COLUMBUS, Ohio – Ohio’s high court has ruled opponents of the private job-creation agency created by Gov. John Kasich don’t have the standing to bring their constitutional challenge.
The Ohio Supreme Court said ProgressOhio failed to prove it had a stake in the case, siding with lower courts.
“We are pleased with the Court’s decision, which allows JobsOhio to remain focused on our core mission of creating jobs and enhancing economic opportunities for Ohioans…We are proud of our accomplishments to date, and look forward to continuing our efforts to help Ohio grow and prosper,” said John Minor, JobsOhio’s president and Chief Investment Officer, in a statement.
A spokesman for the plaintiffs predicted the issue will continue to haunt the state.
“We haven’t lost a decision on JobsOhio today, we’ve lost the right to sue,” ProgressOhio executive director Brian Rothenberg said.
Rothenberg said too much public money is being for incentives to private industry.
“Ironically, we believe fiscal conservatives in Ohio will rue this day. If a court never adjudicates this issue, for the first time since 1851, the flood gates will be wide open for public money to flow into private entities,” he said.
The 5-2 decision Tuesday appeared to bring an end a legal fight that’s dogged JobsOhio nearly since its inception in 2011, but does not mean there will not be future challenges.
“A proper party — i.e., one with legal standing — may unquestionably contest the constitutionality of JobsOhio. As to that proper party, the courthouse doors remain open,” Justice Judith L. French wrote for the majority.
The ruling marks a significant victory for JobsOhio and for holders of $1.5 billion in bonds it put on the market in January 2013. The agency moved forward with the bond sale despite the pending court case.
The lawsuit alleged JobsOhio’s funding structure violates a prohibition in Ohio’s Constitution against turning taxpayer dollars over to a private entity. That question remains unresolved, to the dismay of the two justices who dissented.
“It is simply shameful that the court has refused to do its job,” Justice William M. O’Neill wrote bluntly in his opinion.
“This court bears a responsibility to today’s citizens and to the framers to answer the questions the appellants pose,” wrote Justice Paul E. Pfeifer in a separate dissenting opinion.
The court held that the public-right doctrine does not apply to lawsuits filed in common pleas courts, nor do the parties have traditional standing to challenge JobsOhio because they do not have a personal stake in the outcome of the case.
The suit in Franklin County Common Pleas Court asked for a declaration that the JobsOhio Act violates the state Constitution and for an order prohibiting the agency from being formed and operating, but the lower court dismissed the case, finding that the parties did not have the right to sue.
The Tenth District Court of Appeals agreed, and the Supreme Court has upheld the ruling