"Energize Indiana"

Watchdog Indiana Proposal:

A new Indiana Growth Fund, with revenue coming from the General Fund, is included in the Taxpayer Friendly Budget to implement the good parts of the Governor’s Energize Indiana economic development plan (also see the table at the bottom of this page). Spending from the Indiana Growth Fund should be distributed as follows:

$216 million to the 21st Century Fund,

$144 million to a Development Finance Authority,

$135 million for a Growth Scholars Program,

$75 million for University Capital Projects Debt Service,

$42 million for Rural Development,

and $40 million to Technology Centers.

The table below contains the annual breakdown of expenditures from the Indiana Growth Fund.

*Indiana Growth Fund Spending**
$652 Million Total (July 1, 2003 to July 1, 2113)
(compiled February 11, 2003)
(amounts expressed in millions of dollars)

	FISCAL YEARS (ending June 30)
SPENDING AREAS	04	05	06	07	08	09	10	11	12	13	TOTAL

21st Century Fund (1)	32.4	28.8	25.2	21.6	18.0	18.0	18.0	18.0	18.0	18.0	216.0
Development Finance Authority (2)	3.6	7.2	10.8	14.4	18.0	18.0	18.0	18.0	18.0	18.0	144.0
Technology Centers (3)	4.0	4.0	4.0	4.0	4.0	4.0	4.0	4.0	4.0	4.0	40.0
Rural Development (4) (5) (6)	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	42.0
Univ. Cap. Projects Debt Serv. (7)	11.3	11.2	11.3	11.2	5.0	5.0	5.0	5.0	5.0	5.0	75.0
Growth Scholars Program (8) (9)	33.8	33.7	33.8	33.7							135.0

GRAND TOTAL	89.3	89.1	89.3	89.1	49.2	49.2	49.2	49.2	49.2	49.2	652.0

* Revenue provided by the General Fund.

Source: December 4, 2002, Energize Indiana economic development plan information.
( available online at http://www.in.gov/serv/presscal?PF=gov&Clist=4&Elist=62383 )

Notes:
(1) Makes grants to companies and universities .
(2) Leverage private-sector expertise and investment to bring new technologies to market.
(3) Provide funds to communities that use tax-increment financing or local option income tax revenues to build technology centers.
(4) More than double the size of the Value-Added Grant Program ($600,000 per year).
(5) Create the Rural Development Administration ($2.4 million per year).
(6) Fund the Indiana Rural Development Council and regional rural councils ($1.2 million per year).
(7) Service the debt incurred by selling $232 million in bonds to construct university research and laboratory facilities.
(8) Provides scholarships for students who pursue college studies in four targeted industry sectors.
(9) The four targeted industry sectors: advanced manufacturing, life sciences, information technology, and high-tech distribution.

March 4, 2003, version of House Bill No. 2008 passed by the Indiana House of Representatives:

House Bill No. 2008 "Energize Indiana" Spending
As Passed By The Indiana House Of Representatives On March 4, 2003
(compiled March 7, 2003)
(amounts expressed in millions of dollars)

	FISCAL YEARS (ending June 30)
SPENDING AREAS	04	05	06	07	08	09	10	11	12	13	TOTAL

21st Century Research and Development Fund * (1)	22.5	20.0	17.5	15.0	12.5	12.5	12.5	12.5	12.5	12.5	150.0
Indiana Venture Fund * (2)	2.5	5.0	7.5	10.0	12.5	12.5	12.5	12.5	12.5	12.5	100.0
Technology Develop. Grant Fund (3)	4.0	4.0	4.0	4.0	4.0	4.0	4.0	4.0	4.0	4.0	40.0
Rural Development Council Fund (administrative expenses)	1.2	1.2	1.2	1.2	1.2	1.2	1.2	1.2	1.2	1.2	12.0
Value Added Research Fund	0.6	0.6	0.6	0.6	0.6	0.6	0.6	0.6	0.6	0.6	6.0
Rural Develop. Administration Fund (4)	2.4	2.4	2.4	2.4	2.4	2.4	2.4	2.4	2.4	2.4	24.0
Internship Payroll Credits (5)	4.7	5.1	5.6	6.1	**	**	**	**	**	**	21.5
PTRC and Homestead Credit Increases (6)		2.2	7.9	11.3	11.9	12.5	13.1				58.9
Indiana Growth Scholars Tax Credit (7)					28.0	28.0	28.0	28.0	28.0	28.0	168.0
Research Expense Credit Expiration Extension (8)		37.8	79.0	79.0	79.5	80.0	80.0	40.0			475.3
General Fund	149.3										149.3

TOTAL	187.2	78.3	125.7	129.6	152.6	153.7	154.3	101.2	61.2	61.2	1,205.0

* The $25 million divided each year between the 21st Century Fund and the Indiana Venture Fund may be distributed differently.
** The amount of Internship Payroll Credits eligible taxpayers may claim annually is indeterminable.

Source: March 4, 2003, Fiscal Impact Statement for House Bill No. 2008.

Conclusion: Total spending exceeds $522.5 million in bond sale net proceeds plus $50.0 million in investment earnings.

Notes:
(1) Makes grants to companies and universities .
(2) Leverage private-sector expertise and investment to bring new technologies to market.
(3) Provide funds to communities that use tax-increment financing or local option income tax revenues to build technology centers.
(4) Administered by the Indiana Rural Development Council to enhance and develop rural communities.
(5) $1,000 tax credit for employers in targeted employment areas that provide jobs for certified degree program students/graduates.
(6) Property Tax Replacement Fund payment increases from reducing the 30% personal property tax assessed valuation floor.
(7) Certified degree program graduates entitled to $2,000 tax credit per year over four consecutive tax years after graduation.
(8) Research Expense Credit expiration extended from December 31, 2004, to December 31, 2010.

February 25, 2003, version of House Bill No. 2008 passed by the Indiana House Ways and Means Committee:

House Bill No. 2008 "Energize Indiana" Spending
As Passed By The Indiana House Ways And Means Committee On February 25, 2003
(compiled March 7, 2003)
(amounts expressed in millions of dollars)

	FISCAL YEARS (ending June 30)
SPENDING AREAS	04	05	06	07	08	09	10	11	12	13	TOTAL

21st Century Res. and Dev. Fund * (1)	22.5	20.0	17.5	15.0	12.5	12.5	12.5	12.5	12.5	12.5	150.0
Indiana Venture Fund * (2)	2.5	5.0	7.5	10.0	12.5	12.5	12.5	12.5	12.5	12.5	100.0
Technology Development Grant Fund (3)	4.0	4.0	4.0	4.0	4.0	4.0	4.0	4.0	4.0	4.0	40.0
Rural Development Council Fund (administrative expenses)	1.2	1.2	1.2	1.2	1.2	1.2	1.2	1.2	1.2	1.2	12.0
Value Added Research Fund	0.6	0.6	0.6	0.6	0.6	0.6	0.6	0.6	0.6	0.6	6.0
Rural Development Admin. Fund (4)	2.4	2.4	2.4	2.4	2.4	2.4	2.4	2.4	2.4	2.4	24.0
Internship Payroll Credits (5)	4.7	5.1	5.6	6.1							21.5
Uncertain (6)	0.9	0.9	0.9	0.9	0.9	1.0	1.0	1.0	1.0	1.0	9.5
General Fund	141.0										141.0

TOTAL	179.8	39.2	39.7	40.2	34.1	34.2	34.2	34.2	34.2	34.2	504.0

* The $25 million divided each year between the 21st Century Fund and the Indiana Venture Fund may be distributed differently.

Source: Version of House Bill No. 2008 passed by the Indiana House Ways and Means Committee on February 25, 2003.

Notes:
(1) Makes grants to companies and universities .
(2) Leverage private-sector expertise and investment to bring new technologies to market.
(3) Provide funds to communities that use tax-increment financing or local option income tax revenues to build technology centers.
(4) Administered by the Indiana Rural Development Council to enhance and develop rural communities.
(5) $1,000 tax credit for employers in targeted employment areas that provide jobs for certified degree program students/graduates.
(6) Arbitrary amount added to bring the total in line with what was reported in newspaper stories.

December 4, 2002, Proposal from the Governor:

"Energize Indiana" Spending As Proposed By The Governor
$1.247 Billion Total (July 1, 2003 to July 1, 2113)
(compiled December 15, 2002)
(amounts expressed in millions of dollars)

	FISCAL YEARS (ending June 30)
SPENDING AREAS	04	05	06	07	08	09	10	11	12	13

21st Century Fund (1)	32.4	28.8	25.2	21.6	18.0	18.0	18.0	18.0	18.0	18.0
Development Finance Authority (2)	3.6	7.2	10.8	14.4	18.0	18.0	18.0	18.0	18.0	18.0
Technology Centers (3) *	4.0	4.0	4.0	4.0	4.0	4.0	4.0	4.0	4.0	4.0
Rural Development (4) (5) (6) *	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2	4.2
University Capital Projects Debt Service (7) *	5.0	5.0	5.0	5.0	5.0	5.0	5.0	5.0	5.0	5.0
K-12 Education *	100.0	100.0
TOBACCO SETTLEMENT SECURITIZING SUBTOTAL	149.2	149.2	49.2	49.2	49.2	49.2	49.2	49.2	49.2	49.2

Growth Scholars Program (8) *	13.5	13.5	13.5	13.5	13.5	13.5	13.5	13.5	13.5	13.5
State Student Assistance Commission (9) *	17.5	17.5
University Capital Projects Debt Service (7) *	6.3	6.2	6.3	6.2
TOBACCO SETTLEMENT TRUST FUND SUBTOTAL	37.3	37.2	19.8	19.7	13.5	13.5	13.5	13.5	13.5	13.5

Skilled Workers Recruitment And Assessment	50.0
Unemployment Benefits Extension	60.0
Unemployment Insurance System Modernization	50.0
FEDERAL ECONOMIC STIMULUS PKG. SUBTOTAL	160.0

Targeted Indiana Business Investments (10) *	10.0	10.0	10.0	10.0	10.0	10.0	10.0	10.0	10.0	10.0
PUB. EMPL./TEACHER RETIREMENT SUBTOTAL	10.0	10.0	10.0	10.0	10.0	10.0	10.0	10.0	10.0	10.0

Targeted Indiana Business Infrastructure (10) *	10.0	10.0	10.0	10.0	10.0	10.0	10.0	10.0	10.0	10.0
INDIANA PORT COMMISSION BONDS SUBTOTAL	10.0	10.0	10.0	10.0	10.0	10.0	10.0	10.0	10.0	10.0

GRAND TOTAL	366.5	206.4	89.0	88.9	82.7	82.7	82.7	82.7	82.7	82.7

* The total allocated funds will likely be distributed unevenly over the indicated period of years.

Source: December 4, 2002, Energize Indiana economic development plan information.
(available online at http://www.in.gov/serv/presscal?PF=gov&Clist=4&Elist=62383)

Notes:
(1) Makes grants to companies and universities .
(2) Leverage private-sector expertise and investment to bring new technologies to market.
(3) Provide funds to communities using tax-increment financing or local option income tax to build tech. ctrs.
(4) More than double the size of the Value-Added Grant Program.
(5) Create the Rural Development Administration Fund.
(6) Fund the Indiana Rural Development Council and regional rural councils.
(7) Service the debt incurred by selling $232 million in bonds to construct university research and lab facilities.
(8) Provides scholarships for students who pursue college studies in four targeted industry sectors.
(9) Funding for low-income students.
(10) Four targeted industry sectors: advanced mfg., life sciences, information tech., and high-tech distribution.

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This page was last updated on 03/19/10.