Gongwer News Service

Responding to requests from research groups, the media and politicians, the state’s welfare agency is clarifying the difficulties in developing a system to help identify companies with large numbers of workers receiving public aid but renewed a promise to work toward that goal in the coming weeks.

The Department of Job and Family Services, which earlier this year denied requests for such data on both legal and bureaucratic grounds, has assembled an internal review team led by Chief of Staff China Widener to determine how a quality report may be developed.

The team hopes to reach some conclusions earlier this month on how to move forward with the project, ODJFS spokesman Jon Allen said.

Policy Matters Ohio, a Cleveland-based research group, and a couple of major daily newspapers have been seeking employer information data regarding Wal-Mart and other companies in an effort to identify firms with large numbers of workers receiving Medicaid, food stamps and other public aid. The discount retailer in particular has come under criticism for its pay and benefits packages.

ODJFS originally denied the requests, with its senior staff attorney saying the information was confidential and the public affairs office reporting that the data wasn’t retrievable under the current information system. (See Gongwer Ohio Report, October 7, 2005)

“One of the challenges that has been ongoing in this issue is, this information isn’t readily available at the push of a button,” Mr. Allen said. Nonetheless, “The decision from the (Director Barbara Riley’s) office is we would attempt to create this on our own… because of the interest in this topic.”

Among the challenges is that fact that such data is entered at the county level, and a review of the state’s Client Registry Information System-Enhanced (CRIS-E) found, for example, that Wal-Mart was identified in 160 different ways. Some of the differences entailed misspellings of the company’s name.

Mr. Allen said the internal review team would discuss how to resolve that issue and others when it meets later this week.

College grads leave for more opportunities

Cincinnati Enquirer

When politicians talk of the strengths of Ohio’s economy, they talk about exports. Ohio made jet engines and auto parts are shipped to markets throughout the nation and the world.

Full Article

Policy Matters Ohio is the Ohio partner for the Apollo Alliance, a bold national campaign to make our country energy-independent within a decade. Ohio’s world-class manufacturing infrastructure and workforce is poised to make us a leader in providing parts for wind turbines and other renewable energy equipment that could be used nationwide. Policy Matters and Apollo commissioned the Renewable Energy Policy Project to produce a comprehensive report documenting the potential investment and job growth opportunities in every Ohio county. Policy Matters released a brief report, relying on the REPP data and analysis. Click on the links below to understand how Ohio could gain more than 22,000 jobs from renewable energy investments.

Press Release

Executive Summary

Full Report from Policy Matters

Full Report from The Renewable Energy Policy Project

Gongwer News Service

A Senate panel heard another measure aimed at curbing “predatory lending” practices Tuesday and planned to field further testimony next week on the subject, boosting the hopes of housing advocates that the Legislature will take more steps to rein in unscrupulous lenders.

Senate Finance & Financial Institutions Chairman John Carey (R-Wellston), who has previously stressed the need to understand the laws on the books before making any hasty decisions on the subject, said after committee that he likely would move a bill eventually. “It’s going to take a while,” he added.

Advocates who have been lobbying the GOP-led Legislature for years to extend the Consumer Sales Practices Act to certain mortgage lenders took heart in the fact that the majority party is even considering enacting new laws in the area.

“I’m encouraged. I’m optimistic,” said Bill Faith, executive director of the Coalition on Homelessness and Housing in Ohio. He believes the momentum for change is building in both chambers as more and more lawmakers’ constituents report lending problems.

The realization is setting in, Mr. Faith said, that “current laws…are not providing sufficient tools to curb predatory lending.”

Attorney General Jim Petro agrees. In a presentation to the Senate Finance Committee Tuesday, Principal Assistant Attorney General Robert Hart made the case for extending the CSPA to certain lenders and noted the broadening of the AG’s oversight in the area that would occur under a proposal sponsored by Sen. Joy Padgett (R-Coshocton).

Following the presentation and sponsor testimony on a lending bill by Sen. Marc Dann (D-Liberty Twp.), Chairman Carey announced he would hold hearings next week on Sen. Padgett’s bill, which would extend CSPA protection to non-bank lenders, and a measure (SB 162) sponsored by Sen. Tom Roberts (D-Dayton) that goes further in several aspects and includes recommendations from the Predatory Lending Study Committee.

The hearing promises to be a forum for consumers with complaints over how their lives have been impacted by loans gone awry.

“This is a problem that is out of control,” Mr. Hart said. He noted: Ohio leads the nation in foreclosures per capita; 10.5% of “sub-prime” loans issued in the state – triple the national average – are in foreclosure; 59,000 foreclosures were filed in Ohio during last year alone.

Ohio’s dubious standing – 31 of 57 sheriffs surveyed in a Policy Matters Ohio report cited predatory lending as the leading cause of the foreclosure increase – worsened despite an improving economy, Mr. Hart said. The trend suggests “there were other forces at play” besides economic ones.

Mr. Hart cited studies in North Carolina and Pennsylvania that dispute the argument that strengthening lending laws unduly restricts credit opportunities for the poor or those with troubled credit histories that often receive “sub-prime” loans.

He also addressed the industry’s contention that the oversight by the Department of Commerce is sufficient, noting there are other examples in state law – auto dealers and skilled trades in particular – in which the CSPA is enforced along with other regulatory schemes. “We believe there is a distinction to be drawn between regulation and enforcement,” Mr. Hart said.

Sen. Dann said his bill would provide a quick response to the issue because it isn’t as broad as other proposals currently under consideration. The bill removes the CSPA exemption for “dealers in intangibles,” or non-bank mortgage lenders, and eliminates the public records exemption for complaints against mortgage brokers filed with
DOC, he explained.

“Predatory lending has been permitted to grow far too long here in Ohio,” Sen. Dann said. The bill would bring Ohio in line with the 48 other states that regulate DITs under consumer protection laws.

The sponsor said the removal of the public records exemption “will allow consumers choice” by freeing up more information about brokers. Responding to a question from the chair, Sen. Dann said his bill would not apply to state-chartered banks.

The Department of Commerce was also to testify in regards to its regulatory oversight, but decided to wait and further discuss policy proposals with Governor Bob Taft, who has been in Europe on a trade mission.

Sen. Ray Miller (D-Columbus) suggested the agency was purposefully avoiding the committee because of Mr. Taft’s recent request for Controlling Board approval of $1.5 million in funds to hire 14 staff members to better implement mortgage lending laws.

“I’m surprised they wouldn’t want to come in here and testify as to why that is needed,” Sen. Miller said, adding the money might be better served going to the AG’s office for enforcement purposes. “I think they’re running from the potential questions that might come from this committee.”

Commerce Director Doug White bristled at the suggestion that the agency was ducking the committee. “We’re not afraid at all,” he said. Commerce will testify on its efforts in regards to current laws (HB386, SB 76, 124th General Assembly), as well as issues involving the proposed expansion of the CSPA, once the information is compiled and the governor is briefed.

“We are taking (staff) information and putting together a presentation to the governor,” Mr. White said, adding that Mr. Taft and the Legislature “will craft the public policy,” not the department. The agency also planned to meet with the attorney general’s office, he said. “Our job is to give the governor and the attorney general information on what is possible.”

Mr. White said he has no opinion on the CSPA issue, but said there are some complications involved when the regulatory scheme shifts from a focus on criminal fraud to broader offenses.

As to current law, Mr. White said Commerce has licensed 29,000 brokers since 2002 and has conducted hundreds of presentations as part of an educational campaign to help consumers avoid lending traps. “We are executing the public policy of House Bill 386 and Senate Bill 76,” he said.

Not in the Public Interest
The Columbus Dispatch 

How many working-class Ohio families rely on public aid, such
as Medicaid, energy assistance, food stamps and other programs?

A state agency has interfered with a valid research effort to answer this question.

Policy Matters Ohio asked for employer names and addresses of such welfare recipients, but was rebuffed by the Ohio Department of Job and Family Services.

The Cleveland-based research group wants to determine if employers’ benefit reductions are prompting some working Ohioans to seek public assistance to supplement their safety net.

The department last month refused to disclose what clearly should be part of the public record. The agency argued that the group’s request was overly broad and that the information is “inextricably
intertwined with confidential client data.” Job and Family Services claims it would need to create a software program to extract the requested information.

Especially troubling is that the department cited a Sept. 7 Ohio Supreme Court ruling in its refusal to comply.

The high court, by a 7-0 vote in a case brought by The Dispatch, held that public employees’ home addresses are not part of the public record.

Justice Alice Robie Resnick, writing for the court, emphasized that the decision should be construed narrowly, cautioning public officials not to “place great weight on this case as precedent in unrelated
contests.”

But that’s just what Job and Family Services did, only a short time after the high court’s ruling on the privacy of public employees’ residential data. The department’s attorneys used the court’s wording as reason to conceal the names and addresses of businesses employing aid recipients.

Such roadblocks to the free flow of information will continue until the Ohio legislature clears up the ambiguity about this perceived loophole in open-records law.

Job and Family Services’ position probably can’t withstand a legal challenge. But legal challenges take time and money, and in the interim, the agency can blow off this reasonable request.

Research by academics, activists, interest groups and the news media serves the public by generating a wealth of information on which policy decisions are made. Policy Matters Ohio, a liberal-leaning group, contends that “information on employers whose work force relies on public benefits” is pertinent to its research and is available in at least 18 other states.

Public bodies too often fail to comply with records requests. Sometimes, the requester has to file court action to obtain data that should be readily available.

Although a desire for secrecy is sometimes the reason, these refusals also occur because the taxpayer funded officeholders would rather not be bothered with records requests.

Public access to governmental information is one of the pillars of democracy. Ohio’s law and courts should require government to provide the widest possible access to public records.

Three-part proposal also involves local road, water projects
Jim Siegel and Mark Niquette

Columbus Dispatch

Through Friday, The Dispatch will publish stories about the five proposed constitutional amendments facing Ohio voters on Nov. 8.

Today, the focus is on Issue 1, a $2 billion bond package that supporters say will bring hightech jobs to Ohio.

Talk to Issue 1 supporters, and they’ll quickly tell you the $2 billion proposal boils down to one word — jobs.

Ohio’s stuck-in-the-mud economy isn’t creating nearly enough of them. No longer able to rely on highpaying manufacturing jobs to boost the standard of living, state leaders say government must do more to develop hightech employment.

And though some conservatives term it corporate welfare, supporters say it’s vital that Ohioans let state government spend another $500
million for the Third Frontier program.

The program is designed to develop high-tech research, and eventually high-tech jobs, by assisting companies and fostering partnerships with universities and businesses.

“There is a gap between our outstanding, world-class research institutions and our ability to commercialize some of that research into new products in our state,” said Lt. Gov. Bruce Johnson. “With some state assistance we can pool a lot of the research that’s already happening and have it create jobs in Ohio.”

Issue 1, which increases state borrowing but does not raise taxes, is a three-part, $2 billion issue that also includes:

• $1.35 billion for local road, bridge and water projects, essentially
continuing a 10-year issue that was last approved in 1995. The issue is not set to expire until after 2006.

By itself, the issue passed by wide margins in 1987 and 1995. It is strongly supported by local government officials who have relied on the money for more than 10,000 projects.

“For us, it’s essential,” said John Mahoney, deputy director of the Ohio Municipal League. “That has been the most successful state program we’ve had as far as infrastructure investment.”

• $150 million over seven years for business-site development, such as industrial parks. Money can be used for land and building acquisition, renovations and the installation of utilities.

Much of the discussion of Issue 1 has focused on the Third Frontier portion of the proposal.

Introduced by Gov. Bob Taft in 2002, his initial plan called for spending $1.6 billion over 10 years. The bulk, $1.1 billion, is coming
from tax revenue, capital budget funds, tobacco-settlement money and a loan fund fueled by state liquor profits.

The final portion of the plan — a $500 million bond issue to be approved by voters — went down to a stunning defeat in November
2003.

The issue is back because, state leaders say, $1.1 billion is not enough.

Johnson said the demand is 10 times what the state currently is spending — and other states, such as California, are spending significantly more.

“We’re significantly over-invested in capital because of the nature of the money we’re spending,” Johnson said. “You have to fill up (the
buildings) with active people who are doing the research.”

The state has awarded $325 million since 2002.

Nearly $89 million has gone to projects at the Ohio State University, helping to fund research such as lung-cancer treatment and industrial components made from agricultural products.

“If we did not carry these innovations forward, they undoubtedly would be developed in other states or the world market,” said Robert
McGrath, vice president for research at Ohio State.

Ohio State, with help from $17 million in Third Frontier funds, partnered with Phillips Medical in Cleveland to develop a magnetic imaging system that can take pictures of the brain far more enhanced than current equipment.

The machines are being built in Cleveland, where 80 jobs have been created, McGrath said. Installing the new machinery at the Ohio State Medical Center also required the purchase of $200,000 in concrete and $800,000 in steel from Ohio companies.

“That’s the kind of spillover we’d like to have,” McGrath said. “We think we have numerous programs heading in that direction.”

But Third Frontier critics argue the state should not be increasing state borrowing for what they term “corporate welfare” with no guarantee of new jobs.

There are moral concerns as well. Some conservative groups say Issue 1 funds could be used for embryonic stem-cell research.

Rep. Tom Brinkman Jr., R-Cincinnati, argues that government just isn’t very good at investing in private companies — and that taxpayers often end up subsidizing projects that private investors won’t touch.

“Government is a sap, a sucker,” Brinkman said.

Kurt Kauffman, the state’s debt manager at the Office of Budget and Management, said credit-rating agencies don’t have a problem with the additional borrowing.

In all, Issue 1 would require the state to pay $2 billion in principal on the bonds and $1.2 billion in interest, Kauffman said.

Although voters might support Issue 1 because of the state’s declining economy, they need to do so with their eyes open, said Jon Honeck, a research analyst for Policy Matters Ohio, a nonprofit public policy group in Cleveland.

Issue 1, he said, would change the relationship between the public and private sectors by allowing government to become stockholders in private companies, reversing a longstanding constitutional prohibition.

Policy Matters said Issue 1 is an improvement over the 2003 ballot issue because there are more safeguards to require accountability of
funding and ensure all regions in the state benefit.

Success of the program, Honeck said, “will depend on the vigilance of the legislature and the appropriate state agencies in defining and tracking the public interest in economic-development policy.”

Gongwer News Service

A major national investment in renewable energy technologies would bring about significant growth in the state’s manufacturing industry and overall business climate, according to a new report released by Policy Matters Ohio.

The report, which reviews what would be needed to generate electricity for about 53 million homes, says Ohio would rank fourth nationally in manufacturing jobs and fifth in overall investment.

“With the right policy reforms, Ohio stands to benefit disproportionately from this investment,” said George Stetzinger,
executive director, executive director of the Renewable Energy Policy Project, which produced a report on which Policy Matters based its conclusions.

The report indicates that Ohio is home to more than 2,000 of the 36,000 American companies that produce parts similar to those that are needed to generate electricity from renewable fuels. It indicated that slight retooling could help these manufacturers take advantage of the opportunity.

The changes, the report said, would likely help produce 22,000 new Ohio jobs that could be located in 85 of the state’s 88 counties. The report said Ohio’s larger counties stand to benefit the most, but noted that rural areas could also see job growth.

Amy Hanauer, report author and PMO executive director, said the policy shift could bring significant benefits. “Most people know that increased use of renewable energy would reduce dependence on foreign fuel and improve the environment,” she said. “It could also keep money in the domestic economy and produce jobs in Ohio.”

3/01/2006 Update – The Ohio Department of Job & Family Services released data on Feb. 24, 2006, identifying the number of recipients, by employer, of Medicaid, food stamps and Ohio Works First cash assistance during 2004 and 2005. The data cover 40 employers most often named in the department’s data base. Policy Matters Ohio, which had sought such data, has done an initial analysis of it. Click here to read the March 1 release.

ODJFS to Produce Employer Data

10/21/2005 – The Ohio Department of Job & Family Services is moving ahead to determine – by employer – how many people are using public benefits such as Medicaid. Policy Matters Ohio and others previously had sought such information, but had been turned away (see A Threat to Public Access). The agency’s decision to go ahead is a positive step for policymakers, who need the information, and for all Ohioans, who have a right to such public records.

Employers nationally have been reducing their health-insurance coverage, forcing many employees to turn to government health coverage. The state should learn which employers receive this indirect subsidy so that it can respond with appropriate policies. That will strengthen the crucial safety net that Medicaid and other public benefits provide.

Officials from ODJFS met Oct. 20 to discuss a possible study, and will meet again the week of Oct. 31. Agency spokesman Jon Allen said that unless the effort “is just so colossal that it would involve a lot of people for a long time,” the agency would produce a report. The completion date should become clearer at the next ODJFS meeting, he said.

As of now, this is a one-time effort, Allen said, though the agency will also look at whether it would be possible to do it again. The study would cover both employees and their dependents. The agency is focusing first on Medicaid, but may also be able to include food stamps and cash assistance. Allen said ODJFS is looking at producing information on employers that have more than a minimum number of employees. That minimum has not yet been determined.

Policy Matters Ohio looks forward to the release of this important information.

Gongwer News Service

Issue 1 Analysis: Separately, an analysis from a non-partisan research group concluded Thursday the Third Frontier component of Issue 1 would overturn 150 years of constitutional prohibitions against state investment in private corporations.

Policy Matters Ohio, a non-profit institute with offices in Cleveland and Columbus, did not take a position on the constitutional amendment the General Assembly placed before voters at the request of Governor Bob Taft.

Issue 1 would allow the state to borrow $2 billion over 10 years, including $500 million to finance high technology research, development and commercialization projects. Another $150 million would be used for private site development. The rest of the money, $1.35 billion, would be used for local public works projects.

“Although public attention has focused on the amount of the state bond issuance, a much closer relationship between the public and private sectors will be the enduring legacy of the amendment,” the Policy Matters Ohio analysis said.

“The amendment permits the state, state universities, and local governments to become stockholders in private companies and to share in any resulting financial gains, overturning constitutional prohibitions that have been in place for over 150 years,” the report said. “The issuance of general obligation bonds to provide direct aid to industry is a departure from the historical use of public sector bonding authority.”

Jon Honeck, the research analyst who wrote the analysis, said legislators improved the amendment as compared to a stand-alone Third Frontier proposal that voters narrowly defeated in the November 2003 election.

“The amendment contains improved language that shows a heightened concern by the legislature for the accountability of public funds and the equitable distribution of program benefits,” Mr. Honeck said in a news release. “But it’s up to the legislature to give these provisions real teeth if the amendment passes.”

Policy Matters Ohio recommended that if Issue 1 is approved, the implementing legislation should ensure the accountability of public money used for Third Frontier projects by all levels of government, universities, other non-profits, and the private sector.

Among other conclusions in the group’s analysis:

–Debt service for $500 million in state obligations for the Third Frontier portion of Issue 1 will be $687 million over 17 years, based on an Office of Budget and Management estimate. Interest payments of $187 million comprise over one-fourth of the total.

–The amendment requires the General Assembly to restrict or limit use of eminent domain to take property for ultimate use by private business.

–Debt service for money the state borrows is not counted toward a 5% constitutional debt limit. “Although the state is unlikely to default on its debt, the state’s commitment to make debt service payments may come at the expense of social services, education, and other discretionary programs during a financial crisis,” the report said.

A new Issue Brief, The Third Frontier Revisited: Constitutional and Fiscal
Implications of Issue 1, finds that the proposed amendment would change the relationship between the public and private sectors in Ohio but also notes that the legislature has improved the amendment over the version rejected by the voters in 2003. The Issue Brief discusses some of the highlights of the proposed amendment and updates an earlier report issued in 2003. Issue 1 permits the state, state universities, and local governments to become stockholders in private companies and to share in any resulting financial gains, overturning constitutional prohibitions that have been in place for over 150 years. The amendment also permits the issuance of general obligation bonds to provide direct aid to industry, which is a departure from the historical use of public sector bonding authority. The General Assembly has improved the amendment as compared to the 2003 version by
requiring implementing legislation to include the accountability of state funding, ensuring that all of Ohio’s regions receive benefits, and providing for access to the program by economically and socially disadvantaged individuals and businesses.

Press Release

Full Report

Read our 2003 report: Exploring the Third Frontier

________________________________________________________________

Issue 1 lets Ohio buy into companies

Bond Issue: ‘Corporate Welfare’ or Jobmaker 

Analysis Says Issue 1 Would Allow State Investment in Private Business