JobsOhio a system of political favor, insider access, and financial feedback loops: Part 3

In September 2023, Republican Gov. Mike DeWine announced that he had appointed Josh Rubin to serve on the JobsOhio Board of Directors, naming him the board’s chairman, ushering in a new era for the quasi-government agency, one that raised questions about political connectedness.

Rubin, of Delaware County, succeeds Scott Sullivan, whose term expired on July 1, 2023. DeWine subsequently reappointed Sullivan to the board of JobsOhio, a state-authorized, nonprofit economic development corporation, effective Oct. 4, 2023.

While JobsOhio President and Chief Executive Officer J.P. Nauseef lauded Rubin’s “diverse set of experiences that have earned him a keen understanding of Ohio, our communities, and our business environment,” critics contend Rubin is conflicted. He is the founder and president of CJR Group, a Columbus lobbying firm.

Former Ohio Gov. John Kasich established JobsOhio in 2011 to replace an earlier state agency, with the assistance of Mark Kvamme, a venture capitalist who now heads an investment firm that funds Ohio-based businesses.

In 2024, JobsOhio spent $1.9 billion, which is enough to pay Ohio’s 235,000 unemployed workers $8,000 each. Instead, for that price tag, it created only 14,097 jobs, or 25% of the state’s total job growth.

Meanwhile, its executives enjoyed salaries averaging $330,283. The concern, however, is who is influencing whom.

A Circle of Influence

An Ohio.News analysis of Ohio lobbying disclosures revealed Rubin was lobbying for FirstEnergy as late as the first quarter of 2021.

“Rubin was noted during the trial as a FirstEnergy lobbyist used by the corrupt utility for information on Governor DeWine’s intentions on House Bill 6,” the Toledo Blade wrote in a 2023 editorial.

Rubin, who is also the CEO of a lobbying firm, is listed as lobbying for Intel in Ohio as late as the fourth quarter of 2024. According to Form 990 filings, Intel is the recipient of the single largest JobsOhio grant to date, a $123 million grant in 2023.

Lobbying disclosures also reveal that Josh Rubin lobbied for Intel in the state of Ohio as early as 2022 and as recently as earlier this year. The lobbying took place during Rubin’s tenure as chair of the board.

Given the history of bribery and corruption in Ohio politics, Ohio voters would be right to press JobsOhio for explanations on why its Board Chair would not have a conflict of interest as money flows from Intel to CJR Group, to the state of Ohio, and back to Rubin.

JobsOhio leases the state’s liquor franchise, which dates to 1933, to provide economic incentives for businesses to locate in or expand within Ohio. Although the state legislature established the entity and it operated with formerly public money, the agency is considered a private corporation and is exempt from open-government laws.

Before his work in the private sector, Rubin worked for then U.S. Sen. Mike DeWine and former Gov. George Voinovich. He also served as campaign manager for DeWine’s successful Senate 2000 re-election campaign.

Efficacy Questioned, No Action Taken

Questions about a potential conflict aren’t new. Several groups, including ProgressOhio, and some politicians have raised questions.

“After reviewing the current amendment to extend the deal by an additional 15 years, it appears to me JobsOhio is required to pay nothing for a 15-year extension of this limited, one-time franchise,” Attorney General Dave Yost wrote in a letter to Nauseef. “How is it in the best interest of the people of Ohio to extend such a valuable franchise under these circumstances?”

Despite the questions, no action has been taken, and it has not gained public traction. Adding to the frustration is that JobsOhio is exempt from the Buckeye State’s open records laws.

In 2013, the Ohio Supreme Court dismissed a request to force JobsOhio to produce documents sought under the state’s Public Records Act. In the unanimous decision, the court ruled that state lawmakers largely exempted JobsOhio from the state’s public records law.

Criticism of JobsOhio is perhaps best summed up by a dissent former Ohio Supreme Court Justice Bill O’Neill wrote in 2014.

“Hundreds of millions of dollars in public funds are being funneled into a dark hole to be disbursed without public scrutiny, and the highest court in the land is looking the other way,” O’Neill wrote. “The Supreme Court of Ohio is the last house on the street, and passing on this case is an abdication of our duty as protectors of the Constitution.

“…And ultimately, those risks are unnecessary. The governor and the Ohio General Assembly may very well be right here. Maybe it is permissible to permit a private entity to spend hundreds of millions of taxpayer dollars without the annoyance of public audits and the state auditor asking an occasional question,” O’Neill added. “Maybe this new-era form of governmental accountability does not violate Ohio’s Constitution. But unless we examine the issue, the people of Ohio will never have an answer to that question. It is simply shameful that the court has refused to do its job.”