Economic woes in northern Indiana

from Hoosiers for Jill

In July, Indiana ranked second among all 50 states in the decline in employment, with 17,800 fewer Hoosiers with jobs. At the same time, Indiana continues to be among the leading states for home foreclosures, health care costs and just today a new study ranked Indiana fifth in the nation for bankruptcies.

The economic climate in northern Indiana is also troubling. Elkhart County, in the midst of a series of layoffs in the recreational vehicle industry, posted a 9.3 percent unemployment rate for July, the state's fifth highest net rate. Surrounding counties also reported unemployment rates higher than the state average: St. Joseph County's rate was 7.2 percent, LaGrange County's rate was 10.3 percent, Kosciusko County reported a 7.8 percent rate and Marshall County had an 8.6 percent rate.

"Indiana is not living up to its economic potential, because our current leadership is not living up to its responsibility - and working families are suffering because of it," observed Democratic Gubenatorial nominee Jill Long Thompson, whose own mother lost her factory job several years ago when it was shipped to Mexico. "We can't continue to sit back and allow our jobs to leave and opportunities to pass us by. We must take steps immediately to make Indiana competitive again - and that's what I will do as Governor."

Earlier this year, Long Thompson and her running mate, Lieutenant Governor candidate State Representative Dennie Oxley, announced their plan for rebuilding Indiana's economy.

Specifically, they will work to restructure the state's tax code to make Indiana more competitive and able to retain good-paying jobs. Their proposals center on adopting broad policy that benefit all 92 counties. In addition, their plan calls for placing specific, performance-based incentives into the tax structure to help grow jobs and change state laws to allow all individuals and businesses who choose to pool together to buy health insurance in bulk.

The Democratic ticket has also proposed an innovative program to grow good-paying jobs in the state's struggling communities. Modeled after structures in several other states, Long Thompson's "Economic Tiers" program would categorize the state's 92 counties into three different categories 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.

With the "Economic Tiers" plan, targeted business sectors that build or expand in the state's most economically distressed areas ("Tier 1" and "Tier 2" counties) would be eligible for 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 or have received a significant environmental violation notice from the state within the last five years. Retail businesses or companies that move from one county to another would not be eligible for the tier incentives.

As a part of this strategy, Long Thompson will also create a "Green Boost" incentive to provide an additional one-time $500 tax credit for any new green job created. Businesses that purchase equipment to lessen their environmental impact or energy usage would also be provided with an additional 3 percent tax credit.

Moving to economic tiers would not cost Indiana taxpayers any additional money. Information necessary to determine eligibility 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 be repurposed to the tiers program. Additional incentives used in the various tiers tie directly to business investment and job creation, thus offsetting any costs.

"With new leadership and new priorities, I am confident that we can rebuild our economy and create long term opportunities for citizens across the state," concluded Long Thompson.