What is the history? It goes back to the building of railroads, roads, and other public works after the Civil War. Promoters would come to a governmental body and want credit and financing for constructing public works. The governmental body would lend its credit to the enterprise. The enterprise would fail, and the taxpayers would have to shoulder the liability. The promoter would move on with his stash to the next town.
When a promoter comes to town, everyone is for progress. Everyone is for jobs. The promoter just wants to make money, and get rid of the risk. The taxpayers are caught, as who is against jobs and progress. So we have in Ohio, JobsOhio, a tax funded private enterprise, which takes our taxes, contributes to friendly politicians and creates few jobs. It is a great vehicle for funding Republican political campaigns with tax dollars. Yes, this is a partisan comment, but it is true.
Because of history, we have Article VIII, Section 4 in the Ohio Constitution. The article provides that [t]he credit of the state shall not, in any manner, be given or loaned to , or in aid of any individual association, or corporation, whatever….”
Here from the opinion of the Supreme Court is a description of JobsOhio:
“This case concerns appellants’ constitutional challenge to the JobsOhio Act. The act authorized the creation of a nonprofit corporation, JobsOhio, for “the purposes of promoting economic development, job creation, job retention, job training, and the recruitment of business to Ohio. R.C. 187.01. An appropriation from the Department of Development initially funded and established JobsOhio. 2011 Am.Sub.H.B. No. 1, Section 5. Thereafter, JobsOhio was given the right to purchase the state’s liquor distribution and merchandising operations and to operate from revenues of the liquor enterprise. R.C. 4313.02(A).”
If someone can reconcile Article III Section 4 and what was done, they are a genius. We have sold a private corporation, the state monopoly on liquor, and we have given it the purchase money with “an appropriation.” I own a car, I give you the money to buy it, and you buy it from me. It is a fools paradise. Keep the taxes, and the profits and account to nobody, as you are now a private corporation.
So how does the Ohio Supreme Court dodge the case? It holds that ProgressOhio does not have standing – i.e. harm to it, to give it the right to sue. On close reading of the opinion, it is impossible to discern if anyone will ever have standing to challenge JobsOhio.
So the judges can with smugness sleep soundly. They have never said JobsOhio is constitutional. They can even accept contributions from employees of JobsOhio. Let the judges cover their eyes and ears. “Hear no evil, see no evil, speak no evil.”