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Booze Sales to the Rescue! Ohio Bond Deal Touts Job Creation

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FILE -In this Monday, Nov. 19, 2012, file photo, cocktails are photographed in San Francisco. Airlines have found a way to take the edge off the stress of flying and make a few extra bucks along the way: fancy new cocktails, craft beers and elegant wines.(AP Photo/Eric Risberg) | AP

Just as Ohio officials were preparing to issue about $1.5 billion of bonds backed by sales from liquor, the state Supreme Court announced that it would review a challenge questioning the legality of the entire funding plan.

The announcement came on yesterday, the same day the state began pricing the tax-exempt and taxable bonds. The deal, the brainchild of Gov. John Kasich, has been a long time in the making. One of the governor’s goals after coming into office in 2010 was to create more jobs in the state. Plans evolved to entail creating a private company that would eventually be funded by the state’s lucrative liquor sales. Eventually, the company that would issue the bonds, JobsOhio Beverage System, came to fruition.

Read the whole story at Forbes