Make Ohio an Attractive Place for Graduates
School
is out and Ohio's recent batch of college graduates is looking for
jobs. A new study released last week says many of them will likely
settle somewhere other than Ohio. This finding, of course, was met by
dismay from state officials. If state policymakers want to make Ohio an
attractive place to live, then they need to point the state in a new
direction. Eliminating the income tax and compulsory unionization and
introducing universal education vouchers would ensure that the state
would see far more of its college graduates staying in Ohio.
The concern over the state's "brain drain" -- the migration of Ohio college graduates out of the state -- is an old one. State policymakers have been trying to address it for years, with limited (if any) success. The fact is that many young college-educated people don't want to live in Ohio.
Why is that? As the respondents of a recent survey indicated, the top priority of college graduates is to find a job. Ohio's job market is dismal today, but it wasn't booming last year or the years before that. In fact, Ohio job creation lagged behind the national average since the last recession. If you are looking for a job in Ohio, it's simply harder to find one here than elsewhere.
Ohio's tax burden certainly plays into the state's sub-par job creation record. As studies from the Tax Foundation and other sources consistently find, Ohio is near the bottom among all states in terms of its tax burden on individuals and businesses. The state's tax policy provides a disincentive for businesses to invest and expand their businesses, leading to fewer jobs for college graduates and everyone else.
There has been some tinkering with the tax code in recent years, but if the state truly wants reform that will retain college graduates and attract new residents, the state income tax should be repealed. States without income taxes are more economically competitive than Ohio and have done better in attracting new residents. It's no wonder: everything else being equal, if you had to choose to live in a state with an income tax or without, what would you choose?
Another reform the state should consider to boost job growth is ending compulsory unionization and becoming a right-to-work state. This would add more freedom to the state's job market. It would also attract new businesses. A large number of companies say they will not consider locating in states like Ohio that do not have right-to-work laws. New businesses and more labor freedom means a more attractive job market for graduates.
Besides undertaking policies to improve the state's job market, the state's leaders should make Ohio more attractive for young families. After all, today's college graduate is likely tomorrow's father or mother. Currently, some in the state live in areas that have excellent educational opportunities for their children. Others, unfortunately, do not. Ohio can fix that by providing universal education vouchers to every family in the state.
The current voucher system is a good start and it is helping some families whose children attend some of the state's worst schools. Every family in Ohio should have the opportunity to choose where their child attends school, though. It makes no sense that one's zip code determines one's school. Giving parents the power to choose the school that is right for their child -- not just the school that is mandated by that child's residence -- would make Ohio a leader in education choice. This would be an attractive policy for many families as they make decisions about where they are going to live.
Every year there is a new report about the state's college graduates seeking greener pastures outside the state's borders. Every year there is a politician proposing a new program to get them to stay in Ohio. Few, if any, college graduates make a choice about where to live based on what government programs a state provides. The vast majority choose where to live based on their ability to find a good job and raise a family. Eliminating the income tax and forced unionization and providing universal education vouchers would address the needs of college graduates not only from Ohio but from around the nation. If Ohio wants to retain these graduates and attract new residents, it's time to try these bold reforms.
Marc Kilmer is a policy analyst with the Buckeye Institute for Public Policy Solutions, a research and educational institute located in Columbus, Ohio.
