KEY CHALLENGES:

• Business investments decisions increasingly select regions that prioritize talent attraction and retention, quality of life assets, and housing. 
• Indiana’s competitive assets in sports and tourism require continued investments to lead peer markets. 
• Local governments are key partners for state on economic development but have limited available resources to invest in competitiveness.

REGIONAL COMPETITIVENESS:

Support appropriation of regional economic development funding in the 2023 budget: 

• Appropriate $500 million to fully fund READI 2.0. 
• Prioritize investments in talent attraction and retention, quality of life assets, and housing. 
• Score project competitiveness and eligibility based on measurable impact on key industrial sectors and population growth. 
• Structure state investments to sustain the integrity of existing economic development regions across the state investments and strengthen regional development authorities and other models of intergovernmental cooperation.

SPORTS & TOURISM:

Strengthen Indiana’s competitive advantage as the premier market for sports and tourism events: 

• Appropriate $10 million over the biennium to fully fund the Indiana Sports Corp Bid Fund to enhance competitiveness against peer markets in attracting large-scale investments.
• At least 30% to be used outside of Marion Co., as outlined in SB245 (2022).

LOCAL FLEXIBILITY:

Align local government Local Income Tax reserve requirements with state budget best practices to free up local resources while maintaining fiscal stability: 

• Under current rules of 15% reserve requirement, balances invariably grow beyond that threshold as taxable income grows during economic expansions.
• In 2020, total balances were approaching $1 billion—34% of distributions. 
• Each percentage point of reserve reduction releases $50-60 million, 11-12% limit (in line with state best practices) would release $160-220 million. 
• At a 12% limit, the system weathers a Great Recession-level event with 90 counties positive and 15% total LIT revenues in reserve.