Critics accuse local governments of misusing joint economic development districts to replace state funding cuts

Critics say townships are misusing the state law that established joint economic development districts and zones, or JEDDs and JEDZs, The Columbus Dispatch reports (See our June 18, 2013, blog post for more information). Ohio law authorizes townships and cities to form JEDDs and JEDZs to promote economic development. The districts and zones are governmental entities with broad powers, including the ability to levy an income tax. Although the laws authorizing JEDDs and JEDZs took effect 18 years ago, one third of the state's 51 economic development have been created in just the past four years – "when the state began to cut funding for local governments," the article said. Therefore, critics argue, it appears that townships are using JEDDs and JEDZs to replace state funding cuts, rather than to serve the economic development purposes intended by the law. 

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