The 2012 Economic Development Accountability Report from Ohio Attorney General Mike DeWine’s office, titled Award Recipient Compliance with State Awards for Economic Development, reports that of the 255 economic-development contracts with a performance period ending in calendar year 2011, 162 award recipients “substantially complied (met at least 90 percent of the commitments) with the terms and conditions of their state awards,” while 93 awards did not comply — representing an overall compliance rate of 63.5 percent. This is an increase from last year’s 59.1 percent compliance rate (see our March 5 blog post for more information).
According to The Columbus Dispatch, the award recipients received a total of $114 million worth of benefits in the form of loans, tax credits or grants in exchange for “employee training or hiring or maintaining certain wage levels.” Award contracts were divided into the following categories:
- Employee-training aid worth $7 million: 80 of 89 companies complied.
- Hiring tied to grants worth $35 million: 36 of 74 companies complied.
- Hiring or wage levels tied to tax credits worth $7 million: 25 of 42 companies complied.
- Hiring tied to loans worth $65 million: 21 of 50 companies complied.
For more, read The Columbus Dispatch story and the Ohio Attorney General’s 2012 Economic Development Accountability Report.