There was a great deal of buzz this year about the Regional Economic Acceleration and Development Initiative (READI). It wasn’t if the General Assembly would allocate funds for another round of the program, but rather how much.
In the end, lawmakers earmarked $500 million for what they’re calling READI 2.0. After the rosy April revenue forecast, some bill watchers speculated that the program would be the beneficiary of additional funds so to avoid triggering an automatic taxpayer refund.
READI 2.0 looks very similar to the existing READI program. But there are two key differences. First, READI 2.0 funds may be used solely for capital projects and infrastructure improvements, whereas the Indiana Economic Development Corporation (IEDC) has broader discretion under the current program. Second, READI 2.0 requires regions to supply a multi-year strategic plan and detailed financial analyses about the economic impact of the proposed funding along with their grant applications.
The Chamber sought an expansion of the use of funds under READI 2.0 to include quality of life initiatives in addition to brick-and-mortar investments. In fact, we worked closely with Sen. Travis Holdman (R-Markle) on his second reading amendment that would have permitted regions to attract and retain skilled workforce talent, incentivize collaboration between K-12 and regional industry partners, and increase the availability of childcare. Despite passing the Senate, Holdman’s language was removed in conference committee.
Nevertheless, there may be an opportunity to revisit the issue next year because READI 2.0 sets a July 1, 2024 deadline for IEDC to develop a policy that establishes the framework for a READI 2.0 program. In the meantime, IEDC will continue exhausting funds from the current READI program.
In addition to READI 2.0, the budget bill represents a de facto endorsement of the IEDC – both past, present and future. A few examples of budget allocations to IEDC are as follows:
- $19 million for agency administrative duties (27% increase from the 2021 budget)
- $40 million for manufacturing readiness grants (100% increase)
- $4.6 million for the Office of Small Business and Entrepreneurship (77% increase)
- $10 million for direct flights (new line item)
Additionally, the IEDC received $500 million for both its deal closing fund and aggregate tax credit awards (with the option for more when needed), as well as $150 million for site acquisition strategies.
The Chamber echoes the General Assembly’s confidence in IEDC to continue driving economic growth in Indiana, and we look forward to continuing our long-standing partnership with the agency.
Another state agency that benefited from this year’s budget is the Indiana Destination Development Corporation (IDDC), led by Elaine Bedel. Since its inception, the Chamber has supported Bedel’s requests for more funding to boost marketing and tourism. This year, the General Assembly allocated the agency $40 million over the biennium, which is the threshold amount Bedel claims will help the IDDC realize its potential. This is more than $28 million more than what the IDDC received in 2021.
One final word on the budget: It includes a $10 million allocation for the Sports and Tourism Bid Fund. Establishing this fund was a Chamber priority in 2022 – with the understanding that funding would come this year. The fund will be managed by a board, which will be staffed and overseen by the Indiana Sports Corp. Money in the fund will be used to issue matching grants to sports and tourism boards throughout the state looking to attract events and conventions. This is yet another example of the General Assembly’s investment in state and local efforts to draw talent and events to Indiana.
