State spends over $165 million with minority businesses

State spends over $165 million with minority businesses
OhioMBE – August 15, 2014

The State of Ohio has recorded its best numbers for procuring goods & services with Ohio’s certified minority owned businesses.  The state spent over $165 million with 283 certified minority owned businesses in 2013.

Ohio law requires the State to spend 15 percent of its contracts with certified minority owned businesses.  Minority owned businesses are defined as a for-profit business that is 51 percent owned and controlled by a member of the following groups:  Black, Hispanic, Asian or Native American.  The State administers a certification program to determine MBE eligibility.

In a press release, the Ohio Legislative Black Caucus claimed a victory in fighting for the state’s certified minority owned businesses.

“Just a little over a 1/2 an half ago, the proposed state budget had a $0 line item for the Minority Business Office which OLBC was outraged about.  We announced at our Black History Day of ACTION at the Statehouse that this was unacceptable and that we would fight for minority businesses and for the enforcement of the 15% set aside that is state law,” said Alicia Reece, State Rep.  and Ohio Legislative Black Caucus President.  “As a result, $1.6 million was added to the state budget for the Minority Business office, an aggressive Minority Business Director was hired, and the state just announced $165 million, its highest spend in history to date with minority businesses.  We are on the right track and we will continue fight to achieve the 15% across the board.”

Cabinet agencies spent 14.41 percent of their contracting dollars with certified MBEs.  When State Boards and Commissions are added to the numbers, the contracting percentage is 14.24.

“The governor believes in the program, is committed to it, and could not be more emphatic to his cabinet directors that this needs to be a priority across all the agencies.  While the state has made significant progress under Gov. Kasich’s direction, there’s a lot more work to do, and we are a long way off from any kind of mission-accomplished moment,” said Rob Nichols, press secretary to Governor John Kasich.

Quick Stats:

  • 17 of 24 agencies surpassed the 15 percent goal
  • 41 of 50 boards and commissions surpassed the 15 percent goal

Sources:  www.ohio.gov; www.cleveland.com