Long-Thompson calls for more attention to Indiana's struggling communities

'Economic Tier' program targets investment, creates more efficiency and accountability

INDIANAPOLIS - Continuing her call to revamp the state's approach to economic growth, today Democratic gubernatorial candidate Jill Long Thompson proposed new measures designed to help the state's struggling communities create, attract and retain good-paying jobs. Long Thompson said if elected Governor, she would work with state and local leaders to develop a "tier" system to guide the state's economic development efforts.

Modeled after structures in several other states, Long Thompson would categorize the state's 92 counties into three different economic tiers and then allocate the state's economic development dollars accordingly. The tiers, which would be updated regularly, would be determined by a county's unemployment rate, median household income, population growth and assessed property value per capita.

"Mitch Daniels' one-size-fits-all strategy isn't working for a number of areas in our state - and the numbers prove it," said Long Thompson, referring to a report issued last week by the United States Bureau of Labor Statistics that showed Indiana had the fourth highest rate of job loss from January to February, shedding 9,600 jobs in one month.

"Indiana has a number of communities, both rural and urban, that are experiencing high rates of unemployment and round after round of layoffs and factory closings," added Long Thompson. "My leadership will recognize the unique challenges that these communities face, and my leadership will provide our local communities the tools necessary to be successful."

A former Under Secretary for Rural Development at the United States Department of Agriculture, Long Thompson has extensive experience in this area. As Under Secretary, she managed numerous economic development programs that created and secured 150,00o jobs annually in the country's most economically distressed areas.

"As someone who comes from a rural background, who had a parent lose her job when it was shipped off to Mexico and who has spent a considerable portion of her life working to bring jobs to struggling communities, I think this is the next logical step for Indiana to take," added Long Thompson. "We can utilize the tier system approach to help bring all of our diverse communities along, so all Hoosiers can share in prosperity and long term economic satiability."

Last month, Long Thompson announced her overall economic policy, which includes overhauling the state's tax structure and placing specific, performance-based incentives into the state's tax code. Those incentives would be available to all business that offer their employees healthcare, pay a living wage, invest in new technology, increase productivity and work to minimize their environmental impact. Long Thompson's tiers plan adds to that by aiding targeted business sectors that build or expand in the state's most economically distressed areas ("Tier 1" and "Tier 2" counties) by creating additional tax incentives and credits. Sectors eligible include manufacturing, telecommunications, information technology, research and development, warehouse distribution, life sciences and tourism.

Under each tier designation potential benefits, which would be determined following consultation with state and local elected officials, economic development officials and education and business leaders, could include: Tier 1 - $3,500 tax credit per new job with a requirement to create at least five jobs, and a 7 percent tax credit for eligible business property expenditures. Tier 2 - $2,500 tax credit per new job with a requirement to create at least 10 jobs, and a 5 percent tax credit for eligible business property expenditures of more than $1 million. Tier 3 - $1,000 tax credit per new job with a requirement to create at least 15 jobs, and a 3.5 percent tax credit for eligible business property expenditures of more than $2 million.

To be eligible, companies must offer employees health insurance and pay at least 50 percent of the premiums, pay above the county average wage, cannot owe back taxes and cannot have received a significant environmental violation notice from the state within the last 5 years. Retail businesses or companies that move from one county to another would not be eligible for the tier incentives.

"This is an efficient and economical approach t0 growing and sustaining our economy, and one that will provide assistance to Hoosiers that need it most."

Moving to economic tiers would not cost Indiana taxpayers any additional money. Information needed to conduct the economic assessments is already collected by the Indiana Department of Workforce Development, the U.S. Census Bureau and Indiana University's Bureau of Business Research and would just be repurposed. Additional incentives used in the various tiers tie directly to business investment and job creation, thus offset any costs.

"As Governor I will work to create and attract good-paying jobs everywhere in Indiana, because I believe that for our state to be truly successful, every Hoosier and every community must be engaged," concluded Long Thompson.