Union officials warn of cronyism, corruption with plans to privatize

Aug. 18, 2010 - A proposal by the John Kasich for Governor camp to privatize the Department of Development would lead to backdoor dealings and open up state government to the kinds of cronyism and corruption Ohio’s state government has not seen in years, say OCSEA leaders.

The GOP candidate for governor said at a press event that he does not want “civil service restrictions” or “public employees” to get in the way of privatizing the agency that hands out millions of dollars in grants and incentives to promote local businesses.

“Privatizing the Department of Development would be just another deal aimed at giving political payback to Kasich supporters,” said OCSEA President Eddie L. Parks. “This would lead to the sort of Tom Noe cronyism whereby a private citizen has the ability to use public funds for their own private purpose.”

Basically what Kasich’s plan means is that a private board of directors would ostensibly be free to hand over checks to the private sector unfettered by good government proponents at DOD who are tasked with regulating and monitoring the distribution of public funds to businesses, according to the union.

Besides helping to promote businesses in Ohio, the Ohio Department of Development also ensures that public funds given to businesses are being used appropriately and within budget. Among the employees in the agency are Fiscal Specialists, Auditors, Grant Coordinators, Community Development Specialists and Development Specialists, all of whom oversee how public funds are spent and ensure accountability.

“Many of our members perform watchdog duties. Turning it over to a private entity would undermine that crucial role government has in monitoring how taxpayer money is being spent,” said Parks. “They also guarantee that certain companies are not given favoritism.”

The proposal would also fly in the face of civil service protections created to ensure government employees are hired and promoted on the basis of merit and qualifications, not party affiliation, union leaders warn.

“This is a blatant attempt to circumvent Ohio’s civil service laws that ensure state employees are qualified for the jobs they are doing and can’t be fired for their beliefs or political party,” said Parks. “This would be a major blow against those basic protections.”

See Related

Cordray: Kasich ODOD Privatization Plan Fails Transparency Test

Read Gov. Strickland’s reaction to Kasich’s plan and how his administration has been fighting for job growth

Kasich would privatize state development efforts (Dispatch)