The amendment Republican House members wrote into the state budget bill last month that would help finance a new Browns stadium in Brook Park poses a significant risk to taxpayers and the state’s balance sheet, Gov. Mike DeWine’s budget office concluded.
Office of Budget and Management Director Kim Murnieks said in a March 26 report that Jimmy and Dee Haslam’s plan “inappropriately overstates projections of future taxes generated by the project, and over inflates the development’s positive impacts.” For this reason, Murnieks said the office opposes the proposal.
The report also highlighted that the financing plan gives the state an ownership stake in the stadium, which makes the state responsible for future maintenance. But the amendment does not guarantee the state any money to cover such costs. The report recommends that the state push for a revenue-sharing agreement as part of the plan.
The report concludes: “In summary, OBM has concerns about the underlying assumptions of this proposal. The projected economic impact runs directly counter to decades of research and evidence about the cost and benefits of professional sports stadiums.”
Signal Statewide obtained a copy of the report from DeWine’s office on Monday via a public records request we filed earlier this month.
Dan Tierney, a spokesman for Dewine, said in an interview the governor doesn’t agree with everything in the report. But he said DeWIne agrees with its conclusion that Ohio should not be financing the project from the state’s general revenue fund, which pays for the state operations and services.
The findings from DeWine’s budget office are similar to a report from the Legislative Service Commission, reported first on Monday by the Statehouse News Bureau.
The Haslam Sports Group disputes the findings of both reports.
“The OBM and LSC memos outlined various questions which we have previously addressed with Governor DeWine and other state officials directly,” the statement says. “We question many of the memos’ assertions and have worked with our team of national experts to prepare relevant information and responses to the points in the OBM materials, which we have provided to the Administration. The LSC memo also contained several inaccuracies and misinformation. We understand and welcome Governor DeWine’s commitment to creating a responsible funding mechanism for sports facilities across Ohio, as he has consistently communicated the positive impact Ohio’s teams, and their venues have on the State. We look forward to more ongoing, collaborative dialogue with the Governor and other state officials to create the best solution to bring our transformative project to the State and Northeast Ohio.”
Cleveland Browns stadium money in draft budget bill
On April 9, the Ohio House passed a state budget bill that includes provisions providing the Browns with $600 million to build the new stadium. The plan calls for the state to borrow the money, repaying it in the future with tax money raised by the project. The legislature threw out a proposal from DeWine to help pay for the stadium by raising money on sports betting. The legislature also nixed a proposal from the governor to put state money into a fund for all future stadiums, instead opting to help finance the Browns’ specific project. Since the budget passed, the Cincinnati Bengals also have asked the state for money for stadium upgrades.
Republican legislative leaders described the Browns deal as a good one for the taxpayers, saying the money generated by the stadium would more than cover the costs of borrowing the money. Most Democrats voted against the budget, although a handful of Democrats helped narrowly defeat a procedural maneuver that could have complicated the project.
The budget bill is now being reviewed by the state Senate. The budget is due at the end of June and will go to DeWine’s desk for his signature.
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