Ohio hits target for minority business purchases

By Marc Kovac | August 21, 2015 at 12:02a.m.

COLUMBUS

Ohio’s government agencies spent $228.5 million for goods and services from minority-owned businesses, a record that Gov. John Kasich’s administration said marks the first time the state has met a mandate set 35 years ago.

The 19 percent contracting rate through the Ohio Minority Business Enterprise Program in the last fiscal year surpassed the 15 percent government offices are supposed to devote to purchases from certified minority-owned businesses.

The rate has been between 1.8 percent and 14.23 percent over the past eight fiscal years.

“We all understand how important this is to the state of Ohio,” Lt. Gov. Mary Taylor said during a news conference Thursday at the Statehouse. “We have a responsibility to do our part to lift up and keep a promise to our minority business community. Hitting this goal, of course, is long overdue.”

The MBE program was created in 1980 – Kasich was serving in the state Legislature at the time and supported it – to ensure agencies seek minority-owned businesses for goods and services used by the state.

Until the last fiscal year, however, the state did not reach the 15 percent outlined in the program. As of 2008, only 1.68 percent of goods and services (about $27 million) came from minority-owned businesses. But the percentage has steadily risen in recent years, reaching 19.41 percent in fiscal 2015, up from 14.23 percent a year earlier.

“For far too long, Ohio has failed to live up to expectations that were set into law,” Kasich said in a released statement. “By making this a priority, we are now able to help more small businesses from all backgrounds take part in our state’s economic success. That is reason to celebrate.”

The results drew praise for Kasich and his administration from several black lawmakers, who attended the news conference.

“I don’t know if you all realize, but we’re from a different party,” said state Rep. Kevin Boyce D-Columbus. “But it’s really simple. It works like this: When you do something right and you do something good, then all of that party and political stuff is set aside and you focus on the results and the actions.”

The lawmakers also said there’s more work to do to continue to support minority-owned businesses.