With a $20 million appropriation in the state’s new biennial budget, Indiana lawmakers once again affirmed their belief in a public-private partnership designed to further develop one of the state’s existing economic strengths — its life sciences industry.
“The jobs in this sector are high-paying, and the capital investments by businesses create large benefits to our economy,” says Sen. Mark Messmer, chair of the Indiana Senate Commerce and Technology Committee. The Indiana Bioscience Research Institute began four years ago with $50 million in funding. The state provided half of that start-up money, with the rest coming from the state’s universities and private firms.
The institute provides a collaborative environment for private industries and academic researchers; the state’s hope is that this public-private research results in the commercialization of new ideas, as well as advances in areas such as heart disease, diabetes and nutrition.
Brownfields — former industrial and commercial sites that have been abandoned and are contaminated by pollutants or other hazardous materials — are among the hardest sites to redevelop for other business or residential purposes.
Seven years ago, Kansas lawmakers adopted new incentives for individuals to move to the state and make one of its 77 rural counties their new home. The Rural Opportunity Zones program offers a mix of income tax waivers (for up to five years) and student-loan repayments of $15,000. But as much as he supports the idea, Kansas Rep. Troy Waymaster says another part of the economic challenges for rural areas must somehow be met.
“The problem is when there is no job for them to take, [people] probably are not going to move [to the rural counties],” he notes. “This is the other half of the equation: how you get jobs to move back.”
This year, he introduced the Ad Astra Rural Jobs Act (HB 2168), which would provide tax credits to investors who help businesses expand, locate or relocate in Kansas’ rural areas, many of which are struggling due to trends in their two dominant industries: agriculture and oil. In both sectors, commodity prices are low.
In 2015, lawmakers in North Dakota passed legislation (SB 2057) requiring the legislature to undertake an evaluation of 21 of the state’s tax incentive programs at least once every six years. According to Pew’s Business Incentives Initiative, North Dakota is one of 21 states (four in the Midwest; see map at right) that have passed laws since 2012 requiring regular evaluations of tax incentive programs offered by the state.
Imagine being in your mid- to late 20s and walking into a workplace for the very first time as an employee. For many of today’s young Americans, this delayed entry into the workforce has become a harsh reality. During the Great Recession, unemployment rates soared for all age groups.
But young people were hit particularly hard: In April 2010, the jobless rate for people between the ages of 16 and 24 reached a record high of nearly 20 percent. Today, youth unemployment in the United States still tops 10 percent, more than double the overall jobless rate.
Two years ago, Gov. Terry Branstad announced that he wants 70 percent of Iowa’s workforce to have education or training beyond high school by 2025. Since then, he and state legislators have taken a series of steps to meet that goal.
Using a site where B-24 bombers were made during World War II in a factory built by Henry Ford, Michigan hopes to build on its heritage as a hub of automotive manufacturing and innovation and become the world’s leader in autonomous vehicle technology.
In July, citing the creation of more and better jobs in the state’s thriving automotive industry, Gov. Rick Snyder announced the approval of $17 million in startup funds for the creation of the American Center for Mobility in Ypsilanti.
Lawmakers in two Midwestern states have given close scrutiny in recent months to a targeted tax credit that has become an increasingly popular policy tool for trying to help entrepreneurs and startup companies. Known as “angel investor” tax credits, these incentives encourage investment in early-stage firms by mitigating some of the potential loss if a company fails. Most states in the Midwest have some form of this tax credit.
One policy consequence of the Great Recession was a rise across the country in the use of these waivers, which lift limits on the amount of time that able-bodied adults without dependents can receive payments under the Supplemental Nutrition Assistance Program, or SNAP. If a state does not seek and receive such a federal waiver, its able-bodied recipients can receive food stamps for only three months over any three-year period.
The federal American Recovery and Reinvestment Act of 2009 temporarily suspended these time limits across the country, thus simplifying the process for states to secure a waiver. More recently, though, with jobless rates falling in many parts of the country, federal policy has reverted to pre-recession rules under the Personal Responsibility and Work Opportunity Reconciliation Act.