It is helpful to see the comma between Toledo and Ohio as a plus sign. The link between city and state is a key factor in the success of each. Right now Ohio is falling into serious decline and that hurts every city in the state.
The financial website WalletHub has a rating out on the 50 state economies, and Ohio’s ranking does not match the state’s incessant boasting about economic development success. WalletHub ranks Ohio’s economy as 42nd. The Cleveland Federal Reserve Bank recently rated the state 45th. Each study confirms Ohio is lagging and should stop bragging.
The Blade Editorial Board strongly believes misguided state policy that has cut the local government fund in Ohio’s budget by more than two-thirds for over a decade has been a monumental blunder that shifts too much financial power to the state.
Economic development always requires a local partner. Ohio has foolishly weakened an equal partner in the process and turned that plus sign into a minus sign.
Ohio policy fails to understand most economic activity consists of small projects that do not get the massive incentives JobsOhio provided to the Intel computer chip plant in Licking County. The smaller the development prospect the bigger the role played by local government.
Ohio’s economic weakness is from a failure to help its communities earn those small development opportunities through the most attractive possible environment. Every Ohio city has been on short rations from the state since 2011. Now the state budget is under pressure from falling tax collections, and the state will need to use its rainy day fund to close the gap. (“Ohio tax collections back in the black for May,” Friday)
It’s easy for lawmakers who spend too much time in Columbus to presume all is well with the state economy.
Metropolitan Columbus has benefited greatly and grown significantly as much more money than past policy would allow has accumulated in the capital city. Ohio has nearly $4 billion in the rainy day fund.
Brain drain and a stagnant business economy afflict much of the state, while the resources that could have helped have been diverted into the rainy day fund.
Ultimately even Columbus’ prospects are diminished by Ohio’s slide into mediocrity. One prosperous city isn’t enough to keep the state strong, and if Ohio falls, Columbus cannot rise.
Michigan is ranked as the 19th strongest state economy and the Cleveland Fed data shows Michigan’s economy growing nearly five times faster than Ohio’s. Toledo’s proximity to Michigan is one of its greatest economic advantages and its connection to Ohio is its greatest handicap.
Both of these truths indicate a profound political failure in Ohio state government.
First Published June 13, 2024, 4:00 a.m.
