Kasich wants to ax jobs agency, replace it with private group

COLUMBUS - Republican gubernatorial hopeful John Kasich Tuesday proposed dismantling the state agency he calls the "black hole'' of economic development and replacing it with a private, nonprofit organization heavy on business experience.

"We've lost almost 400,000 jobs,'' he said. "I've traveled three years across this state. What I've learned over time is when you go into the Department of Development, be very wary. You may be entering a black hole from which you may never emerge.''

The former suburban Columbus congressman is locked in a tight battle with Democratic Gov. Ted Strickland, whose second-in-command, Lt. Gov. Lee Fisher, served as development director for two years before beginning his U.S. Senate bid.

Mr. Kasich stood in front of steel beams fabricated at the family-owned Tarrier Steel in Columbus in his first major press conference since naming State Auditor Mary Taylor as his running mate in January. Meanwhile, Mr. Strickland participated Tuesday in a manufacturing policy discussion in Cleveland.

Both events signify that jobs, or the lack thereof, are the focal point of this campaign.

Mr. Kasich called for the creation of JobsOhio, a nonprofit organization that would take over the state's economic development functions. It would be operated by a 12-member board appointed by the governor that would essentially negotiate tax credits, loans, and other incentives with businesses and then hand the paperwork over to the governor's office for final decisions.

Variations on the theme operate in Ohio neighbors Michigan and Indiana.

Strickland campaign spokesman Lis Smith suggested Mr. Kasich wants to put the fox in charge of the hen house.

"After years of supporting unfair trade deals and outsourcing that cost Ohio over 460,000 jobs and helped Wall Street, it's not surprising that Congressman Kasich wants to outsource economic development to corporate interests at the expense of working Ohioans,'' she said.

The Department of Development has a budget of about $1.1 billion, including state dollars and federal stimulus funds.

It projects that its programs have created or will create more than 80,000 jobs, retain more than 309,000 jobs, and train 104,000 workers.

"The Ohio Department of Development at one time served its purpose … but we're starting to lose jobs,'' said state Sen. Mark Wagoner (R., Ottawa Hills). "We need to be proactive. Everything has to innovate to succeed.''

Contact Jim Provance at:

jprovance@theblade.com,

or 614-221-0496.