GM Lordstown clawback deal gets mixed reaction

LORDSTOWN, Ohio - A non-partisan organization that keeps an eye on economic development programs is critical of the deal reached by Ohio to reclaim some of the $60 million in tax incentives granted to General Motors for the automaker's now-closed assembly plant in Lordstown.
GM began benefiting from the incentives in 2009 after promising to keep Lordstown in operation through 2028 and retaining hundreds of jobs into 2040.
The plant has been idle since GM produced the last Chevy Cruze in 2019.
Instead of trying to recoup the entire $60 million, the state on Monday announced that it would allow GM to refund $28 million and invest $12 million into Valley workforce education and infrastructure programs.
John C. Mozena, president of The Center for Economic Accountability, issued a statement saying the decision allows GM to keep $20.3 million in unearned subsidies.
Calling it "a bad decision in the best of times," Mozena added that it is especially unacceptable in 2020.
"Ohio's taxpayers are facing plenty of "market factors" of their own right now, and it's a shame the bureaucrats who supposedly represent the people's interests failed miserably right when they were needed the most," said Mozena.
Mozena calls GM's promise to invest $12 million in the Valley, "especially insulting," calling the corporate equivalent of "give me $20, and I'll buy you a drink".
"When a company is being allowed to keep $20 million in unearned public money, a promise to spend $12 million on public services is a net negative to the community, not a positive," writes Mozena.
Critical of the elected officials who approved the clawback deal, Mozena said Ohioans have the right to expect that politicians should make GM hold up its end of the deal.
YSU President Jim Tressel issued a statement applauding the $12 million community investment to the Mahoning Valley.
'"At Youngstown State University, we want to be a part of the research, the workforce training and the development of 3-D additive and subtractive manufacturing — anywhere we can contribute. We are already turning our attention to becoming part of the future by preparing our students and the local workforce for the thousands of direct and indirect jobs this investment will bring," said Tressel.
Ohio Attorney General Dave Yost, who back in June called on GM to reimburse the state for the entire $60 million, said on Monday that the clawback deal was "good news" and praised Governor DeWine for holding GM "accountable."