McCormick seeks to ‘reform’ IEDC as part of economic development plan
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Jennifer McCormick, the Democratic candidate for governor, released a set of economic development policy goals Thursday morning that call for “reform and increased transparency” in the Indiana Economic Development Corp., incentivizing employer-based child care efforts, and ensuring every county gets state-level support.
Under her plan, McCormick seeks to overhaul the IEDC “overextended” role by reducing its ability to act as “a real estate developer,” as it has done with the LEAP Lebanon Innovation District in Boone County.
“The IEDC should return to its original purpose as a business concierge, facilitating smooth business operations, fostering private investment, and prioritizing business retention and expansion support,” her plan says. “Statewide economic policies should broaden their focus to fundamental building blocks for economic growth, such as education, workforce development, and livability improvements.”
IBJ previously spoke with McCormick about her concerns about LEAP. She said the project should be paused until questions regarding transparency and utility are answered. (LEAP stands for Limitless Exploration/Advanced Pace.)
The agency should act with increased transparency over how it uses taxpayer dollars as well, she said, including producing regular public reports about ongoing tax incentives. That way, Hoosiers can track the rate of return on state investments.
The IEDC does make public most of the incentive contracts it reaches with companies available in its online “Transparency Portal,” but some of the details in those contracts aren’t disclosed for “competitive reasons,” and contracts aren’t always posted in a timely manner.
“Good government is transparent and accountable,” McCormick told reporters Thursday morning. “There are a lot of pieces to that that we need to rein in.”
She does credit the IEDC for some of its recent accomplishments and said the Regional Economic Acceleration and Development Initiative, or READI, and Stellar Pathways are two programs she would continue.
McCormick said she’d also like to reduce the length of large tax abatements in tax increment financing districts, which current law allows to be up to 20 years. McCormick did not provide a recommended cap but said she would propose that question to a quarterly business roundtable with business owners and her administration.
She joins Republican Mike Braun in criticizing the IEDC for “picking winners and losers.” All three candidates running for governor have used that phrase to describe the state’s current strategy. IBJ previously spoke with each candidate about their economic development goals.
McCormick’s plan calls for a 92-county plan that allows all regions to benefit from state-catalyzed economic development.
“We have to approach this in a way that we are taking care of all,” she said. “All Hoosiers deserve a strong economic development plan that starts with education, because education is in all 92 of our counties.”
The plan also calls for targeted small business support, tourism investment, worker-retention programs and increased funding for education.
McCormick also said more employers and employees would be attracted to Indiana if the state had a stronger public health system, lower health care costs, legal cannabis and a less-restrictive abortion law.
“The playing field has got to be leveled,” she said. “Our economic development and economic success is certainly hinging upon that health care piece.”
Several of her policy proposals would face an uphill battle against the Republican supermajority in state government. However, on economic development, McCormick said there is more potential for change through agency leadership hires, board participation and other governor-specific duties that would allow her to roll out her plan independently.
She proposed a state tax phase-in for all new businesses, a proposal she said would level the playing field between local entrepreneurs and large corporations. She did not provide further details on this tax-relief plan.
Another tax tweak McCormick said she make would be to expand the earned income tax credit in line with inflation. That change would reduce paycheck tax burdens for low-income workers and increase worker retention, according to the plan.
One of her campaign priorities is improving child care, which was also reflected in the plan. A state corporate income tax credit would incentivize more businesses to provide on-site or nearby child care options. This credit program would be capped at $300 million annually.