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Governor: Tax dispute not a disqualifier for Barbash
But official must resolve IRS case before resuming state job
Wednesday,  May 20, 2009 3:02 AM
THE COLUMBUS DISPATCH
<p>Mark Barbash stepped down Friday as interim director of the state development department.</p>

Mark Barbash stepped down Friday as interim director of the state development department.

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Gov. Ted Strickland said yesterday that he probably would have appointed Mark Barbash interim director of the state development department even if he had known that Barbash owes nearly $160,000 in federal and state taxes.

But Strickland, who said he wasn't personally told about Barbash's tax problems until last week, said Barbash needs to settle his tax issues before returning to his state job as chief economic-development officer as planned.

"It will depend upon whether or not these matters are appropriately resolved," Strickland said when asked about Barbash's status yesterday. "There needs to be a resolution that is viewed by the IRS as acceptable."

Barbash stepped down as interim director Friday after public disclosure that the IRS and Ohio Department of Taxation have filed liens against him totaling $146,314 and $12,462, respectively. A foreclosure action against his Bexley home also has been filed.

Barbash, 60, a former Columbus development director, said last week that he is taking a month of accrued paid leave "to straighten out some personal financial matters."

Barbash said yesterday that he has two disputes with the IRS: one involving the amount of taxes owed on a family inheritance, and a second about his filing status on his 2003 return. The Ohio tax lien is related to the disagreement about the 2003 return, he said.

Barbash disclosed the inheritance dispute on a questionnaire he completed in February 2007 before being hired by the development department, and he said he told Strickland's chief of staff, John Haseley, about the other IRS matter before being named interim director to replace Lt. Gov. Lee Fisher in February.

Strickland said yesterday that he assumed he was not told because his staff considered it a personal matter that Barbash was resolving. The governor said being told probably would not have changed his decision to tap Barbash as interim director.

"Just because someone has an issue with the IRS does not necessarily mean that they are in the wrong," Strickland said.

Still, he tempered last week's announcement that Barbash would resume his $128,356-a-year role as chief economic-development officer, currently the agency's highest-paying job.

"I think it depends upon the outcome of his ability to resolve these matters in an acceptable manner during the time that he's off," the governor said. "I don't understand all the factors that may be involved in his current personal financial situation. But he's a good person, and I appreciate his service to the state of Ohio and to me."

Strickland also said he has no timetable for picking a permanent director after naming Lisa Patt-McDaniel, 44, who is earning $88,379 a year, to replace Barbash as interim director.

Fisher, who had been both lieutenant governor and development director since the Strickland administration took office in 2007, stepped down as director after entering the U.S. Senate race.

mniquette@dispatch.com



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