June 2, 2026 · Workforce Development Committee · 3,310 words · 6 speakers · 35 segments
The committee will come to order. Clerk, please call the roll.
Here. Here.
Thank you. We have a quorum, so we'll proceed as a full committee. Although we don't look like we're all here, we have folks in finance and a number of other committees. And of course this is recorded so they can review this later in the day. Please review the minutes for the May 19th meeting. Are there any additions or deletions? Without objection, the minutes will be approved. Hearing no objection, the minutes are approved. The first order of business today is to call sub-House Bill 292 for its fourth hearing. We hear proponent testimony starting with Eric Jankuski with the Ohio Manufacturers Association.
I screwed it up anyhow, didn't I?
Welcome to committee, sir. Go ahead.
Thank you. Thank you for the opportunity to testify today in strong support of substitute House Bill 292. My name is Eric Cenkuski and I am the founder and CEO of TJ Clark International, a small defense equipment manufacturer based here in central Ohio. For more than a decade, our company has proudly supplied mission-critical tactical fuel and water pump distribution systems for contested logistics to the U.S. Department of Defense. We are a classic Ohio small business in the defense industrial base. We employ 20 people and generate roughly $10 million in annual revenue while meeting stringent MILS specifications and ISO 9001-2015 quality standards. I'm pleased to testify today on behalf of both T.J. Clark International and the Ohio Manufacturers Association. The OMA represents more than 1,300 manufacturing companies across the state that employ over 650,000 Ohioans. Our members strongly support HB 292 because it advances strategic economic development in one of manufacturing's most vital and high-value segments. Ohio already benefits from a powerful defense and military ecosystem. ecosystem. According to the Jobs Ohio, Ohio Military and Federal Factbook 2025, military and federal activities generate $54.81 billion in total economic impact, representing approximately 5.9% of Ohio's economy. Support for 418,000 total jobs statewide via direct, indirect, and induced employment, and $4.88 billion in state and local tax revenue. Within this ecosystem, the private aerospace and defense manufacturing sector contributes roughly $17.2 billion to Ohio's GDP, while supporting approximately 68,000 total jobs. To put this in perspective, manufacturing overall remains Ohio's largest private sector driver, contributing $137.9 billion to GDP in 2024, roughly 15% of the state's economy, and employing nearly 690,000 Ohioans. The defense-related portion represents a high-value, high-wage segment of that broader manufacturing base. The nearly $55 billion broader military-federal impact is on the scale of a major industrial sector and directly strengthens Ohio manufacturing through robust supply chains. Small businesses are the backbone of Ohio manufacturing. Small and mid-sized manufacturers therefore form the backbone of Ohio's defense industrial base, just as they do across the wider manufacturing sector. Hundreds of Ohio companies like T.J. Clark International deliver critical components, agility, and innovation that DOD and the larger defense primes depend upon. Yet these firms often face barriers, including complex federal contracting processes, the need for secure facilities such as skips, access to growth capital, and competition from much larger entities. HB 292 directly addresses these challenges. The proposed Ohio Defense and Space Commission would develop a comprehensive statewide strategy, improve coordination among industry, academia, and the military, prepare Ohio for the base realignment and closure processes, and administer the Defense and Aerospace Industries expansion program. Targeted grants and support for small business, contract development, and facilities improvements would be especially beneficial for manufacturers across the OMA membership. Passing HB 292 would signal that Ohio is serious about competing for defense and aerospace work amid great power competition and evolving national security threats, including counter-unmanned aerial systems. It would help manufacturers attract and retain high-wage, advanced manufacturing jobs, strengthen supply chains, and reduce foreign dependencies. Leverage Ohio's existing strengths, our manufacturing heritage our rich institutions and major federal installations such as Wright Air Force Base And lastly ensure that small and mid manufacturers can fully participate in the growth of this strategic sector T.J. Clark International, together with the Ohio Manufacturers Association, believes this commission and grant program represents smart, targeted public policy that will deliver strong returns by amplifying private sector investment and job creation in manufacturing. I respectfully urge the committee to advance HB 292. Thank you for your time and leadership in supporting Ohio's defense industrial base and the broader manufacturing community that powers our state's economy. I'm happy to answer any questions.
Thank you, Mr. Jankoski. Any questions from the committee?
I'll ask a question. I had somebody criticize this bill because they said we're not in the state of Ohio shouldn't be in the business of defense contracting. That's the federal government, and it has nothing to do with the state government. This will help us compete for federal dollars. The parts that you make in your manufacturer facility, if they weren't made at your facility or weren't made in the state of Ohio, they would still be made somewhere in the United States, right? They're mission critical.
To the chair, that is correct.
So if we're going to make sure that work is being done, that the federal government is spending money on defense mission critical parts, it behooves us to make sure it's done in Ohio rather than California or Michigan or anywhere else.
That is correct. To the chair, that is correct. I would like to add that 34 other states have some form of defense commission like the one that's being proposed here in Ohio. So we are positioning ourselves to be able to compete against those additional states. Ohio, based upon our location, et cetera, has always been a state where manufacturing for the defense industry has been critical when it comes to the general dynamics in Lima, Ohio, or right here in Columbus with the Defense Logistics Agency's Land and Maritime facility at Port Columbus, most people don't know that there's a $6 billion budget that's spent out of those offices out on the east side of Columbus. and why not keep that money right here in the state of Ohio by continuing to promote and advance the defense manufacturing and services industry here in Ohio?
And then my follow-up question would be, TJ Clark International, is defense contracting your only work or are you doing other manufacturing?
It is at present our only manufacturing.
Okay. Any other questions from the committee?
Thank you very much for your testimony. I appreciate you being here. Next, we will hear from David Cordiere from the Dayton Development Coalition. Welcome to the committee.
Thank you. A lot of familiar faces. Appreciate it. Chair Kaler, Vice Chair Reynolds, Ranking Member Ingram, and members of the Senate Workforce Development Committee, thank you for the opportunity to present proponent testimony on substitute House Bill 292, creating the Ohio Defense and Space Commission. I'm David Cordaigne, our Manager of Engagement at the DDC, Handling State and Local Government Affairs. The Dayton Development Coalition is a regional economic development organization whose mission is to support job creation and opportunity for the citizens of the Dayton region. In addition, the Dayton Development Coalition works closely with aerospace and defense partners to promote Wright-Patterson Air Force Base and the Springfield Air National Guard Base. We commend Representative Matthews and Representative Santucci for sponsoring this important piece of legislation that will strengthen Ohio's defense industry, installations, and military communities. Additionally, we appreciate the Senate for working with us to find some middle ground on this bill. While there have been some significant changes made, we are still strong proponents of substitute House Bill 292. A couple of the key, three of the key changes in our mind that we're supportive of in the new substitute bill that amends the commission from 18 members to nine members while still retaining the public-private partnership intended, which we greatly appreciate. The commission will no longer be its own entity, but rather will be housed within the Department of Development. We support this change as it provides the commission with ample support to efficiently operate. Lastly, the funding for the commission has now moved to $5 million in the GRF. While this change does not necessarily ensure long-term funding, it is certainly a more predictable funding source than fluctuating bond interest returns. In closing, substitute House Bill 292 will move Ohio forward. Adding a line from the previous speaker, and I know it's in my previous testimony on the old version of the bill, but we are in the vast minority of states when it comes to states that have an entity like this housed officially within their state government. And for a state like us that is so aerospace and defense dominant, this will be an added benefit. the establishment of the statewide commission focused on advancing defense and space priorities is vital for those industries continued growth the administrations in ohio will change but having this permanent body with public and private voices at the table will ensure ongoing support for some of ohio top industries so thank you for the consideration of the substitute bill and we continue to urge your support Happy to answer any questions.
Thank you very much. And I've never pronounced your name right either, so please forgive me.
Oh, it's all good. It's not the first time we won't be the last.
Questions from the committee?
I was going to ask the same question I was asked the gentleman before, but I wanted to make it more clear as far as manufacturing across the state. I know as a manufacturer, when I have a contract with just a private company to do certain type of manufacturing, it allows me to buy the machines I need that opens up other jobs that I can do for other people because I have a contract that helps me pay for these machines that I can now do new work with. Is it the same for what we're seeing here with some of our folks that are not primarily only government contractors but doing some government contracting work and it opens up new fields for them?
To the chair, correct. And I would have to go back and look, but I know of two specific conversations I've had with companies in our region where defense is not their primary manufacturing line, but there are certain avenues they wish they could go down, but it's the cost of specific equipment that they're not able to make the jump into making a certain product. The intention of this was to create a grant program that would bolster that level of supplier, Those smaller manufacturers that are not the primary defense folks but are vital to supplying that next tier of contractors that are then supplying Boeing's and General Dynamics and everybody else. So exactly. That would hopefully be something that this commission and the grant program would be able to help.
Thank you. I know not pertinent to this bill, but I know many, many years ago I worked for the Par Technology Corporation, which did a lot of defense contracting and also made the cash registers for McDonald's. And the one produced the revenue they needed to do the research, and the research allowed them to create new products in the private sector. So I know it always works hand in hand, so I appreciate that. Thank you.
Any other questions from the committee? Thank you very much for your testimony. Appreciate it. Next, we'll hear from Matt McLaren with the Ohio Chamber of Commerce. Welcome, Matt.
Thank you, Chairman Kaler, Vice Chair Reynolds, members of the Workforce Development Committee. My name is Matt McLaren. I'm the Director of Travel and Tourism Policy at the Ohio Chamber of Commerce, where I also work on aerospace issues. Thank you for your opportunity to provide testimony today in favor of sub-bill, House Bill 292. The Ohio Chamber of Commerce is the state's leading business advocate. We represent over 8,000 companies that do business in Ohio. Our mission is to aggressively champion free enterprise, economic competitiveness, and growth for the benefit of all Ohioans. We support House Bill 292, this legislation that establishes the Ohio Defense and Space Advisory Commission and the Defense and Aerospace Industries Expansion Program, because this support can help these industries continue to grow in Ohio. Ohio is a strong and growing defense and aerospace industry. It stays home to the Air Force Research Laboratory, Wright-Patterson Air Force Base, NASA Glenn Research Center, National Advanced Air Mobility Center, and many, actually hundreds, of defense industry suppliers, including Hondural, Sierra Nevada Corporation, G Aerospace, and some of the ones that previous witnesses ever mentioned as well. House Bill 292 creates a commission of legislators and regional representatives to guide Ohio's growing defense and aerospace industries and establish the Defense and Aerospace Industries Expansion Program. Establishing the expansion program will provide resources to support businesses entering or expanding into the defense and aerospace supply chain, especially some of those smaller businesses that, have you heard, need a little bit of support to be able to go into this area. Creating the Ohio Defense and Space Advisory Commission will give our state a stronger voice in shaping defense policy, pursuing new federal opportunities. This committee will create connections to help Ohio's aerospace and defense industry continue to grow. And because of that, we encourage your support for this legislation. Thank you to the members of this committee for your consideration. I'd be happy to answer any questions.
Thank you very much for your testimony. Any questions from the committee? Sort of quiet today. Thank you very much for your testimony. Thank you. Appreciate it. Thank you. Next, we'll hear opponent testimony from Patricia Marita. Welcome to committee.
Yes, thank you, Chair Kaler, Vice Chair Reynolds, members of the Senate Workforce Development Committee. My name is Patricia Moraita, and I'm submitting testimony in opposition to House Bill 292. So there are now three bills in the Ohio legislature that are in support of the state of Israel. The first bill is House Bill 292, this one, established the Ohio Defense Commission. All interest from Israel bonds would go into a, quote, defense fund with the state of Israel as the lone benefactor. With money going to Jobs, Ohio, the public would have no access to oversight or accountability as to how funds are spent. Money would be distributed to private contractors for warfare, including AI warfare and surveillance. The second bill is House Bill 188. create the Ohio-Israel Trade and Innovation Partnership. Ohio would collaborate with Israel in exchange of training, education, and technical skills. Its funding is convoluted and lacks oversight. Its commission would consist of appointees and insiders with no public advocates and again no oversight Unbelievably there would be no minutes or public notice of meetings Is there any other Ohio entity lacking such basics of scrutiny? Jobs Ohio gets three voting seats on the commission. Again, how they distribute their funds is kept secret from the public. Both House Bills 292 and 188 have Jobs Ohio involvement, and Jobs Ohio, as said before, keeps secret how it allocates its money and how much and where it's going. Senate Bill 420, introduced by Senator O'Brien and House Bill 799, the Jobs Ohio Transparency Act, introduced by Representatives Pizzouli and Rader, would require annual performance audits by the state auditor of Jobs Ohio. It would mandate public disclosure of Jobs Ohio corporate sponsorships and media partnerships and subject Jobs Ohio to public records and open meeting laws. Jobs Ohio CEO J.P. Nassif has had investments in Israel, a clear conflict of interest in case of these two bills. The third bill is Senate Bill 27, Define Anti-Semitism, Expand the Offense of Ethnic Intimidation. That bill is being heard this week in the House Judiciary Committee. The bill would conflate criticism of the state of Israel with criticism of the Jewish religion and criticism of Jewish people in general. Now, there is no law in the United States against criticism of any other nation or even of the United States. Neither is there a law against criticism of any other religion or lack thereof. The UN International Court of Justice and multiple human rights organizations have concluded that Israel's actions breach international humanitarian and human rights law and are in violation of international law regarding Israel's occupation of Palestinian territories and settlement activities. The United Nations Independent International Commission on Inquiry on the Occupied Palestinian Territory, That body concluded on reasonable grounds that Israeli authorities and security forces have committed and are continuing to commit genocide against Palestinians in Gaza. The International Criminal Court issued arrest warrants in 2024 for Israeli Prime Minister Benjamin Netanyahu and former Defense Minister Yoav Gallant for alleged war crimes and crimes against humanity committed in Gaza between October 2023 and May 2024. Ohioans want our money to go to Ohioans for Ohioans, not for military adventures in other lands. Warfare is antithetical to human survival. It creates enormous destruction and pollution that costs and destroys lives in multiple ways. Warfare wastes vast amounts of limited resources, and it is causing major effects on the Earth's climate. In light of these United Nations pronouncements, Israel is a questionable place for Ohio's money to go. So these bills are motivated by political views and not by fiscal interest or integrity. So we are here to say, the public is here to say, and the public supports this too. Time after time, right now, polls show that the public does not want more money going to this war in the Middle East. So I'm here to say no to all three of these bills, and thank you very much.
Thank you very much for your testimony. I saw your testimony in advance. I wanted to make sure you got a chance to say what you needed to say. Just so you're aware, we accepted a substitute bill last week, which removes any funding from Israel bonds. It is now a straight GRF spending of $5 million, so it doesn't do anything to do with Israel bonds anymore. The Ohio Defense and Space Advisory Commission will be housed under the Ohio Department of Development. It will not be a separate corporation like Jobs Ohio. So your concerns there are no longer – should no longer exist as far as the funding with Israel Bonds or how it's going to be housed – it's going to come under direct advisory from the Ohio Department of Development. So those two things are no longer part of the bill, but I did want you to be able to come and express your opinion. So I hope that alleviates some of your concerns.
Yes, it does. Thank you. And I'm presuming that these funds could still go to Israel?
No, there's no connection with Israel anymore whatsoever. This is state money being spent to attract defense spending that is going to be spent in any way, shape or form. It's already going to be spent somewhere in the United States. We would like it to be in Ohio, but there's nothing in this bill anymore that is associated with the state of Israel.
Thank you.
Any other questions for the committee? Senator Huffman?
No, no, no. None.
No? Okay. Thank you very much for your testimony.
Yes.
With that, there is written testimony on your iPads. Please review those. Also, testimony from Cassie Barlow with Sochi and John Press with the Eastern Ohio Military Affairs Commission. and there is written opponent testimony on your iPads from a number of individuals here. This will stand as our fourth hearing on substitute House Bill 292. With no further visits for the committee, we're adjourned.