Indiana lawmakers’ budget $1B for transformational economic development projects

(The Center Square) – The budget deal Indiana lawmakers are expected to pass includes more than $1 billion in funding for economic development and other endeavors to attract new businesses and residents.

That includes $500 million to fund a second round of Gov. Eric Holcomb’s Regional Economic Development and Leadership Initiative. Holcomb had pushed for the funding as part of his agenda at the beginning of the year.

There’s another $500 million for the Indiana Economic Development Corp. to close deals and land what a budget summary calls “transformative” projects.

On top of that, lawmakers set aside a $150 million revolving fund the IEDC could use to buy land to help bring significant projects to the state.

“On the economic development front, I would say the governor and IEDC were winners there, and we were very supportive of their proposals,” Indiana Chamber of Commerce President and CEO Kevin Brinegar told reporters Thursday.

The chamber leader said the two funds will give economic development officials more tools at their disposal as they compete with other states for job-creating expansions and new investments.

The second round of READI funding will match the same amount allocated two years ago. In 2021, the state spread $500 million across 17 regions that covered all of Indiana’s 92 counties.

Initially designed with hopes the first $500 million would be used to attract $2 billion in other public or private sector investments, the initiative to spur investments in local and regional quality-of-life projects has attracted more than triple the expected funding.

State officials considered nearly 800 projects for the first round of READI funding. Those proposals were valued at more than $1.5 billion two years ago, so a pipeline of projects is likely ready for consideration.

Indiana has seen a record level of investment in recent years. Last year, 218 businesses chose the state for expansion or new operations, with those projects leading to $22.2 billion in investment and more than 24,000 new jobs.

The budget also includes $1 billion toward the Pre-1996 Teachers’ Retirement Fund’s unfunded liability. Brinegar and Senate President Pro Tem Rodric Bray, R-Martinsville, said that decision could pay dividends for the state.

“When this pension is fully funded and self-sustaining, our state will be in a position to explore some transformational opportunities for Hoosiers,” Bray said.