STRAIGHT FROM THE SENATE

MORE PROGRESS FOR INDIANA’S ECONOMIC FUTURE

While members of Congress prepare to debate yet another “stimulus” package in Washington, D.C., Indiana continues to show the country what can happen when government leaves economic decision-making to entrepreneurs instead of bureaucrats.

According to the U.S. Bureau of Economic Analysis, Indiana had the third-highest growth rate in the country last year. Our state’s Gross Domestic Product grew 4.6 percent in 2010 – nearly twice the national rate of 2.6 percent.

That growth is translating into jobs. The Indiana Economic Development Corp. says Hoosier businesses estimate more than 13,500 jobs have been created so far in 2011. Since January 2005, a total of 1,161 businesses have projected to create 135,408 jobs and invest $27.2 billion in this state.

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Certainly unemployment is still higher than we’d like it to be, but Indiana continues to fare better than surrounding states. Indiana’s unemployment rate for August was 8.7 percent — lower than all surrounding states and the national average:

•Indiana – 8.7 percent

•U.S. – 9.1 percent

•Ohio – 9.1 percent

•Kentucky – 9.5 percent

•Illinois – 9.9 percent

•Michigan – 11.2 percent

Many may remember a time when Indiana’s unemployment rate was almost always higher than the national average. Thanks to the hard work of Hoosiers – along with smart policies and prudent spending by state leaders – that’s not true anymore. Our rate at the end of August was below the national average of 9.1 percent – the eighth consecutive month our rate has been lower than the country’s as a whole.

Our Senate Republican caucus has played a key role in developing, passing and shepherding legislation to keep the wheels of Indiana’s economy moving in tough economic times. Here are some of the most important accomplishments from the 2011 session:

– Reducing taxes on job creators (HEA 1004)
Reduces the corporate income tax rate from 8.5 percent to 6.5 percent over four years in order to further improve Indiana’s business climate and encourage job creation.

– Commercial uses for higher education research (HEA 1004)
Helps the state’s higher education institutions turn classroom theory into real-world applications that can benefit the Hoosier economy.
– Entrepreneurial Education Programs (HEA 1004)

Requires the State Board of Education, the Department of Workforce Development and the Commission for Higher Education to develop entrepreneurial education programs for K-12, higher education and people in the workforce.

Young Entrepreneur Program (HEA 1251)

Requires the Indiana Economic Development Corp. to help match students in entrepreneurial programs at state colleges and universities with Indiana communities interested in having students’ business startups locate in their area.

– Commercial Seed Certification (HEA 1386)
Allows Indiana’s state chemist to inspect and certify feed manufacturers and distributors so Indiana grain can be exported to the growing number of countries that require certification of foreign grain.

– Transportation Infrastructure (SEA 473)
Encourages the limited pool of private investment capital to come to Indiana by enabling faster approval of public-private partnerships on transportation projects.

Senate Republicans have always believed that government, by itself, cannot effectively create jobs. Rather, its role is to set a tone and create an environment for private job growth. Many apparently agree with our philosophy. Consider some of Indiana’s recent rankings:

– First in the Midwest and sixth in the nation in Chief Executive magazine’s annual survey of the best states for business (May 2011).

– First for Rail & Highway Accessibility and fifth overall in Area Development magazine’s “Top States for Doing Business” study (Sept. 2011).

– One of three recipients of Area Development magazine’s Gold Shovel, the publication’s top economic development honor. The award was based on job creation and capital investment data for 2010 (May 2011).

– Eighth in the nation for best business climate, according to Site Selection magazine (Nov. 2010).

– Lowest business costs in the Midwest and one of the top 10 lowest-cost locations in the U.S., according to Forbes (Oct. 2010).

Senate Republicans also believe that prudent handling of state finances benefits the Indiana economy. That principle has paid off, especially considering the recent problems with our nation’s credit rating. Despite Standard & Poor’s decision to downgrade the federal government’s credit rating, Indiana has maintained its AAA rating from all three major rating agencies (Standard & Poor’s, Moody’s Investor Service and Fitch Ratings) thanks to state leaders’ commitment to fiscal responsibility.

This rating provides a tangible benefit to taxpayers by allowing Indiana to save millions of dollars each year on interest, which keeps more money in taxpayers’ pockets.

Before they embark on yet another costly and ineffective stimulus package, leaders in Washington should look not only at what Indiana leaders have done – but how they’ve done it.