Letter to the Editor: Ohio Is Taking Big Steps Toward Job Growth

The following was sent from State Rep. Nan Baker, who represents Fairview Park, North Olmsted, Rocky River, Westlake and Bay Village.

Dear Editor:

I was intrigued by Mr. Michael Cooper’s article from The New York Times (“States' incentives carry few strings,” 12/19/11) that was republished in the Cleveland Plain Dealer.  Given the high unemployment rate across the country, I agree that states are continuing to work with companies to ensure businesses stay or are marketing to outside businesses to come to their state.  Ohio is no different.  Furthermore, I appreciate Mr. Cooper’s thoughts on the importance of results from these incentives.  I believe qualifications must be met to ensure jobs are truly retained and or created.  I am extremely proud of the initiatives we are taking in Ohio, such as House Bill 18, to create an environment to create and retain jobs for Ohioans.

House Bill 18 is one such example of how, here in Ohio, we are setting guidelines in place to encourage economic development.  For example, in House Bill 18, if the employer needs more space and is expanding their payroll, this bill encourages them to stay in Ohio and consider a vacant building or a new building that is 85 percent or more complete.  As many of us have seen the mass exodus of large and small corporations leave Ohio, it has left behind abandoned and vacant buildings dotting urban, suburban and rural landscapes.  By occupying buildings where businesses have left, companies will be entering economies full of citizens that need jobs and are ready to work. 

The incentive to the employer that moves into a one year or more vacant building is $500 for every newly created job.  According to a research project by the Legislative Service Commission (LSC), the average salary for private sector workers is $40,128.  An average worker contributes $1,472.00 per year to the state through various taxes, which includes personal income, sales, cigarette, insurance taxes and alcohol taxes. If the average worker contributes $1,472 minus the $500 incentive, this equals a return on investment of $973 per employee.  Furthermore, there are other provisions in the bill that hold the piece of legislation accountable.  This incentive to the employer is for five years and the company can continue receiving an incentive with increased payroll each year.  However, the bill sunsets after three years in order for review.  Finally the bill authorizes the Director of Development to prescribe application materials and proof of new employment as part of the application process. 

In Ohio, in conjunction with Gov. Kasich, the General Assembly has passed several other initiatives to create an environment to spur job retention and growth.  The first item includes House Bill 1, JobsOhio.  This piece of legislation offers reform to how Ohio works in marketing our state to businesses.  In addition, as Chair of the House Economic Development Committee, I am pleased our committee was able to favorably report Senate Bill 2, Common Sense Regulatory Reform.  This bill is instrumental in working with the private sector to free up the number of cumbersome regulations that exist in Ohio.

We are proud of the work the governor and the General Assembly have done during the first year of the 129th General Assembly and will continue to work on such initiatives.  As Mr. Cooper indicated, states across the nation understand that economic development is key to their futures.  I am proud to say House Bill 18 is one such bill that does include those provisions to ensure results.  As I continue to say, ‘It’s All About Jobs.’

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