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Fact Sheet: McCormick-Goodin Balanced Economic Development Strategy

Over the last twenty years, Indiana’s economy has lagged behind the rest of the country. Indiana and the Indiana Economic Development Corporation have primarily focused on creating a “favorable business environment” through tax incentives, regulatory reductions, reducing wages paid to workers, and even functioning as real estate developers. This approach has not led to sustained economic growth. Workforce challenges, particularly talent attraction and retention, remain Indiana’s most prominent barrier to significant growth. Indiana’s future economic development efforts should shift from prioritizing the largest employers to prioritizing people and small businesses.

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  • Invest in Education and Workforce Development. Indiana currently ranks 41st in educational attainment, making it harder to attract and retain high-wage employers and workers. By increasing funding for pre-K, K-12, and higher education, including implementing workforce training programs in partnership with Indiana’s colleges and universities and union apprenticeships, we can create a more diverse and educated workforce. This, in turn, will allow Indiana to compete for higher-paying industries and encourage Hoosier young professionals to stay in Indiana, paving the way for significant economic growth.

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  • Expand Quality of Life Investments. Business leaders consistently cite Indiana’s inability to attract young, talented workers due to low investment in quality-of-life projects. The problem is especially acute beyond central Indiana, with economic and population growth centered around the capital. Modeling the Regional Cities Initiative across the state to invest in quality-of-life improvements like affordable housing, cultural amenities, and public spaces will make a difference. Prioritizing infrastructure that enhances Hoosiers’ livability, such as parks, transit, and infrastructure, will make Indiana more attractive for young professionals and families. Creating more vibrant, livable communities across the state will make Indiana more appealing to workers, making economic growth more straightforward.

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  • Look Beyond Central Indiana. Many talented Hoosier workers are forced to leave their communities to relocate to Central Indiana or, worse, out of state to earn higher wages. Indiana should consider implementing local talent retention programs in each region, including tuition support payment assistance, housing stipends, and tax breaks for individuals who stay and work in smaller communities after graduation.

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  • Empower Local Governments and Customize Economic Solutions. A one-size-fits-all strategy doesn’t address the specific challenges faced by different regions. Increasing local input over economic development funds allows counties to tailor initiatives based on their unique strengths–agribusiness in northern Indiana, logistics in southeastern Indiana, or tourism across the state. State agencies should provide technical support and guidance, giving localities more flexibility in attracting industries and workers that align with their regional economies. Localized strategies will allow every county to leverage competitive advantages and help foster statewide economic diversity.

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  • Invest in Tourism and Agritourism. Rural and smaller communities often need more industry diversification, currently relying too heavily on one or two sectors. Indiana should invest in agritourism and outdoor recreation to drive economic growth. Programs should incentivize local entrepreneurs to develop businesses like bed-and-breakfasts, farm tours, wineries, and eco-tourism. The state should provide grants and marketing support. This investment will diversify the economies of smaller communities, making them less dependent on single industries and more attractive as destinations for visitors and potential new residents.

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  • Support Small Businesses. Hoosier small businesses are the cornerstone of our economy and the beating hearts of our communities. Over and over again, we see that the way to build a strong economy is by investing in Main Street, not Wall Street. That’s why my administration will provide targeted support for small businesses and startups by increasing access to capital, creating incubator programs and mentorship networks, and nurturing a vibrant entrepreneurial ecosystem statewide. We will also improve access to resources for women, veterans, and minority-owned businesses. It’s common sense that Indiana can’t be just business-friendly but small business-friendly, and this starts by bringing balance back to our state’s economic policies, focusing on workers and small employers and not just the state’s largest corporations.

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  • Strengthen Public Health and Healthcare Accessibility. High healthcare costs and lessening accessibility are significant deterrents for businesses and people considering a move to Indiana. Increasing Indiana’s investment in public health and healthcare infrastructure across the state—emphasizing the reduction of costs for vulnerable Hoosiers—will improve accessibility and turn the tide against the disappearance of rural healthcare providers. We will also incentivize companies to create wellness programs, reducing the long-term cost of care. A healthier workforce is more productive, and affordable quality healthcare makes Indiana a more attractive place for people to live and work.

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  • Restore Common Sense to Government. Indiana took a significant reputational hit globally during the RFRA debate ten years ago, making many believe we are not a welcoming state that values diversity. After twenty years of single-party and extremist rule, we must restore Indiana’s reputation by bringing balance and common sense to the Statehouse. We’ll start by repealing Indiana’s extreme abortion ban, legalizing and regulating adult use of cannabis, and stopping the extreme and socially divisive policies. We will never be able to retain and attract outstanding talent if the State is seen as unwelcoming.

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Achieving more sustainable growth across Indiana requires the state’s economic development strategy to move away from massive tax giveaways to the largest corporations and instead focus on attracting and retaining highly skilled people. Indiana shouldn’t pick winners and losers but instead focus on developing a statewide, locally-driven economic development strategy in all 92 counties. By prioritizing talent attraction through broad investments in education, healthcare, infrastructure, and local empowerment, and by ending the extreme social policies of single-party rule, Indiana can ensure that every region—not just central Indiana–can thrive. This shift will drive inclusive, statewide growth and make Indiana a great state for business—because it will once again be a welcoming place to live, work, and raise a family.​

Fact Sheet: McCormick-Goodin Commonsense Economic Development Plan

The McCormick-Goodin Commonsense Economic Development Plan exists to implement the McCormick-Goodin Balanced Economic Development Strategy. While the strategy prioritizes recruitment and retention of Hoosiers, the plan has actionable items to implement.

 

Reform the Role of the IEDC to Original Intention

 

The IEDC has overextended its original mandate by acting as a real estate developer (e.g., with the LEAP district) and focusing on picking winners and losers among regions. This strategy creates imbalance and inefficiency in Indiana’s growth.

 

  • The IEDC should return to its original purpose as a business concierge, facilitating smooth business operations, fostering private investment, and prioritizing business retention and expansion support. Statewide economic policies should broaden their focus to fundamental building blocks for economic growth, such as education, workforce development, and livability improvements.

 

Increase Transparency and Accountability at the IEDC

 

Many of the tax abatements and incentives provided by the IEDC need to be more transparent, and more public information about the long-term returns on these investments should be required.

 

  • Increase transparency on how taxpayer dollars are used by the IEDC, particularly in large real estate projects like LEAP. Provide regular public reports that track the progress of tax incentives and ensure that Hoosiers understand what they are receiving in return for their investment.

 

End the Practice of Picking Winners and Losers

 

The IEDC has created competition among regions, which pits Indiana communities against one another. As economists everywhere have pointed out, the government is bad at picking winners and losers.

 

  • Focus on inclusive economic development by ensuring all 92 counties benefit from state-level support.

  • Continue the READI and Stellar Pathway programs targeting long-term regional revitalization efforts without favoritism and greater flexibility.

 

Expand Small Business Support via Regulatory Review and Streamline Licensing

 

Indiana has a favorable business climate, but specific regulator barriers and cumbersome licensing requirements make it difficult for businesses to start or expand.

 

  • Conduct a comprehensive regulatory review to eliminate unnecessary barriers for startups and existing businesses.

  • Streamline licensing processes and provide a state tax phase-in for all new businesses, regardless of size, ensuring fairness between large corporations and local companies in critical sectors.

 

Incentivize Childcare Support for Employers

 

The lack of affordable childcare is a significant barrier for working families, and businesses are increasingly frustrated by its impact on worker retention.

 

  • Create a state corporate income tax credit for businesses that provide on-site or nearby childcare for employees. Capping this at $300 million annually will ensure broad participation while containing costs.

 

Expand the Earned Income Tax Credit (EITC)

 

Many low-income families struggle as inflation rises, making retaining workers in smaller communities harder.

 

  • Expand the EITC threshold to better reflect inflation would help low-income workers keep more of their wages. This change could provide up to $150 million annually and significantly impact worker retention, particularly in rural areas where wages are lower.

 

Create a Business and Infrastructure Roundtable for Collaborative Economic Planning

 

Indiana’s economic development initiatives require more direct feedback from a broad spectrum of businesses and the inclusion of critical infrastructure concerns, such as water or energy.

 

  • Establish a quarterly business roundtable with representatives from small, medium, and large businesses across the state and energy, water, and infrastructure experts. Meeting with the governor and lieutenant governor will ensure that state policies reflect the needs of employers of all sizes and regions.

 

Close the Super Abatement Loophole; Automatic New Tax Phase-In

 

Current law allows for 20-year tax abatements in TIF districts, depriving local governments and schools of necessary infrastructure and local services revenues.

 

  • Eliminate super abatements by capping the length of tax abatements.

  • Introduce a state tax phase-in for all new businesses so that every business, regardless of size, can thrive. This would ensure fairness between large corporations and local companies in critical sectors.

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COMMONSENSE PLANS FOR INDIANA

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