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2010 Economic Development Accountability Report

2010 Economic Development Accountability Report

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Published by Mike DeWine

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Published by: Mike DeWine on Jan 06, 2011
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01/06/2011

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 December 31, 2010Honorable Members of the General Assembly,In December 2008, shortly before I assumed the responsibilities of this office, youenacted a measure directing the Ohio Attorney General to review the State of Ohio’s economicdevelopment awards and requiring this office to submit a report regarding that undertaking.What follows, after months of collaboration among state award recipients, the Ohio Departmentof Development and the Ohio Attorney General’s office, is a first-of-its-kind report concerningthe monitoring and enforcement of economic development assistance in Ohio. We believe itdemonstrates the possibility of greater transparency and accountability in this important areawhere public officials are engaged in the discretionary expenditure of public funds.I trust that you will find this report informative and useful as you consider the best waysto grow Ohio’s economy and to provide job opportunities for citizens in the current economicand budgetary climate. We intend, as the General Assembly directed, that the contents of thisreport will stimulate further consideration of the ways in which we expend tax dollars to createproductive public investments in Ohio’s economy and that they will shed light on potentialimprovements in the processes by which Ohio’s taxpayers and citizens can hold accountable thepublic officials who are entrusted with spending public funds.Sincerely,Richard CordrayOhio Attorney General
Ohio Attorney General’s Office30 East Broad St 17
th
Fl
Columbus, Ohio 43215
PHONE
614-466-4320
FAX 
614-466-5087
 
www.OhioAttorneyGeneral.gov 
 
 
Ohio Attorney General Richard Cordray2010 Report of the Ohio Attorney General RegardingEconomic Development Accountability
December 31, 2010
Submitted to the Ohio General Assembly Pursuant toOhio Revised Code § 125.112(G)
 
 
TABLE
 
OF
 
CONTENTS
EXECUTIVE SUMMARY............................................................................................................1KEY FINDINGS.............................................................................................................................2BACKGROUND AND PROGRAM DEVELOPMENT...............................................................3DISCUSSION...............................................................................................................................10I. Clarity and Transparency of Information About Awards..................................................10A. Knowledge of Award Requirements Is Inconsistent Among Award Recipients.........10B. Taxpayers and ODOD Officials Have Limited Access to Information RegardingAward Outcomes.........................................................................................................13C. Recommendations........................................................................................................15II. Effectiveness of State Enforcement Mechanisms..............................................................17A. Contracts Governing Awards Inconsistently Protect Taxpayer Interests....................17B. Despite Its Contractual Authority, ODOD Often Does Not Strictly Enforce AwardRequirements...............................................................................................................20C. Recommendations........................................................................................................22APPENDIX A: SURVEY.............................................................................................................25APPENDIX B: SURVEY INSTRUCTIONS...............................................................................28APPENDIX C: SURVEY LETTER 1..........................................................................................32APPENDIX D: SURVEY LETTER 2..........................................................................................34APPENDIX E: AWARDS OF INTEREST..................................................................................36

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