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New GOP-led House will focus on private-sector job creation

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With new control of the Indiana House, Republican lawmakers plan to pursue an agenda focused on encouraging the private sector to create jobs.

GOP House members will meet at the Indiana Statehouse on Wednesday to choose their leadership—an early step in advancing priorities that include passing a budget without tax increases and rolling out economic development incentives and education reforms.

Those efforts will be critical in an economic growth strategy focused on “getting out of the way of entrepreneurs” and “creating an environment for prosperity,” said State Rep. Brian Bosma, who is expected to be chosen house speaker by fellow Republicans.

“There are those who think the state creates jobs,” Bosma said Wednesday morning, “and then there are those of us who believe job creation comes from the private sector.”

Republicans captured at least 58 of 100 seats Tuesday to wrestle control of the Indiana House from the Democrats for the first time in six years. As of Wednesday morning, results for two House seats were pending, said Tory Flynn, spokeswoman for the Indiana House Republicans.

Republicans also gained at least three seats in the Senate to garner more than a two-thirds majority.

The power shift will make it easier for Gov. Mitch Daniels to implement an agenda that’s expected to include reforms in education and local government. And it will give the GOP control of redrawing congressional and legislative district boundaries, a tool that could help them retain control of the state for years to come.

Included in the House Republicans’ “Strengthen Indiana Plan” are measures such as enhancing state tax credits for businesses that rehabilitate facilities; giving local governments more leeway to offer tax abatements and providing high-performing teachers with merit pay.

“Keeping taxes low in this state is a critical element for job creation, (but) that alone will not do it,” Bosma said.

The state’s business advocates echoed that sentiment, particularly the need to pass the next budget without raising taxes.

“We need to get through this session and put in place a two-year budget for the state that doesn’t do harm to our ability to grow jobs and economy by raising taxes,” said Kevin Brinegar, president of the Indiana Chamber of Commerce. “Other states have raised taxes or are about to raise taxes, and they’ve not enjoyed the kind of job growth and economic prosperity that Indiana has.”

But some House Democrats raised concerns about a job-creation strategy that relies only the private sector. They won’t have much leverage to block Republican initiatives, though, as the minority party.

Rep. Bill Crawford, D-Indianapolis, said the federal stimulus is helping create tens of thousands of jobs in the state, although unemployment statistics haven’t backed that claim.

“There were a number of federal incentives that are going to create more jobs,” Crawford said. “You have to look at it on a case-by-case basis.”

Crafting a budget without tax increases will be a tall order for all lawmakers—and a task that could occupy a large share of the four-month session.

A September report from the Indiana Fiscal Policy Institute forecast state lawmakers would need to raise taxes, make spending cuts or both because dwindling tax revenue is expected to cause a projected $1.3 billion gap.

Though he wouldn’t discuss specific cuts, Bosma said balancing the budget without additional taxes would require “an examination of each area of the state budget.”

“A prioritization of programs and expenditures is going to have to be fundamental, with last choice for cuts being public education,” Bosma said. “It’s all going to be on the table.”

Brinegar said government efficiency initiatives, such as the local government reforms recommended in the 2007 Kernan-Shepard report, also could be part of the equation.

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  • Loan
    We wouldn't have to worry about the federal loan if the lazy abusers of the welfare system would be forced to go out and get the jobs that are available. People think that certain jobs are beneath them and would rather sit on their butts instead of working for a living.
    • Your Business?
      Tabitha, if gay marriage and illegal immigration are your business, you certainly aren't contributing to the state's economic growth. Maybe you should step out of the way and wait for your bailout check that should come before the end of the year.
    • Pay up Now
      How do the Republicans now plan on paying back the $ 2 billion dollars Indiana owes for a loan from the federal government to pay for unemployment benefits ? Will they run and hope the problem magically goes away like they did this past Spring?
    • Don't believe it for a second
      Let's just see how long it takes now for the Republican House to introduce a measure to amend the IN constitution to prevent gay marriage, to introduce anti-immigrant legislation like AZ, and other non-sensical issues. Don't believe for a second they wont focus on social issues. Right-wingers are going to have a field day. Party of small government, stay out of my life and my business.
    • Whats Jim smoking
      Jim,
      Thank God the Indiana voter's decided against the big tax and spend likes of P Bauer. What is wrong conservatism. Private sector outsourcing always costs less and provides more accountable service and results.
    • What it means
      We can be sure that more jobs for the private sector means more selling of State assets to those who filled the GOP purses and allowing the private sector to raise the cost of required state buisness. Like the toll road and the parking meters in Indianapolis, I am sure the time is rapidly approaching where Mitch will be selling the state parks to coal develpoers and resort hotel magnets in exchange for some instant cash in this pocket.
      We get what we deserve.

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      1. Aaron is my fav!

      2. Let's see... $25M construction cost, they get $7.5M back from federal taxpayers, they're exempt from business property tax and use tax so that's about $2.5M PER YEAR they don't have to pay, permitting fees are cut in half for such projects, IPL will give them $4K under an incentive program, and under IPL's VFIT they'll be selling the power to IPL at 20 cents / kwh, nearly triple what a gas plant gets, about $6M / year for the 150-acre combined farms, and all of which is passed on to IPL customers. No jobs will be created either other than an handful of installers for a few weeks. Now here's the fun part...the panels (from CHINA) only cost about $5M on Alibaba, so where's the rest of the $25M going? Are they marking up the price to drive up the federal rebate? Indy Airport Solar Partners II LLC is owned by local firms Johnson-Melloh Solutions and Telemon Corp. They'll gross $6M / year in triple-rate power revenue, get another $12M next year from taxpayers for this new farm, on top of the $12M they got from taxpayers this year for the first farm, and have only laid out about $10-12M in materials plus installation labor for both farms combined, and $500K / year in annual land lease for both farms (est.). Over 15 years, that's over $70M net profit on a $12M investment, all from our wallets. What a boondoggle. It's time to wise up and give Thorium Energy your serious consideration. See http://energyfromthorium.com to learn more.

      3. Markus, I don't think a $2 Billion dollar surplus qualifies as saying we are out of money. Privatization does work. The government should only do what private industry can't or won't. What is proven is that any time the government tries to do something it costs more, comes in late and usually is lower quality.

      4. Some of the licenses that were added during Daniels' administration, such as requiring waiter/waitresses to be licensed to serve alcohol, are simply a way to generate revenue. At $35/server every 3 years, the state is generating millions of dollars on the backs of people who really need/want to work.

      5. I always giggle when I read comments from people complaining that a market is "too saturated" with one thing or another. What does that even mean? If someone is able to open and sustain a new business, whether you think there is room enough for them or not, more power to them. Personally, I love visiting as many of the new local breweries as possible. You do realize that most of these establishments include a dining component and therefore are pretty similar to restaurants, right? When was the last time I heard someone say "You know, I think we have too many locally owned restaurants"? Um, never...

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