Young people need to Aim Higher

July 28th, 2010

Back in 2003 some ambitious young supporters of Mitch Daniels held a rally called “We Want to Stay.” The idea was that Indiana needed a leader who would turn the state around and create an environment that would allow our youngest and most talented the opportunities they needed to continue to make Indiana their home.

Well, after six years that group should be proud of what has been accomplished. For the first time in years, Indiana now has more people moving into the state than out. Indiana leads the nation in private sector job growth. And if we are successful in getting the property tax caps put into the Constitution, young Indiana families will be able to plan their lives with confidence that they will not be subjected to ever increasing taxes to pay for ever increasing government spending.

Indiana has growing industries of the future. We are leading the nation in renewable energy, with a goal of becoming the “Electric Car” state. We are a leader in life sciences and Warsaw is the orthopedic capital of the world. We have a growing defense sector that is producing weapons of the future for those who protect our nation. Our tech companies are expanding every day.

There are lots of opportunities for those who want to stay. But progress is not inevitable. It must be worked for every day. So for all you young people, it’s time to get busy. Don’t take for granted what Indiana has achieved the last six years. Choose to be a part of it. Give your time, your talent, your ideas and Aim Higher for Indiana’s future today.

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What government reform means for you and your family

July 28th, 2010

Reform 1a: to put a change into an improved or condition; b: to amend or improve by change of form or removal of faults or abuses.

Much like everybody is for taxpayers, everybody says they are for reform. But when it comes down to crunch time, not everybody really wants to make the hard choices that true reform often requires.

Since 2005, Indiana state government has gone under massive reconstruction. Some examples;

  • Everything in state government is measured. As the saying goes “if you aren’t keeping score, you are just practicing.” In Indiana state government, results matter, best practices are shared and the best performers are rewarded. Those who don’t perform are moved out.
  • The Indiana Bureau of Motor Vehicles went from being one of the worst in the nation to one of the best in customer satisfaction. Average wait time is less than nine minutes, and customer surveys show that over 93% are satisfied with their service.
  • Agencies totally aligned towards job growth and most have trimmed budgets by 20%. That is all agencies work toward the goal of helping Hoosiers maximize their income, and they are doing it more efficiently.
  • Implementing Kernan-Shepard Report. While there is still much to be done, the government reform proposals spearheaded by Chief Justice Randall Shepard and former Governor Joe Kernan have sparked a dramatic debate in Indiana about what our government should look like. There is still disagreement on some of the proposals, but many Hoosiers are beginning to understand that we need to consider ways to consolidate services where possible in order to make our state and local governments as efficient and responsive to taxpayers as possible.

For a long time, Hoosiers have been known as backward looking and resistant to change. But no more. Under the Daniels administration, Indiana state government is a Vanguard for change, and other states are now taking the steps that we began to take back in 2005. New Jersey is a great example under their new governor. But under Mitch Daniels, Indiana was for change before change was cool! Help Governor Daniels keep the positive changes coming.

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Best in the Midwest

July 28th, 2010


When it comes to jobs and strong management, everyone around the country is talking about Indiana.

Governor Daniels has made the mission of his administration to increase the disposable income for Hoosiers. To do this, he embarked on an aggressive course to make Indiana the best possible climate for business investment, based on the assumption that government does not create jobs, it simply exist to create the conditions for private sector job growth.

Indiana excels at job growth and making the state attractive to businesses, but don’t take our word for it.

  • Largest increase in private sector jobs (WSJ article)
  • Midwest leader in Best States to do Business (CEO Magazine April 2010)
  • Best in the Midwest for low taxes (The Tax Foundation, September 2009)
  • Best in Midwest for Business (Forbes Magazine 2009 Index of States)
  • 5 straight years of record breaking job commitments.

What makes Indiana’s story even more remarkable is that we don’t have some of the natural attractions that other states have to lure business and people. There are no mountains or oceans, we don’t have the best weather all year around.

What we do have is great people, top notch universities, strong community leaders, a great business climate, and a predictable regulatory regime that allows companies to confidently make long-term investments. See this recent article by Forbes magazine for more information.

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Keep your money and grow the economy

July 28th, 2010

Lower taxes spur economic growth and, most importantly, empower people and not government.

One of the great benefits of keeping taxes low is that individuals get to keep more of their hard earned money. They can then decide if they want to invest in their business, buy a car, save for another day, or provide for their family in a way of their choosing.

Low taxes also means business are more likely to invest in Indiana. According to the Wall Street Journal, one of the reasons that Indiana leads the nation in private sector job creation (http://bit.ly/doFiOY) is because Indiana taxes are low, and now thanks to the property tax caps, stable.  That makes Indiana not only very attractive for new business investment, but also for companies that have had to consolidate operations to do so in Indiana.

For example, in 2009, one of the worst economic environments in decades, the Indiana Economic Development Corporation closed 150 deals, the same number of deals as they did in 2008. However, 59 of those deals were consolidations, where companies decided to close up shop in some other state in order to expand their existing business in Indiana.  One of the main reasons was our low tax structure which allows businesses to invest in its products and in jobs.

Every tax dollar government takes from a Hoosier family or business is one less that they have the freedom to spend as they choose.

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New energy, new jobs, a bright future

July 28th, 2010

Indiana is a leader in new energy and it’s not by accident.  It’s because the Daniels administration, entrepreneurs and citizens all across the state wanted it that way.

  • Indiana has a vast amount of coal, most of it located in the southwest part of the state.  But Hoosiers want to make it cleaner, so in Edwardsport the nation’s largest clean coal facility is being built, which will help us use our own natural resources in a more environmentally safe way.
  • In central Indiana, EnerDel has housed its lithium battery operation.  These batteries have the potential to transform the cars we drive, using long-lasting and easily rechargeable batteries that will reduce our need for foreign oil.
  • In northern Indiana, the Think car will be built. These smaller cars first developed in Europe will provide another alternative for urban commuters who don’t need a large car to get to and from work or the grocery.
  • The drive from Indianapolis to Chicago is much different than it used to be as windmills now dot the landscape.  Indiana is using its location at the end of the wind belt to make renewable energy.

None of these projects existed six years ago.  Because of a bold vision and the will to look to the future, Indiana is now a leader in renewable energy and investment and jobs for the future are the result.

Governor Daniels often says that we need to look at all new sources of energy.  With a little courage and some imagination, Indiana can continue to lead the way in renewable energy.  See this article for more .

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Strong leadership & disciplined management help Indiana during recession

July 28th, 2010

Indiana aims higher and taxpayers benefit with no raised taxes!

The national recession has spared no state, but Indiana is more than holding its own.  In fact, Governor Daniels has said that he believes Indiana is positioned to recover more quickly than most states, and he is not alone in that opinion. The American Legislative Exchange Council recently stated that Indiana was in a better position to emerge from the recession stronger than any state.

What makes Indiana different?  Well good management for one thing.  In 2005, Indiana was near the bottom of states, with an $800 million dollar deficit and a budget put together with accounting gimmicks and delayed payments to schools and other agencies.  Within a year of taking office, Governor Daniels and his team had balanced the budget without raising taxes.

That leadership and those hard choices have helped Indiana weather the storm, and while cuts have been made in things like education, they are minor compared to what other states are going through.

  • 42 states have cut K-12 education funding, at least 14 by 10% or more.  Indiana education was cut by 3%.
  • 29 states cut health care funding to low-income families
  • 14 states have proposed the early release of prisoners
  • 32 states have raised taxes and another 14 have proposed raising taxes.  Indiana is not among them.

Many states face billion dollar deficits, yet through prudent management, Indiana still is in surplus.  When the current budget expires, we will not have spent all the reserves. If the money saving actions like state hiring freezes, pay freezes, and agency budgets being cut had not taken place, Indiana would be facing an $861 million shortfall.  And if Governor Daniels had not vetoed the proposed budget in April of 2009, Indiana would have run out of money in April of 2010.

When the recession ends, other states will sort through the wreckage and start to claw their way back.  Due to strong leadership and disciplined management, Indiana is already in a strong position to increase its competitive advantage over other states.

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What do we get for our education dollar?

July 28th, 2010

Indiana spends 50% of its general fund on K-12 education.

Hoosier taxpayers have a strong record of supporting education.  They should be proud of that.  And Hoosiers would likely give more if they believed they were getting result they expected out of their current investment. But are we?

Every time the debate on education fires up, money seems to be a prime factor in the discussion.  Some say we spend too little, some say too much.  Well, the late Senator Patrick Moniyhan once famously said “everyone is entitled to their own opinions, but not to their own facts,” so here are some facts about money and education in Indiana.

  • 50% of Indiana’s general fund goes to K-12 education every year. That came to more than $6 billion in 2008 and that number has increased every year.
  • Once you add in local and federal dollars, more than $10 billion dollars was spent in 2008 on K-12 education, up from $7.5 billion in 1999.
  • Indiana spends about $10,000 per child, which puts the state 14th in the nation.  However, if you adjust for cost of living differences, we come in 3rd.
  • According to the National Center for Education Statistics, Indiana spends 63.1% of our money on classroom instruction, placing us 40th out of 50 states.  The national average is 65%.
  • Average teacher salary is about $48,000 in Indiana, placing us 21st in the nation.  However, again if you factor in cost of living, according to the National Education Association, that number jumps to $52,000 and moves Indiana teachers up to 7th highest in the nation in salary.
  • Finally, according to the Indiana Department of Workforce Development, while the average workers salary decreased by 2.4% during the recent recession, the average teacher salary increased by 2.2%.

A final point. Whenever someone tells you that education deserves or needs more money, ask them what tax they want to raise or what other service they want to cut to pay for it.

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A Government that Works for You

July 27th, 2010

Is government serving people or are people serving the government.  It’s a legitimate question with all the power grabs going on in Washington DC.

Recently there has been a lot of talk about government and the role it plays in the life of everyday people.  Some say we need to limit government, that it has gotten too big and expensive.   Others say that especially in a recession, government needs to grow, and besides there are just some things (i.e. health care, environment) that government needs to regulate more in order to make them more fair or safer.

Well in Indiana, the Daniels administration has focused on making government more limited, more efficient and more responsive to the people it serves, Hoosiers from all walks of life. How do they do it?

  • Government agencies should be consistent and predictable.
    • Businesses, entrepreneurs and families can make better decisions when they trust that the rules won’t change on them.
  • Government should act at the speed of business!
    • Under the Daniels administration, permits are processed quicker, tax refunds are given in nearly half the time, and in the most striking example, wait times at the most infamous of government bureaucracies, the BMV, are down from nearly 45 minutes in 2005 to less than 10 in 2009.
  • Government should use its resources in the most productive manner
    • Indiana has its fewest employees since 1979. But it has hired 800 child protection workers and 200 State Troopers.
  • Government should work to create an environment for its citizens to succeed.
    • Government does not create jobs, businesses and individual entrepreneurs do!

The debate about the size and role of government can be traced back in this country to the Founding Fathers.  It likely will go on forever.  In the meantime, Indiana under the Daniels administration will strive to make government as efficient and empowering to the individual as possible.


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Protect the kids and the grandkids!

July 26th, 2010

Why good fiscal management is important to you and your family.

The numbers are staggering.  13 trillion dollar national debt.  Just a few years ago, something that was a billion dollars was a lot.  Now that is basically a rounding error.

A friend from New York tried to explain the national debt to me this way.

- there are about 86,000 seconds in a day,

- 1 million seconds is about 12 days,

- 1 billion seconds is about 31 years, and

- 1 trillion seconds is about 31,000 years.

This means that we’d have to spend one dollar per second for 31,000 years to pay off $1 trillion and our current debt is 13 times that amount.

Luckily in Indiana, since 2005 we have operated under balanced budgets. Why is this important?

  • Indiana is 1 of 9 states to have a Standard & Poors AAA credit rating.  This means that investment in this state is likely to be sound, and is an indicator of positive economic activity.  Also, if needed, Indiana could borrow money at the cheapest interest rate.
  • Good fiscal management means no tax increases needed.  Indiana is one of just a handful of states that is not raising taxes during the recession.
  • Living within our budget means we are not leaving debt to the next generation and jeopardizing their chance at achieving their dreams to pay for what we want now.
  • Because of sound policies, Indiana has been named one of the best places to do business by Forbes, CNBC and CEO magazines. That means more investment in Indiana, more jobs for the future.

Balancing budgets is hard.  It’s particularly hard during tough times.  But it is essential if Indiana is to maintain its recently achieved spot as one of the best states in the nation.

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What is the impact of policy on student outcomes?

July 25th, 2010

I have heard people say that a child has only one chance to do third grade.  A kid’s whole life can be made in one good or bad year in school.  In one year, a child can become a success story or just another distressing educational statistic.

So isn’t it incumbent upon policy makers to make sure that whatever policies they pass are focused on getting that child the best chance to have a positive experience?

Superintendent Tony Bennett often talks about how his team is focused on kid issues and not adult issues. It’s a great philosophy, one that says children should be at the very heart of every education policy decision.  It seems like a simple concept, but take a minute and think about how many times the education debate veers off course from how kids are impacted.

It often seems to become about power between adults; how much money are taxpayers willing to pay, how much should administrators make, who has authority over curriculum, discipline policy, how big and expensive is the football stadium?  All important issues perhaps, but where do the kids fit into those debates?

One might think that if there were a silver bullet to solve our state’s education problems someone would have implemented it years ago.  But perhaps if all engaged in the making of education policy would first ask themselves, “How does this impact the kids” before any other consideration, maybe we could begin to make tangible gains in the educational achievement of our children.

For more information on what Tony and his team are doing, visit their website at http://www.doe.in.gov/superintendent/ .

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    Aiming Higher Inc. is a non-partisan, non-profit organization dedicated to promoting innovative and cutting edge public policy solutions. We seek input from and engagement with all those interested in keeping Indiana moving forward.

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