Calling for a fundamental change to the state's approach for growing the economy, today, as a part of her Reinvest in Indiana plan, Democratic gubernatorial candidate Jill Long Thompson began to outline her strategy for economic growth in Indiana.
"Looking across Indiana, you see factories closing, families struggling to pay their mortgages, pay their taxes and keep up with the rising costs of healthcare. Once-thriving communities are slowly dying as people and businesses move away. And our current Governor doesn't seem to have the solutions or seem to care," said Long Thompson.
"Hoosiers make ninety cents on the dollar relative to workers in the rest of the country; Indiana has one of the highest home mortgage foreclosure rates; almost one third of our high school freshmen will not graduate from high school; and healthcare costs in Indiana are higher than the national average. That is unacceptable and the Governor's lack of action to these issues is unforgivable."
"The Daniels' approach to economic development simply isn't working. His 'one business at a time' strategy ignores how broad policy affects growth and ignores existing business. This shortsighted policy is leaving too many communities and too many people behind, and that's especially true the further you are from the central part of the state. It is extremely important to bring new businesses to Indiana, but it's also important to put policies in place that keeps existing businesses here and helps them grow," Long Thompson added.
"As Governor, I will focus on the impact of our state's broad policies on growth as opposed to one-time giveaways aimed at luring any job - no matter the wage level - to Indiana. The real barriers to growth in Indiana include an outdated tax structure and a lack of any real policy to make healthcare affordable and accessible to every Hoosier. They include a failure to bring modern infrastructure like broadband to all Hoosier communities and an education policy that doesn't adequately prepare our workforce for the job market. Too often Governor Daniels' solutions are narrowly-focused program ideas that only affect a small portion of the state's economy. Education policy, tax policy, and healthcare policy, are as important to economic growth as are infrastructure and economic development programs."
"I will make them all priorities in my administration," added Long Thompson.
Long Thompson sees several areas in need of immediate attention that could positively impact the state's economic future. They include:
* Changing Indiana's tax policy by expanding tax incentives to both employees and businesses and writing them into the tax code. Specifically, Long Thompson would offer incentives to businesses that provide healthcare, acquire new technology, improve productivity and reduce their impact on the environment. Long Thompson would also create permanent tax deductions for individuals to help offset their share of healthcare and continuing education costs.
This code-based incentive approach would be part of a comprehensive overhaul of Indiana's entire tax structure, not just moving the burden from one revenue source to another as the Governor's current plan does. The overhaul would be part of a comprehensive, regional based economic development assessment that examines the effects of tax policy, education policy, healthcare policy and infrastructure have on regional economic development.
* Transforming healthcare policy in Indiana by changing state law to encourage businesses and individuals to pool to buy health insurance, vastly reducing its costs for individuals and smaller sized businesses. This proposal would expand coverage for uninsured or underinsured Hoosiers. It would also positively impact business by reducing overall costs - not only by lowering prices by "bulk purchasing" health insurance, but also by reducing the number of uninsured in Indiana. This will also make Indiana a more attractive state for new business.
"One of the biggest impediments to job growth today is the cost of healthcare," said Long Thompson. "Many employers - big and small-won't hire more people because they simply can't afford the cost of insurance. And health insurance costs more in Indiana than most other states because of the high number of uninsured."
"With pooling, we can create an easy fix to one of the biggest issues confronting our state. Pooling will allow businesses to grow, individuals to get insurance they previously could not afford and can help Indiana lure business investment," added Long Thompson. "And, as increasing healthcare costs take away any hope of wage increases for Hoosier workers, a pooling option can help healthcare costs become more manageable for employers so they can pass along much needed pay increases to their employees."
* Reforming education policy by re-emphasizing vocational education in Indiana's high schools and providing incentives for students to complete their education.
As Indiana's education policy moves further towards teaching to standardized tests and fewer Hoosiers complete their degree requirements, Indiana faces a crisis by not having the educated and trained workforce that new businesses desire when looking for places to locate. Additionally, as Hoosier Baby Boomers retire, the existing manufacturing sector will struggle to replace them with trained Hoosiers of the next generation.
In order to grow Indiana's economy and keep businesses here, Long Thompson feels it is crucial that Indiana reforms its education policy to better equip the workforce for the coming years. By teaching real skills and providing more opportunities at the high school level to learn a trade, more Hoosier high school graduates can be workforce ready upon graduation. Also, by creating incentives to achieve an associate's degree at the community college level and expanding the number of course credits that are transferable to any Indiana four-year institution, the current community college system in Indiana can be transformed into a true education and economic engine. Changes in education policy should also include state-led reform of 'No Child Left Behind' that provides teachers and administrators with more flexibility in the classroom.
"According to a recent study released by the Indiana Chamber of Commerce, we have nearly one million Hoosiers who are under-educated and don't have the necessary skills to compete for a job," said Long Thompson. "We can and should do everything we can to encourage these workers, many of whom are older, to get additional training.
"The best way we can do that is by making it easier to access high quality training - and that's what my program does."
* Updating Indiana's infrastructure to bring broadband and high-speed internet connectivity to every county - an important factor in jump starting growth in Indiana's smaller communities. Like everywhere in America, there is a digital divide when it comes to broadband access and subscription - suburban communities and affluent households subscribe to broadband at a significantly higher rate than urban and rural households and those making under $30,000 a year. Where subscribers exist, so does service - a phenomenon that affects local governments, hospitals, businesses, schools and first responders. Long Thompson believes that, with the right leadership, Indiana can make serious inroads in economic development by bridging this divide and making broadband access available to all communities and income levels.
In the name of economic development, government efficiency and public safety, Long Thompson feels it is imperative that broadband and high-speed internet connectivity is brought to every community in Indiana. By creating local incentives to encourage telecommunications companies to expand and requiring those businesses that reaped the benefits of the 2006 reform of Indiana telecommunications laws to participate in exploring new alternatives to expand access, Indiana can have statewide broadband in the immediate future.
"We need a leader who understands that the quality of jobs we attract and retain is as important as the quantity of them," said Long Thompson. "As Governor, I will move away from the Daniels administration's reactive approach to economic development that rewards companies for bringing in low-paying, dead-end jobs that don't offer benefits."
