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I honestly cannot imagine a competent employee being demoted. I can imagine positions in Youth Services that might (might) be better filled by someone gay, like gay youth programs, the "it gets better" is more convincing from someone for whom it actually got better, for instance.
In Ohio, though?
You may have a limited imagination in this regard. Pettiness can be a strong motivator when it comes to office politics. And competence is often enough a triggering factor.
Senior staff will smother perceived competition in order to maintain the stability of their job position.
Not saying it is so here, but it definitely is a common enough situation in general.