The Economic Impact of JobsOhio Projects
Trusted analysis shows the previously reported direct impacts of JobsOhio projects are leading to massive ripple effects across the state by way of jobs, construction, and taxes.
Overview
JobsOhio, the state’s unique private economic development corporation, is independently funded by the spiritous liquor enterprise that it leased from the state and operates. JobsOhio deploys the profits to make impact investments, provide grants and pursue a variety of initiatives that give Ohio a competitive advantage in attracting, retaining, and expanding business capital investments, payrolls, and career opportunities for Ohioans across the state. Since its founding in 2011, JobsOhio has publicly reported its results and quantified its return on investment for the people of Ohio based on metrics limited to only the direct jobs, payrolls, and new capital assets generated from the project wins that JobsOhio negotiated and incentivized.
To verify its own data and better understand the total impact of its programs, JobsOhio commissioned IMPLAN Group, the creators of the leading economic modeling application at the forefront of economic theory and practice, to perform a thorough analysis of all 3,274 projects JobsOhio served between 2011 and 2021. IMPLAN utilizes Input-Output (I-O) Analysis to show how the linkages of industries, households, and government in the economy are connected through buy-sell relationships. By modeling changes by these actors, the ripple effect throughout Ohio’s economy can be demonstrated for each year of JobsOhio’s operations.[ZI1]
The new or expanded operations of these companies from 2012 through 2022 resulted in a cumulative impact of 1,398,822 job years with an associated Labor Income of $83.64B, contributing $154.33B in Gross State Product, and a total net operating revenue of $409.34B. For every direct job created by these companies, an additional 1.30 jobs are supported in the state, and for every $1 in direct Gross State Product from operations, an additional $1.10 is supported in the state. This results in a total economic impact of 3,262,516 job years earning $185.03B in Labor Income, $327.02B in Gross State Product, and $735.54B in Economic Output to the State of Ohio over the eleven-year period.
Impact on Taxes
Each year, IMPLAN collects and organizes data from a variety of sources. The data for taxes collected by level of government are collected from the Annual Survey of State and Local Government Finance, state government tax collections from the census, and the Census of Government finance. Federal taxes collected come from the National Income and Product Accounts. Beyond these sources, IMPLAN uses proprietary methods for estimating missing values.
Taxes reported from IMPLAN are based on the existing relationships of the data found in the dataset. They are the collected and reported taxes by various government units in the Data Year analyzed. The values are net of subsidies from all levels of government. What is presented in IMPLAN is the effective tax rate.
The annual operation of these companies from 2012 through 2022 resulted in cumulative fiscal impacts across the state. The total fiscal impact for Sub County General taxes (city/township) was $3.25B, Sub County Special District taxes (police, fire, schools, etc.) was $6.70B, County taxes was $2.70B, State taxes was $15.22B, and Federal taxes was $40.74B. This totals $86.61B in supported taxes across the state and Federal levels over the eleven-year period.
