According to data released last week by the Ohio Department of Job and Family Services (ODJFS), Ohio's seasonally adjusted unemployment rate dropped from 7.1 percent in March 2013 to 7.0 percent in April 2013, while the U.S. unemployment rate dropped from 7.6 percent in March to 7.5 percent in April, a press release from the department said. The number of unemployed workers in the state decreased by 7,000 in April to 400,000. During that time, the state's nonagricultural wage and salary employment increased 7,600. For more, including employment figures by industry, read the full press release.

Last week, the Ohio Senate passed S.B. 112, which will provide a two-year extension to the Enterprise Zone program.  According to the Gongwer Ohio Report, the program is intended to encourage business development in distressed communities. Proponents of the program described it as a "valuable economic tool" that is sometimes the best way for many communities to attract new business, while opponents remarked that the program failed to meet its initial goal and was instead encouraging development in "more affluent suburban areas," the article said. For more, read the full text of S.B. 112.

As the Kasich administration works to attract capital investments in Ohio companies, Mark Kvamme, the former JobsOhio chief, co-founded the Columbus-based Drive Capital fund last year with plans to raise $300 million mainly for investments in Ohio and the Midwest, Cincinnati Enquirer reports. Meanwhile, Dan Gilbert, general partner in Detroit Venture Partners – "a venture capital firm that backs seed and early stage companies" – launched a tech-based accelerator in Detroit and Cleveland known as Bizdom that "gives portfolios $25,000 in seed funding." The firm is considering creating a third accelerator in Cincinnati, the article said. For more, read the full story.

Chief Executive magazine's annual survey found that Ohio has the most-improved business climate of any state, jumping 13 spots from 35th to 22nd, The Plain Dealer reports. State officials welcome this heightened appreciation of Ohio, as gleaned from the 700 chief executive respondents, but insist that more work must be done to get the state into the top 10. For more, read the full story.

Bricker & Eckler associate Caleb Bell recently served as a panelist at the Central Ohio NAIOP's Six Pack for Lunch event that took place on March 20, 2013, at the firm's main office in Columbus. A member of the firm's Public Finance group, Caleb explained the meaning and uses of Property Assessed Clean Energy (PACE) financing, which is a unique option for financing energy efficiency and alternative energy projects. Bricker & Eckler is Ohio's leader in PACE law. For more, watch the full video.

"Investing in Brownfields: The Economic Benefits of the Clean Ohio Revitalization Fund," a study released recently by the Greater Ohio Policy Center, found that 21 Clean Ohio Revitalization Fund projects that received $49.3 million in grants "produced $1.16 billion in one-time contributions to Ohio's gross domestic product and $1.4 billion in annual contributions," Columbus Business First reports. Clean Ohio has given $315 million in grants to "support the cleanup of 160 brownfield sites since 2002," but "time and resource constraints" forced the Greater Ohio Policy Center to utilize a representative sample of only 21 projects instead of analyzing all of them, the article said. For more, read the full story and the full report.

Out of the 282 entities that applied for more than $21.9 billion from the federal New Markets Tax Credits program, five Ohio groups received $145 million, The Plain Dealer and Business Courier report. The program, which "helps attract investment in underserved regions that would otherwise suffer from a lack of financing," awarded the following to Ohio organizations: the Cincinnati Development Fund received $35 million to invest in "brownfield redevelopment, nutritional access programs and educational improvement efforts"; the Kroger Community Development Entity received $20 million to help "attract investment in underserved regions"; the Cleveland Development Advisors – an arm of the Greater Cleveland Partnership – received $30 million to "shore up real estate projects in low-income pockets" of Cleveland and Cuyahoga County; the Ohio Community Development Finance Fund received $40 million to "help finance local community development projects, cultivate economic growth, and create jobs"; and the Dayton Regional New Market Fund was awarded $20 million to invest in "comprehensive neighborhood redevelopment projects." For more, read the full Plain Dealer story, the full Business Courier story, and press releases from U.S. Sen. Sherrod Brown (D-Ohio) announcing the awards for the following areas: Northeast Ohio, Dayton, Cincinnati and throughout Ohio.

New analysis from PricewaterhouseCoopers reveals that the "dollar amount of first-quarter venture capital investments in Ohio sank" in 2013 to its lowest level since the first quarter of 2011, Business Courier reports. The report found that in the first quarter of 2013, venture capital firms invested $35.3 million in 17 Ohio companies – a plunge of 73 percent from the previous year.  One large deal, however, inflated 2012's figures. For more, read the full story.

The Ohio Third Frontier Commission is contacting 10 Edison Technology Incubators across the state to discuss potential funding changes related to the transition from oversight by the Ohio Development Services Agency's Industrial Technology and Enterprise Advisory Council to oversight by the Third Frontier, The Vindicator reports. The move aims to align the Edison program with the Third Frontier’s technology-centered efforts, which represent “the future of the state's economy.”  For more, read the full story.

The Senate unanimously passed an amended version of S.B. 1 last week, creating the OhioMeansJobs Workforce Development Revolving Loan Program and using $25 million from the $200 million in casino licensing fees allocated to economic development to establish a fund for the program, according to the Gongwer Ohio Report. The Board of Regents will administer the program, which will allow public and private colleges, universities, and career centers to apply "for up to $100,000 total and individual student loans would be capped at $10,000 annually." For more, read the full text of S.B. 1.


Meanwhile, Ohio Reps. Dorothy Pelanda (R-Marysville) and Jack Cera (D-Bellaire) recently introduced legislation – H.B. 135 – that would amend the Ohio Revised Code to "authorize a nonrefundable credit against the income tax and certain business taxes for the rehabilitation of a vacant industrial site." For more, read the full text of H.B. 135.

In an effort to further Gov. John Kasich's Medical Corridor Initiative, the Ohio Development Services Agency’s Industrial Technology and Enterprise Advisory Council (ITEAC) announced last week that it has "approved $2.27 million for the Ohio Clinical Trials Collaborative," The Plain Dealer and a press release from the governor's office report. The initiative is designed to pool the strength of clinical research among eight institutions across Ohio in order to "increase the competitiveness of the state's biohealth industry." Case Western Reserve was awarded just over $1.98 million to lead the collaborative; BioEnterprise was awarded $187,450 to coordinate the Choose Ohio program for increasing sales of Ohio biomedical products nationally; and $100,000 was awarded to BioOhio to support collaboration efforts among the state's six pediatric hospitals. For more, read the full story and the full press release.

Bruce Langos, chief operations officer of Miamisburg-based Teradata Corp., was recently reappointed to the Third Frontier Commission for a term that runs through April 1, 2016, Dayton Daily News reports. In addition, the Lake County Port Authority decided last week to hire Mark Rantala, executive director of the Nederland Economic Development Corp. in Texas, to serve as the port’s new executive director, The News-Herald reports. For more, read the full Dayton Daily News story and the full News-Herald story.

A new economic impact study released this week by the Motor & Equipment Manufacturers Association (MEMA) in collaboration with Information Handling Services, Inc. (IHS) – a leading global research and consulting company – finds that with 89,423 workers, Ohio is second only to Michigan for those employed in making auto parts, Dayton Daily News reports. The motor vehicle parts manufacturers industry "directly employs more than 734,000 American workers and generates nearly $355 billion in GDP contribution, or 2.3 percent of the total U.S. GDP," a press release from MEMA said. For more, read the full Dayton Daily News story and the full MEMA press release.

Ohio Rep. Ronald V. Gerberry (D-Austintown) recently introduced H.B. 56, which would revise section 5709.73 of the Ohio Revised Code to "allow a board of township trustees to reduce the percentage or term of a property tax exemption granted to a business under a tax increment financing [known as TIF] agreement if the business fails to create the number of new jobs the business agreed to create in the agreement," according to the legislation. For more, read the full Daily Reporter story and the full text of H.B. 56.

On March 25, the Ohio Tax Credit Authority approved tax incentives for 13 projects across the state, The Columbus Dispatch and Business Courier report. These projects are expected to create 1,417 jobs and retain 2,995 jobs, while creating $57 million in new payroll and $86 million in investments across Ohio, The Dispatch reports. Among the companies whose proposals received approval for job creation tax credits are Verizon Wireless, Avure Technologies Inc., Control Concepts and Design Inc., Custom Molded Products LLC, DealerTrack Inc., Emery Oleochemicals LLC, Epipheo Inc., Praxair Distribution Inc. and SpeedFC. For more, read the full Columbus Dispatch story, the full Business Courier story and the full Businessweek story.

Gov. John Kasich's $7.6 billion transportation budget – H.B. 51 – which would use $1.4 billion in Ohio Turnpike bonds to fund highway projects and would increase the speed limit to 70 miles per hour on rural interstates, was passed by the Ohio House of Representatives and is on its way to the Gov. Kasich’s desk to be signed, according to The Hannah Report, Gongwer Ohio Report and The Columbus Dispatch (See our December 20, 2012, blog post for more information about the bill). Although lawmakers from both parties praised the legislation as a job creator that "addresses pressing infrastructure needs without raising taxes," the Kasich administration has expressed reservations about three provisions in the budget, including a new requirement that the Ohio Department of Transportation "reimburse counties when highway projects force the relocation of water and sewer facilities"; a reduction in motor vehicle registration late fees from $20 to $10; and an allocation of $7.5 million toward railroad grade crossing maintenance, Gongwer reports. For more, read the legislative analysis of H.B. 51 and this Columbus Dispatch article.

The Ohio Department of Job and Family Services (ODJFS) released state figures this morning noting that Ohio’s unemployment rate remained unchanged from January at 7.0 percent in February. The number of workers unemployed in the state of Ohio in February was 401,000, up from 399,000 in January. Ohio’s unemployment rate in February 2012 was 7.5 percent.

Ohio’s March 2013 unemployment rate and nonagricultural wage and salary data will be released by the ODJFS on Friday, April 19, 2013. This information and the monthly statistical summaries on which it is based are available here.

The U.S. Department of Commerce recently announced that Ohio's exports increased from $46.4 billion in sales in 2011 to $48.5 billion in sales in 2012, Dayton Business Journal reports. Of that total, Canada purchased $19.6 billion (40 percent) of Ohio's total exports, followed by Mexico, China, France and Brazil. For more, read the International Trade Administration's February 2013 exports, jobs and foreign investment report for Ohio and the Dayton Business Journal story.

In February, Sen. Capri Cafaro (D-Hubbard) introduced S.B. 12, which would require oil and gas well owners to employ for no less than three years any hired Ohio resident who was trained for the industry in state-backed programs, The Vindicator reports. The bill would also appropriate $10 million in fiscal year 2013 to oil and gas training programs at community and technical colleges, as well as “to provide employee training grants to oil or gas well owners,” an analysis of the bill said. The bill is currently pending before the Senate Education Committee. For more, read the full story and the full text of S.B. 12.

Gov. John Kasich's new biennial budget, H.B. 59, includes a proposal that would expand the "reasonable arrangement" program by spreading "the cost of utilities’ economic development incentives to electricity ratepayers all around the state," according to the Gongwer Ohio Report. The idea grew out of a related effort to standardize the discounts that utilities have available for businesses by creating an economic development tariff. Details about how the plan would work are still being discussed, but Chairman of the Senate Public Utilities Committee Bill Seitz (R-Cincinnati) said it not was not yet decided whether the recovery charges would apply to "competitive providers and municipal and rural cooperatives" in addition to the ratepayers in Ohio's four investor-owned utilities, the article said. For more, read the full text of H.B. 59.

David Goodman, the current director of the Ohio Department of Commerce, will take over the Ohio Development Services Agency (DSA) on March 18, 2013, according to a press release from Gov. Kasich’s office. Director Goodman, a former state senator and a familiar face to many Columbus business leaders, replaces Christiane Schmenk, who is leaving the state economic development agency. Director Goodman will be charged with leading the organization as the state continues the complicated transfer of its economic development portfolio to JobsOhio. For more, read the full press release.

As outlined in his 2014-2015 budget, Gov. Kasich’s proposal to expand the tax base to include most service businesses is being met with some skepticism and concern from business owners who say the cost of a new tax would be passed directly on to the consumer, Crain’s Cleveland Business reports (see our February 8, 2013, blog post for more information). Concern that such a tax would hurt Gov. Kasich’s efforts to brand Ohio as a “business-friendly state” is also mentioned, as is Bricker & Eckler LLP partner in charge of the Cincinnati/Dayton office Mark Engel’s perspective that lower-income people will be disproportionately affected by the tax because they “tend to spend a greater share of their income on purchases,” the article said. For more, read the full story.

Last week, the Clean Ohio Council announced that it has “streamlined its brownfield incentive programs” in an effort to provide funding “quicker to encourage redevelopment of sites with environmental issues,” Columbus Business First reports. The new streamlined program, co-managed by JobsOhio, the Ohio Development Services Agency and the Clean Ohio Council, will “operate on rolling cycles” rather than competitive funding rounds used since the inception of the Clean Ohio Revitalization Fund and Clean Ohio Assistance Fund programs. Projects seeking funding through JobsOhio and its regional network partners can qualify for grants up to $200,000 for testing, down from $750,000, “while grants for actual cleanup remains capped at $3 million,” the article said. For more, read the full story.

The Ohio Development Services Agency (DSA) recently announced that the application period for Round 10 of the Ohio Historic Preservation Tax Credit program is now underway and a total of “$30 million in tax credit allocation is currently available for Round 10 applicants,” according to a press release from the agency. The program — which is administered by the DSA’s Office of Redevelopment and the Ohio Historic Preservation Office — provides a tax credit of 25 percent for historic rehabilitation projects. Applications must be submitted to the Office of Redevelopment by 5 p.m. on Tuesday, April 2, 2013. Prior to submission, all applicants must “schedule pre-application meetings” with both the Ohio Historic Preservation Office and the Ohio Development Services Agency. For more, read the full press release.

The Bureau of Labor Statistics (BLS) released data today stating that nationally, nonfarm payroll employment rose by 236,000 during the month of February and the unemployment rate decreased to 7.7 percent from the revised numbers for January. BLS also noted that private sector employment rose in the areas of professional and business services, construction and health care. In addition, BLS released revised statistics in total nonfarm payroll employment for December (+196,000 to +219,000) and January (+157,000 to +119,000). Monthly revisions of employment data result from additional reports received from businesses and the monthly recalculation of seasonal factors since the last published estimates.

The national employment summary for March 2013 and nonagricultural wage and salary data will be released by the Department of Labor, Bureau of Labor Statistics on Friday, April 5, 2013.

The Ohio Department of Job and Family Services (ODJFS) released state figures this morning noting that Ohio’s unemployment rate increased to 7.0 percent in January, up from 6.7 percent in the month of December. The number of workers unemployed in the state of Ohio in January was 399,000, up from 385,000 in December. Ohio’s unemployment rate in January 2012 was 7.6 percent.

Ohio’s February 2013 unemployment rate and nonagricultural wage and salary data will be released by the ODJFS on Friday, March 22, 2013. This information and the monthly statistical summaries on which it is based are available here.

Site Selection magazine recently announced that Texas eclipsed Ohio for a first-place finish in the new and expanded 2012 facilities race to claim the Governor’s Cup. Annually, Site Selection magazine compiles data to measure how states and cities rank against each other based on economic-development metrics. Ohio was ranked second in the nation in 2012 after a first-place finish in 2011. Texas posted 761 projects while Ohio came in second with 491 projects, just seven fewer projects than last year’s total of 498. Rounding out the top 5 and providing a strong Midwestern showing in job creation and retention in 2012, Pennsylvania was ranked third with 430 projects, Michigan was ranked fourth with 337 projects and Illinois was ranked fifth with 322 projects.

The Columbus Dispatch reported that Site Selection magazine also announced seven Ohio cities making it into its rankings in the following categories:

• Metropolitan areas with a population of at least 1 million: Cincinnati came in eighth and Columbus finished 10th.
• Metropolitan areas with a population of 200,000 to 1 million: Dayton came in first for the third time in the past five years; Akron finished eighth.
• Micropolitan areas (the smallest population category): Findlay, Wooster and Ashtabula all finished in the top 10.

Fourteen other Ohio cities were ranked as top micropolitan areas by number of projects, putting a total of 17 Ohio cities — more than any other state — on the magazine’s list: East Liverpool-Salem (T13), Greenville (T13), New Philadelphia-Dover (T13), Sidney (T13), Defiance (T23), Bellefontaine (T30), Tiffin-Fostoria (T30), Wapakoneta (T30), Cambridge (T45), Fremont (T45), Ashland (T86), Bucyrus (T86), Celina (T86) and Zanesville (T86).

For more, read the 2013 edition of Site Selection magazine and The Columbus Dispatch story.

According to JobsOhio’s 2012 Annual Report, the economic development entity created and retained fewer jobs in 2012 than in 2011, which a spokeswoman attributed to “political uncertainty at the federal level,” Columbus Business First reports (See out March 05, 2013, blog post for more information). Despite the job retention drop (from 61,686 in 2011 to 54,633 in 2012) and job creation drop (from 21,099 in 2011 to 20,979 in 2012), the “sum of economic development projects and capital investments tied to them rose.” Payroll commitments, however, dropped 27 percent ($1.3 billion) between 2011 and 2012, the article said. For more, read the full story.

The Bureau of Labor Statistics (BLS) released data last Friday stating that “annual average unemployment rates declined in 46 states and the District of Columbia, rose in 2 states, and were unchanged in 2 states.” Ohio’s unemployment rate dropped 1.4 percent from 8.6 percent in 2011 to 7.2 percent in 2012. Ohio’s 2012 unemployment rate is 0.9 percent lower than the 2012 annual average for the United States, which is 8.1 percent. The national employment-population ratio increased to 58.6 percent, with 26 states and the District of Columbia experiencing employment-population ratio increases.

The unemployment rates for the U.S. and the state of Ohio will be released on Friday, March 8.

As required by the Budget Control Act of 2011 and the American Taxpayer Relief Act of 2012, President Obama was required to sign the executive order reducing the budgetary authority in accounts subject to sequester late Friday, March 1, 2013, in accordance with a report issued by the U.S. Office of Management and Budget. Political subdivisions and other agencies across Ohio that have large concentrations of federal employees and operations could see significant cuts as a result of the U.S. Senate’s inability to come to an agreement to avert $85 billion in federal cuts on February 28, 2013. For more, read the full report.

A recent change of strategy for the Kasich administration’s economic development efforts will reduce the number of large-scale incentive packages offered to retain, expand or attract businesses in favor of a greater emphasis on “broader issues” that involve investing in the state’s competitive assets, including “infrastructure, talent and technology,” Crain’s Cleveland Business reports (see our January 29, 2013, blog post for more information). This new return-on-investment approach is not without its critics, as some have noted that altering the Clean Ohio revitalization fund program to require end-users before communities receive funds will cause cities to have difficulty competing to attract businesses because companies “don’t want to commit to a move if they must wait a year or more for an environmental cleanup before they can begin construction or renovation,” the article said (see our February 22, 2013, blog post for more information). For more, read the full story.

During a joint session of the Ohio House Manufacturing and Workforce Development Committee and the Ohio Senate Workforce and Economic Development Committee at the Apollo Career Center in Lima last week, area business owners and job skills educators made pitches “for more help from the state in making workforce development a top priority” at the Statehouse, LimaOhio.com reports. Suggestions included investing in career technical schools and higher education, as well as high school and adult programs, to help overcome the “skills crisis” that business owners are experiencing at a time when the nation’s manufacturing industry is “in the early stages of renaissance,” the article said. For more, read the full story.

Earlier this month, Ohio Rep. Mike Duffey (R-Worthington) introduced H.B. 37, which would create the SharedWork Ohio program — a plan that would “let employers cut workers’ hours 10 percent to 50 percent instead of dismissing them during troubled times,” Columbus Business First reports. Such a program would convert the typical layoff structure of certain workers losing 100 percent of their unemployment to a “factional layoff in which a larger subset of workers share the impact of a layoff but no one individual loses his or her job,” according to The Daily Reporter. Employers would reduce the number of hours for workers, and while workers would still receive their normal pay per hour, they would also collect “pro-rata unemployment while maintaining benefits,” the article said. The House passed a similar bill last spring, which then stalled “because of a delay in guidance from the U.S. Department of Labor on what states must include to comply with federal law,” Columbus Business First reports. For more, read the Columbus Business First story, The Daily Reporter story and H.B. 37.

Ohio Secretary of State Jon Husted announced last week that 2012 was a record-breaking year for the state, with more new entities filing to do business last year than in any other year during the state’s 209-year history, Columbus Business First and a press release from his office report. In total, 88,068 new entities applied to do business, representing the third consecutive year of growth for a total of 16.5 percent from 2009 to 2012. For more, read the Columbus Business First story and the press release.

The nonprofit advocacy group Environmental Defense Fund released a report as part of its Clean Energy Economic Development Series detailing the ways in which Ohio’s advanced energy technology industry has the potential to “diversify and contribute to the state and local economy.” The report, titled “Ohio’s Advanced Energy Journey,” explores how the state is stimulating demand, seeding innovation, and capturing economic benefits for its advanced energy economy, as well as the results of these efforts. For more, read the full report.

Yesterday, the office of Sen. Bill Seitz (R-Cincinnati) sent a memorandum to respondents of his request for comment on S.B. 221 — a placeholder bill to review issues related to former Gov. Ted Strickland’s energy bill, which established renewable energy portfolio and energy efficiency standards for the state. 

In Sen. Seitz’s initial request for comment, which was released February 1, 2013, Sen. Seitz provided a list of issues with the existing standards, including “whether the 3% cost cap on complying with the renewable energy portfolio should be revised; how much it cost utilities to comply; whether energy efficiency targets should be frozen in place; and if the benchmarks are abolished, should existing contracts be preserved,” according to the Gongwer Ohio Report. 

In the memorandum released yesterday, Sen. Seitz confirmed that he will indeed introduce a placeholder bill and stated that the plan going forward, following its introduction, is to have a hearing on “information from the perspectives of the PUCO and the OCC,” followed by subsequent hearings on subtopics. Upon completion of those hearings, it will be determined “what, if anything, should replace the placeholder bill.” For more, read the full memorandum.

New rules from the Development Services Agency are eliminating the development-ready track of the Clean Ohio Revitalization Fund program and it has some local officials worried that funding remediation in Ohio will become more difficult, The Business Journal reports. Currently, there are four sites around Youngstown that are undergoing environmental assessments, the article said. With the elimination of the development-ready track, which provided funds for brownfield sites that were “identified as having potential for future development,” the remaining funding track requires an identified end user for the development site in order to access Clean Ohio funding. Kasich administration officials insist that this program has always “prioritized known end user projects” because “job creation on the site is the only way the site can truly provide a return on the state’s investment,” the article said. For more, read the full story.

In what will become the state’s first public-private partnership since the passage of H.B. 114 allowed for such arrangements, the Ohio Department of Transportation recently announced its shortlist of three firms that will compete for a $332 million bridge project in downtown Cleveland, Bond Buyer reports (see our Sep 18, 2012, blog post for more information). The final three firms are Walsh Construction, a team led by Kokosing Construction Company, and a team comprised of the Ruhlin Company, The Great Lakes Construction Company and the Trumbull Corporation, the article said. The state expects to choose a final team by the summer, with construction expected to start either late this year or early 2014, ODOT said. The project’s design-build-finance structure will have the chosen team “build and finance a portion of the estimated $330 million demolition and construction costs,” with ODOT repaying the firm beginning in 2015 through 2019, the article said. For more, read the full story (subscription required).

Ohio Reps. Cheryl Grossman (R-Grove City) and Mike Henne (R-Clayton) recently introduced H.B. 5, which is legislation that would “standardize the way Ohio communities levy and administer their local income tax” by “impos[ing] a set of uniform rules on municipalities that tax income and would create a standard definition of what income is taxable for businesses and individuals,” Crain’s Cleveland Business reports. While the Ohio Society of CPAs called this legislation a “long overdue opportunity” for Ohio to simplify its municipal tax structure, the Ohio Municipal League and the Ohio Legislative Service Commission oppose H.B. 5, arguing that this legislation would cause municipalities to face tremendous hardships due to revenue losses and through the loss of local control, the article said. For more, read the full story and the full text of H.B. 5.

The Johnson Controls Institute for Building Efficiency, PACENow and the Urban Land Institute released a report this month on Property Assessed Clean Energy (PACE) financing, which is a “municipal approach to support energy efficiency and renewable energy upgrades in commercial buildings in the United States” that originated in 2008 in Berkeley and Palm Desert, California. The report profiles four of the 16 PACE programs that are currently accepting applications, including the Toledo-Lucas County Port Authority program based in Toledo, Ohio. 

Each program operates slightly differently due to the PACE industry being in the early stage of development. However, PACE financing structures commonly include features such as: zero up-front cash investment; low interest rates; immediate positive cash flow; long-term financing (up to 30 years in Ohio); PACE assessments can run with the land upon sale; the ability to pass payments through to tenants; higher rents and greater long-term property value because of energy efficiency; and preservation of borrowing capacity through off-balance-sheet financing.

The specifics vary from program to program, but generally, after a state passes PACE-enabling legislation, a local government then creates or joins an assessment district. Building owners evaluate projects that reduce energy costs and decide whether to move forward. The local government then provides financing by adding the assessment to the tax roll. The property owner then pays the assessment on a tax bill for a period of up to 30 years. For more information, including eligible technologies and projects, preferred initial and eligible project sizes, minimum energy savings requirements and a full list of the active PACE programs across the nation, read the full report. 

Bricker & Eckler LLP attorneys assisted in drafting Ohio’s PACE law and served as bond counsel for Ohio’s first three issues of PACE bonds.

On January 30, 2013, the first two pieces of legislation were introduced into the Ohio House of Representatives and they address the Kasich administration’s plan to tie the state’s 90 one-stop employment centers into the OhioMeansJob brand, according to The Daily Reporter and Gongwer Ohio (see our January 3, 2013, blog post for more information). H.B. 1, which was introduced by Reps. Timothy Derickson (R-Hanover Twp.) and Mark Romanchuk (R-Ontario), would “require a local workforce investment area to use OhioMeansJobs as the local workforce investment area's job placement system” and would rename all county one-stop systems “OhioMeansJobs ______ County,” according to the bill and Gongwer Ohio. H.B. 2, introduced by Reps. Derickson and Tim Brown (R-Bowling Green), would “require an unemployment compensation claimant to register with OhioMeansJobs to be eligible for unemployment compensation benefits” and would require these claimants to “contact a local one-stop office beginning with the eighth week of filing for unemployment compensation benefits” to ensure that the claimants are “maximizing their job search opportunities,” according to the bill and Gongwer Ohio. For more, read The Daily Reporter story, as well as the full text of H.B. 1 and H.B. 2.

The Washington D.C.-based non-partisan research center Good Jobs First released a report recently that slams the practice of states engaging in “regressive business promotion policies it says siphons jobs from one region to another with little net gain to taxpayers,” according to The Hannah Report. The report, titled “The Job-Creation Shell Game: Ending the Wasteful Practice of Subsidizing Companies that Move Jobs from One State to Another,” determined that the practice is a waste of taxpayer funds, which are used to provide tax incentives to businesses so that they relocate to an area, effectively reshuffling existing jobs geographically (dubbed “interstate job piracy”) at the expense of other communities instead of encouraging new business activity, a press release from the organization said.

Good Jobs Ohio said that some companies that were given such incentives failed to uphold their end of the deal, such as creating new jobs, which has driven Gov. Kasich and others to reconsider pursuing such bidding wars — a move praised by the organization (see our January 29, 2013, blog post for more information).

For more, read this Toledo Blade story, Good Jobs Ohio’s press release and the full report.

JobsOhio recently announced at its quarterly board meeting last week that should the projects in its current pipeline — totaling $3.3 billion in investments — come to fruition in 2013 or beyond, Ohio could see more than 50,000 new jobs, according The Columbus Dispatch. According to John Minor, chief investment officer of JobsOhio, “Overall in 2012, there were 289 projects that committed nearly 21,000 jobs to the state and retained 55,000 other jobs, led by strong growth in advanced-manufacturing and information-technology jobs … The capital investment on those projects totals $5.8 billion, up from $3.2 billion in 2011,” the article said.

Advancing its nine targeted high-growth business sectors, JobsOhio plans to better utilize its regional network partners in the coming year to “focus on keeping companies in the state and helping them to expand” as approximately “three-quarters of the new jobs that the state was able to win last year are from companies that are expanding existing operations here” in Ohio, the article said.  For more, read the full story.

Reasoning that services “now play a far greater role in the economy,” Gov. John Kasich’s Executive Budget for Fiscal Years 2014-2015 would “broaden the tax base to include all economic activity” by changing the entire tax structure so that instead of requiring that services be specifically enumerated in legislation to be taxed, all services would be taxed except for specifically exempt items, like food for home use, health care, construction services, education and social services, and rental of residential property, Crain’s Cleveland Business and the budget website report. The budget would reduce the state sales tax from 5.5 percent to 5 percent, and would reduce state income tax rates by 20 percent for all nine brackets, bringing the top marginal rate down from 5.925 percent to 4.74 percent, the article said. This reduction would occur over three years and would bring all income tax rates in the state below 5 percent, the governor said on the budget website. The plan also calls for a 50 percent reduction in small business taxes for the first $750,000 in net income. For more, read the Crain’s Cleveland Business story and visit the Ohio’s Jobs Budget 2.0 website.

January saw leadership changes in a number of Ohio’s economic development organizations. Former Columbus Development Director Boyce Safford III became the executive director of the Columbus Next Generation Development Corp. where he will focus on urban neighbors’ job creation and investment, according to Columbus Business First. Additionally, Jeff Loehrke left his position as Ottawa’s community development director to become the regional manager for District 1 and District 2 of the Ohio Department of Transportation’s Jobs and Commerce Division, according to The Lima News.

An economic development professional with experience on both the state and local levels, Jeff Sprague was a natural choice when it came time to select a new leader for the Allen Economic Development Group, reported The Lima News. Scioto County welcomed former state representative Todd Book as interim economic development director where he will be a part of meetings with the port authority and the commissioners on a part-time basis until a new director can be found, the Portsmouth Daily Times reported. Also, Bob Clark became the new economic development director for Fairfield County, according to Columbus Business First. Clark has some prior previous experience with economic development in his role as congressional staffer for former U.S. Rep. Steve Austria, R-Beavercreek, the article said.

Last week, the Transportation Review Advisory Council (TRAC) approved “32 different major new construction projects for 2014-2017, totaling more than $2 billion,” Gongwer reports. Although some progress has been made through the Department of Transportation’s move to undertake cuts, redistribute federal funding and commit to streamlining, it says that its $1.6 billion budget problem for transportation funding continues to this day and that “some of the approved projects will face serious delays due to a lack of funding,” the article said. By the end of 2013, the state could see $1 billion from Gov. Kasich’s proposed bond sales; however, money from new turnpike bonds “would not affect projects on [the] newly approved TRAC list,” the article said (see our December 20, 2012, blog post for more information).

In addition, Gongwer reports that ODOT added legislation into its budget bill that, if approved by the legislature, would:

• Strike the current “one mile” rule restricting where the turnpike can spend money on projects;
• Expand the commission from five to seven voting members and reduce the non-voting members to three;
• Add a member of the commission to serve as an ex-officio member of TRAC; and
• Allow any voting commission members to serve as the chairman.

For more, read TRAC’s Final 2014-2017 Major New Program List.

According to Gongwer, “[t]he transfer of the state’s wholesale liquor enterprise to JobsOhio was finalized Friday [February 1, 2013], along with the sale of $1.57 billion in bonds” even though the Ohio Supreme Court has agreed to hear the JobsOhio case (see our January 31, 2013, blog post for more information). The “enterprise transfer includes the previously executed Franchise and Transfer Agreement, and the Operation Services Agreement between JobsOhio, the Ohio Office of Budget and Management, and Ohio Department of Commerce,” according to a press release from JobsOhio. According to the offering circular, “[o]nly about $125 million in bond revenue will go to JobsOhio as ‘working capital’ for job-creation efforts,” through its agreement to lease the liquor franchise for 25 years, Gongwer reports. For more, read the JobsOhio press release.

The Bureau of Labor Statistics (BLS) released data today stating that nationally, nonfarm payroll employment rose by 157,000 during the month of January and the unemployment rate remained essentially unchanged at 7.9 percent from the revised numbers for December. BLS also noted that private sector employment rose in the areas of retail trade, construction, wholesale trade and health care. In addition, BLS released revised statistics in total nonfarm payroll employment for November (+161,000 to +247,000) and December (+155,000 to +196,000). Monthly revisions of employment data result from additional reports received from businesses and the monthly recalculation of seasonal factors since the last published estimates.

Ohio’s January 2013 unemployment rate and nonagricultural wage and salary data will be released by the Ohio Department of Jobs and Family Services (ODJFS) on Friday, February 15, 2013. This information and the monthly statistical summaries on which it is based are available here.

Just days after the Ohio Supreme Court agreed to hear the JobsOhio case (see our January 25, 2013, blog post for more information), the State of Ohio and JobsOhio moved forward with its plan to sell bonds to finance a 25-year lease of the state’s liquor distribution system, The Bond Buyer reported. “Ohio on Monday and Tuesday priced $1.56 billion of liquor-profit backed bonds,” of which $410 million was tax-exempt revenue bonds and $1.1 billion was in taxable bonds. “The agency (JobsOhio) will give $1.43 billion of the proceeds to the state as a cash payment for the lease and to defease outstanding liquor-backed bonds. Another $5 million will be used for capitalized interest and $9.2 million for issuance costs. The private, non-profit group will use the remaining $125 million to fund economic development projects across the state,” the article said. Moreover, the lease is “in addition to an estimated $100 million annually from liquor sales,” JobsOhio will receive as a result of this transaction an article in Columbus Business First reported. For more, read the full story.

Having faced some criticism for his use of tax incentives to retain businesses in Ohio that did not create any new jobs, Gov. John Kasich said during a year-end press conference with reporters late last month that he is not interested in offering copious incentive packages to companies that “come to him with threats of moving out of state,” Stow Sentry reports (see our December 10, 2012, blog post for more information). Gov. Kasich said that instead of engaging in bidding wars with other states, he now touts Ohio’s great higher education and workforce training, great location and stable politics to attract and retain businesses, the article said. For more, read the Stow Sentry story and this Dayton Daily News story.

The Ohio Tax Credit Authority approved state assistance Monday for 11 projects expected to create 410 new jobs and retain 874 existing jobs in Ohio, generate $20 million in new payroll, and prompt $51 million in other investments over the next several years, according to Gongwer and The Hannah Report. For more information on the companies and an overview of their projects, see the press release from Governor Kasich’s office. 

In other development news Monday, the Ohio Controlling Board approved the Development Services Agency’s expenditure of $9.2 million in Ohio Third Frontier funding for five different organizations through JobsOhio, according to The Columbus Dispatch. The organizations approved to receive funding are the Appalachian Partnership for Economic Growth, receiving $800,000; Regional Growth Partnership Inc., of Toledo, receiving $1.1 million; Development Projects Inc., of Dayton, receiving $1.2 million;  Columbus 2020, receiving $1.8 million; and Team NEO in Cleveland, receiving $2.8 million. The money represents the second round — the first $14 million having been awarded in August 2011 — the article said.

Gongwer and The Hannah Report also reported that the Ohio Controlling Board approved several additional requests, most notably:

• Funding for multiple economic development projects in the sum of $873,000.
• A $1 million request by the Ohio Department of Transportation to assess private-public partnerships.

The monthly On Numbers Economic Index, which uses an 18-part formula to assess unemployment, earnings, housing-price appreciation, construction and retail activity, and private-sector job growth to measure “the relative vitality of all 102 major markets with populations of more than 500,000,” ranked Columbus 4th, The Business Journals reports. Columbus received  a score of 78.765 on the index’s 100-point scale and its place remains unchanged from December. Akron slipped one position to 31st; Toledo fell five spots to 61st; Youngstown moved up 16 spots to 63rd; and Dayton rose two spots to 72nd. For more, read the full story.

State Sen. Bill Beagle (R-Tipp City), who serves as a member of both the Governor’s Executive Workforce Board as well as Ohio’s Third Frontier Advisory Board, will serve as chairman of the newly created Senate Standing Committee on Workforce & Economic Development, Dayton Business Journal reports. This new committee will be “responsible for designing new, creative initiatives to expand Ohio’s economy by preparing Ohioans for the jobs of tomorrow,” the article said. For more, read the full story.

Last week, State Sen. Bill Beagle (R-Tipp City) announced that the State Controlling Board approved “nearly $11 million in funding for the Choose Ohio First Co-op/Internship Program,” Dayton Business Journal reports. Twenty-two higher education institutions throughout Ohio will receive funding for the administration and development of internship and co-op programs. “The goal of the program is to better align the skills, knowledge and experience of Ohio’s workforce with the jobs that need to be filled in the workplace,” the article said. For more, read the full story.

The Ohio Department of Job and Family Services (ODJFS) released state figures this morning noting that Ohio’s unemployment rate dropped slightly to 6.7 percent in December, down from 6.8 percent in the month of November. The number of workers unemployed in the state of Ohio in December was 388,000, down from 391,000 in December. Ohio’s unemployment rate in December 2011 was 8.5 percent.

As noted in our January 4 blog post, the U.S. unemployment rate remained unchanged at 7.8 percent from the revised numbers for December, down from 8.5 percent in December 2011. The national employment summary for January 2013, non-agricultural wage and salary data will be released by the Department of Labor, Bureau of Labor Statistics on Friday, February 1, 2013.

Ohio ranked 33 on this year’s list of the best states for business and careers, according to Forbes. “Ohio improved in business costs, economic climate, growth prospects and quality of life. Its labor supply was unchanged at 47th, and regulatory environment rank fell six spots to No. 16,” Business Courier reports. Neighboring states, such as Kentucky, dropped in the rankings (from 25 to 28), while Indiana jumped 16 places to number 18. For more, read the full story.

The Bureau of Labor Statistics (BLS) released data today stating that nationally, nonfarm payroll employment rose by 155,000 during the month of December and the unemployment rate remained unchanged at 7.8 percent from  the revised numbers for November. BLS also noted that private sector employment rose in the areas of food services and drinking places, construction, manufacturing and health care. In addition, BLS released revised statistics in total nonfarm payroll employment for October (+138,000 to +137,000) and for November (+146,000 to +161,000).

Ohio’s December 2012 unemployment rate and nonagricultural wage and salary data will be released by the Ohio Department of Jobs and Family Services (ODJFS) on Friday, January 18, 2013. This information and the monthly statistical summaries on which it is based are available here.

In an effort to immediately improve Ohio’s workforce development system, the Kasich administration has tied the state’s 90 one-stop employment centers into the OhioMeansJobs brand, which is a partnership between the Ohio Department of Job and Family Services and the resume services company Monster Worldwide Inc., Columbus Business First reports. As part of this effort, the agency will encourage use of the OhioMeansJobs website as the “sole source for job searches and as a resource for applying for unemployment benefits,” the article said (see our November 28, 2012, blog post for more information). For more, read the full story.

Ohio Board of Regents Chancellor Jim Petro will retire on February 1, 2013, after a 30-year career in public service that included “stints as Ohio Attorney General and Ohio Auditor, as well as a run for governor in 2006,” Columbus Business First reports. Although retiring, Petro plans to work actively toward his goal that 60-65 percent of Ohioans have a degree by 2025 (up from 26 percent this year). His successor has not been named, the article said. For more, read the full story.

The U.S. House of Representatives passed the STEM Jobs Act (H.R. 6429) this month, which will provide 55,000 visas a year to “foreigners who graduate from U.S. universities with advanced degrees in science, technology, engineering and mathematics (STEM),” Dayton Business Journal reports. For more, read the full story and the text of H.R. 6429.

After finding out from Ohio Tax Commissioner Joe Testa that the state failed to refund companies that overpaid their commercial activity tax (CAT), Gov. John Kasich said last week that the state has started refunding more than $13 million to companies that were never previously notified about having overpaid, Columbus Business First reports. Before now, policy directed the state to keep the money "if businesses failed to report the overage within four years of filing their tax return," the article said. For more, read the full story.

Last week, the Ohio Development Services Agency announced the details for round nine of the Ohio Historic Preservation Tax Credit Awards: $35.9 million was awarded to 23 owners and applicants for the rehabilitation of 45 historic buildings across the state, according to a press release from the agency. The projects are located in nine communities across Ohio and are expected to "leverage more than $252 million in private investments." For more, including a list of all round nine Ohio Historic Preservation Tax Credit recipients, read the full press release.

The Ohio Department of Job and Family Services (ODJFS) released state figures this morning noting that Ohio’s unemployment rate dropped to 6.8 percent in November, down from 6.9 percent in the month of October. The number of workers unemployed in the state of Ohio in November was 391,000, down from 396,000 in October. Ohio’s unemployment rate in November 2011 was 8.1 percent.

As noted in our December 7 blog post, the U.S. unemployment rate fell slightly to 7.7 percent in November from 7.8 percent in October, down from 8.7 percent in November 2011. The national employment summary for December 2012, non-agricultural wage and salary data will be released by the Department of Labor, Bureau of Labor Statistics on Friday, January 4, 2013.

The Ohio Chamber of Commerce and the Ohio Metro Chambers of Commerce reported last week the progress that has been made since the 2010 release of Redesigning Ohio: Transforming Government into a 21st Century Institution, which provided a series of recommendations aimed at “reforming Ohio’s regulatory climate, and achieving local government efficiencies through shared services and cost-cutting,” according to a press release from the Greater Cleveland Partnership. The update found that many of the initial report’s suggestions have been implemented, which has helped to “slow the increasing cost of Medicaid,” reign in the cost of the state’s criminal justice system, “eliminate an $8 billion budget shortfall without raising taxes” and reduce the state’s unemployment rate from 9.2 percent in December 2010 to 6.9 percent in August 2012, the release said. In addition to suggesting an ongoing commitment to all of the initial recommendations, the chambers recommend that priority be given to:

• Improving the efficiency and effectiveness of local governments 
• Helping state and local governments become more results-driven
• Performing a dynamic analysis of Ohio tax expenditures
• Improving healthcare outcomes and related Medicaid cost
• Reforming the public primary and secondary education system for continued education improvement

For more, read the full Greater Cleveland Partnership press release, this WTVN story, the 2010 report and the 2012 update.

Gov. John Kasich will not attempt to lease the Ohio Turnpike to a private entity, even though a state-commissioned study by KPMG Corporate Finance LLC determined that such an arrangement could net the state between $3.3 billion to $4.03 billion over 50 years, Columbus Business First reports. Instead, the state will issue $1.5 billion in bonds against future toll revenue to generate roughly “$3 billion in revenue for road projects and create 65,000 jobs,” according to the Dayton Business Journal. For more, read the Columbus Business First story and the Dayton Business Journal story.

Last week, the Ohio Senate passed Senate Bill 327 — a bill designed to “boost private investment in low-income communities across Ohio”  — by a 31-2 vote, Dayton Business Journal reports. The bill will allow for the “rapid deployment of over $437 million of investment in Ohio’s poorest communities” by increasing the annual limit on the total amount of credits available through the Ohio New Markets Tax Credit Program, which is designed to provide investors with state tax credits in exchange for delivering below-market-rate investment options to Ohio businesses, from $10 million to $50 million, the article said. For more, read the full story and S.B. 327, and visit the Ohio New Markets Tax Credit Program website.

The nonprofit trade group Advanced Energy Economy released a report in October showing that there are 400 unique organizations that “participate actively in energy efficiency research, pilot testing, and commercial activity” across Ohio. Ohio’s energy efficiency technologies and services also have $2.1 billion in revenue and funding, and employ 9,600 full-time equivalent workers, according to the analysis. The report provided the following data on Ohio’s six regions:

Central Ohio: 92 unique organizations; 1,850 full-time equivalent workers; and $380 million in revenue and funding. Innovative research and development hub with concentrations in data center technologies, insulation and cool roof products.

West Central Ohio: 37 unique organizations; 990 full-time equivalent workers; and $140 million in revenue and funding. Established strengths in building services and research and development capability.

Northwest Ohio: 49 unique organizations; 1,420 full-time equivalent workers; and $330 million in revenue and funding. Strengths in insulation, exterior windows, cool roof systems and major appliances. Emerging auditing tools complement its established strengths in building services and research and development capability.

Northeast Ohio: 220 unique organizations; 4,030 full-time equivalent workers; and $1.04 billion in revenue and funding. Sizeable and diverse assets in lighting, insulation and exterior windows.

Southeast Ohio: 20 unique organizations; 240 full-time equivalent workers; and $45 million in revenue and funding. A hotbed of Stirling Engine and Stirling-based technology development amidst more traditional manufacturing.

Southwest Ohio: 86 unique organizations; 1,130 full-time equivalent workers; and $180 million in revenue and funding. Distinctive concentration in building services, paired with substantial exterior window, door and lighting manufacturing.

For more, read the full report.

The Ohio Development Services Agency’s Office of Energy partnered with the Ohio University Voinovich School of Leadership and Public Affairs to develop a “new solar energy supply chain database project” that will allow solar industry supply chain companies to match their needs with Ohio manufacturers, a press release from the school announced. The navigable supply chain database uses a geocoded, interactive online map of Ohio companies engaged in the solar industry and is intended to “increase communication between stakeholders, act as a resource for businesses and the public, and identify potential growth areas which could lead to long-term growth,” the release said. For more, read the full story or access the resource.

Gov. Kasich is expected to divulge the details of his plan for the future of the Ohio Turnpike within the next two weeks, The Columbus Dispatch reports. Discussed possibilities include moving it under control of the Ohio Department of Transportation, issuing bonds for transportation projects and leasing the 241-mile toll road to a private operator — the last of which has drawn opposition from the Ohio Farm Bureau as well as many officials and residents of northern Ohio who view the turnpike as “a well-run regional asset,” the article said. For more, read the full story.

Gov. John Kasich and Kentucky Gov. Steve Beshear will meet in Covington, Kentucky, today to sign an agreement on how the $2.5 billion will be raised to replace the Brent Spence Bridge, Cincinnati Enquirer reports. The decision will be based on a $4 million study that many expect will “conclude that tolls will need to be the centerpiece of a finance plan,” the article said. Since Kentucky owns the bridge, the final decision rests with the Kentucky Legislature; however, Northern Kentucky state lawmakers “collectively oppose tolling and any legislation that could open the door to tolls,” the article said.

U.S. Secretary of Transportation Ray LaHood will also be in attendance, along with other state and local officials, Business Courier reports. According to the Build Our New Bridge Now Coalition, a group organizing an educational campaign to accelerate the construction of a Brent Spence Bridge replacement, the “region could save $18 billion in fuel and congestion costs if the Brent Spence Bridge replacement project starts in 2014,” the article said.  

For more, read the Cincinnati Enquirer story or the Business Courier story.

The Ohio Tax Credit Authority (TCA) approved Monday state assistance for 17 projects expected to create nearly 2,000 jobs in Ohio and generate $141 million in new payroll as well as prompting $169 million in other investments during the next several years, according to Gongwer and The Hannah Report. The authority approved new incentives for VXI Global Solutions, Inc.; Avon Bearing Corporation; Kanan Enterprises, Inc.; SFS intec, Inc.; Eagle Railcar Services-Cairo, Ohio, LLC; NRI Industrial Sales LLC; Taiho Corporation of America; AcuSport Corporation; ECR Internet Services; International Business Machines (IBM) Corporation; USA Vinyl, LLC; Progressive Medical, Inc.; Minova USA, Inc.; Huhtamaki, Inc.; Polaris Sales Inc.; Rhinestahl Corporation; and Sunstar Engineering Americas Inc.

The TCA also voted to take remedial action against 16 other companies it said didn't fulfill promises made to receive credits. The actions against the companies include reductions in rate or term, adjustment of commitments or terminations without claw-backs. The companies TCA is taking remedial action against are ABC Manufacturing; Amano Cincinnati; Aptima; E Retailing; FirstGroup America; Hexion Specialty Chemicals; Hydrodec Group; Kendle International; North American Business Industries; PCC Airfoils; Restoration Hardware; SBC Advertising Ltd.; Whirlpool Corp & Kenco Logistics Services; Willard & Kelsey Solar Group, Inc.; and Zyvek Performance Materials.

Christiane Schmenk, director of the Ohio Development Services Agency, discussed the functional differences between the agency and its former self, the Ohio Department of Development. Whereas the department worked to attract companies into the state and help major expansions, the agency’s role now is “to help service the incentives or engagements negotiated by JobsOhio, as well as to oversee what JobsOhio is doing,” Business Courier reports. In addition to discussing the agency’s relationship with JobsOhio, Schmenk explained how internal processes have been streamlined to not only help established businesses move into Ohio, but also to help small businesses get assistance, the article said. For more, read the full story. 

After giving 181 Job Creation Tax Credits worth up to $132 million and 10 Job Retention Tax Credits worth up to $241.8 million in 2011, the Kasich administration is “de-emphasizing the use of tax credits” to lure new companies to the state as well as to entice existing companies to stay in Ohio, The Columbus Dispatch reports. Gov. Kasich also said he will not engage as often in “bidding wars with governments in other states” for attracting businesses. So far in 2012, the administration has offered just six retention credits worth up to about $28.6 million and 138 job-creation credits worth about $70.5 million, during which time the state added nearly 100,000 jobs, the article said. For more, read the full story.

The Bureau of Labor Statistics (BLS) released data today stating that nationally, nonfarm payroll employment rose by 146,000 during the month of November and the unemployment rate fell slightly to 7.7 percent from 7.8 percent in October. BLS also noted that private sector employment rose in the areas of retail trade, professional and business services, and health care. In addition, BLS released revised statistics in total nonfarm payroll employment for September (+148,000 to +132,000) and for October (+171,000 to +138,000).

Ohio’s November 2012 unemployment rate and nonagricultural wage and salary data will be released by the Ohio Department of Jobs and Family Services (ODJFS) on Friday, December 21, 2012. This information and the monthly statistical summaries on which it is based are available here.

A press release from Ohio Secretary of State John Husted’s office said there was a nearly 19 percent increase in the number of new entities filed to do business in Ohio during October 2012 (8,001) compared to October 2011 (6,449), Dayton Business Journal reports. Additionally, the office said there were 74,735 new business filings during the first 10 months of 2012, compared with 69,475 new business filings during the same time period last year — an increase of 7.5 percent, the article said. For more, read the press release and the full story.

The nonprofit economic policy group Policy Matters Ohio released a report last month that found that cuts in state aid to local governments amounted to a little more than $1 billion for calendar years 2012 and 2013 — a “nearly 50 percent reduction from 2010 and 2011,” according to a press release from the group. The report provides an in-depth analysis of county-level data on cuts and descriptions of the “damage done,” including “slashed services, closed facilities and layoffs,” the release said. The report found that the biggest cuts in state funding to local governments came from the Local Government Fund (LGF), a program that provides general operating funds to communities, and “reimbursements that compensated for local property taxes eliminated during the past decade,” the release said.

The funding cuts resulted from budget decisions made in 2011 by Gov. John Kasich and the state legislature eliminating a projected $8 billion budget shortfall without raising state taxes. Columbus Business First reports that Kasich will present the next biennial budget plan by early March, and that some local government officials “fear additional funding reductions are in the works.” For more, read the Columbus Business First story or this Dayton Business Journal story.

OhioMeansJobs.com will begin publishing a monthly report showcasing Ohio’s talent pool to national employers, Columbus Business First reports. Each month, the group OhioMeansJobs, which is a partnership between the Ohio Department of Job and Family Services (ODJFS) and the resume services of Monster Worldwide Inc., will pick a specific job title or keyword and “highlight the number of online resumes with the requisite skills and education” so as to show what Ohio has to offer to out-of-state business owners who are thinking about relocating, the article said. For more, read the full story and the ODJFS press release.

With Ohio’s unemployment rate having fallen below 7 percent last month for the first time since the summer of 2008, the state’s private, nonprofit economic development entity JobsOhio is launching a national advertising campaign to promote the state’s economic successes in an effort to recruit out-of-state companies and talented workers, Columbus Business First and The Columbus Dispatch report. The $1.4 million “Thrive in Ohio” campaign will feature online and print ads in national publications as well as television commercials. Workers and business owners alike are encouraged to share their stories at www.ThriveInOhio.com. For more, read the Columbus Business First story and The Columbus Dispatch story.

Governor Kasich’s Executive Workforce Board, a 25-person board that will work with the governor’s office to “rationalize Ohio’s work-force system and recommend ways to streamline the 90 existing programs scattered across 13 state agencies,” had its first meeting in Columbus on Monday, Columbus Business First reports. The board is composed of public officials, business association leaders and company executives tasked with forecasting the work-force needs of businesses, streamlining delivery of services to them and workers, and implementing performance measurements for the system, the article said. For more, read the full story.

In September, the state of Ohio chose not to renew its rapid response contract with its existing service provider. Shortly thereafter, Policy Matters Ohio released a statement criticizing the Kasich Administration’s decision to not renew the contract with the Cleveland-based United Labor Agency (ULA), with whom it has contracted since 2007 to “avert layoffs, coordinate statewide workforce development activities, and improve rapid response services to laid-off workers,” Gongwer reports. Ben Johnson, a spokesman for the Ohio Department of Jobs and Family Services, said federal funding for the Workforce Investment Act, which requires such rapid response services, has “steadily decreased” during the last few years as Ohio’s economy has improved “relative to other states” and that the state’s plan from the beginning has been to contract with ULA until local workforce investment boards were able to handle the work on their own. The intent now, Johnson said, is to free up that funding and simply contract rapid response services on an as-needed basis, the article said. For more, read Policy Matters Ohio’s press release and report summary.

KPMG LLP, Ohio’s advisor, is expected to release a highly anticipated report in the coming weeks that will examine the best ways to “wring cash out of the 241-mile Ohio Turnpike,” including the possibility of a public-private partnership similar to one undertaken in Indiana in 2006, Bond Buyer reports. The director of the Indiana Department of Transportation has touted the state’s $3.8 billion lease of its toll road as a way to “finance infrastructure without raising taxes,” but Ohio Department of Transportation (ODOT) Director Jerry Wray said that financial circumstances between 2006 and now must be taken into consideration as part of the consultant’s report. Ohio officials hope to present a privatization plan, which Gov. Kasich speculates could raise $2.4 billion for the state, to the General Assembly as either a stand-alone proposal or part of the ODOT budget soon after January 1, the article said. For more, read the full story.

Bricker & Eckler served as bond counsel for the Toledo-Lucas County Port Authority as it completed Ohio’s second Property Assessed Clean Energy (PACE) bond issue. Following the success of an initial bond issue through the Northwest Ohio Bond Fund in May 2012 in the amount of $5.325 million, the second bond issue closed in October 2012 in the amount of $6.435 million. These transactions continue a cooperative effort between the port authority’s BetterBuildings Northwest Ohio (BBNWO) program and the Toledo Ohio Advanced Energy Improvement Corporation. For more, read the full story.

The Ohio Department of Job and Family Services (ODJFS) released state figures this morning noting that Ohio’s unemployment rate dropped to 6.9 percent in October, down from an adjusted 7.1 percent in the month of September. The number of workers unemployed in the state of Ohio in October was 396,000, down from 406,000 in September. Ohio’s unemployment rate in October 2011 was 8.3 percent.

As noted in our November 2 blog post, the U.S. unemployment rate increased slightly in October to 7.9 percent from 7.8 percent in September, down from 8.9 percent in October 2011.

On November 1, the state Development Services Agency stopped accepting applications for the Technology Investment Tax Credit, which “reduced state taxes by 25 percent on the amount investors put into qualified Ohio technology companies,” because the program ran out of money before the state legislature could pass a bill reauthorizing it, Columbus Business First reports. Created in 1996, the program was projected to reach its $45 million cap in 2013, but the date was moved up due to a “strong increase in applications recently,” the article said. H.B. 511, which would add $6 million to the program and would also revive the Ohio Capital Fund, “passed the state House in May” and is currently in a Senate committee; however, the Ohio General Assembly has been recessed since summer, the article said. For more, read the full story.

Last week, the state Development Services Agency (DSA) began accepting applications for round four of the Local Government Innovation Fund (LGIF), which is designed to “provide financial assistance to local governments for planning and implementing projects that improve the efficiency of delivering community services,” according to a press release from the agency. Early indications from the previous rounds found that of the $45 million total allotted to LGIF, the $9 million for planning and feasibility study grants was significantly more popular than the $36 million for loans. However, so far in round four — which, like round two, offers only the loan and not the grant — there has been an encouraging level of increased interest in the loan portion of the fund, Gongwer reports.

LGIF applications are due to the DSA’s Office of Redevelopment by 5 p.m. on December 3, 2012. For more information about the program, read the press release.

The Ohio Development Services Agency recently launched the Ohio Vacant Facilities Fund, which will offer a $500 grant to for-profit employers for every new full-time position created in eligible vacant and underutilized buildings, according to a press release from the agency. The “law authorizing the program was signed into law” on May 4, 2012, by Gov. John Kasich and allocated $2 million through August 2015 in an effort to “find new uses for unoccupied buildings,” Business Courier reports. Employees must be employed for a year before the employer can receive the grant as a reimbursement for costs related to “acquisition, construction, enlargement, improvement, or equipment” for the facility, the article said. For more, read the full story and the press release.

Recently, the Ohio Bureau of Workers’ Compensation board approved a proposal to “reduce the average rates that public employers pay by 5 percent,” the Columbus Dispatch reports. Effective January 1, 2013, the reduction is projected to lower combined premiums for the state’s 3,900 cities, counties, townships, villages, school districts and other local governments by an estimated $12.7 million, although base rates will decrease more for some than others, the article said. For more, read the full story.

In a 7-0 decision, the Ohio Supreme Court ruled last month that the city of Centerville could “set up a TIF (tax increment financing) district within 268 acres of land it annexed from Sugarcreek Township for development,” despite the fact that doing so deprived Sugarcreek Township of “collecting property taxes on the improved land,” according to The Hannah Report. In the opinion, the Court said that R.C. 709.023(H) “does not grant townships the unfettered ability to collect any and all taxes that may arise from the real property or improvements to the real property.” For more, read the decision.

In its 2012 Top State Business Climate Rankings, Site Selection magazine ranked Ohio second — up seven places from last year, the magazine reports. Ohio is the only state in this year's top 10 ranking from the Midwest region. The publication’s business climate ranking is “based 50 percent on a survey of corporate site selectors” and 50 percent on the following five criteria: the state’s placement in the magazine’s most recent Governor’s Cup ranking, its Competitiveness Ranking and its projects logged into the publication’s New Plant Database, as well as the “Tax Foundation and KPMG’s Location Matters analysis of state tax burdens,” the article said. For more, read the full story.

Recently, budget analysts with the National Conference of State Legislatures (NCSL) issued a study on the impact on states of the Sequestration Transparency Act of 2012, which is made up of “automatic federal budget cuts that apply largely across the board due to begin in January 2013,” according to The Hannah Report. These cuts, which total more than $1 trillion over 10 years, were designed to be triggered if the Joint Select Committee on Deficit Reduction failed to identify $1.2 trillion in spending cuts as part of the Budget Control Act of 2011, the article said. The Office of Management and Budget released a report in September outlining the “potential funding effect of sequestration on defense and non-defense discretionary and mandatory spending and Medicare for FY13,” from which information was gathered that NCSL used to determine the effect on states. While Medicaid, the Temporary Assistance for Needy Families Block Grant (TANF), transportation programs, administrative assistance for the Supplemental Nutrition Assistance Program (SNAP), the Child Care and Development Block Grant, the Children’s Health Insurance Program (CHIP), and most entitlement and mandatory programs are exempt from sequestration, cuts due to sequestration will come in the areas of education, environment, energy, human services, housing, community development, labor, job training, law enforcement and homeland security, the NCSL analysis said. For more details on the impact on states of reduced funding due to sequestration, read the NCSL analysis and the OMB report.

The Bureau of Labor Statistics (BLS) released data today stating that nationally, nonfarm payroll employment increased by 171,000 during the month of October; however, the unemployment rate increased slightly to 7.9 percent from last month’s 7.8 percent. BLS also noted that private sector employment rose in the areas of professional and business services, health care and retail trade. BLS also released revised statistics in total nonfarm payroll employment for September (+114,000 to +148,000).

Ohio’s October 2012 unemployment rate and nonagricultural wage and salary data will be released by the Ohio Department of Jobs and Family Services (ODJFS) on Friday, November 16, 2012. This information, and the monthly statistical summaries on which it is based, is available here.

At the Ohio Third Frontier Commission meeting on October 23, 2012, the commission authorized the approval of a $236 million budget for the program’s 2013 fiscal year. The budget will allocate program resources as follows:

• Capital & Talent – $43 million
• Innovation – $50.1 million
• Commercialization – $77 million
• Research – $8 million
• Marketing – $1 million
• Reserve – $56.9 million

Agreeing to switch to a calendar year budget cycle, the commission will carry-over $61 million from the FY 2012 budget into the FY 2013 budget, Columbus Business First reports. The Growth Fund and Micro Loan Fund programs will be eliminated, while two new programs, Technology Commercialization Centers and Technology Asset Grants, were created.

For more, read the Columbus Business First story and view the Third Frontier Commission meeting presentation.

The Ohio Board of Regents recently announced that it has launched a website to help connect “Ohioans seeking education and jobs in the energy industry” with education and training resources, as well as employment opportunities, that are tailored to their needs and interests, according to a press release from the board. Keeping with Governor Kasich’s vision that higher education institutions better equip students with the skills and knowledge needed by Ohio’s businesses and employers, the website — OhioEnergyPathways.org — features information about the advanced energy, renewable energy, energy efficiency, and oil and gas sectors. For more, read the press release.

Ohio Treasurer Josh Mandel recently announced the release of an interactive map of state properties that will allow all Ohioans to view and search the estimated 36,000 state-owned buildings and properties, according to Gongwer and a press release from the treasurer. With the ability to search by county, zip code, city or address, these online mapping tools are intended to enable property owners and residents across the state to “provide feedback on any properties that may be underutilized or surplus so that the state can sell them or put them to better use,” the release said. Mandel said that these new tools could also be used to help energy companies locate oil and gas leasing sites, Gongwer reports. For more, read the press release or access the map.

On-bill repayment (OBR), a method for financing energy efficiency and renewable electricity generation projects through a homeowner’s or business owner’s monthly utility bills, is a legislative initiative that may be gaining momentum in Ohio. Projects funded under OBR programs are financed by third-party investors or lenders and are not financed directly by utility companies or ratepayers. OBR permits customers to repay the investor or the lender through payments added to its monthly utility bill instead of direct payment to the investor or the lender. At this time, various stakeholders are considering how on-bill repayment may help businesses in Ohio. For more, read the full story.

An investigation by the Dayton Daily News found that between 2010 and 2011, the amount of taxpayer-subsidized tax credits, grants and low-cost loans given to businesses in Ohio increased 44.3 percent to $487.7 million. Of that, $200 million were tax credits given to companies that “simply agreed to keep existing jobs in Ohio after threatening to leave the state,” the article said. While Governor John Kasich defended his actions by saying that each company and situation was measured individually and that incentives matter when it comes to negotiating with businesses, critics of these incentives say that because of the troubled economy, the state is being bullied into giving these companies such large incentives, the article said. For more, read the full story.

The Ohio Department of Commerce recently announced that starting January 1, 2013, minimum wage in Ohio will increase by 15 cents to $7.85 per hour for “employees of businesses with annual gross receipts of more than $288,000 a year,” and will increase by eight cents to $3.93 per hour for employees who receive tips, the Toledo Blade reports. Voters passed an amendment to the Ohio Constitution in November 2006 that requires the minimum wage to increase by the rate of inflation at the start of each year, the article said. The minimum wage rate for employees at companies with less than $288,000 in gross receipts and for employees under the age of 16 is tied to the federal minimum wage of $7.25 per hour, the article said. For more, read the full Toledo Blade story and the press release from the Ohio Department of Commerce.

As part of the Ohio Department of Transportation’s (ODOT) Division of Innovative Delivery, which was created to help the department evaluate and execute alternative income generation strategies, ODOT has signed a contract with Massachusetts-based Travelers Marketing to sell advertising, sponsorships and naming rights for the 45 rest stops throughout Ohio, the Plain Dealer reports. It is estimated that the deal will earn the state “up to $13 million over the next eight years,” the article said. In addition, three companies are currently vying to land a contract with ODOT that would sell naming rights and sponsorship for interchanges, bridges and “unique stretches of road” — a deal ODOT estimates could earn the state up to $15 million a year, the article said. For more, read the full story.

The Ohio Department of Job and Family Services (ODJFS) released state figures this morning noting that Ohio’s unemployment rate dropped to 7.0 percent in September, down from 7.2 percent in the month of August. The number of workers unemployed in the state of Ohio in September was 406,000, down from 413,000 in August. Ohio’s unemployment rate in September 2011 was 8.6 percent.

As noted in our October 5 blog post, the U.S. unemployment rate decreased from 8.1 percent in August to 7.8 percent in September, down from 9.1 percent in August 2011.

According to a report by Ohio Secretary of State Jon Husted, the number of new entities that filed to do business in Ohio in September was 6,665 — an increase of more than 8 percent from this time last year, Columbus Business First and the Youngstown Vindicator report. The number of business filings in the state increased from 63,026 during the first nine months of 2011 to 66,734 during the first nine months of 2012, the article said. For more, read the Columbus Business First story and the Youngstown Vindicator story.

The University of Nebraska-Lincoln’s State Entrepreneurship Index, an annual state-by-state measurement of entrepreneurial activity, ranked Ohio 22nd — a jump of 18 spots from last year, Columbus Business First reports. Components measured include “a state’s percentage growth and per capita growth of business establishments, business formation rate, number of patents per thousand residents and income per non-farm proprietor,” the article said. Ohio only fell below the median of all state data measures in one area — business formations — where it ranked 46, which is three spots higher than where it placed last year, the article said. For more, read the full story and the full report.

By November, Ohio Governor John Kasich and Kentucky Governor Steve Beshear are expected to sign a memorandum of understanding that both states will jointly develop a Brent Spence bridge financing plan for the construction of a “second span to ease congestion and safety problems on Interstates 75 and 71 in Cincinnati and Covington,” Business Courier reports. A “lack of consensus” between both states on local funding options has delayed the project for years, which according to Julie Janson — founder of the Build Our New Bridge Now Coalition and president of Duke Energy’s utility operations in Ohio and Kentucky — costs state, local and federal governments $8 million for every month that the bridge project is delayed, the article said. For more, read the full story.

Recently, the Ohio Controlling Board approved a $4 million study by HNTB Ohio, Inc. to determine “the value and viability of various private-public partnerships” to fund the $2.5 billion construction of a new Brent Spence bridge between northern Kentucky and Cincinnati, Gongwer reports. The current bridge is structurally sound, but has more traffic than it was designed to handle, the article said. The study will also examine the effect that a new bridge toll would have on traffic patterns in the area, although legislators from northern Kentucky — which owns the bridge — are opposed to setting up tolls and may bail from the project completely, the article said.

The Local Government Innovation Fund Council is working to resolve the fact that local governments are applying for more grants than loans from a $45 million fund that allocates “$36 million toward loans for project implementation, with a small portion available for planning and feasibility study grants,” Gongwer reports. As of June, the council had approved “41 grants totaling $3.46 million and 10 loans worth $2.96 million,” the article said. Although it is clear that local governments prefer the grants because they do not involve repayment, members also reasoned that many of the projects are still in the developmental stage and are therefore ineligible to apply for loans for project implementation, the article said. Members discussed whether the unused funds should be reapportioned to allow for more grants, but concluded that this would require the legislature to revise the statute that divides the funding.

Last month, the Ohio Supreme Court declined to rule on the constitutionality of JobsOhio, the newly created private, nonprofit economic development organization designed to leverage the state’s liquor operations as a funding stream to promote economic development and job creation. The Columbus Dispatch reported that in a letter to Mark Kvamme, interim president and chief investment officer of JobsOhio, Department of Commerce Director David Goodman voiced concern over “lingering constitutional issues” regarding the transaction, including “whether JobsOhio violates the prohibition of the General Assembly from conferring corporate powers via special act; and whether the transfer improperly allows the state to lend credit to a private corporation.” Therefore, JobsOhio put the Kasich administration “in the unusual position of challenging itself in court” when it responded to Goodman’s refusal to sign the agreement to transfer the state’s liquor operations by “asking the Ohio Supreme Court to settle the matter,” an editorial from the Akron Beacon Journal reported. For more information, read our August 17, 2012, blog post.

In a 4-2 ruling, the Supreme Court stated that although on the surface the complaint seeks to compel Director Goodman to comply with the transfer of the state’s liquor operations to the agency, it is actually trying to get “an expedited ruling” from the court declaring the agency constitutional so as to “preclude any further challenges,” Gongwer reports. Moreover, the justices said the court is “powerless to grant” a declaratory judgment and dismissed the action because “parties who seek an advisory declaratory judgment” have “adequate remedies in the ordinary court of law,” namely the lower courts, that must be exhausted before proceeding to the high court, the article said.

For more, read this Columbus Dispatch story.

The Kasich administration is putting the final touches on its Incumbent Workforce Training Voucher Program — a $50 million initiative that will reimburse an employer at 50 percent of the cost of any training program that the employer wants for his or her current workforce so long as it is qualified through the Development Services Agency, Gongwer reports. The training program, which was developed in last year’s biennium budget and utilizes a portion of the state’s casino licensing fee revenue, caps training reimbursement at $500,000 per employer and $4,000 per employee.

Eligible companies will likely fall into one of the state’s nine targeted industries: advanced manufacturing; aerospace and aviation; automotive; biohealth; corporate headquarters; energy; financial services; food processing; information technology; and polymers and chemicals, the article said. At this time, it is unclear when the Kasich administration will launch the program statewide. However, because program funding will be levied on a first-come, first-served basis, eligible companies will want to be prepared to submit their application as soon as the administration provides a formal announcement on the program’s launch.

Last year, the Ohio Department of Development’s Small Business Development Center launched a website called Check Ohio First to help buyers from all over the world locate Ohio suppliers. Since then, the number of profiles for Ohio-based suppliers on the website has grown to 460, Columbus Business First reports. Dublin-based Halcyon Solutions Inc. won the bid to develop and host the electronic matchmaking tool, which was first proposed and named by former Gov. Ted Strickland in 2008, the article said. For more, read the full story or visit the Check Ohio First website.