Honorable Chairman Amstutz, Ranking Member Sykes, and members of theHouse Finance & Appropriation Committee, thank you for giving me the opportunity tospeak in opposition to Sub. H.B. 1. I support and applaud the efforts of Governor Kasichand Director Kvamme and others to narrow the focus of the Ohio Department of Development to focus on job creation, job retention, and out-of-state job importation.However, their JobsOhio plan is where they lose my, and I imagine, millions of Ohioans’support. In short, even if there was a “right” way to privatize a State’s economicdevelopment efforts, JobsOhio is nowhere close to that system.First, let’s clear up a few facts about this issue. A recent study found that only seven States in United States allow a private entity to control their business recruitmentfunctions.
According to the latest data from the U.S. Department of Labor’s Bureau of Labor Statistics, three of the top five States with the
unemployment in the nationright now are Florida, Michigan, and Rhode Island.
Three—three of the seven Statesthat already have in place private corporate economic entities are among the top FIVEStates in the nation in unemployment. Director Kvamme’s homestate of California,technically, is the fourth because Gov. Schwarzenegger switched California’s economicdevelopment efforts back into a public entity sometime in 2010 after critical reportsindicated that California’s private entity that had only been created seven years earlier
“Public-Private Power Grab: The Risk of Privatizing State Economic Development Agencies” Good Jobs First(Jan. 2001), attached in full to this prepared testimony, incorporated by reference, and submitted to this Committeefor their own review.