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Lawsuit refiled against Kasich and JobsOhio

Wednesday, August 31, 2011

By Marc Kovac

news@vindy.com

COLUMBUS

Two Democratic lawmakers and a liberal advocacy group have refiled their lawsuit against Gov. John Kasich and Jobs-Ohio, challenging the constitutionality of the state’s new private economic- development nonprofit.

Reps. Michael Skindell, from the Cleveland area, and Dennis Murray, from Sandusky, and Progress-Ohio Executive Director Brian Rothenberg also plan to ask for an injunction blocking JobsOhio from moving forward while their court case is being considered.

JobsOhio was created by lawmakers and Kasich earlier this year and is poised to take control of economic development programs currently housed in the Ohio Department of Development.

Supporters believe the new nonprofit will be in a better position to respond quickly and confidentially to businesses thinking about expanding or relocating.

But opponents, including many Democratic lawmakers, have questioned the constitutionality of a private entity using public funds without public oversight of the process.

Progress-Ohio, Skindell and Murray filed suit in the Ohio Supreme Court seeking to block JobsOhio from beginning its work.

The state’s high court was designated by lawmakers as the court of jurisdiction for such JobsOhio challenges. But the justices ruled lawmakers did not have authority on the jurisdiction issue, meaning the plaintiffs in the case had to refile their lawsuit at the trial court level.

They did that earlier this week, submitting the constitutional challenge to Franklin County Common Pleas Court, where it was assigned to Judge Laurel Beatty, the daughter of the former Democratic leader of the Ohio House who was appointed to the bench by Gov. Ted Strickland.

The suit specifically challenges whether the state has the authority to make equity investments in private companies and whether lawmakers and the governor had the power to create JobsOhio the way they did.

Kasich spokesman Rob Nichols declined to comment on the lawsuit.