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Governor Daniels' Weekly Wrap-up: 11/20/07

Weekly Wrap-up

A look at news and events in the Daniels Administration

Volume 2, Issue 57

November 12-18, 2007

 

Medco to build world's largest, most advanced automated pharmacy in Central Indiana

 

Nov. 12, 2007 - Governor Mitch Daniels joined executives from Medco Health Solutions Inc. to announce the company's plans to build the world's largest and most advanced automated pharmacy in Central Indiana, filling a growing nationwide demand for lower-cost medicines.  The new 318,000-square-foot pharmacy, slated to open early in 2009, will cover an area equivalent to six and a half football fields - bringing approximately 1,300 jobs to the state by its anticipated peak operation in 2012.

 

Medco selected Central Indiana as the home of its new facility capping a year-long selection process that covered 48 states. Headquartered in Franklin Lakes, N.J, Medco will invest more than $140 million to develop a next-generation mail-order facility that will employ pharmacists, pharmacy technicians, engineering technology, pharmacy support and management positions to dispense more than one million prescriptions a week at peak operation.

 

"Central Indiana's skilled labor force was a key factor in confidently making a choice that will help us serve our clients and members nationwide with the highest quality pharmacy care at the lowest cost," said Kenneth O. Klepper, Medco President and Chief Operating Officer.

 

The state's business-friendly environment, modern transportation infrastructure, skilled labor pool and proximity to several schools of pharmacy including Butler University and Purdue University were other notable factors in the site selection process, Klepper added.

 

"In terms of economic impact, this is right there with Honda and the other big blockbusters Indiana has captured in recent years, but Medco's decision to come here is more than that. It's a huge leap in the diversification of the Indiana economy, widening the range of opportunity for our young people. Finally, Medco is the world leader in its field, and the Indiana we are building intends to be known for leadership," said Daniels.

 

Read the news release.

 

State prepared for winter heating season

 

Nov. 16, 2007- Due to early planning and generous contributions, the state is well-prepared to help Hoosiers who need financial assistance with winter fuel costs during the upcoming heating season, Governor Daniels announced.

 

"We've taken all the steps we can again this year to be ready to help Hoosiers. In addition, the state's largest utility companies will help people whose incomes are above 150 percent of poverty, much like the Help Thy Neighbor program has the last two years. We appreciate that," said the governor.

 

Daniels started the Help Thy Neighbor heating assistance program in 2005 to extend home heating assistance to households with incomes between 150 and 200 percent of the poverty level, covering households that typically are not eligible for traditional financial assistance. Since then, more than 30,000 families have been helped.

 

Read the news release.                       Listen to the governor's announcement.

 

Governor speaks at 2007 Indiana Rural Summit

 

Nov. 14, 2007- Governor Mitch Daniels and Lt. Governor Becky Skillman recently delivered remarks at the 2007 Indiana Rural Summit hosted by USDA Rural Development, the Indiana Office of Community and Rural Affairs (OCRA), and the Purdue Center for Regional Development.  Governor Daniels opened the summit by speaking about the accomplishments of Indiana's rural communities and the Daniels-Skillman Administration's commitment to furthering rural development.

 

"I don't have the slightest doubt that the state's agriculture industry is on its way back," said Governor Daniels. "We are doing everything we can to foster a great revival in rural Indiana." 

 

Read the news release.                       Listen to the governor's remarks.

 

Governor honors long-term businesses

 

Nov. 14, 2006- Governor Daniels presented the Governor's Century and Half Century Business Awards to 72 Indiana businesses to recognize them for their long-time commitment to the state's economy. The awards honor Indiana businesses that have remained in operation for 100 or 50 years and more and have demonstrated a history of community service.

 

Read the news release.

 

Insurer selects Indiana for new regional office

 

Nov. 16, 2007- Selective Insurance Group, Inc., a holding company for seven property and casualty insurance companies, announced that its principal operating subsidiary, Selective Insurance Company of America, is establishing a new Midwestern Regional office in Carmel, creating more than 40 new jobs.

 

The provider of commercial, personal, bond and flood insurance will continue to hire underwriters and industry professionals.

 

"Indiana is uniquely positioned to grow the insurance industry, which already provides the state with thousands of high-paying, skilled jobs," said Nathan Feltman, Secretary of Commerce and chief executive officer of the Indiana Economic Development Corporation.  "With our high-quality workforce, efficient regulation and low cost of doing business, we will continue to offer a uniquely competitive environment for the insurance industry.

 

Read the news release.

 

Company to consolidate technical products manufacturing in Fort Wayne

 

Nov. 15, 2007- Foamex International Inc. a leading manufacturer of flexible polyurethane and advanced polymer foam products, announced today it will consolidate its technical products manufacturing operations in Fort Wayne, creating 30 new jobs by 2010.

 

The company will invest more than $10 million to consolidate its Eddystone, Pa.-based technical products manufacturing operations into its existing Allen County facility during the first quarter of 2008.

 

"More and more companies are recognizing that Indiana is a great place to do business, and we're glad Foamex selected Indiana for this expansion," said Nathan Feltman, Secretary of Commerce and chief executive officer of the Indiana Economic Development Corporation.

 

Read the news release.

 

 

IN THE NEWS

 

Budding industry breathes life into local economy

Indianapolis Star

November 14, 2007

 

Our position: State's investment in life sciences is paying off on multiple levels.

 

Five years ago, state leaders' decision to invest heavily in the life-sciences sector of Indiana's economy was seen as more than a little risky.

 

Sure, Indiana was already home to Eli Lilly and Co., a major medical school and other assets that made life sciences a natural point for further development. But national and international competition was intense when it came to attracting life-sciences firms, and the high-paying jobs that go with them.

 

So Medco Health Solutions' announcement Monday that it will create 1,300 jobs in the Indianapolis metro area within five years should be seen as a victory on multiple levels.

 

The jobs, paying from $40,000 to $100,000 a year, are the type of family-sustaining positions that Indiana has struggled to attract and keep in recent years. Medco will inject $60 million in annual payroll into the regional economy. That doesn't take into account other investments Medco will make in the area or the likelihood that support companies will emerge to help with the distribution of more than 1 million prescriptions a week.

 

Medco's expansion here fits comfortably with Lilly's move toward "personalized medicines,'' which are designed to meet patients' individual needs. It also meshes well with local universities' efforts. Butler and Purdue produce about 300 graduates from their pharmacy schools each year. Ivy Tech offers programs that train distribution and technical workers.

 

The state's push to grow the life-sciences sector has been a classic public-private partnership. Govs. O'Bannon, Kernan and Daniels, along with the General Assembly, poured money and energy into attracting life-sciences companies. The nonprofit BioCrossroads has been invaluable in raising Indiana's profile in the industry. Key business and academic leaders also pushed the effort in Statehouse hallways and corporate boardrooms.

 

The payoff has been seen not just in Medco's move but also WellPoint's opening last month of its specialty pharmacy, which is expected to employ 900 workers in two years. Health care and pharmaceutical service company Arcadia Resources also relocated its corporate headquarters from suburban Detroit to Indianapolis last month. It's expected to add 400 jobs in three years.

 

Indiana's economy is still heavily dependent on traditional manufacturing. But diversity is building. Well-educated workers also are finding more jobs to either keep them in or attract them to the state.

 

Let's review the formula: Strategic investments from government and private partners; political, business and academic leaders working together to grow the economy; the development of talented workers in an emerging industry; and leaders' willingness to take a reasonable risk in pursuit of long-term gains. It's a prescription that's helping to heal Indiana's anemic economy.

 

Daniels: Attitudes toward education need to change in the state

Greene County Daily World

November 15, 2007

 

By Nick Schneider, Assistant Editor

 

WASHINGTON, IN -- Gov. Mitch Daniels says the state needs to re-think the way it looks at education.

 

Daniels said there is a cultural issue with education in Indiana and other states around the country that needs addressed in a bold and innovative way.

 

Education has got to become a priority among families and a new cultural view of the way the state educates children has got to be kindled, the governor said in a heart-to-heart chat with several area news reporters Tuesday in Washington.

 

"If you had a magic wand to change that, most of the rest of this wouldn't matter very much," he said. "We have to try and build a culture of families who will revere and support education and understand that a kid doesn't have a chance if they don't get a good high school education and probably something beyond. In the meantime we have to do something for the children who aren't fortunate enough to come from a home like that. That is what full-day kindergarten was about for me. That's why I want to get that job finished (in the next legislative session). We got halfway there, but that job remains to be finished," the governor stressed.

 

"I'm not thinking of bigger schools. Just the opposite. I'm thinking of smaller schools, more teachers and small class sizes through less overhead. Forty cents of every Hoosier school dollar does not reach the classroom through a generous definition of a classroom. These are questions we should be asking ourselves because we could do a whole lot better by the teachers and the students if we could avoid and get away from some of the duplication and the redundancy in the administrative ends of a lot of our schools."

 

The governor commented that he felt "a lot of overhead" was needlessly being spent in some places around the state like Greene County for the administration of five separate school districts in a county with a population of just over 32,000.

 

Daniels pointed to single, centralized school administration in much larger neighboring counties of Vigo and Bloomington Metropolitan School District in Monroe County as examples of where a more centralized approach is working and saving money.

 

Daniels explained. "There is just a lot of administration costs in a place where you have five school systems operating where you could have one."

 

The governor went on to say that the entire education "system" in this state fuels more administrative cost.

 

"I've got nothing against these folks (the administrators), but we've got a system that pushed it. I talk to a lot of teachers and one thing that really bothers me is we've got this system where people who love to teach at some point top out (on the salary scale) and if they want to make a little extra money for their family, what are they going to do? They've got to quit teaching and go be an administrator," Daniels said. "You are going to hear a lot more from me next year -- if there are more years -- about teacher quality. We've got to make some major changes in the way we prepare teachers in this state.

 

"There must be support for education at home in the community. The next variable that really matters is teacher quality. If you've got a great teacher and you may not have a beautiful building and the floor may not be carpeted, but the kids will learn. We've got work to do there too."

 

Daniels said he favors fostering and encouraging a school program that taps into the experience and abilities of elder mentors who are regarded as "non-traditional" teachers.

 

The governor said this might be a retiree from the military, vocational, an engineering field or business.

 

"Historically, it has been almost impossible for them to be involved in our schools. I think we need to lower the barriers down and take advantage of some of that intelligence and passion. Get them in there where they can help our young people. I have seen some great programs like that as I've traveled around the state, but we can do much better," he stressed.

 

Daniels struck a very serious and reflective tone when he talked about getting back to a cultural and social setting where family values are key and importance of education is stressed from a young age.

 

He explained that he was in a recent conversation with a church pastor who had visited young juvenile inmates at the Indiana Girls School in Indianapolis.

 

"One of the adults asked the girls 'who knows you are here, and what adult cares that you are in here? Does anyone have a Mom or Dad and aunt or an uncle?' These kids couldn't identify one adult who cared they were where they were. How can that be? It gets back to culture. If we can just make sure there is one caring adult in the life of young people who through no fault of their own don't have that," the governor said.

 

"Education of our children is so important. We have got to get better. If only we can foster more combined and centralized purchasing as well as cooperation we should at least do that. I hope the parents, the teachers and those concerned about getting the quality of education up will join and help us do it. We have got to run the schools for the benefit of the children and the future.

 

"If money alone would fix this problem, it would already be fixed. That's still not an excuse for 40 cents of every taxpayer's dollar winding up somewhere other than in the classroom."

 

Governor Daniels' Property Tax Plan: A Good Deal for Agriculture

 

By Andy Miller, Indiana Agriculture Director

 

Once again Governor Daniels and Lt. Governor Skillman have taken a positive step for agriculture. The Governor's Property Tax Plan is a good deal for agriculture. Why? Because Indiana farmers' total property tax bill, including their home, business and personal taxes, will likely drop on average by 7-10 percent. This is the case no matter the size of the farm. In fact, on average, more than 95 percent of farmers will see lower total property taxes after the Governor's plan is implemented than with the current system. And, future tax bills will be more predictable.

 

The Governor's plan is detailed, but there are three particularly important details for farmers. First, farmers own homes, and larger commercial farms often have several families with several homes. The 35 percent increase in the Homestead deduction will help them. Second, the state is buying back levies for several things, including school operations, school transportation and child welfare. This will reduce the property tax burden on all classes of property. Third, local spending will operate under much more stringent controls, with county spending capped at county income growth rates and all capital projects, like school buildings, requiring voter approval.

 

The change in the assessed value of farmland from $880 per acre to $1,140 per acre is unrelated to Governor Daniels' Property Tax Relief plan. The only things driving higher assessments are higher net farm income and higher agricultural land values.

 

In 2005, farmland was given a huge benefit when the state allowed the inclusion of farm income in the assessment equation. Under a court order in the mid 1990s, all property was required to move to a fair market assessment. Many wanted farmland assessed solely on the land value. But, with input from the farming community, Governor Daniels pushed to include farm income in the assessed value formula. That caused assessed values to drop by nearly two-thirds. So while today's average farmland would appraise at nearly $3,500 per acre under a fair market assessment, the assessed value is capped at $1,140. Farmland is the only area of business that operates under this type of assessment mechanism.

 

In addition, farmland owners got short-term relief on their 2006 and 2007 taxes when the state put a two-year cap at $880 per acre on the assessed value. That price was based on farm income from 1999 - 2002. In the last three years, higher farm income and higher land values have resulted in farmland assessments moving from $880 to $1,140. This move has nothing to do with the Governor's tax plan, and is built on the fair assessment mechanism that was widely supported in 2005. When farm income falls and land values stabilize, the formula will adjust to a lower per acre assessment.

 

Agriculture has more than its share of uncertainty. But one thing farmers can be sure of: They are getting a good deal with the Governor's property tax plan. For more information, including answers to some frequently asked questions and a chart of property tax benefits for farmers, please visit ISDA's Web site at www.in.gov/isda and look under "Features."

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