Compliance report issued on state awards for economic development
Lead Summary
By
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Ohio Attorney General Mike DeWine has submitted an annual report to the Ohio General Assembly regarding business entities that were granted economic development awards from the Ohio Department of Development (ODOD) with performance periods ending in 2010 detailing the extent those entities complied with the terms and conditions of the awards they received.
“In these challenging economic times, it is critical that Ohioans know whether companies receiving public money or tax credits from the Ohio Department of Development are delivering on their promises,” DeWine said. “I am pleased to provide this analysis of our findings to provide a benchmark for performance and to ensure transparency for Ohio taxpayers.”
Overall, approximately 48 percent of award recipients were found to be non-compliant. In Region 7, which includes Highland County, the non-compliant rate was 38 percent. At least one Highland County manufacturer was found to be non-compliant on a $2.5 million loan. Other entities determined to be non-compliant included two Fayette County businesses and a public office in Brown County.
In some cases, award recipients failed to create the jobs promised; in other cases, filing deadlines were missed. Remedial action has been completed on those non-compliant entities.
In December of 2008 the Ohio General Assembly enacted a measure directing the Ohio Attorney General’s Office (AGO) to monitor the performance of businesses accepting state awards for economic development from ODOD. The Attorney General’s Office conducted a three-phase review of the active economic development awards administered by ODOD.
In the first phase, the AGO identified all 2,990 active economic development awards in which incentives are characterized as Grants, Tax Credits, Loans, and Workforce Guarantee awards. In the second phase, the AGO audited the information reported by ODOD to assess its reliability. And, in the third phase, the AGO identified those businesses which were subject to specific performance metrics and for which an ODOD compliance determination was possible.
Among all active awards, the performance periods for 420 awards ended in 2010. The businesses receiving the 420 awards were obligated to file a closeout report covering calendar year 2010. After examining the information provided in the closeout reports and determining whether the businesses met the terms and conditions of their state awards, ODOD reported to the AGO that businesses receiving 220 awards did comply and businesses receiving 200 awards did not. This represents an overall compliance rate of 52.4 percent.
For the full report, go to: www.ohioattorneygeneral.gov/Briefing-Room/News-Releases/December-2011/A… Ad]]
“In these challenging economic times, it is critical that Ohioans know whether companies receiving public money or tax credits from the Ohio Department of Development are delivering on their promises,” DeWine said. “I am pleased to provide this analysis of our findings to provide a benchmark for performance and to ensure transparency for Ohio taxpayers.”
Overall, approximately 48 percent of award recipients were found to be non-compliant. In Region 7, which includes Highland County, the non-compliant rate was 38 percent. At least one Highland County manufacturer was found to be non-compliant on a $2.5 million loan. Other entities determined to be non-compliant included two Fayette County businesses and a public office in Brown County.
In some cases, award recipients failed to create the jobs promised; in other cases, filing deadlines were missed. Remedial action has been completed on those non-compliant entities.
In December of 2008 the Ohio General Assembly enacted a measure directing the Ohio Attorney General’s Office (AGO) to monitor the performance of businesses accepting state awards for economic development from ODOD. The Attorney General’s Office conducted a three-phase review of the active economic development awards administered by ODOD.
In the first phase, the AGO identified all 2,990 active economic development awards in which incentives are characterized as Grants, Tax Credits, Loans, and Workforce Guarantee awards. In the second phase, the AGO audited the information reported by ODOD to assess its reliability. And, in the third phase, the AGO identified those businesses which were subject to specific performance metrics and for which an ODOD compliance determination was possible.
Among all active awards, the performance periods for 420 awards ended in 2010. The businesses receiving the 420 awards were obligated to file a closeout report covering calendar year 2010. After examining the information provided in the closeout reports and determining whether the businesses met the terms and conditions of their state awards, ODOD reported to the AGO that businesses receiving 220 awards did comply and businesses receiving 200 awards did not. This represents an overall compliance rate of 52.4 percent.
For the full report, go to: www.ohioattorneygeneral.gov/Briefing-Room/News-Releases/December-2011/A… Ad]]