HomeMy WebLinkAbout07-06-99COUNCIL PROCEEDINGS OF THE
COMMON COUNCIL OF THE CITY
OF JEFFERSONVILLE, INDIANA
JULY 6, 1999
The Common Council of the City of Jeffersonville met in regular session in the Multi-Purpose
Meeting Room in the City-County BUilding, Jeffersonville, Indiana, at 7:00 P.M. on the 6th day of
July, 1999.
The meeting was called to order by Mayor Thomas R. Galligan, with Clerk and Treasurer C.
Richard Spencer Jr. at the desk. Mayor Galligan welcomed all in attendance, asking all those present
to stand as Councilperson Williams gave the invocation. Mayor Galligan asked all those present to
join him in the pledge of allegiance to the flag.
The roll was called and those present were Councilpersons John Perkins, Ron Ellis, Donna
M. Frantz, Barbara Wilson, Andrew Williams III, and Vicki Conlin.
Absent: Councilperson Peggy Knight Wilder.
Clerk and Treasurer Spencer presented the da'un list for consideration by the Council,
explaining additional claims. Following all discussion, Councilperson Perkins made the motion to
approve the claims as presented as well as the additional, seconded by Councilperson Frantz, passing
unanimously.
Councilperson Frantz made the motion to pass Ordinance No. 99-OR-37, An Ordinance
Amending 35.10 & 35.12 Of The Jeffersonville Municipal Code Concerning Sick Leave &
Bereavement Leave on the third and final reading, seconded by Council President Conlin.
Councilperson Ellis said he had requested numbers from Deputy Mayor McCauley regarding the
effect this will have on the budget and he has not received the information. There followed a
discussion of employee benefits as they relate to the police and fire benefits. The concern is for the
$50 birthday pay. Following all discussion, the following roll call vote was taken:
Ayes: Councilpersons Conlin, Williams, and Frantz.
Nays: Councilpersons Perkins, Ellis, and W'dson.
Councilperson W'flson would like to ask Deputy McCauley to come to a meeting. She does
feel it is a good Ordinance but would like to have some areas checked. Mayor Galligan said this will
July 6, 1999 Page 2 of 4
bring sick leave for ail employees the same. Counc'flperson Frantz said if the birthday pay is taken
out there is a need to look at longevity pay for non police and fire employees. Bereavement should
be the same for ail employees. Mayor Gailigan said if the only issue is the $50 he will vote yes to
break the tie and pass Ord'mance No. 99-OR-37.
Mr. Keith Campbell appeared before the Council explaining the reason for the request
contained in Ordinance No. 99-OR-40A. Following ail discussion, Council President Conlin made
the motion to suspend the roles for Ordinance No. 99-OR-40A, seconded by Councilperson Williams,
passing unanimously. Counc'fl President Conlin then made the motion to pass Ordinance No. 99-OR-
40A on all three readings, seconded by Counc'dperson Williams, passing unanimously.
City Attorney Anne Made Gailigan initiated discussion regarding the 1999 Circuit Rider
contract. She will make a call and this will be put on the agenda for the next meeting.
Councilperson Perkins said the Family Fest will be July 31, 1999. There are 5 barbeque
contestants. He explained other aspects of the fest which will ail be held in Warder Park.
Councilperson Ellis thanked City Attorney Galligan for sending a letter to those making the
mess on Hamburg Pike. Councilperson Ellis is extremely concerned about what is going on in the
housing projects. This past weekend there was another stabbing and shots were fired. There is a
need for a police substation and a need to hire more officers. If there was a fire the City would send
all the equipment. The Council and the Mayor need to do ail that is possible. There was discussion
about closing Riddle Street. It is felt that most of the problems come from those that do not live in
the area. Attorney Galligan explained there are other agencies working in the area. She explained
a recent incident that the U.S. Attorney dismissed. Identification cards were discusse& The streets
are public property and open to ail. Mayor Gailigan explained it takes 90 days to evict a resident
from public hous'nag. The use of dogs was discussed. Mr. Bob Campbell of the Housing Authority
suggests Councilperson Ellis meet with the Chief of Police to review housing statistics.
Councilperson Ellis said he is out there everyday and most of the problems do not come from
residents. There is a need to clean up the people and the mess and to help the residents feel safe. He
has left pictures with the Mayor. Councilperson Ellis said people are afraid. There are gangs in Jeff.
Problems need to be cleaned up at the source. Mayor Galligan understands. He is frustrated aiso as
this is an ongoing problem.
July 6, 1999 Page 3 of 4
Councilperson Wilson said there are areas that have the same problems, one of them being
Colonial Park. Councilperson Wilson commented a good quality of life for Jeffersonville residents
are the concerts in the park. They have been outstanding. She would love to see all the Council
attend. This is one way of making Jeffersonville a better place to live.
Councilperson Williams asked Mr. Bob Campbell of any housing authority plans. Mr.
Campbell explained the current program of five homes a year. They are also looking at projects done
in Louisville. Mayor Galligan told of funding programs. Councilperson Williams is in support of
efforts of"hands on government". He is not in favor of using dogs. Mayor Galligan said one thing
that he has learned in recent meetings is that people do fear dogs.
Councilperson Frantz thanked those responsible for arranging to have Dr. Graham Tort speak.
One of the things he mentioned that is important to her is the quality of life issue. Diane and Ed
Muller and Ms. Beverly of the Parks Department, as well as others, are working with the youth.
They are looking at doing a survey of needs for the youth. She will be asking at budget time for
money for an outdoor pool and other areas for recreation. There are so many things that are needed.
The youth need a place to go and something to do. There is a need for a skateboard area.
Mayor Galligan reviewed four committees. There has been interesting dialogue with the
schools. There is need for year-round programs. Quality of life is an issue. This area is lucky to have
Louisville's amenities. Jeffersonville is growing rapidly and it is a strain on the needs. The Family
Fest is an example ora good thing. There is a need for an aquatic center. Mayor Galligan reviewed
significant changes. He told of plans for the old bridge. A lot of good things are happening, so there
is a need to keep the press on.
Mr. Jeremy Shelling told of things he has been involved in, stating he would like to get with
Councilperson Ellis.
July 6, 1999 Page 4 of 4
There being no further business to come before the Council, Councilperson Perkins made the
motion to adjourn at 8:30 P.M., seconded by Council~rson Elli~s. p~s~g/~), nimously.
~ tv~x/'OR THO/9IA:~/Ri[G~LLIGAN
ATTEST: . /~ ~/
CLE~d~ ~aND TREASUREF~. RICH~PE'NCER JR.
Economic Strategy
Unveiled
Imagine living in a state
with the fastest growing
economy in the Midwest:
· This state Would have a
proliferation of home-
grown businesses, many
of them market leaders
in the United States and
abroad.
· It would be a magnet for
high growth clusters of
industries, e.g., biomedi-
cal and business soft-
ware companies.
· The educational system
would prepare young
people for high skill
jobs and help retrain
adults for bet[er and bet-
ter oppormdities.
· It would be world re-
nown for its livable,
vital communities.
In short, the state just de-
scribed could well be Indi-
ana as it celebrates its bi-
centennial in 2016.
Break Away Growth details
how Indiana can break
away from competitor
states by focusing on qual-
ity economic growth and
performing government
functions exceptionally
well. The aim of the plan is
to be the best location in
the Midwest for businesses
and families.
To reach its goal, Indiana
must: bring wages back in
line with the U.S. average;
break away from over-
reliance on traditional in-
dustries; and embrace inno-
vation and high perform-
ance in order to be globally
competitive.
Continued on page 4.
Why Should We Change Now?
Indiana has fully partici-
pated in the Midwest's
manufacturing renaissance.
New plants have come to
the state. Employment is at
an all-time high. Exports
continue to break records
and outpace the U.S. rote
of growth. Investment from
overseas firms has in-
creased. Why, then, should
the state change its strate-
gies?
While Indiana's cost of
living and cost of doing
business are well below
most states, the average
wage per job is below the
national average as shown
in the chart below. Wages
that were once at the
Continued on page 4
$31,000
Average Wage per Job, 1969-97
(1997 CPI Adjusted Dollars)
$30,000
$29,000
$28,000
$27,000
$26,000
$25,000
$28,746 $29,809
1969 1972 1975 1978 1981 1984 1987 1990 1993 I996
Since 1981, indiana wages have lagged those of the nation.
Inside this issue:
Workforce Skills a P~ofit,/ 2
Ircpmve Mainstay Industries 2
Growth Corcpanies will Supplement 3
Take Advantage of Our Crossroads Location 3
Workforce Skills a Priority
In the highly competitive global economy,
businesses compete on price, value and
responsiveness.
One option is for
firms to focus on
offering the Iow-
est price by util-
izing a low skill,
low cost
workforce and
"dumbing
down" opera-
tions. A second
option is to com-
mand a premium price but offer the high-
est overall value. Finally, one could choose
a hybrid option which combines price
competitiveness and higher value. Both the
second and third options require skilled
workers and investments in technology.
The second and third courses of action,
while more demanding, are the paths
Break Away Growth advocates. High
value-added, innovative products
strengthen companies' financial perform-
ance, increase job security for skilled
workers and improve workers' wages and
incomes.
High pay jobs do not necessarily require formal four-year college degrees. High pay jobs do,
however, require high skills.
Consequently, education and training of
the workforce has become the No. 1 com-
petitive issue in economic development.
Indicators of skill levels of current and
future workforce present a mixed picture.
Currently, only 16.8 percent of Indiana's
jobs require a bachelor's degree or
hig~her, compared with 20.7 percent of all
U.S. jobs. Many of Indiana's good pay-
ing jobs require training other than a
four-year degree, e.g., apprenticeship
programs, vocational certificates and
short course college "packages." It is
important to recognize, however, that an
increasing number of jobs will require
post-secondary training of some sort.
One of the most important steps the state
could take to prepare for the future is to
ensure that Indiana can respond quickly
as industries' needs change. That effort
would require high response, on-the-job
training adequate to address the skills of
large and small numbers of people.
Continued on page Z
Improve Mainstay Industries
Strong mainstay industries -- manufac-
turing, agriculture, insurance, trade and
distribution, and higher education -- and
a strong business climate remain critical
to continued economic sustalnability.
Indiana's industrial base has undergone a
resurgence since the recessions of the
'80s. Today, Indiana's unemployment
rate is an unimaginable low: 3.1 percent
as of January 1999. Manufacturing wages
have been steady, remaining between 10
and 12 percent above the U.S. average.
Likewise, as demonstrated by the chart,
manufacturing productivity outpaces the
nation.
Hoosier exports are strong, bucking the
national trend. During the first nine
months of 1998, Hoosier exports ex-
ceeded the prior year by 2.9 percent,
while the U.S. level declined 1.1 percent.
Long-term results are equally impressive.
Since 1988, exports have grown an aver-
age of 19.6 percent, compared to the na-
tional average of 13.4 percent.
Residents should have every reason to
believe that Indiana can become the best
location in the Midwest for businesses
and families. Companies are drawn to
states with lower costs. Indiana is in a
strong position, with its combination of
low business costs (17th best in the na-
t~
tion) and low cost of living (14 best).
Mainstay industries currently face a num-
ber of competitive issues. The degree to
which Indiana handles these challenges
will determine its success in capitalizing
on its great location and low costs.
110%
105%
100%
95%
90%
85%
80%
concentration of manufacturing com-
panies have resulted in family living
wages for a great number of Hoosiers.
Almost one-third of the Gross State
Product depends on that sector (50
percent if indirect and induced effects
Continued on page 6.
75%
Productivity by Major Sectors
(GSP per Worker, Indiana as a Percent of the U.S., 1977-96)
103.5-%
1977 1979 198i 1983 1985 1987 '1989 199i 1993 199S
· [~"l'"Overall Manufacturing - - - Service Producing
Source: Bureau of Economic Analysis
· Indiana's industrial mix makes it vul-
nerable to business cycles. A high
Page 2 BREAK AWAY GROWTH
Growth Companies will Supplement Traditional Industry Base
On average, growth companies pay bet-
ter, employ more highly skilled workers,
export greater amounts, spend more on
research and development, and provide
better worker benefits and job satisfac-
tion. These companies are the engines of
Quality Economic Growth.
Generally, a firm is considered a high
growth company if its sales and earn-
ings grow at a rate of 15 percent per
year, or better. The firms come in all
sizes and cross all industries. What
they share is a focus on innovative,
cutting edge products and services.
Indiana already has several concen-
trations of high growth, high pay
companies, e.g., Elkhart, Warsaw and
Indianapolis. The state's future vital-
ity and wage and income growth,
however, depend on having many
more of these clusters.
Diversifying Indiana's industrial base to
include high growth niches is a logical
step. Promising industries include bio-
technology, healthcare, information tech-
nology, advanced business services, envi-
ronmental technology and services, ad-
vanced logistics, and education and train-
ing. They are also logical extensions of
Indiana's existing economic base.
At the same time, high growth, high pay
companies are forming within mainstay
industries, e.g., companies that develop
software for manufacturers.
Our college and university research capa-
bilities and the state's ability to produce
skilled workers will impact efforts to
have growth companies locate and ex-
pand in Indiana. Likewise, "smarter"
government efforts to encourage net-
In order to meets its goal of outpacing U.S. growth in wages and incomes,
Indiana needs to increase its proportion of high growth companies.
working among firms and regional high
technology strategies can encourage busi-
ness development. Equally important are
efforts to improve Indiana's quality of
life and retain highly skilled residents.
BreakAway Growth proposes the follow-
ing initiatives to accelerate the develop-
ment of high growth, high pay firms:
· Provide incentives to local equity in-
vestment pools that form to assist
small start-up ventures.
· Shift the state's economic develop-
ment budget over a five-year period to
create a balance between incentives
provided to mainstream companies
and those given to frontier industries
and high growth, high pay firms.
Broaden the eligibility for personal
property tax abatements and sales tax
exemptions to include research and
development and computer and high
technology equipment.
Focus state economic development
programs and activities around self-
selecting industry alliances, e.g., the
Strategic Development Fund.
Create the "Innovations Development
Contingency Fund" as part of the state
budget. The fund would provide state
matching dollars for collaborative re-
search and development ventures, ena-
bling Indiana to capture greater share
of federal funds.
Take Advantage of Our Crossroads Location
Indiana has an enviable geographic loca-
tion. It is the Crossroads of America, the
center of the world's most
powerful industrial nation.
The state has a powerful
asset when one also factors
in Indiana's
portation system of rail-
roads, highways, ports and
airports, and its sUcong tele-
communications system.
Indiana can position itself as a global
gateway by investing in superior trans-
portation and logistics
systems. Those invest-
ments include:
Make the highway
~rogram perma-
nent.
Create a "State Infra-
structure Bank" to offer
a revolving loan fund and loan guar-
antees to communities.
Establish an alliance between busi-
ness and government to strengthen the
state's transportation and logistics
services industry.
Provide a special fund for high profile
marketing initiatives that promote
Indiana as a prime location for trade,
commerce and branch operations.
VOLUME I, ISSUE 1 Pago$
Economic Strategy (cont.)
Continued from page 1.
There are three main strategies in the
plan:
1. Improve the performance of mainstay
industries.
2. Accelerate the
contribution of
frontier indus-
tries and high
growth, high t
companies.
3. Follow policies
that create a climate for growth.
State government can best support the
strategies by focusing on the climate for
growth. Specifically, the plan recom-
mends government make focused state
investments in workforce skills, growth
infra-
vanced logistics,
"smarter" govern-
ment, and livable
places.
Why Should We Change Now? (cont.)
Continued from page 1.
national average have grown 0.8 percent
since 1981. During the same time span,
national wages increased 10.5 percent.
Currently, 54 percent of Indiana jobs are
in occupations that have a median wage
below $10 per hour, or $20,000 per year.
A recent analysis by the Indiana Eco-
nomic Development Council, however,
found that a family needs $17,000 to
$32,000 per year to meet its basic needs
(the amount
varies based on
family size and
competition).
Employment
growth data is
convincing:
Indiana's eco-
nomic develop-
ment strategies have served us well for
creating jobs. Now, the state must en-
hance those strategies to move ahead in
improving its standard of living.
Global competition will continue to put
pressure on prices. Manufacturing and
agriculture production around the world
has increased meaning that more of what
Indiana produces can be also made else-
where. As a resnk, Hoosier companies
must specialize in hi~a value-added prod-
ucts and services that command a pre-
mium in the marketplace.
Mainstay industries -- manufacturing,
agriculture, insurance, trade and distribu-
tion, and higher education -- will con-
tinue to be a cornerstone of Indiana's
economy. Over-reliance on th~ese indus-
tries, however, makes us more vulnerable
to recessions. By expanding cutting edge
growth companies in traditional and
frontier industries, Indiana can increase
incomes and opportunities for job ad-
vancement.
H~gher pay jobs
reward skill and
innovation.
Many produc-
tion and service
a four-year col-
lege degree. They do, however, require
increased levels of skill in technology,
problem solving, teamwork and commu-
nication.
The state's economic development sys-
tem must be geared up to meet demands
for flexibility and responsiveness. The
pace of the 21st Century will be even
faster than that of today. State programs
need the tools and customer-service fo-
cus necessary to respond quickly and in a
coordinated fashion.
Page 4 BREAK AWAY GROWTH
Guidelines for Policy and State Investments
Philosophically, Indiana residents are
conservative. They prefer to limit the size
of government, even if that means a
trade-off in fewer services. Hoosiers e~-
peet a moderate tax load and Iow govern-
ment debt. Residents respect those who
pull themselves up by the bootstraps.
Consequently, Hoosiers expect commu-
nities to take initiative to solve local
needs, and they protect the right to free
enterprise.
Keeping with the Hoosier spirit, Break
Away Growth articulates five primary
functions of government. If nothing else,
local and state officials have a responsi-
bility to do these things well:
I. Provide a sound, fair and competitive
tax and regulatory climate.
2. Produce efficient and excellent basic
infrastructure and public services.
3. Foster ~rust and collective purpose by
governing and planning in an open and
fair manner.
4. Compete with other states and coun-
tries by creating attractive environ-
ments in which businesses and resi-
dents thrive.
5. Intervene for strategic purposes and
for limited periods of time to improve
and correct market weaknesses and to
advance market solutions.
A healthy fiscal climate is a pre-
condition for business confidence in the
state. Thus, maintaining sensible budget
reserves and
continuing to
buy-down state
pension liabili-
ties (Indiana's
only fiscal vul-
nerability) make
for sound eco-
nomic strategy.
In keeping with the state's commitment
to avoid long-term liabilities, Break
Away Growth assumes that state funding
for traditional economic development --
programs that provide direct one-on-one
subsidies and technical assistance -- will
not ~ow.
Sound fiscal discipline demands that
public funds shift from the old grant-in-
aid approach to self-help initiatives. This
plan, therefore, reduces emphasis on
grants to spur economic development.
Instead, the emphasis is on loans, loan
guarantees and loan loss reserve pools.
While government should not directly
create jobs or invest in firms, it can, and
should, create a climate for Quality Eco-
nomic Growth.
It can make stra-
mentsthat:
vith
skills demanded
by industry.
· 'Accelerate the development of growth
compames.
· Capitalize on Indiana's prime cross_
roads location.
· Streamline government functions.
· Improve the qual/ty of life.
Government can Lead the Charge to Innovate
Indiana is in an excellent position to pur-
sue "smarter" government. It already fol-
lows the tenets of limited government, a
moderate tax rate, low debt and local ini-
tiative.
"Smarter" government wilI require three
innovations:
1. Find ways to perform ex-
ceptionally well.
2. Implement performance-
based designs for public
services that have high stan- ~.
dards of accountability.
3. Find solutions that mini-
In particular, greater flexibility and a
greater range of options are needed to
solve problems.
For example, more of what the federal
government funded in the past has shifted
to local areas. Consequently, communi-
ties must cope with addressing
more demands with fewer re-
Sotlrces.
Likewise, to be truly effective
in economic development,
communities must look at is-
sues such as transportation,
infrastructure, worker skills,
mize or eliminate the role States prosper when government functions well and local
of public bureaucracies, leaders and regional alliances work in tandem.
This effort to maximize both the effi-
ciency and effectiveness of government the environment and a host of items from
functions calls for fundamental changes, a regional perspective. Sub-state sohi-
VOLUME 1, ISSUE
tions are required to achieve economies
of scale, efficient financing and coordi-
nated solutions to issues that cut across
boundaries. Yet, coping with multi-
jurisdictional issues can be challenging.
Break Away Growth proposes several
!nitiatives to increase local flexibility and
m~prove the state's customer service and
coordination functions.
· Increase the number of options for,
and flexibility of, raising local govern-
ment revenue. Steps include raising
caps on local tax options, exploring
new options and increasing the prop-
erty tax rate limit.
· Restructure local property tax limits to
avoid penalizing growth communities.
· Provide sub-county and county-level
options to enable consolidation of
Continued on page 6.
rag~ $
Livable, Healthy Communities Essential to
Increasingly, families and employers will
pay premiums m live in places that are
safe, clean and in harmony with nature.
People will seek out communities that
enhance the natural land-
scape, prevent pollution and
are designed with conven-
ience in mind.
The well-being of residents
relate directly to factors re-
lated to environmental condi-
tions and healthy lifestyles.
Indiana communities rank
high on many quality of life
factors, but fall behind their
peers in attaining environ-
mental and health standards.
This plan focuses on policies that address
the concept of sustainable economic de-
velopment: maintaining or improving
Indiana's standard of living, agricultural
yields and industrial pro-
ductivity without compro-
mising the support systems
that make those results
~ possible.
· Further the work of the
Farmland Preservation
Task Fome related to ur-
ban devel-
tn the 21~Centu~, skiller workers will demand g°°d places opment
to live and work. Indiana has an opportunity to creato sus' and non--
toinable eeonoraic development that balances today's metropoli-
needs with tomorrow's, tan
Promote Growth
· Expand tax increment financing to a
variety of applications.
· Create an aggressive brownfield de-
vehipmeut incentive package.
· Create the "Sustainable Economic De-
velopment Corporation," a state-level
private or public-private entity to in-
vest in and provide technical assis-
tance related to sustainable develop-
· Provide for performance-based pollu-
tion prevention tax credits.
· Coordinate a statewide Geographic
Information System.
Government Innovation (cont.)
Continued from page 5.
units of government or the services
offered by local governments.
· Provide state matching funds to sup-
port sub-state and mniti-jurisdictional
~owth and development planning.
· Facilitate the simplification of re-
gionai boards and commissions in or-
der to encourage regional strategies
and requests for state funds.
· Establish a coordinated, automated
one-stop permit process.
· Provide line-item funding for the State
Information Center and launch a Web-
based pilot program to transfer infor-
mation.
· Coordinate mad consolidate all state
development finance functions under
the Indiana Development Finance
Authority.
Mainstay Industries (cont.)
Continued from page 2. new high growth clusters within the performance of mainstay industries:
are included). Most of Indiana's
manufacturing companies are in
highly cyclical industries: autos, steel,
industrial machinery and fabricated
metals. Fluctuations in national and
global demand for durable goods rap-
idly impact the state's economy, as
they did in the recessions of 1980 and
1982.
· Our companies face significant tech-
nological changes. For example, ~on-
gress has issued new mandates to
prove fuel efficiency by 2004 and
2011. Indiana's auto-related compa-
nies will need to innovate to meet the
requirements. While daunting, the
change could present opportunities for
page 6
automotive sector.
The bulk of U.S. economic gains are
coming from advances in technology,
productivity and worker skills and
knowledge.
Successful firms
find niches that
combine cost
competitiveness,
innovation and a
"total solution"
that addresses
customer needs before, during and
after the sale.
Break Away Growth proposes several
strategic investments to improve the
· Increase worker productivity by maxi-
mizing educational opportunities, im-
proving utilization of education and
training services, increasing informa-
tion about the performance
of all post-secondary pro-
grams, and improving ac-
cess to, and affordability
of, educational and training
programs.
· Strengthen Indiana's
already outstanding distri-
bution system.
· improve the state's information sys-
tem and create very efficient govern-
ment regulation.
BREAK AWAY GROWTH
This update is the fourth in Indiana's series of strategic plans for economic
development prepared since 1982. The Indiana Economic Development
Council, Inc. is a public-private partnership that brings business,
labor and education to the table to reach consensus and develop
commitment to creating a long-term strategic advantage for the state.
Indiana was the first state to create an independent strategic planning entity
The l~lanning process, refined over JO years, ensures conststency,
continuity and credibility over time. In effect, the process stretches political lead times into economic
lead times.
Workforce Skills (cont.)
Continued from page 2.
There is concern that as job tasks become
more technically complex and require
more problem solving and people skills,
Indiana workers may not yet have the full
set of matching skills. A recent Indiana
Economic Development Council study
estimates that for every 100 high skill job
openings, only 65 job applicants had the
mix of skills required. While 76 percent
of the jobs do not require a formal post-
secondary degree, they do require contin-
ual training, much of it on the job.
Formal education rates are lower than the
national aver-
age. Currently,
Indiana's public
high school
graduation rate
is 70.1 per-
cent -- 30th in
the nation. Only
gree or higher -- 47th in the nation.
Conversely, Indiana is the 14th largest
producer of college graduates in the na-
tion. These graduates represent a steady
supply of workers that possess the
knowledge and technical expertise
needed to attract and retain high growth,
high skill companies.
In part, these statistics reflect the legacy
of manufacturing. As mentioned earlier,
fewer than 20 percent of jobs require a
four-year degree. Therefore, Break Away
Growth calls for a well-structured career
track for the non-college bound and in-
cumbent workers to ensure these Hoo-
siers have skills that meet industry's
needs.
Specific steps Indiana should take in-
clude:
· Provide consumers with timely infor-
mation on the performance of all ele-
17.7 percent of
adults have During 1996, Indiana ranked third in the nation in terms of the number of new business development projeets, lhat same
completed a year, Indiana landed seven high-tech facilities-the fourth-highest numberin the United States. (Area Development
four-year de- magazine) Indiana's educational and reseamh prowess could present an oppodunityto continue this momentum.
VOLUME 1, ISSUE 1
mentary, secondary and post-
secondary programs.
Create a "Lifetime Opportunity Debit/
Credit Card" to ensure financing is
convenient and affordable.
Launch the "Indiana Career Learning
Account," a line of credit for post-
secondary education to which employ-
ers, philanthropic organizations and
state government could contribute.
Offer tax incentives to companies that
train and educate their workers.
Develop performance-based training
that is customized to employers' needs
and enhance the state' s Training 2000
program.
Reform Indiana's workforce develop-
ment and training system to take ad-
vantage of opportunities opened up by
federal restructuring. Changes in regu-
lations open the way for improved
customer service, econo-
mies of scale and new
information technology.
Page 7
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www.iedc.org
Four Core Challenges Must be Addressed
Achieving the goals and milestones set
forth in Break Away Growth will not be
without difficulty. Indiana faces four
core challenges: improving incomes,
wages and hig~h skill, high pay jobs;
creating sustainable growth; keep-
ing the middle class from slipping
into the category of "the working
poor"; and shaping new patterns of
development in urban and rural ar-
eas.
Over the past two decades, Indiana
repositioned itself after back-to-
back recessions. Since 1986, in fact,
average job growth has been faster
than the nation and the unemploy-
ment rate has been below that of the
United States.
Mainstay industries are sensitive to na-
tional business cycles. Reaching a level
of productivity and industrial diversity
that reduces the impact of recessions is
an important safeguard.
Indiana is a middle income, middle class
state. A greater proportion of Indiana
households are in that category than re-
flected by the nation as a whole, and
fewer people live in poverty. In large
part, the phenomenon is explained by a
greater number of households with two
parents and multiple job holders, more
overtime work and good paying manu-
facturing jobs.
The challenge is to ensure that current
and future workers have skills to ensure
continued family wages. For 73 percent
of Indiana jobs, skill reqdirements can
be gained through on-the-job train-
ing. That number will remain virtu-
ally unchanged in the foreseeable
future. Consequently, increasing
skills through work-based training,
short courses and distance learning
will be an essential means of stabil-
ity and upward mobility for many
Hoosiers well into the next century.
The fastest ~owth areas in the state
are in small- to mid-size cities and
towns, and in counties on the fringe
of metropolitan areas and along
interstate highways. Among the negative
consequences of the migration are loss of
farmland, decline in the core of cities, and
increased demands on schools, municipal
services and water, sewer and drainage
infrastructure.
Employment and Wages
· Indiana's per capita income is
$23,I83 (92.1 percent of the U.S.
average); 29th best.
· Average job growth 0utpaced the
nation from 1986 to I998.
· A record number of Hoosiers are
employed: 3.5 million (1997).
· Eighty percent of workers are cov-
ered by unemployment insurance:
2.8 million.
· Since 1986, the unemployment rate
has been below the nation.
· As of January 1999, the unemploy-
ment rate was 3.1 percent -- below
the national average.
· Managerial andprofessionaljobs
comprise 23 percent of Indiana
jobs, compared to 29 pement for the
nation.
· Fifty-four percent of Indiana's jobs
are in occupations with a median
wage below $10 per hour ($20,000
per year). Only 7 percent of jobs
have a median wage above $20 per
hour.
Average Wage per Job, 1969-97
(1997 CPI Adjusted Dollars)
$31,000
$28,74~
$30,1100
$29,000
$28,4Sl
$27,046
$25,1100
1969 1972 1975 1978 1981 1984 1987 1990 1993 1996
Wages were last at the national average in 1981. Since that time, Indiana wages grew 0.8 percent while the national
average climbed 10.5 percent.
· A family's basic needs budget is
between $17,000 and $32,000 per
year (depending on the size and
composition).
· To return to the national average,
Indiana wages need to outpace the
nation by approximately 0.4 percent
per year for the next 20 years.
· Production workers in manufactur-
ing earn $14.32 per hour; 110 per-
cent of the U.S. rate.
· An estimated 195,300 Hoosier
manufacturing jobs are directly re-
lated to exporting, and they pay 5 to
20 percent mom than those not re-
lated to exporting.
Business Vitality
· In 1996, Indiana had 143,507 busi-
ness establishments.
· Productivity is 20th highest in the
nation and fifth highest in the Mid-
west at 90.5 percent the national
rate.
· Manufacturing productivity is at
103.5 percent of the U.S. rate; serv-
ices are at 80.3 percent.
· The cost of doing business (as
measured by Regional Financial
Associates, 1997) is 17th best in the
nation, and well below competitor
states.
· Indiana' s business climate was
named one of the top 15 in America
by Site Selection magazine (1998).
· Indiana exported $13.1 billionin
goods during 1997 -- an
increase of $1 billion over the year
before. During the frrst three quar-
ters of 1998, exports continued to
be strong, increasing 2.9 percent,
while the United States declined 1.1
percent.
The top export destinations are
Canada, Japan, United Kingdom,
Mexico and Germany.
Continued on back.
Business Vitality (cont.)
Annual GSP Growth, 1989-96
6%
4%
2%
0%
-2%
Contlnued from front.
· Manufacturing's
share of Indiana's Gross
State Product (32 per-
cent) is the highest in
the nation.
· Area Development
magazine ranked Indi-
ana third in the nation in
terms of the number of
new business develop-
ment projects in 1996.
The Gross State product is $155.8 billion: manufacturing 32%; services 15%; finance, insurance
and reai estate 13%; retail 9%.
· During 1996, AreaDevelopment
ranked Indiana fourth in the number
of new high-tech projects.
· Indiana is one of the top 25 inland
places to locate a business
(Business Facilities magazine,
1998).
· Indiana ranks 10th in the United
States in terms of the volume of rail
cargo (Plants Sites & Parks maga-
zine, 1997).
Education
· Indiana is the 14th largest producer
of college graduates in the nation.
· The state's public high school
graduation rate is 70.1, 31st in the
nation.
· In Indiana, 16.8 percent of jobs m-
quire a four-year college degree or
higher, compared to 20.7 percent of
all U.S. jobs.
· The rate of college attainment
closely matches job require-
ments: 17.7 percent of adults
have a four-year degree or
higher (47th in the nation).
Livability
· The population is 5.9 million.
· Indiana's purchasing power ranks
29th best at 99.5 percent of the U.S.
average.
· The consumer cost of living is 14th
best at 92.1 percent.
· The poverty rate of 8.6 percent is
fifth best in the nation and second
best in the Midwest.
· Indiana ranked best in the Midwest
(22nd in the nation) in the 1998
Morgan Quitno Livable State Index.
Economic Development Resources
· The state's budget for FY 1997-98
was $13.7 billion.
· Economic development receives 0.4
percent of the state's budget ($55.6
million from the General Fund).
· Indiana's economic development
resources from all public sources
(state, federal and local) totals ap-
proximately $2 billion per year.