 1,000 employees know how they can game the State into giving them massive tax breaks, so long as they can dupe another State in presenting a package to pose as a potential threat.

According to the Plain Dealer, Diebold made over $2.82 BILLION in revenues last year.  For the 58th straight year, it increased what its stock pays in dividends, something the company itself touts is an unprecedented act for a company its size.  And it’s going to get a world HQ campus of its dreams without having to pay a penny for the construction of it.

And if Kasich’s budget is passed, I believe this means that the construction jobs for this new world HQ will be exempt from paying prevailing wage.  And John Kasich is rushing to Canton right now to declare victory over this.

[UPDATE:]  I forgot to mention that Governor Kasich’s budget seeks to take the program created in HB 58 and TRIPLE the funding from $8 million to $25 million over the biennium while lowering the number of employees at stake to qualify.  In testimony before the House Finance Committee, a representative from the Ohio Department of Development says the funding increase is needed to meet the “demand” for the program.

Gee, I wonder if passing HB 58 increased the “demand”?

Kasich Idiot

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  • Mlrp75

    Couldn’t you find a less flattering Kasich photo?

  • Greg Soper

    Does anyone have access to the memo Seitz sent Niehaus regarding his demotion? They no longer share a condo together.

  • This REALLY pisses me off. These election thieves won’t have to pay a dime for their new pad while being free to cut their workforce. But when it comes to Calisolar taking over the GM plant that closed in Ontario, Ohio and bringing up to 1,300 new jobs back to the area, you know how much of a tax incentive they got? The Ohio Tax Credit Authority gave them 5% for 15 years. I suppose since they’re one of those hippie tree-hugging green job creators, they ought to be glad to even be getting that, eh?

    So it looks like Diebold is finally getting their payday for “delivering Ohio for Bush” in 2004, which is exactly what Diebold’s CEO said they would do, and which is exactly what happened. More’s the pity.

  • Vel

    Now if Diebold were to let 400 people go, it’s important to remind those 400 potential lazy sloths that they are not to spooge off the taxpayer at all. They are to pull themselves up by their bootstraps. Relying on government for any undeserved handout is not going cut it, especially since all they’re going to probably do is sit around and watch Jerry Springer all day long. Those 400 potential losers could cost the taxpayer countless thousands, and I for one am not going to stand for it.

  • Anonymous

    King John Kasick – “creating” jobs at the speed of business! And all on the taxpayers’ dime.

    [shaking head]

    Only in the alternate universe known as the Tea Party Republican Party.

  • maxpatch

    I have a feeling that Diebold will take advantage of the “incentives” given it until the point arrives where these incentives cut into the bottom line. Then Diebold will most likely move its operations overseas, or declare bankruptcy. Either way the jobs in Ohio will evaporate.

  • Rick Jenkins

    No it won’t! But it lays a foundation for businesses to even talk with Ohio to move and build here.

    The Casino’s are NOT the answer..yes they will provide jobs here…but the majority of the business monies will be moved elsewhere in the states.

    That is BIG BUSINESS!!!

    Please try to understand it is a start and a quick way to influx more monies into the state…not OUT OF IT!!

  • Ohio cannot afford to keep this Governor. If a referendum for a recall is not put on the ballot, I fear that the Ohio I love will be gone before his term is up.


  • Anonymous

    Can’t we just promise not to ask any pesky questions when their machines spit out 80-20 results in favor of the GOP in heavily Democratic districts?

    Now THAT’S bargaining power. Show me another state that will allow you to rig elections. Certainly that’s worth 2000 jobs, maybe even a park with jungle-gyms.

  • Madashell

    Very confused by our priorities here. Our school district is going to lose $450,000 next year, and will probably have to cut jobs due to this, and these people stand to gain $55 million if they promise not to cut too many jobs??? Wth is wrong with these people??? When did profit become more important than our children and our future?

  • Anonymous

    Two words. “Citizens United.”

  • Tim M

    The Plain Dealer is reporting that Diebold stated they needed a new HQ to be competitive. How ridiculous. What a lie. As admitted by analyst quoted in the Plain Dealer article: “shareholders usually don’t care about new facilities.” She then grapples with trying to put a postive spin on the story. But if any of this was true for Diebold their stock should have finished up at the end of trading today. If you check you’ll find that it did not.

    How often have you heard a company tout a new HQ as a main factor of success? A lot of times building a new HQ puts a company under. It won’t in this case though, since we (the taxpayers) are paying for it.

    In the Plain Dealer article Diebold offers no good explaination for building a new HQ. They are not consolidating operations. They state that they have multiple facilities throughout Summit County and it appears they’ll keep it that way. The article actually makes it sound like staying in Ohio is an uncompetitive move. It stated that Diebold could have moved to North Carolina or Virginia where it has factories. In the end this is ridiculous corporate wellfare. It’s no secret Diebold execs are big backers of Republicans. One back being scratched and then the favor being returned.

  • Victoria

    What will happen when this is transferred to RobsOhio? How could there even be more corporate give aways than this? He will find a way with his new nonprofit. He may also being figuring ways to destroy the state without it in the event even the current Supreme Court recognizes it is grossly unconstitutional.

  • Glad I don’t live in Ohio anymore. The Governor is a corrupt hack and the state’s long term future is bleak.

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