As published in the April 1, 2013 Toledo Business Journal
James C. Boland
JobsOhio
JobsOhio private data challenged
James C. Boland is the retired vice chairman of Ernst & Young and former president, CEO, and vice chairman for the Cavaliers Operating Company. He has served as chairman of the JobsOhio Board since July, 2011, and is chairman of the JobsOhio audit committee.
Some old controversies never die. Especially when there’s politics involved. And, sadly, even when jobs and economic prosperity for Ohio’s families are caught in the crossfire.
When JobsOhio was being established in 2011, as a private, non-profit corporation to lead economic growth and job creation for our State, there was vigorous public debate about how to strike a proper balance between meeting Ohio’s urgent need for robust economic development and preserving a level of transparency we all have a right to demand. Legislators found that balance and enacted the necessary safeguards into the law that brought JobsOhio to life. Now that we are entering political season, this controversy is being thrust once again onto the public stage. Auditor of State Dave Yost – who has the unquestioned right to examine JobsOhio’s expenditure of its public dollars – is loudly demanding unprecedented access to its nonpublic dollars as well.
That’s not sitting well with legislative leaders who passed that law. But should you or anyone else outside the Columbus inner-circle really care? Aren’t we all pledged to sunshine, transparency, and openness? Should we be concerned about the undisciplined way the Auditor wields his power? For me, the answer to all of the above is clear: Yes! Yes! And Yes!
Transparency with the expenditure of public money is fundamental to our democracy. But so too is the right of private individuals, private corporations, and private non-profits to keep their business just that – private – whenever public dollars are not involved. If an Ohio business can no longer be certain of guarding its privacy from the prying eyes of Big Government, they’ll soon find some other state in which to do business, expand, and hire.
As a retired vice chairman of an international accounting firm, former CEO of a private company, and board member of several public and private companies, I share the JobsOhio board’s concern that this recent, unprecedented move by Auditor Yost will have disturbing consequences for all Ohio businesses, charities, regional economic development organizations, and other private groups that do business to even a small extent with State government.
That includes – among so many others – the newspaper you’re reading right now. After all, newspaper publishers receive taxpayer money in return for printing public notices by State and local governments. Auditor Yost’s precedent snares that publisher’s private corporation squarely in the State Auditor’s web. Like his claims for JobsOhio, the receipt of public money could open any private entity’s books to public review. That scares me and it should scare you.
Will private enterprises that accept job-creation grants, loans, or other State funding be forced to disclose their private finances to their competitors? Will political parties accepting taxpayers’ funds have to disclose their contributors? Will private charities accepting public funds be forced to disclose detailed information about the sources, identities, and amounts of their private donors? Remember, all of these entities are receiving – and paying for – regular financial audits from independent auditors, who report to the proper board of directors or other governing body. Do they really need to pay government for a second, duplicative audit that opens private finances to public eyes?
These are all valid questions that the Auditor of State must answer soon. His unprecedented claims may be one of the most damaging decisions in Ohio’s economic development history, given the severe damage it can do to any private organization that benefits in the smallest way from public funds.
JobsOhio is an economic development model that is working and has significant momentum. It is widely recognized by businesses throughout Ohio for the tremendous impact it is having on their efforts to grow and affect job creation. I am proud of JobsOhio’s accomplishments and have full confidence in its mission to drive economic development for our state.
The fate of JobsOhio may not seem important to many in our state, but it’s the canary in the coalmine – an early warning sign to every private corporation in Ohio and every non-profit as well. What State Auditor Dave Yost is asking of JobsOhio could soon harm them as well.