SB 4 – Local Workforce Recruiting and Retention
Authored by Sen. Travis Holdman (R-Markle) and Sen. Jeff Raatz (R-Richmond)

Summary: Authorizes a local unit (county, municipality, town, township or school corporation) to establish a workforce retention and recruitment program and fund for the purposes of recruiting and retaining individuals who will satisfy the current and future workforce needs of the unit’s employers or provide substantial economic impact to the unit, including providing incentives in the form of grants or loans to qualified workers. Defines “qualified worker” for purposes of the program. Requires a qualified worker who receives a grant or loan from the fund to enter into an incentive agreement. Authorizes the unit to transfer money into the fund from other sources. Provides that the executive of the unit shall administer the fund in coordination with a workforce fund board of managers appointed by the executive of the unit. Requires the workforce fund managers to annually submit a report setting out their activities during the preceding calendar year to the executive of the unit, the fiscal body of the unit and the Department of Local Government Finance (DLGF). Makes conforming changes.

Chamber position: Support

The latest: Passed the Tax and Fiscal Policy Committee unanimously.

Indiana Chamber action/commentary: It’s unsettling to consider that 49 of Indiana’s 92 counties lost population between 2010 and 2020. But opportunity presents itself as the global pandemic dramatically accelerated a trend toward remote work. The number of remote workers has skyrocketed from five million to over 60 million since March of 2020. As the pandemic subsides, over 40 million of these workers are expected to continue working remotely. Indiana communities can recruit these individuals to live in and contribute to the region.

This bill authorizes a local unit to establish a workforce retention and recruitment program with surplus money to attract individuals and families who “will satisfy the current and future workforce needs of its employers or provide a substantial economic impact to the community.”

Communities can use the money for promotional advertising or to offer residency incentives to “qualified workers” – anything from grants and loans to co-working space memberships. Stipulations of the fund include:

  • initiated by the unit’s executive with oversight by unit’s fiscal body and fiscal officer;
  • managed by five “workforce fund managers” appointed by the executive who can choose to establish a “qualified nonprofit organization” for carrying out the program;
  • sourced by private grants/contributions, budget appropriations, or money that is deemed “surplus, unexpended, unappropriated, unencumbered or otherwise available” even if the money is from a dedicated, special or non-reverting account;
  • requires qualified applicants who receive a grant, loan or other benefit to execute an “incentive agreement” that includes at minimum: (i) duration of time individual/family will live in the unit, and (ii) penalty for breaking agreement (negotiated between fund managers and qualified worker);
  • requires the fund managers to report annually their activities to the executive of the unit, fiscal body of the unit and DLGF; and
  • units may partner with other units and regional economic development organizations.

The investment to attract these workers can be mathematically justified. For instance, in Muncie, a (remote) worker with a household income of $138,000 will contribute on average $415,000 of new economic impact in spending – and $55,000 in tax revenue – over five years.

Senate Bill 4 will drastically improve the attractiveness of our state as a whole and would help give our communities the resources to attract the talent who will realize these improvements and leave a lasting economic impact.

Resource: Adam H. Berry at (317) 264-6892 or email: aberry@indianachamber.com