Articles

Governor Daniels' Weekly Wrap-up: 11/05/07

Weekly Wrap-up

A look at news and events in the Daniels Administration

Volume 2, Issue 55

October 29-November 4, 2007

 

Firm to create more than 750 jobs in southern Indiana

 

Nov. 1, 2007- Governor Mitch Daniels joined executives from business process integration leader Connextions Inc. to announce the company's plans to locate a new customer support center in Jeffersonville, creating more than 750 new jobs.

 

The Orlando-based firm will invest more than $6 million to establish a secure customer contact center that will employ customer care professionals, licensed insurance agents, registered nurses and technical support specialists to serve its national client base.

 

"We're welcoming another great company to Indiana, which has the nation's best business climate and the lowest unemployment rate in the Midwest," said Daniels. "Southeastern Indiana is contributing as much as any region to Indiana's economic comeback."

 

Connextions, which operates similar facilities in Florida and North Carolina, will provide integrated business services for a number of well-known healthcare insurance companies from the new Jeffersonville facility beginning later this year. Connextions' technology and customer contact services are designed to help its client companies gain new customers and maintain brand loyalty.

 

Read the news release.

 

Plastics company to make Evansville its global headquarters

 

Oct. 30, 2007- Governor Mitch Daniels and Evansville Mayor Jonathan Weinzapfel joined executives from Berry Plastics to announce the company's plans to consolidate its global corporate headquarters in Evansville, creating 250 new jobs.

 

The manufacturer and marketer of plastic packaging products will begin to invest more than $20 million to build and equip a new headquarters facility and will begin increasing staffing to meet the needs of the growing business.

 

"Berry Plastics joins a growing list of companies like Arcadia Healthcare, Really Cool Foods and SMC Corporation that have decided to grow their global headquarters in Indiana. Headquarters locations, with the high-paying jobs and community commitment they bring, are the best news an economy can get," Daniels said.

 

Read the news release.

 

Governor and first lady host trick-or-treaters at Governor's Residence

 

Oct. 31, 2007- For the third consecutive year, Governor Mitch Daniels and First Lady Cheri Daniels hosted trick-or-treaters at the Governor's Residence on Halloween night.

 

The governor and first lady handed out assorted candy donated by four Indiana companies as well as mini Frisbees from the Indiana Coordinated School Health Program. Schimpff's Confectionery of Jeffersonville donated milk and white chocolate dipped pretzels; DeBrand Fine Chocolates of Fort Wayne donated a variety of caramels, Nutcrackers, European Hearts and gourmet PBJ; Mundt's Candies of Madison donated their famous fish candy; and Zachary's Confections, Inc. of Frankfort donated jelly pumpkins, candy corn and candy pumpkins.

 

"We were excited to continue the tradition of hosting trick-or-treaters at the Governor's Residence," said First Lady Cheri Daniels.  "As a bonus this year, we handed out candy made right here in Indiana."

 

The governor and first lady dressed as members of an Indy Racing League (IRL) pit crew and had an IRL race car at the Residence during trick-or-treat hours.

 

Governor requests federal assistance for northern Indiana

 

Nov. 2, 2007- Governor Mitch Daniels took action to request assistance for Hoosiers in northern Indiana devastated by a tornado and severe storms that occurred on October 18.

 

In compliance with federal regulations and Indiana Code, Executive Order 07-19 was issued to declare a disaster emergency in northern Indiana.  In addition, the governor sent a letter to President George W. Bush to request federal assistance for Hoosiers affected by this severe storm damage that occurred in Elkhart, Marshall and Kosciusko counties, particularly in the city of Nappanee.

 

The letter outlines the effects of the tornado that ripped through this area of the state, causing severe damage to homes and businesses.  

 

The governor is seeking assistance that would qualify residents for individual and disaster assistance. Specifically, he has requested the implementation of Individual Assistance Programs, which include disaster housing, disaster unemployment assistance, crisis counseling, and individual and household programs, as well as hazard mitigation and Small Business Administration disaster loans.

 

Read the governor's letter to President Bush.                 Read the news release.

 

Gov. Daniels also sent a letter this week to the Federal Emergency Management Agency (FEMA) appealing a decision to deny federal assistance for Hoosiers in Northern Indiana who suffered storm damage and flooding as the result of severe weather from July 26 through August 27.

 

On September 14, the governor sent a letter to President George W. Bush to request federal assistance for Hoosiers affected by this severe storm damage and flash flooding that occurred primarily in the Lake County area. The state received notification in early October that the request was not approved.

 

Read the governor's letter to President Bush.                 Read the news release.

 

 

Governor's schedule for November 6-7

NOTE: All times are local.

 

Tuesday, November 6

-    Governor Daniels will speak to and take questions from juniors and seniors at Crown Point High School. The governor will discuss the "brain drain" issue and what the state is doing to keep students in Indiana to pursue careers once they have completed their education.

1 p.m.

Crown Point High School

1500 South Main Street

Crown Point

 

Wednesday, November 7

-    Governor Daniels will address members of the Lakeshore Chamber of Commerce during their breakfast meeting.

7:30 a.m.

Horseshoe Casino Ballroom

777 Casino Center Drive

Hammond

 

-    Governor Daniels will honor Dr. Philip E. Nelson, former head of the food science department at Purdue University. Dr. Nelson recently received the prestigious 2007 World Food Prize for his breakthrough research and technology discoveries that have transformed the vegetable and fruit packaging industry. The governor will make a special announcement about the creation of a new state prize.

1:30 p.m.

Governor's Residence

4750 North Meridian Street

Indianapolis

 

 

IN THE NEWS

 

There are fans of 'the Man's' plan

Martinsville Reporter Times

Oct. 29, 2007

 

By Morton Marcus

 

This is why I like Mitch Daniels. Speaking about his property tax program he said, "When Indiana acts this time, and act we must, our steps must be fair, far-reaching, and final," Look at that alliteration .. "fair, far-reaching, and final." Who else in public life gives us sentences like that?

 

Look at his idealism: "fair, far-reaching, and final." Our state is known for its persistent lack of fairness, its short-sighted special interest legislation, and its never-ending tinkering. Mitch thinks he can overcome this history.

 

The Governor's property tax program is an efficient political statement that apportions goodies to everyone. Homeowners are given the most favored treatment because they constitute a majority of voters. As the Governor puts it: "There's something special about homeownership and we want to protect it and promote it,"

 

For conservative Indiana this is a remarkable statement. Is it government's job to jab its big feet into our investment decisions? Should Indiana favor one form of private investment over another? Isn't that excessive government intrusion into our affairs?

 

Under the Governor's plan homeowners would see their property taxes capped at one percent of assessed value. The Daniels folks tell us that today "55% of homeowners pay property taxes in excess of 1% of their home's value." That's what I like; these folks consider the facts.

 

Yet, what makes one percent of assessed value 'fair'? Why is it fair for rental residential property to bear a two percent cap and commercial/industrial to suffer a three percent cap? If we are taxing property, why discriminate by use? Is the lawn of an owner-occupied property more precious to us than the lawn in front of a dentist's office?

 

To ensure that these inequities endure, the Governor seeks a Constitutional amendment to preserve the details of this proposal. Such changes would give legitimacy to the long-standing discriminatory violations of the Indiana Constitution passed by previous General Assemblies.

 

Some people who don't know the meaning of tax incidence assert they know businesses can pass on higher taxes to customers, but that homeowners are stuck with whatever higher taxes they pay. Believe me, no reputable economist will assert anything but ignorance about who bears the ultimate burden of a tax.

 

If sales taxes rise to cover lower property taxes, consumers will buy less and/or pay more for what they get. If they buy less, both the consumer and the retailer, her employees as well as his suppliers, will all be unhappy. But their unhappiness depends on how much they benefit from the lower property taxes.

 

How much less do you weigh when you take change out of your right pocket and put it in your left pocket? That's what is being proposed here: cut property taxes and raise both sales and personal income taxes. But wait, there is more:

 

The Governor's proposal (like proposals made by Democrats and Republicans for years) says we must cut local spending. Is our local public spending too high? Are our public schools too good for our children? Does the level of education over-qualify them for the future? Are our police and fire departments too well-equipped? Do we over spend on public health? Are our streets too clean and our sidewalks (if any) in decent condition?

 

How much local spending is mandated but not funded by the state? Yes, it's always easy to blame the locals, but then Indiana, for the past 40 years, has expressed contempt for local representative government. Mitch's proposals are fully within this tradition.

 

First, the Tax Board in each county, not directly elected by the people, is to sit as a super-governmental entity, empowered to review and approve or reject the spending programs of all government. This is not new. It's a question of emphasizing the word "all" and making sure that these boards have teeth. But why is their judgment superior to that of the elected representatives who propose the spending?

 

Second, the Governor wants to keep local spending increases from exceeding the six-year growth rate of personal income in a county, unless approved by the voters. This presumes that our needs are related to our collective income and its past growth. It runs the danger of government spending trailing needs because the public rarely sees beyond its collective noses. We elect officials to study needs and examine alternatives with an eye to the future. Referendums often are based transitory, even hysterical, swings of public opinion, not fact.

 

Similarly, the Governor wants "significant" capital expenditures approved by public referendum. Once again representative government is demoted and public ignorance is elevated. Remember the writings of the founding fathers in the Federalist Papers? Perhaps back then there was more concern about good government and less fuss about property taxes.

Jeffersonville Evening News & Tribune
750 jobs coming to Jeffersonville

By LARRY THOMAS


- Orlando, Fla.-based Connextions Inc. announced Monday that it will open a 750-employee call center early next year at the River Ridge Commerce Center in Jeffersonville.

Mike Tripp, the company's executive vice president of contact center operations, said the 105,000-square- foot facility will open with approximately 100 employees in January and that employment will expand to 750 by the end of 2008.

Gov. Mitch Daniels said Connextions' announcement represents a big boost in the development of the 6,000-acre River Ridge Commerce Center, which occupies about half of the former Indiana Army Ammunition Plant.

"This is the biggest of all of the steps, to date, for River Ridge and, frankly, for Clark County," said Daniels, who pointed out that Connextions' Jeffersonville facility will mark the fourth large call center to locate in Indiana in the past 30 months.

Daniels said the state has been involved in 49 successful economic development projects from Columbus to the Ohio River since he became governor.

Mayor Rob Waiz said Connextions' $6 million capital investment is "another sign of the real progress we are making."

One Southern Indiana Chairman Kerry Stemler said Thursday's announcement represents the single largest recruitment success in the 20 years Clark and Floyd counties have had combined, organized economic-development efforts.

"This, ladies and gentlemen, is economic development, and the bar has just been raised," said Stemler.

Tripp said once the facility is fully staffed, its annual payroll will range from $15 million to $20 million, or approximately $20,000 to $27,000 per job.

The call center will begin with shifts between 8 a.m. and 9 p.m., Tripp said, but there is "every probability that it will turn into a 24/7 operation before year's end."

Connextions is a third-party customer service provider for Fortune 100 companies. Most of its clients are in the insurance industry, but other clients range from FedEx to Mercedes-Benz.

The company will receive $3.3 million in performance-based tax credit and up to $450,000 in training grants from the Indiana Economic Development Corp. Connextions will also receive a property-tax abatement from Jeffersonville by virtue of its location in the city's Urban Enterprise Zone.

In Urban Enterprise Zones, tax abatements are granted automatically under state law. In such circumstances, all property taxes are abated for the entire 10-year period, but companies receiving the abatements must pay 49 percent of what they would have paid in taxes to the sponsoring Urban Enterprise Zone.

Conventional tax abatements must be approved by the local government's fiscal body - either a city or town council in incorporated areas or a county council in unincorporated areas - and the 10-year abatements are phased out at a rate of 10 percent per year.

The River Ridge building was constructed on a speculative basis by Floyds Knobs-based AML Inc. and was developed in partnership with Louisville's Capstone Realty. Both companies are involved with other properties at the 6,000-acre industrial park.

 

750 jobs coming to Jeffersonville

Jeffersonville Evening News

November 2, 2007

 

By Larry Thomas

 

Orlando, Fla.-based Connextions Inc. announced Monday that it will open a 750-employee call center early next year at the River Ridge Commerce Center in Jeffersonville.

 

Mike Tripp, the company's executive vice president of contact center operations, said the 105,000-square- foot facility will open with approximately 100 employees in January and that employment will expand to 750 by the end of 2008.

 

Gov. Mitch Daniels said Connextions' announcement represents a big boost in the development of the 6,000-acre River Ridge Commerce Center, which occupies about half of the former Indiana Army Ammunition Plant.

 

"This is the biggest of all of the steps, to date, for River Ridge and, frankly, for Clark County," said Daniels, who pointed out that Connextions' Jeffersonville facility will mark the fourth large call center to locate in Indiana in the past 30 months.

 

Daniels said the state has been involved in 49 successful economic development projects from Columbus to the Ohio River since he became governor.

 

Mayor Rob Waiz said Connextions' $6 million capital investment is "another sign of the real progress we are making."

 

One Southern Indiana Chairman Kerry Stemler said Thursday's announcement represents the single largest recruitment success in the 20 years Clark and Floyd counties have had combined, organized economic-development efforts.

 

"This, ladies and gentlemen, is economic development, and the bar has just been raised," said Stemler.

 

Tripp said once the facility is fully staffed, its annual payroll will range from $15 million to $20 million, or approximately $20,000 to $27,000 per job.

 

The call center will begin with shifts between 8 a.m. and 9 p.m., Tripp said, but there is "every probability that it will turn into a 24/7 operation before year's end."

 

Connextions is a third-party customer service provider for Fortune 100 companies. Most of its clients are in the insurance industry, but other clients range from FedEx to Mercedes-Benz.

Sponsors

Richard Brown Insurance