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Governor Daniels' Weekly Wrap-up: 02/05/08

Weekly Wrap-up

A look at news and events in the Daniels Administration

Volume 2, Issue 67

January 28 - February 3, 2008

 

Governor holds forums to discuss property tax relief plan

 

Jan. 29, 2008- Governor Mitch Daniels attended several events this week to discuss his plan to bring immediate and permanent property tax relief to Hoosiers. He spoke to a gathering of county government officials in Indianapolis and traveled to public forums in Valparaiso and Kokomo.

 

Daniels encouraged controlled local spending during a discussion about his proposal at Valparaiso City Hall.

 

"The question can no longer be: How much does government think it needs? It has to be: How much can the taxpayer reasonably be expected to pay?" said Daniels.

 

The governor later addressed a large crowd and took questions from Kokomo residents during an event hosted by Citizens United for Tax Relief.

 

Daniels answers questions at Saint Joseph's College

 

Jan. 31, 2008- During a visit to campus, Governor Daniels held a question and answer session with Saint Joseph's College students, faculty and Rensselaer community members.

 

With a large assembly of education majors and professors, many attendees asked for the governor's thoughts on various education issues, ranging from ISTEP testing to school funding. While discussing higher education, Governor Daniels encouraged the Saint Joseph's students to remain in Indiana after graduating in order to prevent the "brain drain" of young college graduates from the state.

 

Governor Daniels also discussed the Healthy Indiana Plan health insurance program, the state's economy, immigration and transportation issues during the forum.

 

President Bush signs disaster declaration for northern Indiana

 

Jan. 31, 2008- Governor Daniels has received word that President George W. Bush has approved the request for federal assistance for Hoosier homeowners, renters and businesses in northern Indiana damaged by flooding that began January 7.

 

The president sent a letter to the governor declaring a major disaster in the state of Indiana and ordered federal aid to supplement state and local recovery efforts. The president's action makes federal funding available to affected individuals in Carroll, Cass, Elkhart, Fulton, Jasper, Marshall, Pulaski, Tippecanoe, and White Counties.  The governor sent a letter to the president requesting assistance for affected Hoosiers on January 23.

 

Assistance can include grants for temporary housing and home repairs, low-cost loans to cover uninsured property losses, and other programs to help individuals and business owners recover from the effects of the disaster.

 

Read the news release.                                  Read the governor's letter to President Bush.

 

ECONOMIC DEVELOPMENT UPDATES

 

Technology company to expand its Indiana headquarters, operations

 

Jan. 30, 2008- Governor Mitch Daniels joined executives from technology distributor and service provider Defender Direct to announce the company's plans to expand its Indiana operations, including creation of more than 1,100 new jobs.

 

The company, which distributes and provides products and customer service support services for ADT, GE Security and Dish Network, plans to invest more than $15 million in its Indiana operations by expanding its international headquarters in Indianapolis by at least 300 jobs.  The company has not yet determined if the balance of the new jobs will come to one or more of the company's current locations in Indianapolis, Greensburg and Sunman or a different Indiana site.

 

"Today, we celebrate major job growth in Indianapolis, but with the knowledge that the same great news is coming to other towns, too," said Daniels.

 

Founded in 1998 as a local security systems distributor, Defender Direct has grown into a 40-state distributorship for multiple technology brands and a provider of customer service operations that range from sales to home system installation.  The company, which currently employs more than 400 associates in Indiana, has begun hiring managers, professional corporate staff and business development professionals.

 

Read the news release.

 

Check printer to relocate manufacturing operation to Jeffersonville

 

Jan. 28, 2008- Harland Clarke Corp., a leading provider of payment and technology solutions, marketing services and best-in-class security to financial institutions, announced it will expand its check printing operations in Jeffersonville, creating nearly 50 new jobs in southern Indiana by 2010.

 

The company will relocate its Decatur, Ga. manufacturing operation to its existing facility in Jeffersonville and invest more than $1.5 million to build and equip an addition to make room for the relocated digital and offset presses.

 

"A decision like the one Harland Clarke is making to continue to invest in Indiana reflects a growing confidence in the business climate in our state," said Governor Mitch Daniels.

 

Read the news release.

 

Parts supplier to expand its Elkhart operations

 

Jan. 31, 2008- M-Tec Corporation, a developer and manufacturer of steel frames and components for the recreational vehicle and industrial markets, announced it will expand its operations in Elkhart, creating more than 40 new jobs.

 

The company, which develops and manufactures products ranging from trailer frames to custom sink and slide out mechanisms for recreational vehicles, will invest more than $3 million to add more than 60,000 square feet to its existing production facility.

 

"M-Tec joins a growing list of companies who continue to create new opportunities for hard working Hoosiers," said Nathan Feltman, Secretary of Commerce and Chief Executive Officer of the Indiana Economic Development Corporation.  "From Bristol to Rockport, Indiana companies are choosing to grow their business here at home thanks to our skilled workforce, unmatched infrastructure and competitive business climate."

 

Read the news release.

 

Governor's schedule for February 6-7

NOTE: All times are local.

 

Wednesday, February 6

-    Governor Mitch Daniels will discuss the role of the hardwood industry in the state's economic development efforts at the Indiana Hardwood Lumbermen's Association legislative breakfast.

8 a.m.

Hyatt Regency (Cosmopolitan Ballroom B)

1 South Capitol Avenue

Indianapolis

 

-    The governor will join executives from Cook Pharmica for an economic development announcement.

10:15 a.m.

1300 South Patterson Drive

Bloomington

 

-    Governor Daniels will discuss his property tax relief proposal at a Greater Bloomington Chamber of Commerce luncheon event.

Noon

Bloomington/Monroe County Convention Center

302 South College Avenue

Bloomington

 

-    The governor will provide an update on the state's economic progress to chamber of commerce members from several southwest Indiana counties at a dinner event.

5:30 p.m.

Santa's Lodge and Convention Center (Celebration Room)

91 West Christmas Boulevard

Santa Claus

 

Thursday, February 7

-    Governor Daniels will discuss his plan to bring property tax relief to Hoosiers at a Terre Haute Chamber of Commerce breakfast event.

7:30 a.m.

Hulman Center

(intersection of 9th Street and Cherry Street)

Terre Haute

 

IN THE NEWS

Daniels touts tax relief in Valpo

The Times of Northwest Indiana

February 01, 2008

 

BY Phil Wieland

 

VALPARAISO | Nobody in the crowd of more than 100 people at City Hall seemed to disagree with Gov. Mitch Daniels' pitch for permanent property tax relief Thursday.

 

Making his 55th appearance in Porter County, Indiana's governor was in town to outline his plan to reduce taxes and government spending.

 

"I would like to put the (Department of Local Government Finance) out of business," Daniels said, referring to the state agency responsible for reviewing and setting the spending limits on the budgets of all 2,600 local taxing bodies in Indiana. "The DLGF plays Whack-a-Mole with 2,600 moles.

 

"They are supposed to run around and check on every one of these and make sure they did it right," he said. "That's not respectful of the local autonomy. The question should no longer be how much does government need, but how much the taxpayers should be expected to pay."

 

If the bill passes as now written, Daniels said Indiana taxes would be among the lowest in the nation, providing additional incentive for businesses to locate here while still providing needed services and building schools. He also spoke in favor of referendums on all projects involving new buildings.

 

The governor fielded questions from the crowd, most of which dealt with his tax relief plan. The exception was one on the plan to divert a portion of the sales tax from Lake, Porter, LaPorte and St. Joseph counties to fund the $350 million local share of the $1 billion cost to extend the South Shore commuter rail service to Valparaiso and Lowell and make improvements to the existing line in the other two counties.

 

A man said he thought the project was moving very fast for a billion-dollar project and asked Daniels if the local funding should be put on a referendum for the voters to decide. Daniels said the fact it is moving quickly makes it more attractive to him, but at the same time he doesn't think the state should "leap into it thoughtlessly."

 

Daniels said he will sign the bill if it gets to his desk because it seems to have the support of most of the people in Northwest Indiana, and passage by the legislature would be the judgment of the rest of the state that it is worth pouring that much money into it.

 

Daniels stops in Kokomo

Kokomo Tribune

January 31, 2008

 

By Scott Smith

 

Gov. Mitch Daniels said the state could be on the verge of the largest tax cut in Indiana history Thursday night, speaking to a crowd in Kokomo the same day the Indiana General Assembly reached the halfway point in the legislative session.

 

In an 90-minute public forum, Daniels repeated his mantra that spending - particularly local spending - has been outpacing the growth of Hoosier incomes for years.

 

His property tax reform proposal - increasing the sales tax from 6 percent to 7 percent and using part of the state's surplus for tax relief - is only part of the solution, he warned.

 

"There are no villains. There are no bad guys in this play. I think there are a lot of good people in a flawed system," Daniels said. "The question can no longer be how much does the government think it needs. The question is how much the taxpayer can reasonably expect to pay."

 

That statement drew applause from the audience of about 400 at Oakbrook Community Church, one of numerous venues the governor has visited in recent weeks, taking question after question about his tax relief plan.

 

As it has been consistently, Daniels' message pegged local spending as the prime culprit behind recent property tax increases, a contention which hasn't met with universal agreement among local officials.

 

But the cornerstone of his plan for introducing caps on property tax bills - 1 percent for residential, 2 percent for rental and 3 percent for business - has already survived amendments in the Democrat-controlled Indiana House, and Tuesday, Daniels said he's more than pleased with the progress made so far.

 

In making that point clear, Daniels also took time to defend his ideas during answers to a series of questions posed by the Kokomo-based tax reform group Citizens United for Tax Reform.

 

On the issue of whether all property should be taxed equally, Daniels said "speaking for myself, I don't have any problem giving specific protection to home ownership."

 

"When people talk about the American Dream, people put [home ownership] in there somewhere at the very center," he said.

 

On CUTR's assertion about 30 percent of Indiana residents rent, and won't receive any direct tax relief in return for paying higher sales taxes, Daniels noted that the federal tax code also favors home ownership over renting, "maybe too much," he added. That's part of why he proposed a lower property tax cap on rental properties, he added.

 

Daniels also wasn't hesitant to address the issue of greatest importance to many of CUTR's members, whose next public forum will feature conservative activist Eric Miller, a proponent of complete property tax elimination.

 

While Daniels didn't entirely discount the elimination idea, saying "meaningful limits on local spending could [eventually] bring elimination into the conversation," he said his more important goal is acting on property tax relief "right now."

 

"Plans to eliminate property taxes didn't help anybody for four years," Daniels said. "And to those who favor elimination, I'd say be careful: If you push forward with something that can't work, you risk discrediting the entire goal of elimination, particularly if it gets in the way of real reform this year. Don't let the perfect be the enemy of the good."

 

Daniels said he thinks the Legislature has been given enough guidance on what he won't accept from a final reform package that he was hesitant to use what he referred to as "the V word," when asked what he might veto.

 

"I would veto a bill that doesn't have a clear element of permanence to it," Daniels said, but he steered clear of the controversy in the Statehouse Wednesday, when House Democrats refused to hear a proposal to amend the state's constitution to include permanent property tax caps after House Republicans submitted several amendments to the bill, including one calling for a constitutional ban on gay marriage.

 

Instead, he stayed close to the topic of local government reform, speaking in favor of the Kernan-Shepard plan's call to reform county government in the executive model of city government, with a single, mayor-like county executive responsible for appointing key positions, and a county council responsible for the budget.

 

But Daniels said that's a subject he'd like to address next year, after considerable study and consensus building. He said he thought the mayoral system encouraged "accountability."

 

"I congratulate the mayor," Daniels said, pointing to Kokomo Mayor Greg Goodnight in the audience. "But with the congratulations comes the burden on your shoulders. The mayor's a tough job. Everyone knows where you live, so to speak."

 

Indiana company moves to create new jobs

CNBC.com

January 30, 2008

 

INDIANAPOLIS - A home technology company that provides security systems and satellite TV service plans to invest $15 million in its Indiana operations and create more than 1,100 jobs over the next five years.

 

Indianapolis-based Defender Direct, which distributes ADT and GE Security systems and Dish Network, has about 400 workers in Indiana now, company president David Lindsey said Wednesday.

 

The new jobs will pay an average of $18 an hour and will involve sales, customer service and management, Lindsey said. The jobs will be in Indianapolis and other parts of the state, he said.

 

Gov. Mitch Daniels and Indianapolis Mayor Greg Ballard congratulated Lindsey for the expansion at a Statehouse news conference.

 

"We're really proud that you're going to stay here," Ballard said.

 

The Indiana Economic Development Corporation offered up to $6 million in performance-based tax credits and up to $345,000 in training grants. Lindsey, an Indiana University graduate, said the company had other offers from some of the 40 states in which it operates.

 

"We had a number of good options but are real happy to stay here," he said.

 

The announcement comes just days after drug maker Pfizer Inc. announced it will lay off 660 workers at its Vigo County plant by midyear. The company decided to stop selling the plant's top product, inhaled insulin, because of disappointing sales.

 

Daniels said a dynamic economy loses and gains jobs as competition determines which products and services survive. He said government's job is not to keep failing companies in business but to attract new companies and expansions to make up for losses.

 

"Indiana's winning that fight today," Daniels said at the news conference. "But we are constantly reminded we must never pause. We must move from this announcement to the next one and then the next one, because the marketplace is a very tough disciplinarian."

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