Gov. John Kasich "sells" the profits made by liquor to himself and other Wall Street Buddies
Let their be no doubt that Kasich and company are all about looting every
last nickel that they can from the state.
Kasich turned Ohio's Dept. of Development into a private company
called "JobsOhio" which would be run by one of his Lehman Brothers
friends for a dollar a year in order to "stimulate Ohio's economy and
to help in job creation. Kasich also has an unpaid position w/
"JobsOhio" too. Now using private capital aka "leveraged funds*" "JobsOhio"
has bought the rights to get the profits from all state liquor sales for
next 25 years.**
This is being sold as trying to bring "out of the box thinking to state
government" and to stimulate job creation but to me at least, this looks like a
way to skim the cream off the top by using leveraged funds which in turn
will make the rich even richer.
Marion Online
* The in-house deal calls for the non-profit group -- JobsOhio -- to pay the state $1.4 billion
up front, money it will raise from the sale of bonds backed by future liquor sales. In turn,
JobsOhio will use liquor proceeds -- which totaled a record $794 million in 2011 -- for the
next 25 years for its operating expenses.
** Honeck issued a report last June for the center, shortly after Kasich first announced he was
seeking to transfer liquor sales to JobsOhio for a $1.2 billion price tag. Honeck calculated that
liquor sales over the next 25 years could generate between $9.5 billion and $12.7 billion.
http://www.mariononline.com/news/2012/01/24/plan-would-send-state-liquor-profits-jobsohio
Columbus Dispatch
JobsOhio set to pay state $1.4 billion for rights to liquor profits
Parameters of a long-awaited deal between the state and Gov. John Kasich’s privatized development
agency emerged yesterday, with JobsOhio paying the state $1.4 billion for the rights to Ohio’s liquor
profits for the next 25 years.
Although the deal is not finalized, Kasich is closer than ever to making JobsOhio the state’s economic
-development engine for the foreseeable future.
Republican lawmakers gave Kasich the authority to lease Ohio’s liquor profits to JobsOhio with passage
of the state budget in June, and the private agency has since begun to supplant the Department of
Development as the state’s vehicle for attracting businesses, convincing ones in Ohio to stay, and
promoting the state’s business climate.
http://www.dispatch.com/content/stories/local/2012/01/24/jobsohio-set-to-pay-state-1-4b-for-rights-to-liquor-profits.html
(John Kasich is the same guy who sold the State of Ohio's Department of Public
Employees Retirement $480 million of Lehman Brothers "junk funds" and walked w/ a huge
commission check and when Lehman Brothers went belly up they dragged down the whole
United States economy and they also stuck the State of Ohio with a bunch of worthless paper too.)
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