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EducateWorthington.org

The 912 Project - Glenn Beck

912 Group of Central Ohio

Please let me know if you'd like your link added

[Ohio]

OHIO RANKS 47TH BEST IN TAX CLIMATE FOR BUSINESS
Thank goodness for NJ, NY and CA

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New Jersey, New York and California Have Worst Tax Climates for Business, Tax Foundation Says
Monday, September 28, 2009
By Matt Cover

(CNSNews.com) – A new study from the non-partisan Tax Foundation shows that New Jersey, New York, and California respectively are the states whose tax structure is the worst for business, a factor the foundation says drives businesses to other, more business-friendly states.
 
Released last week, the report ranks states based on how “business-friendly” their tax systems are, ranking them based on five different aspects of their tax systems: corporate, individual income, sales, unemployment insurance and property taxes.
 
Generally, the report found that the best types of tax systems were business-neutral, broad based, and transparent, and that states whose systems most reflected this ideal were the most competitive.

http://www.cnsnews.com/news/article/54620

A much more comprehensive report (than the single issue Tax Foundation one) was published by Forbes

http://www.forbes.com/2009/09/23/best-states-for-business-beltway-best-states_table.html

where Ohio ranks 47th in "labor" which includes educational attainment, net migration and projected population growth.  In this category it lost 5 places since 2007.  Ohio ranks 30th in business costs which includes cost of labor, energy and taxes. It gained 6 positions since 2007.  In the 2009 study Ohio ranks 37th overall, no change since 2007.

Until Ohio decides that there is much beyond taxes that creates a bad environment for business.  The neglect of education for many many years (much before Strickland and while Kasich was in the legislature) has created the problem we live with.  The tax cut that Taft and a Republican legislature enacted has done nothing for the state and has given rise to the budget problem we now face.  Republicans have been smart in creating budget crisis that Democrats had to solve by raising taxes only to be defeated.  Strickland is smart to let the problem fester until after the 2010 election.

The Shadow has lived during much of the development of the current debacle

You can throw all the money you want at education, but if you can't stop brain drain....

With jobs all things are possible.
(No offense to our Maker.)

"You can throw all the money you want at education, but if you can't stop brain drain...."

Correct.

 But which comes first? ...poor education, a lag..., then the lack of jobs and then the resulting brain drain.

 When good education is only at the higher ed level, as it mainly has been in Ohio, then there will not be a well prepared work force and good jobs/opportunities will be scarce and the better educated will leave.  Many would prefer not to (because  quality of life is still good in Ohio) but have no choice.

  Many years ago Ohio was prosperous but the powers that be failed to use that prosperity to enhance education (money was an  but not the only issue) to insure preparation of a labor force for the what was to come.  It has been a long time in coming and it will take a long time to be reversed.

When the big emphasis is on sports (witness what happened in South Western School District) then, the consequences will be inevitable.

The Shadow has seen brain drain by well trained people leaving.  People who are now in their late 40s, early 50s and left in their late 20s.

The Shadow knows 

Money talks.  If the jobs exist, people will come; we don't have to educate them.  I don't think graduates/trainees have any loyalties these days to any particular state.  If the money is better on the coast than the Midwest, they're gone.

Vocal Observer


'Money talks.  If the jobs exist, people will come"

Once again we agree (you should start to worry  ).  But once again it is a question of which has to come first.

The Forbes analysis which includes "... educational attainment, net migration and projected population growth." is important.  Of the three elements "educational attainment" is the only one that does not depend on the availability of jobs.  Both net migration (brain drain) and projected population growth affect the availability of a trained labor force.  Thus Ohio's downward trend

  Note that high tax states like PA, New York and Mass. rate higher than Ohio in favorable business environment even though their cost of doing business (which includes) taxes is higher than Ohio's.  Their prepared labor rank on the other hand is better than Ohio's by many degrees.  It looks like the cost of doing business is not as important in this analysis.  Could it be that contrary to what many think taxes are not the most important factor in determining business climate?

The Shadow thinks so. 

The Forbes analysis which includes "... educational attainment, net migration and projected population growth." is important.  Of the three elements "educational attainment" is the only one that does not depend on the availability of jobs.

Educational attainment isn't necessarily achieved within the state where the jobs are available.  I would venture to say that this is inherited most of the time as a result of the availability of jobs.

When someone considers moving no a new area, the availability of jobs is always considered first (unless you're moving to a welfare state).  Housing, education, services, etc. come secondary to the availability of jobs.

[Business costs, which include labor, energy and taxes are weighted the most heavily.]

Shadow,

Would you mind providing the source of your info?  I found the following:

Our Best States ranking measures six vital categories for businesses: costs, labor supply, regulatory environment, current economic climate, growth prospects and quality of life. We factor in 33 different points of data to determine the ranks in the six main areas. Business costs, which include labor, energy and taxes are weighted the most heavily.

http://www.forbes.com/2009/09/23/best-states-for-business-beltway-best-states.html

Vocal observer:

"When one considers moving........new area  the availability of jobs....etc."  you are right again but when after having found the job one considers where to live then, the education of the children becomes a very important factor and, if you have available jobs in two different areas the one offering the best "quality of life" which includes the educational opportunities for the children will become most important.  Why do you think that suburban areas around Columbus attract the most young families with children?

On the question of the Forbes site

 The site you cite is the site I first used.   If you scroll down you will find on the left a box where it says Table.....etc.  Clicking on that will take you to:

 http://www.forbes.com/2009/09/23/best-states-for-business-beltway-best-states_table.htm

which is where I got my information.

The Shadow

"the best "quality of life" which includes the educational opportunities for the children will"" become most important.  Why do you think that suburban areas around Columbus attract the most young families with children?"

Quality of schools may be, in part, the cause. I suspect that low percentage of Black students is the main reason to select a school system and a suburb to live in.

Shadow,

Sure, if all else is equal, education could be the winning factor, but again, it is secondary.  Forbes points this out and I doubt one state's education system allowed it to leap ahead of another by much significance.

I suspect that low percentage of Black students is the main reason to select a school system and a suburb to live in.

What if young black professionals tended to live in a certain suburb?  Would that demote its local school system in comparison to that of another suburb where the percentage of young black professionals wasn't as high?

Call me naive, but I'm skeptical of your assumption.

[educated]

Vocal Observer....

Sure, if all else is equal, education could be the winning factor, but again, it is secondary.  Forbes points this out

I do not agree with that, the Forbes report states:

"A common theme with our top-ranked states is an expanding, educated workforce. The three states that followed Virginia in the rankings (Washington, Utah and Colorado) also ranked in the top four along with Virginia in our labor supply category, which looks at high school and college attainment, as well as net migration and projected population growth. "When we talk to prospective clients, their No. 1 issue every time is workforce," says Virginia's Anderson."

It is not the educational system. It is educational attainment which depends on the educational system and as was pointed earlier. the availability of highly trained people is affected both by the educational system and the "brain drain" which in turn is affected by availability of jobs so we have a chicken/egg situation.

If you claim education is secondary the table and the lack of mention in the story itself would indicate that taxes are not as important as some would make you think.  New Jersey is the only state mentioned for taxes.

The Shadow is convinced

[HUGE]

Time will tell, but that's a HUGE gap.

State's business climate No. 4 nationally

Ohio's business climate is among the best in the country, according to an annual survey by Site Selection magazine, which ranked the state fourth.

The ranking, up from seventh last year, was applauded by business leaders. Those same leaders downplayed other surveys with less favorable results, such as the Tax Foundation's 47th-place ranking for the state, issued last month.

North Carolina, Texas and Virginia took the top three spots, respectively, in the Site Selection report. The rankings are based equally on new business activity in each state and a survey of executives.

"I think it's a reflection of the work that's been done over numerous years," said Andy Doehrel, president and CEO of the Ohio Chamber of Commerce.

The state has an enviable combination of high-quality infrastructure, a strong work ethic and a top-notch university system, he said.

On the downside, Ohio's regulatory system remains painfully inefficient, he said, naming particularly the Ohio Environmental Protection Agency.
...
He expects the tax climate to help Ohio recover from the recession more quickly than would have happened otherwise, particularly the changes in business income taxes the state legislature passed in 2005.

http://www.dispatch.com/live/content/business/stories/2009/11/03/site_selection.ART_ART_11-03-09_A8_5PFI6U2.html?sid=101

I don't think Strickland has been in office long enough to have a great affect on these results which leads us to Taft.  I don't care much for Taft, but this seems to refute those who despised Taft for his policies on education.  While there is a disparity in the funding of Ohio's public education, we rank 5th.  I guess funding isn't the key player, but policy and goals.

Secondly, this should disprove the arguments above promoting the idea that the state of education is the key to the economy.

Ohio's schools climb to 5th best in nation

Here's something you haven't heard before.

Ohio's public-school system is ranked fifth best in the nation.

That's right. We are No. 5.

Ohio earned its highest rating ever on the well- regarded and closely watched report cards issued each year since 1997 by Education Week newspaper.

"When I saw the results, it was one of those moments when you could scream alone in the car," said state Superintendent Deborah L. Delisle.

She credited the efforts of students and educators across the state and an intense focus on improving academic performance.

Despite a challenging economy, she said, "People are working really hard -- educators, students -- and Ohio's focused work on improving student learning is working."

Ohio, which received a grade of B-minus, continued its climb from sixth place last year and seventh the year before.