NORTH ROYALTON, Ohio — It all started in early December. Millions of dollars in federal and state funding that support the Manufacturing Advocacy and Growth Network (MAGNET) were halted due to an ongoing audit by the U.S. Department of Commerce.
While lawmakers demand answers, we spoke with a MAGNET employee right here in Northeast Ohio who said he will be out of a job because that funding has not been reinstated.
Jim Dempsey is a single father who provides for his two children.
“I had completed the construction of a new home in July, and we moved in here, basically putting my kids first, putting them in a great home, great neighborhood, great preschool, Broadview Heights Goddard is amazing,” said Dempsey.
What helped him do that was nearly 40 years in the manufacturing industry, spending the last year and a half working as a senior growth advisor for MAGNET, where he planned to retire.
“I view it as giving back, because I’ve learned so much over that period of time that I can help these small and medium sized manufacturers that don't have access to that deep knowledge,” said Dempsey.
But that future changed Jan. 9. Dempsey was among nearly half of MAGNET’s staff laid off or furloughed after federal funding was halted in December amid an ongoing audit by the U.S. Department of Commerce.
“Those folks that are still there are going to be under tremendous stress and the folks that are not there are under tremendous stress because they have to feed their kids,” said Dempsey.
Just a week ago, MAGNET CEO Ethan Karp told News 5 they had no choice but to let staff go.
“I wish we could pick up the pieces,” said Karp, adding that they still have not received anything from the U.S. Department of Commerce. “Nothing has changed pretty much since day one.”
The Department of Commerce has not responded to our requests for comment or information on the audit. Senator Jon Husted said they are in the same boat, telling News 5 they are now reaching out on a weekly basis.
“If you're going to make an accusation that someone did something wrong, then you have to have the evidence of that accusation,” said Husted.
Now, Dempsey is reevaluating his next steps.
“I'm going to be seeking, you know, new source or sources of income, and I have to reevaluate what is going on with Goddard, because while they are wonderful, they are also expensive,” said Dempsey.
Still, he remains hopeful.
“I believe it's going to be reinstated because it is so critical to Ohio and our economy,” said Dempsey.
