2001 REPORT CARD

COMMUNITY DEVELOPMENT

Economic development for South Bend’s Studebaker Corridor and Oliver Plow Project

Position: The Chamber endorses the research performed by the City of South Bend and urges the State of Indiana to designate the Studebaker Corridor/Oliver Plow Project as a Community Revitalization Enhancement District.

The Chamber, working in conjunction with the City of South Bend, developed a multi-city partnership to broaden the state’s Community Revitalization Enhancement District legislation which will assist in the redevelopment of Studebaker Corridor and Oliver Plow property.

Mishawaka River Center Project

Position: The Chamber encourages the Indiana General Assembly to contribute funding to the Mishawaka River Center redevelopment project through the Build Indiana Fund and other sources.

Outcome: Senators Zakas and Broden directed Build Indiana monies in the state budget to develop the Kamm Island Bridge and the Ball Band Monument, both planned infrastructure improvements for the River Center site.

HUMAN RESOURCES

Education, Training, and Workforce Development

Position: A direct relationship exists between area education systems and the needs of the business community for a skilled and productive workforce. Indeed, crucial to St. Joseph County’s social and economic future is the development of its human capital resource.

The Chamber supports the establishment of state tax credits to be applied to business tax liabilities for qualified employer-funded employee training programs and work-based learning initiatives conducted in partnership with local school corporations.

Outcome: No specific tax credit program was considered this session, but unanimous Indiana General Assembly support was given to the “Skills 2016 Training Program,” a bill that will provide an average of $18.2 million in each of the next three years to address statewide job training needs as determined by a group of business and labor representatives. Funding for this initiative will come from 1/10 of 1% of the money already paid by business for unemployment insurance.

Cost of Health Insurance

Position: The Chamber advocates a health insurance delivery system that establishes a standardized basic level of benefits at an affordable cost to the employers who choose to purchase health insurance programs on their employees’ behalf. Businesses should retain the right and flexibility to make rational choices about additional coverages, knowing that those choices have the potential to increase cost.

Outcome: The tide of health care mandates slowed considerably this year in the wake of skyrocketing health care insurance premiums shouldered by both businesses and the State of Indiana. The only mandate bill to pass the Indiana General Assembly this year was a mandate for the coverage of autism, but the final version of the bill was much less costly than the original proposal.

TAXATION

Business Personal Property Taxes

Position: The Chamber of Commerce of St. Joseph County believes that no changes should be made to the personal property tax regulations that would cause businesses to shoulder a heavier tax burden. Furthermore, any such changes are policy issues that should be left to the Indiana legislature, and should not be implemented unilaterally by an executive agency.

Outcome: The Indiana General Assembly did not address this position in the 2001 session.

Repeal the Inventory Tax

Position: The Chamber supports legislation to further reduce or eliminate the negative affects of the inventory tax on business.

Outcome: A proposal for “local option” inventory tax relief, where the state would provide no replacement tax monies to the counties but instead would authorize the counties to replace lost revenue via local methods, failed to achieve passage in the last hours of the session.

The state budget suspended 1999’s inventory tax credit program for two years, replacing it with an income tax credit against the equivalent business personal property tax of up to $12,500 of assessed value.

Transfer of County Welfare Funding

Position: The Chamber of Commerce of St. Joseph County supports the removal of county welfare funding from the property tax rolls and the replacement of that funding at the State level.

Outcome: Rep. Bauer sponsored the bill that would have transferred the Family and Children’s Fund portion of county welfare to the State over a period of time. The bill passed the House but was not heard in the Senate.

TRANSPORTATION

Upgrade of U.S. 31

Position: The Chamber urges the Indiana General Assembly, the Indiana Department of Transportation, and the United States Congress to implement a plan for the upgrade of U.S. 31 to freeway standards. The Chamber supports the goals of U.S. 31 Coalition, Inc., which is developing a coalition of communities along the U.S. 31 corridor to work with elected and appointed officials to accomplish the upgrade.

Outcome: Our Chamber remains the driving force behind the U.S. 31 Coalition. In 2001 we were successful in getting the state budget to include a provision mandating that the U.S. 31 Corridor be designated a “statewide mobility corridor,” putting the highway at the same level as Indiana’s interstates. It also directed the Department of Transportation to develop a Corridor Preservation Program, which will ensure that planning occurs to ensure that existing corridor roads will be used to accommodate the needs of tomorrow’s travelers. U.S. 31 was designated as the pilot for the Corridor Preservation Program. This legislation was a partnership between The Chamber, the U.S. 31 Coalition, Rep. Bauer, and Sen. Zakas.