Before advancing Gov. John Kasich's main mid-biennium review budget bill yesterday morning, the Senate Finance Committee boosted the appropriation authority of the bond-funded Clean Ohio program, according to Gongwer. The Clean Ohio program was created under a 2008 ballot measure that utilizes state dollars to leverage local funds to revitalize blighted areas, set aside open space for the public, preserve family farms, and create trails for Ohioans.

There is currently $100 million in remaining voter-approved bond appropriations available; however, the legislature has to approve further program appropriations. The state capital bill, earlier this year, included only $6 million in funding for trails. Yesterday's appropriation by the committee would allow for the issuance of up to $42 million in bonds to further fund the program. The additional spending authority for farmland preservation and green space projects was among a handful of amendments added to the bill (H.B. 487) by the Senate Finance Committee.

The bill was slated for a full Senate floor vote yesterday afternoon. If passed by the Senate, subsequent conference committee talks would have to occur with the House.

Legislation has been introduced to create the SiteOhio certification program within the Ohio Department of Development. Sites qualifying for inclusion in the program would be listed on the department’s website and actively marketed to interested persons by the director of development. 

Am. H.B. 436 enacts R.C. 122.97 and 122.971 and authorizes the SiteOhio certification program. Under the program, an eligible applicant may apply to the director of development for certification of an eligible project, based upon scoring criteria to be developed by the director. If the eligible project meets all the scoring criteria, the project “shall” be listed on the department’s website and the director “shall” market the site to interested parties for development.

An “eligible applicant” means a person or political subdivision. An “eligible project” is any project that, upon completion, will be a site and facility primarily intended for commercial, industrial or manufacturing use. Any site intended primarily for residential, retail or governmental use is specifically excluded.

The bill authorizes the director to adopt rules to implement the program.  This includes rules authorizing fees to cover administrative costs of the program, the authority to contract with other persons to administer all or any part of the program, and a limit to the number of sites to be certified based upon available resources and capabilities of the department.

The Ohio Housing Finance Agency (OHFA) recently released a report on the need for affordable housing in Ohio's 32 Appalachian counties. According to OHFA, the study was completed to "provide a comprehensive housing needs assessment (or “Affordable Housing Market Study,” per the Ohio CDC Association) that focuses on the current and anticipated affordable housing need," in Appalachia. Due to a lack of modern housing built over the last several decades, the region is in desperate need for various housing types. The study also includes a section to help community development corporations focus on those areas with the greatest need and the best demographic support for certain types of housing. For more, read the study.

Nationwide, $4.9 billion was raised by 42 venture capital funds during the first quarter of 2012, the Pittsburgh Business Times reports. According to a recent report by Thomson Reuters and the National Venture Capital Association, that’s a 35 percent decrease in dollars and a 9 percent decrease in the number of funds compared to the first quarter of 2011. Raising $16.9 million in the first quarter of 2012, Fraser McCombs Ventures LP in Boulder, Colorado is the largest new fund, the article said.  For more information, read the full article.

A recent report by the National Venture Capital Association and PricewaterhouseCoopers indicates that venture capital investments in Ohio have grown during the last two years and that the total amount of money invested during the first quarter of this year "was the highest quarterly total in a decade" with Ohio receiving 14 venture capital deals worth $122.7 million, the Springfield News-Sun reports. Based on data from Thomson Reuters, the report indicates that Ohio is displaying a more positive trend than what is occurring on the national level, which industry experts credit to programs implemented by the state that "provide effective resources and funding to entrepreneurs" to help them develop their business plans and become attractive to venture capitalists, the article said. For more, read the full story.

The average annual pay in Ohio is $41,590, according to a report from On Numbers, a feature of Bizjournals.com, which ranks Ohio 27th in the nation among the 50 states and the District of Columbia. Average hourly pay for Ohio's 4.98 million workers is $20, according to the study, which used data from the U.S. Bureau of Labor Statistics.

The District of Columbia tops the list with average annual pay of $74,540. Massachusetts ranks 2nd at $54,740. Rounding out the top five at the state level are Connecticut ($52,830), New York ($52,810), and California ($51,910). Last on the list is South Dakota, where the average annual salary is $35,390.

Among Ohio's neighbors, Michigan ranks 20th ($43,700), Indiana is 36th ($39,700), Kentucky is 43rd ($38,640), and West Virginia ranks 49th ($36,220.) For more, read the full report.

On April 11, 2012, the Federal Reserve released its latest Beige Book report on current economic conditions. The report indicated modestly improving conditions in the Midwest, according to The Business Courier. While hiring across all industries remains at low levels, the slight improvement in economic conditions from mid-February to late March can be attributed to the fact that “manufacturing and other industries continued to trend slightly upward,” the article said.

For more, read the Fed’s Beige Book report and The Business Courier article.

The Bureau of Labor Statistics (BLS) released data today stating that nationally, non-farm payroll employment rose by 115,000 during the month of April, and the unemployment rate dropped slightly from 8.2 percent last month to 8.1 percent. It has fallen a full percentage point since August of 2011 to a three-year low. BLS noted that private sector employment rose in the areas of professional and business services, retail trade and health care, but declined in the transportation and warehousing sectors.

April 2012 unemployment rates and nonagricultural wage and salary data for Ohio will be released by the Ohio Department of Jobs and Family Services (ODJFS) on Friday, May 18, 2012. This information and the monthly statistical summaries it is based on is available here.

The Ohio Department of Development recently named Anita Goodman as deputy chief of the Office of Business Assistance, according to a press release from the department. In this role, Goodman will lead the department's efforts in export assistance, as well as assistance to small- and minority-owned businesses.

Goodman most recently served as a client counselor for the Minority Business Assistance Center in Toledo, Ohio. She has worked as the managing director of AG Bradford & Associates in Greensboro, North Carolina and served as an international business development specialist at the U.S. Department of Commerce's Minority Business Development Agency in Washington, DC. 

Bill Webster, who for the last six years served as the administrator of the Columbus Department of Development's Economic Development Division, has replaced Michael Stevens as the deputy director of jobs and economic development within the department, Columbus Business First reports. For more, read the full story.

As briefly discussed in our April 27, 2012 DevelopOhio blog post, Ohio Attorney General Mike DeWine has raised concerns about the proposed JobsOhio II legislation regarding public record restrictions of JobsOhio information as it relates to the lack of transparency and what might happen should another agency get involved and handle business records. Specifically, the broadly worded provision in HB 489 that says records created or received by the nonprofit JobsOhio are not public "regardless of who may have custody of the records." DeWine believes that this provision could shield documents from public view that state agencies share with JobsOhio, the Tribune Chronicle reports.

However, Gongwer reported on Friday, April 27 that DeWine and Governor Kasich’s office worked out a solution to make a minor revision to the pending legislation that could prevent major problems with Ohio’s public records law upon passage. DeWine stated that “we have language now that just makes it very clear that’s not going to happen.” Essentially, the proposed amendment would remove language specifying that any documents “received by” JobsOhio are not subject to Ohio’s public records law, Mr. DeWine said. DeWine believes the issue is resolved, and the bill including the revision is now headed to the Senate.

Last year, Governor Kasich’s administration and JobsOhio asserted that the entity has aided in the creation or retention of approximately 80,000 jobs, The Columbus Dispatch reports. JobsOhio is expected to release its Productivity Report for the first quarter to the public on May 1, 2012.  Stay tuned…

With JobsOhio established to primarily handle Ohio's economic development efforts, legislators and the Kasich administration are restructuring what’s left of the Ohio Department of Development (ODOD). This week, the Ohio House voted 91-5 to send the Senate a proposal designed to reorganize the ODOD.  The new department will be known as the Development Services Agency (DSA) and legislative leaders hope to pass the bill by the end of May.

As cited in our March 27, 2012 DevelopOhio blog post, in addition to renaming the ODOD, the bill would allow the development director to expedite approval of tax credits; create a pilot program called TourismOhio to provide a dedicated funding source for tourism marketing throughout the state; eliminate the Development Financing Advisory Council (DFAC), a panel that decides whether to recommend approval of low-interest loans for companies to expand or relocate in Ohio; and increase financing opportunities for minority-owned businesses.

The plan is for JobsOhio to handle low-interest loans, grants, tax credits, and “close-the-deal” discretionary funds. The DSA will oversee JobsOhio in executing those loans and tax credits and will provide an additional range of services such as technology assistance, workforce training, and revitalizing abandoned industrial sites. The proposed legislation also includes another public record restriction related to JobsOhio. Some critics, including Ohio Attorney General Mike DeWine, have raised concerns about the lack of transparency of JobsOhio and what might happen should another agency get involved and handle business records. For more, read The Columbus Dispatch article. 

The Ohio Economic Development Association (OEDA) will host its 8th Annual Legislative Event in Columbus on May, 2, 2012, to relay its message and agenda to the state's elected officials and to serve as an opportunity for attendees to network with colleagues and state legislators, according to a press release from the organization. During the event, Sen. John Carey (R-OH) will be honored with an OEDA Award for Service "for his efforts in supporting economic development in Ohio," the release said.

For more information about the 2012 Annual Legislative Event and OEDA’s 2012 legislative priorities, click here and select the Advocacy link in the top left corner of the page.

Site Selection magazine recently recognized three economic development organizations in Ohio as being among the nation’s best, The Western Star reports. Wayne County EDC in Wooster, Columbus 2020, and the Cincinnati USA Partnership received the honor based on several factors including new jobs and investment, innovation, leadership, and customer service, the article said. Ohio also finished third, behind Texas and Virginia, for the magazine's Competitiveness Award, which judges economic development on the state level, Columbus Business First reports.

The Ohio Department of Job and Family Services (ODJFS) released state figures this morning noting that Ohio’s unemployment rate continues to decline, currently settling at 7.5 percent in March, down from 7.6 percent in the month of February. The number of workers unemployed in the state of Ohio in March was 438,000, down from 443,000 in February.

As noted in our April 6 blog post, the U.S. unemployment rate for March dropped by 0.1 percent to 8.2 percent, which is down from February’s 8.3 percent. 

Ohio Governor John Kasich recently signed Executive Order 2012-02K, creating the Governor’s Office of Workforce Transformation (OWT) and the Governor’s Executive Workforce Board (which replaces the Governor’s Workforce Policy Advisory Board). The governor’s order assigns the OWT the responsibility of coordinating and streamlining the state’s workforce development functions, specifically serving as a single point of entry for individuals seeking training and businesses seeking skilled employees.

Executive Order 2012-02K became effective on February 9, 2012, immediately upon signature of the governor. Rich Frederick, the governor’s assistant policy director for workforce development, was appointed to serve as executive director of the OWT. For more on the key directives for the OWT, read more here.

The Ohio Department of Development announced today that seven Ohio communities are expected to receive $10 million in Job Ready Site grants pending approval by the Controlling Board, according to a press release from the department.  The grants, ranging from $500,000 to $2.8 million, are intended to fund projects to “prepare sites for future economic development opportunities,” the release said. The seven communities slated to receive the grants are the cities of Cleveland, Dayton, Trenton, and Twinsburg; the Northwestern Water and Sewer District in Henry Township; the Toledo-Lucas County Port Authority; and the Youngstown-Warren Regional Chamber. For more, read the full press release.

The Municipal Income Tax Uniformity Coalition, which is comprised of 14 Ohio business groups, are pushing for reforms that would "create a uniform code with clear definitions of income, tax withholding, penalties and related regulations" in an effort to make the state more attractive to businesses that work across multiple jurisdictions, Columbus Business First reports. While the coalition primarily works with three state representatives to develop a uniform tax code, another group — the Ohio Municipal League — is concerned that these reforms, if realized, may take away local control and management of revenue by charging the state with the task of collecting and distributing municipal income taxes, the article said. For more, read the full story here (subscription required).

In the wake of a revised study revealing that about 59% of the companies in Ohio that received tax breaks to create jobs actually created the number they said they would (see the March 5, 2012, blog post), as well as the fact that the state foregoes approximately $7 billion of tax revenues a year, Rep. Denise Driehaus (D-Cincinnati) has introduced HB 446, which would "set up a panel to regularly review each tax break and recommend which ones should continue," according to The Cincinnati Enquirer. As cities across Ohio struggle to reduce deficits and manage significant budget cuts, more attention is being paid to whether specific tax programs still serve their originally intended purposes, the article said. For more, read the text of the bill here and the full story here.

Cuyahoga County has expanded the reach of its anti-poaching agreement, spearheaded by County Executive Ed FitzGerald, to include 8 more municipalities within the county (see our September 16, 2011, blog post). The pact, designed to discourage neighboring communities from luring businesses from one another, now has a total of 28 jurisdictions within Cuyahoga County that have agreed to sign on and share taxes whenever companies move from one suburb to another, Columbus Business First reports. Varying anti-poaching agreements of this nature are slowly making their way across Ohio with a version in existence in the greater Dayton area and another just recently finalized and signed by 12 communities in central Ohio (see our March 30, 2012, blog post). For more, read the full story here.

Connect Ohio, a nonprofit focused on bringing universal broadband to the state of Ohio, released a study highlighting the negative impact the lack of broadband access has on existing and emerging businesses in Ohio. The study showed increased annual revenues and improved connection with current and potential customers for those businesses with broadband access in the region. Connect Ohio also outlined the barriers to using broadband in the region and the efforts underway to help connect Appalachian businesses. Read the full report here.

The Cincinnati USA Regional Partnership, a JobsOhio regional organization and the economic development arm of the Cincinnati USA Regional Chamber, reported at its annual meeting that its economic development efforts brought 1,967 new jobs and $43.7 million in business investment to the Greater Cincinnati area in 2011, The Columbus Dispatch reports. The Partnership hopes that a new marketing campaign known as "Cincinnati, the BrandHUB," which aims to "capitalize on the region's existing strengths among consumer marketing and brand-design businesses," will be a catalyst along with five other high growth industry sectors to attract more jobs and investment in 2012, the article said. For more, read the full story here.

Two Ohio colleges — Ohio State University and Ohio University — are contributing $20 million and $15 million respectively toward the creation of a venture capital fund for early-stage technology companies, Columbus Business First reports. This move reflects Ohio State University's recent push toward executing its technology commercialization efforts, the article said. For more, read the full story here.

Earlier this month, Sarah Boyarko — former manager of business development for the Youngstown/Warren Regional Chamber — became the chamber's new vice president for economic development, business retention and expansion, Business Journal Daily reports. In addition to overseeing the economic development office, Boyarko will also discuss local expansion opportunities with businesses and "oversee the chamber's business attraction efforts," the article said. For more, read the full story here.

From April through September, the Ohio Department of Development's Office of Business Assistance, the Small Business Development Centers of Ohio, and the U.S. Small Business Administration will offer a series of six seminars in Cincinnati, Columbus, Dayton, and Mansfield on tools and resources available to assist aspiring entrepreneurs, according to a press release from the Ohio Department of Development. In addition to providing in-depth overviews of the assistance available to business owners in the forms of programs and services, the seminars will also "provide information on establishing a business, operating a business, loan programs, marketing and procurement opportunities," the release said. For more, including the seminar schedule and a list of the various topics to be discussed at each meeting, read here. 

KPMG LLP, an audit, tax, and advisory firm, released a study that finds Cincinnati to be the "least-costly location to do business in the United States among the 27 largest metro areas," in large part due to its "low costs for facility leasing, transportation and property taxes," according to a press release from the firm. The Competitive Alternatives: KPMG's Guide to International Business Location Costs 2012 edition study found that the cost index of Cincinnati was 95.9, indicating that business costs are "4.1 percent below the U.S. national baseline of 100.0," the release said. Cleveland tied with St. Louis for seventh place due to its low office lease costs. For more, read the full press release here or view the complete 2012 global study here.

The Bureau of Labor Statistics (BLS) released data today stating that nationally, non-farm payroll employment rose by 120,000 in March, and the unemployment rate dropped slightly from 8.3 percent last month to 8.2 percent. BLS noted that private sector employment rose in the areas of manufacturing, food services and drinking establishments, and healthcare.

March 2012 unemployment rates and nonagricultural wage and salary data for Ohio will be released by the Ohio Department of Jobs and Family Services (ODJFS) on Friday, April 20, 2012. This information and the monthly statistical summaries it is based on are also available here.

We Work for Health, a coalition that supports the biopharmaceutical industry and is active in 15 states, added Ohio to its roster in mid March, according to a press release from the organization. The Ohio coalition, which includes members from the Ohio Chamber of Commerce, BioOhio, NAACP (Columbus Chapter), Prevent Blindness Ohio, Strategic Health Care, Pfizer, Western Economic Council, and Hunger Network of Greater Cleveland, was formed to "demonstrate the impact of Ohio's growing biopharmaceutical industry, its contributions to the state's economy and the health of Ohioans," the release said. For more, read the full press release here.

Landowners receiving lease and royalty payments from oil and gas companies may be in for a surprise. The Ohio commercial activity tax (CAT) applies to all gross receipts that contribute to the production of gross income. The CAT is imposed upon persons with taxable gross receipts in excess of $150,000 annually. The tax is $150 on the first $1 million in gross receipts, and is imposed at a rate of $150 plus 0.26% of gross receipts in excess of $1 million.
 
Individuals and entities such as pass-through entities may be subject to the CAT if their annual lease and royalty payments, plus other receipts from business activities, exceed $150,000.  Persons entering into leases with gas and oil companies may want to consult with their tax advisor in order to determine whether they will incur CAT as a result of the lease. For more information, read a recent article in Farm & Dairy about the commercial activity tax here.

On March 28, rating agency Standard & Poor's (S&P) upgraded the Ohio Enterprise Bond Fund (OEBF) two levels to AA+ from AA-, citing a very strong risk profile and sound financial policies as key factors, the state treasurer's office announced. The state treasurer's office stated that this was the first OEBF ratings increase by S&P since 2003, when they raised the fund from an A- rating to AA-.

OEBF was created in 1988 to promote economic development, create and retain quality jobs, and assist governmental operations. The program enables nonprofit and for-profit borrowers to access national capital markets through bonds issued through OEBF. The program is administered by the Ohio Department of Development and financing is provided by the state treasurer of Ohio. These positive ratings benefit state taxpayers through lower borrowing costs, which in the case of OEBF, translates into lower rate capital being provided to companies looking to create a presence and jobs in Ohio. For more, read the press release and the S&P summary here. For more on the OEBF program guidelines, read here. 

The U.S. House voted to pass H.R. 3060, known as the Jumpstart Our Business Startups (JOBS) Act, clearing the legislation to head to President Obama for signature into law. The bill was ultimately passed with strong bipartisan support in both the U.S. House and Senate. As previously discussed in a DevelopOhio post (see our March 30, 2012, blog post), the JOBS bill addresses capital access issues for small business and aims to decrease regulatory burden and promote innovation for new and growing companies throughout the U.S. 

Specifically, the legislation offers that crowdfunding, a method for small businesses to raise funding through the Internet and various social media outlets, allows up to $1 million to be collected without having to file with the Securities Exchange Commission (SEC). Further, the number of public shareholders needed to trigger registration with the SEC was raised from 750 to 2,000, enabling small companies to reach out to a larger group of individuals for investment capital. For more on the JOBS bill, read the Reuters story here.

Late last week, the U.S. House and Senate passed a short-term transportation funding bill that President Obama signed into law on Friday, March 30, as the authorization to spend money on transportation programs and levy federal fuel taxes was set to expire on March 31, 2012.

The 90-day funding extension of federal highway and transit aid is the latest temporary measure in the transportation funding saga as the ninth extension of the law that expired in 2009. From an economic development perspective, the short-term funding extension comes at a very critical time as most of the country is experiencing unseasonably warm weather which has accelerated the construction season, highlighting the need for certainty in this area to support the construction industry and economies dependent on related projects.

Although various proposals have been considered for long-term funding plans, none have garnered enough support to advance. Congress has until June 30 to agree on a new bill, when the newly approved extension of federal highway authority expires. For more, read The Associated Press story here.

Twelve communities in and around Columbus announced last week an agreement designed to reign in the practice of job poaching, which involves communities incentivizing companies to move existing jobs (not newly created jobs) – and the income taxes they generate – across municipal lines, The Columbus Dispatch reports.

The clearly noticeable difference between this agreement and the tentative version released in December is that it "no longer includes a requirement that cities share half of the income-tax revenue, over five years, if that city used incentives to lure a central Ohio company with existing payroll of at least $10 million," the article said (see our December 28, 2011, blog post for more information). For more, including a list of the participating municipalities, read the full story here.

Two weeks ago, the U.S. House of Representatives passed small business legislation, by a 390-23 margin, that would "relax [some Securities and Exchange Commission] regulations that could impede small businesses and startups from finding investors and going public." The U.S. Senate, along party lines, resisted efforts to "increase [the bill's] investor protections," resulting in the postponement of a vote on ending the debate, causing a delay in the passage of the bill, The Associated Press reports.

For more on the small business bill, also called the JOBS bill (Jumpstart Our Business Startups), read The Associated Press story here.

JobsOhio II, legislation that aims to solidify JobsOhio as the primary independent entity in charge of economic development in Ohio, was introduced in both the Ohio House of Representatives (Rep. Mike Dovilla (R-Berea) and Rep. Christina Hagan (R-Uniontown) introduced HB 489) and the Ohio Senate (Sen. Mark Wagoner (R-Toledo) introduced SB 314) this past Thursday, Gongwer reports. JobsOhio II follows HB 1, which was enacted in February 2011 and created JobsOhio. The legislature plans to have the JobsOhio II legislation passed and enacted prior to the 2012 summer recess. 

Besides providing further definition to the JobsOhio structure, the JobsOhio II bill language also provides for a number of related changes to the state’s economic development landscape. This non-inclusive list includes:

• The renaming and transfer of all responsibilities currently in the Department of Development to the “Development Services Agency” (DSA). 
• An appropriation to the DSA for fiscal year 2013. The budget bill (HB 153) had set aside a lump sum — $1.2 billion to DSA for FY ‘13, including $117.79 million from the General Revenue Fund — for the entity, but the new bill would formally appropriate the dollars to DSA. House sponsors said DSA’s role going forward would be to provide “essential services” to JobsOhio including the administration and oversight of loans and tax credits that will further create and expand Ohio businesses. The bill also clarifies the contracts between DSA and JobsOhio.
• The Tax Credit Authority would be reconfigured to include the director of the DSA, the chief investment officer of JobsOhio, and five members: the Senate president; the House speaker; an economic development specialist, a specialist in the development of new technology, and a specialist in taxation, each appointed by the governor.
• The bill would reconfigure the Ohio Third Frontier Commission, which would consist of 11 members, including the director of the DSA, the chief investment officer of JobsOhio, the chancellor of the Ohio Board of Regents, the governor's science and technology advisor, and seven others appointed by the governor with the advice and consent of the Senate.
• The bill clarifies that any JobsOhio documents that are not public records do not become public records when someone else possesses them. This type of language was a significant point of contention with the initial JobsOhio legislation, which deemed certain documents were not subject to public records requests — this provision may meet a similar level of scrutiny.
• The Development Finance Advisory Council (DFAC), the entity which currently approves economic development financing programs, will be phased out. The State Controlling Board will continue to review and authorize such loans.
• The Water and Sewer Commission, which has not met or taken action since 2007, will be eliminated.
• The Office of TourismOhio will be created within the DSA. TourismOhio, which will be funded through a five-year pilot program, will link funding for the office to the growth in sales tax revenues of tourism-related industries around the state. The bill will also create the TourismOhio Advisory Board, which will include industry experts to provide guidance and support efforts to promote Ohio tourism.
• The chief investment officer of JobsOhio would be appointed to the TourismOhio Advisory Board.

For more, read SB 314 and HB 489.

This week, The Columbus Dispatch reported that Ohio Department of Transportation (ODOT) Director Jerry Wray announced the creation of a new division within the agency to evaluate and execute alternative income generation strategies to assist in financing local transportation and major highway projects across Ohio. Currently, state and federal gas dollars finance these types of projects. The Division of Innovative Delivery, led by Jim Riley, will look for new ways the state can raise revenue to commercialize certain assets such as highway rest areas, selling naming rights for bridges and interchanges and leasing the Ohio Turnpike. For more, read the full story here.

U.S. Senators Sherrod Brown (D-OH) and Rob Portman (R-OH) announced that an amendment to the transportation bill, which "includes language to provide the Department of Energy (DOE) the authority to transfer up to $150 million in existing funds to further the development of the American Centrifuge Research Development and Demonstration program at Piketon," passed last Tuesday, the Portsmouth Daily Times reports. The Piketon site will also receive "more than $120 million in cleanup funds through the DOE Office of Environmental Management program in the president's budget request" with a time frame for cleanup to be completed 20 years earlier than originally projected, the article said. For more, read the full story here.