Indiana

Mindless economic development strategy in Indiana

Published

2 years ago

June 5, 2022

The previous couple weeks noticed Hoosier leaders have a good time two new manufacturing unit bulletins within the state. Collectively they promise 1,900 manufacturing unit jobs and roughly $4.6 billion in new funding. Unsurprisingly, that is the kind of factor elected leaders prefer to tout. The sunny financial growth press launch is older than the nation and is an particularly bipartisan indulgence.

Nonetheless, when you take note of this kind of jobs announcement, there’s no approach round a sense that one thing isn’t fairly proper. The rationale for that is extra than simply intestine intuition; a lot of what you see and examine these jobs bulletins is uncooked political fiction. Subtle taxpayers ought to perceive higher what is going on. There are three components that make me very uneasy and may fear taxpayers and accountable elected officers alike.

The primary is the boldness of the claims, and the argument that job creation offers comprise a big a part of the economic system. That is flat nonsense. In a typical yr, Hoosier companies create about 0.5 million jobs throughout the state and destroy about 0.5 million jobs elsewhere. In some years there are extra created than destroyed, and in different years we lose extra jobs than are created. Both approach, these 1,900 jobs unfold out over the subsequent few years are a measurement error in Indiana’s labor market dynamics.

Extra from Michael Hicks:Allow us to ask extra of ourselves on Memorial Day than simply providing opinions

The identical is true with the capital funding. As we speak, Indiana has greater than $0.5 trillion in capital funding. The aforementioned $4.6 billion sounds good, however unfold out over two or three years is unlikely to account for 1/1,000 of the state’s capital funding in any yr. As with the employment numbers, that is actually throughout the vary of measurement error of enterprise capital.

In a superb yr, the state’s financial growth organizations will work together with companies that create perhaps 4.0% of recent jobs. That may be a outstanding achievement for the small, hardworking employees at IEDC, nevertheless it doesn’t present proof of statewide financial efficiency.

Our civic discourse could be higher off if elected officers have been extra trustworthy about these offers. However, given the bipartisan zeal for job bulletins, it’s as much as the remainder of us to coach ourselves. Nonetheless, political exploitation of those offers ranks on the backside of my three worries. What bothers me extra is the general public spending for these jobs.

Boone County and Howard County, the place these factories will find, have unemployment charges at 3.1 and three.8% respectively. Thus, there is no such thing as a available workforce for these factories. Historically, this vacuum would draw labor from 30 or so surrounding counties. There would possibly even be some in-migration as a result of each counties have engaging communities. Nonetheless, many of the staff will come from different companies already within the space or outdoors the county.

In a free market economic system, that shifting of employees is ok; new companies have each proper to lure staff away from present companies. Nonetheless, what is going on right here is absolutely the antithesis of a free market economic system. We don’t but know what the tax incentives will likely be for the Lilly manufacturing unit in Boone County, however incentives are roughly $130,000 per job for the Howard County plant. That’s simply insanely irresponsible for a lot of causes. Some would possibly even name it “Socialism.”

A lot of the inducement will come from native taxpayers, together with these companies whose employees will now be lured away by somebody paying no taxes in these communities. The advantages of those jobs will circulation to the locations the place these employees dwell, leaving Boone and Howard County taxpayers to pay many of the prices whereas many of the advantages accrue elsewhere.

The state contribution to those incentives is efficiency primarily based; the native contribution is an upfront fee with no lifelike claw-back choices. It’s a dire mistake in state coverage to view a tax giveaway as “pores and skin within the recreation” whereas native spending on good colleges, secure neighborhoods and paved streets as not.

Even when these communities obtained all the advantage of this deal as an alternative of the extra lifelike 10%, it’d nonetheless be a troubling public expense. Paying $130,000 per job to lure a brand new manufacturing unit to Indiana makes for nice headlines and pleased press releases whereas nonetheless being the very definition of short-term, poorly knowledgeable tactical considering. Tax incentives are usually not a viable financial growth technique.

If Indiana’s financial growth technique is to pay $130,000 per manufacturing unit job, we’re failing. One of the best ways to know that is to easily word that the price to deliver again the manufacturing unit jobs we’ve misplaced over the previous 20 years alone is greater than $16 billion or roughly $5,600 per Hoosier household. Once more, if that is Indiana’s financial growth technique, we should always put together ourselves for pricey, repeated disappointment.

The Howard County manufacturing unit is an auto components manufacturing agency. The state has misplaced over 40% of jobs on this sector in 20 years, and we’re 10% beneath the place we have been on this sector in simply 2019. These new 1,400 jobs account for less than 2.2% of whole jobs on this business. By the point these incentivized jobs materialize in two or three years, we’re more likely to have misplaced one other 5,000 auto components manufacturing unit jobs. From a strategic standpoint, these incentives are like shopping for gold-plated buckets to bail out the Titanic.

A fair worse revelation is that this business pays wages which are 16% beneath the state manufacturing common. Which may clarify why the roles announcement was so surprisingly silent on salaries. Once more if that is profitable financial growth technique, I shudder to think about what a failing technique would possibly seem like.

Regardless of the imprudence of the tax incentives, my largest concern about this deal shouldn’t be about poor political management. I’m beneath little phantasm that the opposite political occasion could be extra accountable with tax {dollars}. I’m extra apprehensive about what it says in regards to the high quality of companies and enterprise management we’re attracting to the state.

Indiana’s tax on manufacturing companies is right now the fourth lowest within the nation. To place this in surprising context, a single mom making $35,000 a yr pays twice the efficient state and native tax fee of the common manufacturing agency within the state. Likewise, non-manufacturing companies in Indiana pay practically thrice the common tax charges as factories. It’s value noting that non-manufacturing companies are those answerable for 180% of the state’s job development since 2000. Strive considering on that for a couple of minutes.

The message to companies ought to be plain. If paying the fourth lowest tax within the nation is just too onerous in your manufacturing unit, you don’t have a viable marketing strategy. Indiana doesn’t want you; go elsewhere. If your enterprise needs to make use of our public infrastructure, our public companies (e.g., police and fireplace safety) and our graduates from public colleges and universities however expects others to pay the invoice, don’t come to Indiana. The state wants fewer enterprise leaders like this, and that’s exactly the message prudent, considerate, market-oriented leaders ought to give to companies.

Michael J. Hicks is the director of the Middle for Enterprise and Financial Analysis and the George and Frances Ball Distinguished Professor of Economics within the Miller Faculty of Enterprise at Ball State College.

Source link

Indiana

What Are The Scenarios After Indiana Dropped In The College Football Rankings?

Published

7 hours ago

November 27, 2024

Press Room

What Are The Scenarios After Indiana Dropped In The College Football Rankings?

BLOOMINGTON, Ind. – Indiana’s football rise into the national elite has been such a dizzying, intoxicating ride that it felt like it might never end.

Alas, No. 2 Ohio State dealt the Hoosiers a reality check with a dominant 38-15 victory Saturday at Ohio Stadium.

Most Indiana observers understood that a splash of water in the metaphorical face of Indiana football was likely when the College Football Playoff rankings came out.

Once revealed? It was a pretty cold splash that hit the Hoosiers late Tuesday night.

Indiana (10-1) fell to the No. 10 spot in the rankings. Six one-loss teams (Ohio State, Texas, Penn State, Notre Dame, Miami, SMU) and two two-loss teams (Georgia, Tennessee) are ahead of the Hoosiers. Indiana is rated the worst of the one-loss Power Four conference teams.

Because of the way the College Football Playoff bracket is constructed, Indiana is the last team in the 12-team field. Two teams ranked lower than Indiana would make the field as projected conference champions.

It’s a precarious position for Indiana as its margin for error has been exhausted. Still, there are plenty of happy and heartbreaking outcomes to consider as the college football season gets closer to its pre-Playoff climax.

Here’s a few scenarios to consider after the College Football Playoff committee set the latest pecking order Tuesday.

The best-case scenario

• If Indiana wants to go for the glory? Apart from the obvious win Indiana needs over Purdue, Hoosiers fans can hope for a Michigan win over Ohio State and a Maryland victory at Penn State. That would put Indiana into the Big Ten championship game against Oregon. A win in that game would give Indiana a bye into the College Football Playoff quarterfinals.

However, the risk in that is that if the Hoosiers were to lose, they could be out of the CFP field altogether depending on what happens elsewhere. High reward, but high risk, too.

For Indiana to get back into the playoff hosting picture? The Hoosiers probably need at least two of the following results: Georgia loses at home to Georgia Tech on Friday night, Tennessee loses at Vanderbilt, Miami loses at Syracuse, SMU loses to California at home or Notre Dame loses at Southern California on Saturday.

After the upsets that took place in Week 13? Stranger things have happened.

The most realistic good scenario

Indiana Hoosiers wide receiver Omar Cooper Jr. (3) celebrates scoring a touchdown during the second quarter against the Washington Huskies at Memorial Stadium. / Jacob Musselman-Imagn Images

• If your best-case scenario is to beat Purdue, but lose the risk of incurring a second loss by missing the Big Ten championship game? It’s as simple as beating the Boilermakers on Saturday night. Given that Indiana are currently 28.5 point favorites, that is a solid probability.

However, Indiana is looking over its shoulder, too. No. 12-ranked Clemson lurks behind the Hoosiers and has a chance at a quality win when the Tigers host rival South Carolina Saturday. Though the Gamecocks are also lurking in the No. 15 spot, it would do Indiana a world of good to have South Carolina get Clemson off Indiana’s rear bumper.

The worst-case scenario

• This is simple: Indiana loses to Purdue. Barring a litany of upsets elsewhere, a loss to the Boilermakers would be a mortal blow to the Hoosiers’ CFP hopes.

Another worst-case scenario would be if Indiana beat Purdue, but Texas A&M beat Texas to make it to the SEC championship game and then pulled a major upset in that contest against Georgia.

That would put the Aggies in the CFP field as a bid-stealer and knock every other team down a notch. If Indiana was still on the bubble, this would cause it to burst.

The most realistic bad scenario

Clemson Tigers wide receiver Antonio Williams (0) runs after a catch against The Citadel Bulldogs defensive back Kaleb Bowen during the second quarter at Memorial Stadium. Clemson is lurking behind the Hoosiers as a College Football Playoff contender. / Ken Ruinard-Imagn Images

• Indiana beats Purdue, but not convincingly. A two-touchdown win or less is going to reflect poorly on the Hoosiers. Like it or not, style points matter.

If Indiana squeaked by the Boilermakers, in combination with a Clemson win over South Carolina and no upsets in front of them, it would be high time for Hoosiers fans to start to sweat.

Add in an Alabama win over Auburn and/or an Ole Miss victory over Mississippi State? The Hoosiers might survive it all, but the conference championship games and the reveal of final rankings on Dec. 8 would be a white-knuckle experience for Indiana.

The most ambiguous scenario

• Indiana beats Purdue, but once again, not convincingly. However, some of the teams ahead of Indiana also lose.

Any loss by either Georgia or Tennessee would be trouble for either team as it would be their third defeat. SMU has had a great season, but the Mustangs would take a hit if they lost at home to California. Similarly, Miami has just one loss, but the Hurricanes have won their share of close shootouts during the season.

Add in wins by Clemson, Alabama and Ole Miss? Perhaps toss in a Texas A&M victory over Texas that would put the potential bid-stealing Aggies in the SEC championship game? The CFP committee would have one heckuva Gordian knot to untangle going into the conference championship games.

Source link

Indiana

Warde Manuel reveals how College Football Playoff committee views outcome of Indiana vs Ohio State

Published

15 hours ago

November 27, 2024

Press Room

Warde Manuel reveals how College Football Playoff committee views outcome of Indiana vs Ohio State

A Top-5 showdown highlighted the Week 13 slate as Indiana and Ohio State squared off at The Horseshoe. Ultimately, the Buckeyes got a blowout victory over the Hoosiers, and all eyes turned toward Tuesday’s College Football Playoff rankings to see how the committee viewed that outcome.

Of course, Indiana wasn’t the only top-ranked team to fall last week. Multiple others did, as well, which likely helped the Hoosiers stay in the Top 10. According to committee chair Warde Manuel, IU has the resume to be the No. 10 team in the country.

Manuel pointed out it wasn’t all bad for Indiana in last week’s matchup. The Hoosiers had some good moments, notably the opening drive. Although they dropped five spots, Manuel said IU still did enough to be in the Top 10.

“We viewed Indiana – they played well at times against Ohio State,” Manuel said on the CFP rankings reveal show on ESPN. “And Ohio State pulled out a victory and really came on in the second half of that game. But we were impressed with some of the things that Indiana did. And they dropped five, but we still felt that their body of work was strong enough to remain in the Top 10.”

Indiana’s strength of schedule was a key point of conversation entering last week’s game. The Hoosiers’ schedule ranked No. 106 in the country through Week 12, according to ESPN, which was the second-weakest of the College Football Playoff Top 25. After the Ohio State game, though, IU’s schedule now ranks No. 51.

Of course, the numbers also back up Indiana’s case to be one of the top teams. The Hoosiers rank No. 9 in the nation in scoring defense and No. 2 in scoring offense. That’s why, after Saturday’s game, Curt Cignetti scoffed at a question about whether they should still be in the 12-team field before answering with a wink and smile.

“Is that a serious question?” Cignetti said in his postgame press conference, with a smirk. “I’m not even gonna answer that one. The answer’s so obvious.”

Source link

Indiana

Jack’s Take: Battle 4 Atlantis a Chance to Learn About Indiana, Pick Up Much-Needed Wins

Published

23 hours ago

November 26, 2024

Press Room

Jack’s Take: Battle 4 Atlantis a Chance to Learn About Indiana, Pick Up Much-Needed Wins

PARADISE ISLAND, The Bahamas – The slate of marquee nonconference games surrounding Thanksgiving has become known as Feast Week.

Tournaments in Maui, the Bahamas, Las Vegas and elsewhere generate top-25 matchups on a daily basis. Monday, Memphis upset back-to-back national champion No. 2 UConn. No. 4 Auburn erased a 16-point halftime deficit to take down No. 5 Iowa State. And No. 12 North Carolina came back from 21 points down to defeat Dayton.

That was just the start of a week that makes November feel a bit like March. No. 14 Indiana will compete in the eight-team Battle 4 Atlantis tournament in the Bahamas, along with No. 3 Gonzaga, No. 24 Arizona, West Virginia, Oklahoma, Providence and Davidson.

Indiana is off to a 4-0 start and rose two spots in the latest AP Top 25 poll. Three wins have come against mid-major foes Southern Illlinois-Edwardsville, Eastern Illinois and UNC Greensboro. Indiana also handled South Carolina in a 16-point win, but the Gamecocks have taken a step back from last year’s second-place SEC finish.

And with a nonconference slate that features just one high-major opponent outside its three opportunities in the Bahamas, the Hoosiers must eat up all the opportunities Feast Week offers.

That starts with a matchup against Louisville, a team Indiana defeated 74-66 last year in the Empire Classic. But the new-look Cardinals are a completely different unit now, led by former College of Charleston head coach Pat Kelsey, 13 new transfers and one freshman. Louisville failed its biggest test of the season so far, a 77-55 home loss to Tennessee, but it’s shaping up to be a far more competitive team than those that went 12-52 in two years under former head coach Kenny Payne.

Analytics site Bart Torvik favors the Hoosiers by 3.6 points and ranks them 30th nationally, compared to the No. 57 Cardinals. With a win, Indiana would likely advance to face Gonzaga, which moved up to No. 3 in the latest AP Top 25 poll and is ranked No. 4 by Torvik.

That’s when the big challenge could come, one that Indiana vitally needs to meet as it builds an NCAA Tournament resume. Its best win so far is South Carolina, currently a bubble team at best. The Hoosiers may end up with wins against mid-major teams that reach the NCAA Tournament, but none that they can hang their hats on come Selection Sunday.

And once they return to Bloomington, they won’t get another chance to pick up a quality win until Big Ten play. That’s part of the risk that came with Indiana scheduling lighter than normal in the nonconference and relying so much on what it can gain in the Bahamas.

The other factor is that beyond Louisville, Indiana doesn’t know exactly who it’ll play this week. Upsets happen in college basketball all the time, and Indiana could end up facing a lighter slate this week by no fault of its own. Or it could lose to a capable Louisville team Wednesday and head to the loser’s bracket, where wins over certain opponents may not significantly strengthen its profile.

This Indiana team has enough talent that reaching the NCAA Tournament shouldn’t be in question, but its schedule lacks frequent opportunities at resume-boosting wins.

The other question going into the Battle 4 Atlantis is, how much do we really know about the Hoosiers so far? In terms of its Big Ten and national title aspirations, almost nothing. We can speculate how Indiana might fare against premier programs, but this tournament in the Bahamas represents the first time we’ll actually see it.

Indiana’s 4-0 start has mostly provided optimism, as the Hoosiers have defeated each team by 11 points or more. But there have been several moments of concern, or ones that at least reveal a team with six transfers and one freshman still getting to know each other. That was expected going into the season, but Indiana can’t afford it to last much longer.

The clear difference between the 2024-25 Hoosiers and last year’s group that missed the NCAA Tournament is guard play. Point guard Myles Rice is averaging 14.8 points and shooting 46.2% from 3-point range so far, a dynamic Indiana simply didn’t have last season. Sophomore wing Mackenzie Mgbako appears to have taken another step in his game, leading Indiana with 18.8 points per game and connecting on 8-of-15 3-point attempts.

Woodson also has much more capable depth to work with, with veterans like Trey Galloway and Luke Goode, along with budding freshman Bryson Tucker, coming off the bench. That’s all said without mentioning Malik Reneau and Oumar Ballo, who could comprise the Big Ten’s best front court.

So where does the hesitation come from? Woodson has been unhappy with several aspects of the Hoosiers’ play this season. After a 90-55 win over Eastern Illinois, which featured a 37-36 halftime deficit, Woodson called out his team’s readiness.

“I thought we were still home in bed asleep,” Woodson said. “It was awful.”

Indiana jumped out to a 21-5 win over UNC Greensboro, only to be tied 40-40 with 15:57 left in the second half. Indiana shot just 41.7% from the field and 26.3% from 3-point range, allowed 13 offensive rebounds and committed 13 turnovers in the win. That left a lot to be desired from Woodson, and some of the frustration stems from knowing how much talent he has on this team.

“As a team we had 16 assists. That’s awful. I mean, it’s awful. With this team, we should average between 20 and 30 assists. So the play tonight, the way we played offensively tonight was selfish as hell to me,” Woodson said.

“That’s something that just can’t be because we have enough guys on this team that can make basketball plays,” Woodson continued. “We’ve just got to be unselfish and sacrifice the ball for the sake of the team and good things will happen.”

Woodson and the Hoosiers have a chance to ease those concerns and pick up several quality wins. Good, bad or somewhere in between, this week will reveal a lot about this Indiana team, which needs to return to Bloomington with something to show for this trip.

Source link