Former Governor John Kasich's administration, spanning from 2011 to 2019, is characterized by what critics describe as shortsighted deals that transferred state wealth to private companies, according to recent analysis. These actions, they say, continue to weaken the state.
Among the significant transactions were massive state sales tax exemptions, totaling $2.3 billion, granted to 18 companies for building data centers in Ohio. These exemptions are projected to impact the state for another three decades. The agreements are noted as examples of deals that limit the state's ability to regulate data centers, which a growing majority of Ohioans reportedly dislike.
Beyond these tech deals, the Kasich administration's legacy includes other pro-corporate policies. The creation of JobsOhio and the significant reduction of funding for the Clean Ohio Fund in 2011 are highlighted as particularly impactful decisions. These moves involved channeling state liquor proceeds into a private entity, a measure that critics argue bypassed the state constitution and privatized public assets.
The Clean Ohio Fund, a popular and bipartisan environmental program, was established through a constitutional ballot issue overwhelmingly approved by Ohio voters in 2000 with 57.4 percent support. It was renewed and revised in 2008 under Democratic Governor Ted Strickland, passing in all 88 counties with 70 percent voter support during a high-turnout presidential election year. Republican Governor Robert Taft originally proposed the program in 1999. Clean Ohio was designed as a four-pronged, multifaceted statewide initiative, selling $400 million in bonds to support various environmental projects.
Before its restructuring under Governor Kasich in 2011, Clean Ohio provided $100 million annually for four years. This funding was evenly divided, with $50 million directed towards urban brownfields and $50 million for rural greenfields, including open space, farmland, and trails. Bonds for greenfield projects were repaid through general state revenues, while brownfield cleanup bonds were backed by state liquor profits.
The brownfield remediation aspect of Clean Ohio focused intently on cleaning contaminated industrial sites without getting bogged down in legal battles over blame. This allowed developers to secure grants, work with environmental specialists, and redevelop defunct industrial properties in Ohio's cities. This approach was particularly effective as many industrial sites nationwide faced decades of litigation due to contamination from past eras, often predating environmental laws. The program allowed for cleaning and redeveloping sites into profitable, tax-generating properties without court delays, earning national recognition for its scope and innovation.
Clean Ohio thrived across three administrations, two governors, and two political parties, garnering bipartisan support at local and state levels. The program directed hundreds of millions of dollars to projects in all 88 Ohio counties. Specifically, the $400 million Brownfields program led to the cleanup of 7,600 acres of contaminated land. According to the Greater Ohio Policy Center, this work "placed Ohio as a national leader in brownfields redevelopment." The Center's analysis of 21 brownfield projects between 2003 and 2012 indicated a net positive value for the state's investment, generating $1.16 billion in one-time contributions and $1.4 billion in annual contributions to the state's GDP, along with $55 million in state and local taxes, not including jobs created by remediation and subsequent development.
After almost a decade of uncertainty and a significant decline in grants following the changes made by the Kasich administration, Clean Ohio began to return to a semblance of its original form in 2021, with the re-establishment of its grant program.
