Key Workforce Development Legislation Still a Work-in-Progress

In the Indiana General Assembly, both House Bill 1002 and Senate Bill 50 have been significantly amended in ways that we support, but also in ways that give us some concern. We have strong support for the thoughtful and deliberate work on the study by the Legislative Service Agency of all workforce programs. It is extremely thorough and we look forward to the results of each year’s report and presentation. We also support the language regarding the Next Level Jobs Employer Training Grant program. The career and technical education (CTE) student information portal for local employers is a prime example of a creative model without having to spend extra capital. And we also support expanding the Employment Aid Readiness Network (EARN) Indiana program to include part-time students.

We hope to continue the conversation on the makeup of the Governor’s Workforce Cabinet in conference committee and have some questions as to how this will work in conjunction with the State Workforce Innovation Council (SWIC), a similar existing cabinet that is required to have its membership be 50% employers. We appreciate the language in the bill allowing the Indiana Chamber to be consulted with on a gubernatorial appointment for a business leader to the panel; however, we question why we cannot simply utilize the SWIC.

If we are tied to the idea of creating a new cabinet, we feel strongly that we should have more employer voices at the table, plus give the Indiana Chamber a seat as well. The Chamber’s place on the cabinet would provide historical knowledge on workforce issues, representing the voices of thousands of members and investors throughout the state and providing consistency when we have a new Governor who would make the majority of the appointees (be they employers or agency heads).

In close, though these bills are better and moving in the right direction, they still need work. The Chamber will continue to advocate for strong policies throughout conference committee.

What’s Up With Federal Tax Reform

Is anything really happening? Yes.
Will something eventually get passed? Probably.

A group of key individuals who dubbed themselves the “Big 6” has been meeting for a few months and more intently in recent weeks. They include two members each from the administration (Treasury Secretary Steven Mnuchin, National Economic Council Director Gary Cohn), Senate (Majority Leader Mitch McConnell and Finance Committee Chair Orrin Hatch) and House (Speaker Paul Ryan and Ways and Means Chair Kevin Brady.)

Are they motivated to find common ground? Certainly. Is there a consensus? Not yet. Right now, they don’t even agree on whether, or to what extent, the legislation must be revenue neutral.

But they all seem to recognize that they need to do something – failure to coalesce is not in anyone’s interest. So what have they agreed on so far? The border-adjustment tax is out. Some method for allowing the repatriation of overseas earnings (at a one-time low-rate tax) is in. The corporate rate must drop to 25% or less (depending on how many deductions and breaks they can eliminate.) They appear to be embracing a way to allow small businesses to immediately deduct investments in new equipment and facilities, i.e. “full expensing.” On the individual income side, a collapsing of the brackets and lowering of rates (no details.)

Possible tradeoffs or “pay-fors” in tax circles: eliminating some business interest deductions, eliminating the state and local tax (SALT) deductions and capping the mortgage interest deduction. These are yet unsettled issues. But listen and watch closely to the SALT discussions going forward; there is a lot of money and a lot of political (with a small p) interest in this item. It is more a geographic than partisan issue because taking the SALT deduction away will have a significant negative impact on people (constituents of Republicans and Democrats) in states that have high state and local taxes. This item could have a big bearing on the entire effort and whether we get true reform or temporary tax cuts.

Tax cuts are the easy part for these folks. The hard part is finding ways to pay for reductions. The last true tax reform was in 1986, 31 years ago, and it required a lot of time and bipartisan buy-in. The Big 6 are all Republicans and they are anxious to get something done. They could mimic the Bush tax cuts of 2002 and 2003, passed through the reconciliation process, which means whatever they do expires after 10 years. Somewhat ironically, most of those Bush cuts were only made permanent as part of the Obama budget deal of 2012.

To recap the status of tax reform: Much remains up in the air.

Chamber’s Final Policy Letter: Invest in Tech Sector, Expand Quality of Place Efforts

kbbtb4In our fourth and final letter to the major party gubernatorial candidates, the Indiana Chamber calls for additional investment in innovation and entrepreneurs, and addressing the economic divide within the state.

The organization’s six-week Beyond the Bicentennial campaign (going beyond the state’s first 200 years) has focused on the “most potentially impactful public policies to ensure Indiana doesn’t become complacent and continues to push for progress in needed areas.” The blueprint for the campaign comes from the Indiana Chamber’s Indiana Vision 2025 plan, introduced in 2012, and the four economic drivers within the plan. Dynamic and Creative Culture is that fourth driver.

Indiana Chamber President and CEO Kevin Brinegar says continuing efforts to enhance Indiana’s business climate will revolve around “quality of place” aspects. That includes changing the inaccurate global perception that Indiana is not a welcoming place by expanding civil rights protections to include sexual orientation and gender identity.

97867199“We would hope this basic guarantee for Hoosier citizens would be followed by a moratorium on social issues, so we can, collectively, focus on the important economic and job-related challenges that are facing our state,” Brinegar asserts.

Those challenges include enhancing the environment for entrepreneurial and start-up businesses, as well as supporting rural areas of the state that are struggling to keep up with attracting jobs and employees. An increased focus on the technology sector and more opportunities for venture capital funding are also needed.

“Indiana is highly regarded for our business climate, and that is something that the state, Indiana Chamber and others have worked tirelessly for,” Brinegar continues. “But we cannot miss out on the great opportunity to make technology innovation an integral part of the state’s identity, and we must do more to lift up the rural areas, supporting them with the tools and assistance to be able to be competitive.”

The Indiana Technology & Innovation Council, formed this summer and managed by the Indiana Chamber, will lend a unified voice to that area and push for policies at the Statehouse. Those policies, notes Brinegar, are to be announced at a mid-December event.

The previous letters of the Beyond the Bicentennial campaign focus on the Indiana Vision 2025 drivers. Each one of those areas also impacts the state’s ability to possess a Dynamic and Creative Culture.

The first letter, on Outstanding Talent, highlighted the need for expansion of the pre-kindergarten pilot program and additional resources for job training. The second letter, on Attractive Business Climate, called for an increase in the cigarette tax and increasing the legal smoking age to 21; additionally, continued emphasis on removing the burdensome business personal property tax was noted. The third letter, on Superior Infrastructure, called for common sense measures to provide sustainable long-term road funding, diversify Indiana’s energy mix and put a statewide water resources plan into place.

All four installments are online at www.indianachamber.com/letters.

Road Funding Committee Discussions Ramp Up

9809397An in-depth interim summer study committee on road funding (called FIRSST) held its second meeting last week. This was an input session that focused on how Indiana’s road conditions and funding compare to other states.

There were several informative presentations from several different groups including Conexus and the National Conference of State Legislatures. Points of interest from the discussion:

  • For the U.S., average funding sources for highways and transit are 25% federal, 40% state and 35% local.
  • Indiana’s deficient roads cost $391 per motorist per year. This includes flat tires, bent rims and other costs.
  • Some 16% or 9,965 miles of Indiana’s roads are considered in poor condition; that ranks us third among six Midwestern states.
  • A total of 10.2% or 1,944 Indiana bridges are considered deficient in quality; that ranks us second among six Midwestern states.
  • Investment in road infrastructure is declining, even when adjusted for inflation.
  • There are 54 potential funding sources for road funding ranging from fuel taxes to parking meters.
  • Fuel taxes have not kept up with the infrastructure needs. Automobiles are more fuel efficient and inflation has been eating away the buying power of gas taxes. Indiana last raised its gas tax in 2003 and it is not indexed for inflation.
  • As electric cars become more popular, very few states – including Indiana – impose fees for their use of roads. Of the 10 states that do, the fee ranges from $47.50-$200 per year.
  • Of the 50 states, 36 – Indiana among them – have toll roads.

The Indiana Chamber will continue to encourage the development and implementation of fiscal systems to support the array of transportation infrastructure projects critical to economic growth. The next FIRSST meeting is scheduled for September 29.

Beyond the Bicentennial: Chamber Outlines Policy Recommendations for 2016 Candidates

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Indiana has many advantages as a leading location to operate a business, raise a family or enjoy a high quality of life. But still more needs to be done to improve that climate and to keep pace with other cities and states, says the Indiana Chamber of Commerce.

The organization unveiled today its six-week Beyond the Bicentennial campaign (going beyond the state’s first 200 years). It focuses on the “most potentially impactful public policies” and is directed foremost at the major party gubernatorial candidates, John Gregg and Eric Holcomb.

The Indiana Chamber’s Indiana Vision 2025 plan, first introduced in 2012, serves as the campaign blueprint. “The Indiana Vision 2025 economic drivers present a great opportunity to highlight initiatives that will benefit Indiana now and in the years ahead,” offers Indiana Chamber President and CEO Kevin Brinegar.

The first of the four letters, also released today, emphasizes the Outstanding Talent driver. Recommendations focus on critical improvements at the K-12, postsecondary and workforce levels. In an annual survey earlier this year, 45% of responding employers indicated they had left jobs unfilled in the past year due to under-qualified applicants.

“Outstanding Talent is both the greatest challenge for our state and the area of most importance,” Brinegar states. “While businesses are rightfully concerned about their current and future workforces, for individuals we’re talking about the difference between happy, productive lives and what can amount to an economic death sentence if proper education and training are not received.”

The education/workforce needs range from greatly expanding the state’s pre-K pilot program to more students from low-income families, to assisting the more than 700,000 Hoosiers with some college but no credential or degree to gain the skills needed for a rapidly-evolving economy.

Concludes Brinegar, “We hope the recommendations and guidance in these letters will help the gubernatorial candidates and all lawmakers focus on what public policies could be the most impactful for Hoosiers.”

Additional Beyond the Bicentennial letters and accompanying videos will be made available on September 13 (Attractive Business Climate), September 27 (Superior Infrastructure) and October 11 (Dynamic & Creative Culture).

The Outstanding Talent releases are available now at www.indianachamber.com/letters.

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WGU Indiana Chancellor Allison Barber spoke at our press event this morning: “We want to encourage employers to set the standard that talent matters.”

About Indiana Vision 2025
In 2012, the Indiana Chamber published Indiana Vision 2025, a comprehensive, multi-year initiative to provide leadership and a long-range economic development action plan for Indiana. The mission statement: “Indiana will be a global leader in innovation and economic opportunity where enterprises and citizens prosper.”

A 24-person statewide task force of business and organization leaders developed the original plan. Many from that group, with some additions, worked for four months earlier this year to review progress, update goals and metrics, and identify potential new research to enhance future Report Cards (progress on each of the now 36 goals under the four drivers is assessed every other year).

The Indiana Chamber thanks Duke Energy, NIPSCO, Old National Bank, Vectren and all the investors in Indiana Vision 2025.

Learn more about Indiana Vision 2025 at www.indianachamber.com/2025.

 

VIDEO: See What’s in the New Edition of BizVoice

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Our Senior VP and editor of BizVoice Tom Schuman explains what’s in the March/April edition. If you’re interested in higher education, corporate social responsibility or Vanderburgh County, we have information you can’t miss.

This issue also focuses on the “Outstanding Talent” driver of the Indiana Chamber’s Indiana Vision 2025 plan.

Read BizVoice online today.

Four Areas Where Gov. Pence’s State of the State Address Missed the Mark

?????????????????????????????????????????The 2016 session of the Indiana General Assembly may be short in time but, as usual, there is a long list of important issues. In outlining his priorities in the State of the State speech, however, Gov. Mike Pence fell short in four key areas.

First is civil rights expansion. After appropriately listening to Hoosiers since last spring’s public relations crisis, the Governor failed to articulate a clear vision. His words, depending on interpretation, bordered on telling legislators to do nothing at a time when action is needed.

The Indiana Chamber went through a similar lengthy listening process as public policy committees, the executive committee and the full board of directors (all comprised of representatives of member companies) debated the issue. Once a final determination was made, the Chamber communicated the decision that the members had voted to support the expansion of civil rights to protect sexual orientation and gender identity. Although not popular in all circles, similar clarity was needed from the Governor.

In the critical area of infrastructure funding, the Governor advocated against the only long-term solution presented thus far because it included several responsible revenue increases. As an organization that works each day to create and maintain the best possible business climate, the Indiana Chamber does not go looking for tax hikes. But in this case, they are necessary.

Third, on education, the “let’s take a step back on ISTEP” remark goes too far. Indiana already has a new test that measures our new, stronger standards. The test needs rebranded, not revised, and administered correctly to achieve the desired results.

Finally, there was no mention of work share, a common sense program to support employers and employees in an economic downturn. It will be needed at some point and the best time to implement it is now.

The Indiana Chamber has and will continue to communicate with the Governor and his staff our positions on these issues, which we believe are in the best interest of the state’s economy, employers and workers.

Your Chance to Weigh in on Indiana’s Future

RMaking Indiana as successful as it can be is the goal of the Indiana Chamber’s Indiana Vision 2025 plan. The Indiana University Public Policy Institute has an initiative working toward the same outcome in Thriving Communities, Thriving State.

I’m pleased to have the opportunity to serve as a “commissioner” on one of the three working groups. Former Lt. Gov. Kathy Davis and former Indiana Supreme Court Chief Justice Randy Shepard are the co-chairs.

Upcoming public input sessions will take place across the state. The goal: encourage discussions among government, nonprofit and private sector leaders about issues that are or will be critical to Indiana’s future — to provide policy options for action.

The sessions (the first one took place in Gary on February 5) are all from 2:00-4:00 p.m.:

  • February 10: Evansville, University of Southern Indiana
  • February 17: Indianapolis, Urban League
  • February 26: Columbus, Irwin Conference Center
  • March 3: Fort Wayne, Indiana University-Purdue University

Additional information is available from Debbie Wyeth at dwyeth@iupui.edu.

New IndianaSkills.com Site Improved to Feature Array of Job Opps

The Indiana Chamber of Commerce and its Foundation hope the new version of the IndianaSkills.com database will help alert Hoosiers to the array of job opportunities in demand in their region and statewide.

IndianaSkills.com – developed as resource to help employers, workers and prospective employees – debuted in late 2012 with job supply and demand data for occupations that require more than a high school diploma but less than a four-year degree. Now, job postings for the bachelor degree level and higher are also featured on the web site.

What’s more, the data updates include postings and analysis for all jobs from January 2013 through June 2014. Other additions include a listing of experience required for each job posted and direct links to training providers.

The Indiana Chamber believes workforce, which is embedded in the Outstanding Talent driver of the organization’s Indiana Vision 2025 economic development action plan for the state, remains the biggest challenge to Indiana’s economic prosperity.

“There is a tremendous amount of education and workforce data available through various sources,” explains Amy Marsh, director of college and career readiness initiatives for the Indiana Chamber. “What IndianaSkills.com does is aggregate that information, add in the job postings data and make it easy for job seekers and employers to learn what is taking place in their industry or region of the state.”

Marsh adds that two entries to the site – middle skills (jobs requiring certificates, certifications and associate’s degrees) and all jobs – allow users to search for the data that best meets their needs. In addition to the most in-demand jobs, available information includes average salaries, required skills, training needed and job status/earnings of recent graduates.

Some of the key trends emerging from the update:

  • High numbers of sales jobs (sales representatives, sales managers, retail sales, retail supervisors) available across industry sectors
  • Growing number of information technology positions (computer specialist, software development, software engineer, computer support, network administrator, network engineer) with low supplies of graduates in these fields. The job growth in this sector is especially strong in Central Indiana
  • Tractor-trailer truck driver remains the position with the most job postings – more than 30,000
  • Communications tops the baseline skills needs – listed in more than 168,000 job postings

“Another interesting development is that seven of the top 10 certifications needed by employees are in the health care industry,” Marsh says. “Separately, since higher skilled jobs were added into the database, physician makes the top 10 most in-demand list in several regions, including the Lafayette and Terre Haute areas. Also, treatment planning is new to the list of specialized skills that are sought.”

On the updated site, employers maintain the opportunity to easily download customized job descriptions. They can learn about regional and state occupational trends, wages being paid for similar positions, and the skills and credentials they should be requiring for their open positions. Career development professionals can take advantage of IndianaSkills.com to better guide students on available career options and the training required for those positions.

Indiana Chamber President and CEO Kevin Brinegar: “The Indiana School Counseling Research Review released by the Indiana Chamber Foundation earlier this year clearly identified the need for more effective counseling. IndianaSkills.com is one resource in that effort.

“The Indiana Vision 2025 plan has four drivers, but from day one we’ve identified Outstanding Talent as the most critical need. A tool like IndianaSkills.com that helps match education and training with the skills required in the workplace is part of the solution.”

IndianaSkills.com is a product of the Indiana Chamber Foundation with support from the Joyce Foundation and Lilly Endowment Inc.

It’s All About Innovation

Innovation (and workforce and a few other things) is the name of the game when it comes to Indiana business development. It’s featured throughout the Indiana Chamber’s Indiana Vision 2025 plan. And innovation will be the focus of a late August event.

Centric is an Indianapolis-based innovation think tank and networking group, with the goal of making the city (and beyond) a globally recognized center for innovation. The Indiana Innovation Awards strive to recognize innovation and excellence throughout the state. The two come together at Centric’s Day of Innovation on August 28.

To be nominated for the awards, an organization must have launched a product or service in the past three years that has shown success and is considered innovative in its market. Past Indiana Innovation Awards winners include Cultural Trail, TinderBox, Delta Faucet, Yikes, Brackets for Good, Indianapolis Symphony Orchestra and many others.