SB 377 / Chamber Neutral
In 2021, we had READI (the Regional Economic Acceleration and Development Initiative). In 2023, we had READI 2.0. Leading up to 2025, we heard repeatedly that there would be no READI 3.0 and likely little, if any, funds allocated for regional economic development – certainly not another $500 million tranche.
Time will tell if this year’s budget will allocate additional investments in quality of life and/or quality of place initiatives, but supporters should be encouraged by the introduction of Senate Bill 377, authored by Sen. Greg Goode (R-Terre Haute), and the dialogue that occurred during Thursday’s hearing in the Senate Appropriations Committee.
The READI appropriations essentially gave a block grant to the Indiana Economic Development Corporation to distribute funds to regions around the state after evaluating their strategic plans. In contrast, SB 377 outlines specific requirements that must be met before regional funding can be allocated and disbursed to a state agency that will subsequently grant funds to regions. It also limits regional development funds to go to only projects that align with specific priorities, including science, technology and defense projects.
The Chamber testified as “neutral” on SB 377 during the hearing. Our concern is that focusing investments in certain industry sectors might lead to the neglect of other important areas of regional development, such as traditional industries, infrastructure or workforce development programs that may be just as important for regional growth depending on the specific needs of a particular region.
Additionally, one might argue that the state should not try to pick economic winners and losers but rather maintain a level of flexibility so that priorities can change over time.
We will continue advocating adamantly for investments in regional economic growth but trust the bill can be amended to accommodate regional strategic plans with priorities that fall outside of the bill’s mandated industry sectors. We are optimistic based on commentary from members of the committee, who all seemed aligned in supporting regional growth but without dictating the investments’ destinations.
The Chamber will work with members of the General Assembly to ensure SB 377 can serve as a viable vehicle bill for regional economic development funding.
