New call for increased JobsOhio scrutiny: ‘Concerns remain well-founded, woefully unaddressed’
Ohio’s scandal-plagued economic development agency is facing a renewed call for scrutiny.
In an editorial published in The Columbus Dispatch, Dave Yost, Ohio’s attorney general, and Robert Alt, president and chief executive officer of The Buckeye Institute, called on lawmakers to pass legislation to “make JobsOhio more transparent and accountable,” noting that bills have been introduced in both the House and the Senate.
“Concerns raised at the time warned of the potential for self-dealing, favoritism, and crony handouts, especially since JobsOhio is run by a quasi-political, governor-appointed, board of directors,” Yost and Alt wrote. “Those same concerns remain well-founded, woefully unaddressed, and – given recent misbehavior by public officials – are regrettably quite justified 13 years hence.
“JobsOhio claims to have created 250,000 jobs since its inception – a significant sum, if credible,” they added. “But the analysis providing that figure came from – you guessed it – JobsOhio, without independent verification. Color us skeptical. A 2021 report by the Legislative Service Commission found that less than 60% of JobsOhio’s liquor profits went to economic development incentives.”
The latest controversy surrounding the state’s economic development firm, which landed a sweet deal to manage the state’s liquor licenses, centers on podcaster Krisanthe Vlachos. The agency paid $60,000 for four episodes of “The Callout Podcast,” but she apparently only delivered one.
The revelations surfaced as Walter “Ted” Carter Jr. stepped down as president of The Ohio State University, after he “disclosed to trustees that he had an inappropriate relationship with someone” — now identified as Vlachos — “seeking public resources to support her personal business.” It marked the end of a brief, two-year stint at the helm of the state’s flagship higher education institution and another blemish on the school’s record.
“The recent controversy exemplifies why JobsOhio needs reform to ensure greater transparency and more accountability,” Greg Lawson, senior research fellow at The Buckeye Institute, told Ohio.News.
“Ohio leaders are right to want to ‘move at the speed of business,’ not bureaucracy, when it comes to creating jobs for Ohioans,” Lawson added. “But that doesn’t mean moving with insufficient public visibility and few safeguards.”
The circumstances prompted state Reps. Justin Pizzulli, R-Scioto County, and Tristan W. Rader, D-Lakewood, to introduce the JobsOhio Transparency Act, which aims to increase the transparency and accountability of JobsOhio.
The economic development entity, which touts its “top-1% transparency designation as a nonprofit,” raised capital through the bond market to obtain the rights for Ohio’s Liquor enterprise through 2038 for approximately $1.4 billion. Today, liquor sales revenue generates roughly $1.8 billion annually for JobsOhio.
The agency is supposed to use the revenue to fund economic development programs. Liquor profits are pledged against bond debt issued by JobsOhio, further shielding it from annual budget review.
In February 2025, the Ohio Controlling Board agreed to a 15-year lease extension, which now runs through Feb. 1, 2053. The renewal included no additional payments, no concessions to taxpayers, and no performance audit, despite JobsOhio failing to meet job-creation goals and amid growing consternation over grant recipients and board conflicts.
“That is why the bills in both the House and Senate make sense as an obvious first step with greater disclosure requirements,” Lawson said. “We should also ask whether it makes sense for the board to be completely appointed by the Governor. Finally, we should be much more rigorous when deciding on any future extensions of the liquor franchise to continue funding JobsOhio. While the pending legislation offers some good first steps, broader reform likely calls for more.
“As for whether it would be better to start from scratch, that is a question best left to the General Assembly,” Lawson said. “Of course, any economic development organization, JobsOhio or otherwise, should have stronger safeguards than are currently in place.”
