Jennifer McCormick Releases Her “Commonsense Economic Development Plan”

Source: McCormick Goodin ’24 / Zoom Meeting

STATEWIDE–Indiana’s Democratic candidate for Governor Jennifer McCormick has released what she calls her Balanced Economic Development Strategy and Commonsense Economic Development Plan.

She released the plan in a call on Zoom Thursday morning.

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“For twenty years, Indiana’s economic development strategy has focused on the largest corporations, not Hoosier workers or small businesses,” said McCormick. “Our balanced strategy will prioritize people and small businesses–strengthening education, workforce development, and quality of life in every county.” This shift in focus is a testament to our commitment to valuing and supporting the backbone of our economy – the people and small businesses of Indiana.

McCormick claims that during 20 years of one-party rule, Indiana has lost 55,000 jobs and the real wages of manufacturing workers have fallen 14.4%.

Her plan is as follows:

Reform the Role of the Indiana Economic Development Corporation (IEDC) to Original Intention 

McCormick believes the IEDC has overextended its original mandate by acting as a real estate developer (e.g., with the LEAP district) and focusing on picking winners and losers among regions.

“This strategy creates imbalance and inefficiency in Indiana’s growth,” said McCormick.

She believes the IEDC should facilitate smooth business operations, fostering private investment, and prioritizing business retention and expansion support.

“Statewide economic policies should broaden their focus to fundamental building blocks for economic growth, such as education, workforce development, and livability improvements,” she said.

End the Practice of Picking Winners and Losers

McCormick argues the IEDC has created competition among regions, which pits Indiana communities against one another. As economists everywhere have pointed out, the government is bad at picking winners and losers.

-Focus on inclusive economic development by ensuring all 92 counties benefit from state-level support.

-Continue the READI and Stellar Pathway programs targeting long-term regional revitalization efforts without favoritism and greater flexibility.

Expand Small Business Support via Regulatory Review and Streamline Licensing

Indiana has a favorable business climate, but specific regulator barriers and cumbersome licensing requirements make it difficult for businesses to start or expand, says McCormick.

Conduct a comprehensive regulatory review to eliminate unnecessary barriers for startups and existing businesses.

Streamline licensing processes and provide a state tax phase-in for all new businesses, regardless of size, ensuring fairness between large corporations and local companies in critical sectors.

Incentivize Childcare Support for Employers

Throughout her campaign, McCormick has argued that the lack of affordable childcare is a significant barrier for working families, and businesses are increasingly frustrated by its impact on worker retention.

Create a state corporate income tax credit for businesses that provide on-site or nearby childcare for employees. Capping this at $300 million annually will ensure broad participation while containing costs.

Expand the Earned Income Tax Credit (EITC)

McCormick says many low-income families struggle as inflation rises, making retaining workers in smaller communities harder.

-Expand the EITC threshold to better reflect inflation would help low-income workers keep more of their wages. This change could provide up to $150 million annually and significantly impact worker retention, particularly in rural areas where wages are lower.

Create a Business and Infrastructure Roundtable for Collaborative Economic Planning

Indiana’s economic development initiatives require more direct feedback from a broad spectrum of businesses and the inclusion of critical infrastructure concerns, such as water or energy.

Establish a quarterly business roundtable with representatives from small, medium, and large businesses across the state and energy, water, and infrastructure experts. Meeting with the governor and lieutenant governor will ensure that state policies reflect the needs of employers of all sizes and regions.

Close the Super Abatement Loophole; Automatic New Tax Phase-In

-Current law allows for 20-year tax abatements in TIF districts, depriving local governments and schools of necessary infrastructure and local services revenues.

Eliminate super abatements by capping the length of tax abatements

Introduce a state tax phase-in for all new businesses so that every business, regardless of size, can thrive. This would ensure fairness between large corporations and local companies in critical sectors.