Latest news with #IndianaEconomicDevelopmentCorp.
Yahoo
15-05-2025
- Business
- Yahoo
Braun signs contract for an IEDC audit costing taxpayers up to $800,000. Here's why
The state of Indiana could pay up to $800,000 on a forensic audit initiated by Gov. Mike Braun of the Indiana Economic Development Corp. and its affiliate entities. The state-funded entity has been increasingly maligned by Republicans for its lack of transparency, culminating in Braun announcing that he wants to investigate the quasi-governmental entity for possible impropriety. The IEDC has been by funded by taxpayers since its 2005 founding under Gov. Mitch Daniels' administration but has faced criticism over the years for its sometimes-opaque practices. Braun's administration has already frozen the funds of IEDC affiliate Elevate Ventures, a nonprofit investment entity that's doled out nearly $200 million to Indiana startups, while the audit takes place. He also earlier this year signed an executive order that will result in increased financial transparency over entities like the related Indiana Economic Development Foundation, which has funded international travel for past governors. Braun's Secretary of Commerce David Adams signed a one-year contract earlier this week with Washington, D.C.-based firm FTI Consulting Inc. The firm will be paid an hourly rate of $595 for its work up to $800,000, unless the contract is eventually renewed. The firm will provide "forensic review and support services" for the state, according to a letter from the firm, which has locations worldwide including an office on the north side of Indianapolis near Carmel. Braun previously has stopped short of accusing anyone specifically of wrongdoing, but has said "transparency is essential." A Hannah News Service story published in April raised several issues, including IEDC's alleged struggles to get financial and investment data from the Elevate Ventures affiliate. "We are not rushing to any conclusions," Braun said on April 24. "We want to make sure things are reviewed independently." Elevate Ventures' CEO Toph Day, meanwhile, has defended the organization and has said it is "eager to participate in the forensic audit." Contact senior government accountability reporter Hayleigh Colombo at hcolombo@ Sign up for our free weekly politics newsletter, Checks & Balances, by IndyStar political and government reporters. This article originally appeared on Indianapolis Star: Braun signs contract for IEDC audit costing taxpayers up to $800,000
Yahoo
15-05-2025
- Business
- Yahoo
Braun signs contract for an IEDC audit costing taxpayers up to $800,000. Here's why
The state of Indiana could pay up to $800,000 on a forensic audit initiated by Gov. Mike Braun of the Indiana Economic Development Corp. and its affiliate entities. The state-funded entity has been increasingly maligned by Republicans for its lack of transparency, culminating in Braun announcing that he wants to investigate the quasi-governmental entity for possible impropriety. The IEDC has been by funded by taxpayers since its 2005 founding under Gov. Mitch Daniels' administration but has faced criticism over the years for its sometimes-opaque practices. Braun's administration has already frozen the funds of IEDC affiliate Elevate Ventures, a nonprofit investment entity that's doled out nearly $200 million to Indiana startups, while the audit takes place. He also earlier this year signed an executive order that will result in increased financial transparency over entities like the related Indiana Economic Development Foundation, which has funded international travel for past governors. Braun's Secretary of Commerce David Adams signed a one-year contract earlier this week with Washington, D.C.-based firm FTI Consulting Inc. The firm will be paid an hourly rate of $595 for its work up to $800,000, unless the contract is eventually renewed. The firm will provide "forensic review and support services" for the state, according to a letter from the firm, which has locations worldwide including an office on the north side of Indianapolis near Carmel. Braun previously has stopped short of accusing anyone specifically of wrongdoing, but has said "transparency is essential." A Hannah News Service story published in April raised several issues, including IEDC's alleged struggles to get financial and investment data from the Elevate Ventures affiliate. "We are not rushing to any conclusions," Braun said on April 24. "We want to make sure things are reviewed independently." Elevate Ventures' CEO Toph Day, meanwhile, has defended the organization and has said it is "eager to participate in the forensic audit." Contact senior government accountability reporter Hayleigh Colombo at hcolombo@ Sign up for our free weekly politics newsletter, Checks & Balances, by IndyStar political and government reporters. This article originally appeared on Indianapolis Star: Braun signs contract for IEDC audit costing taxpayers up to $800,000
Indianapolis Star
15-05-2025
- Business
- Indianapolis Star
Braun signs contract for an IEDC audit costing taxpayers up to $800,000. Here's why
The state of Indiana could pay up to $800,000 on a forensic audit initiated by Gov. Mike Braun of the Indiana Economic Development Corp. and its affiliate entities. The state-funded entity has been increasingly maligned by Republicans for its lack of transparency, culminating in Braun announcing that he wants to investigate the quasi-governmental entity for possible impropriety. The IEDC has been by funded by taxpayers since its 2005 founding under Gov. Mitch Daniels' administration but has faced criticism over the years for its sometimes-opaque practices. Braun's administration has already frozen the funds of IEDC affiliate Elevate Ventures, a nonprofit investment entity that's doled out nearly $200 million to Indiana startups, while the audit takes place. He also earlier this year signed an executive order that will result in increased financial transparency over entities like the related Indiana Economic Development Foundation, which has funded international travel for past governors. Braun's Secretary of Commerce David Adams signed a one-year contract earlier this week with Washington, D.C.-based firm FTI Consulting Inc. The firm will be paid an hourly rate of $595 for its work up to $800,000, unless the contract is eventually renewed. The firm will provide "forensic review and support services" for the state, according to a letter from the firm, which has locations worldwide including an office on the north side of Indianapolis near Carmel. Braun previously has stopped short of accusing anyone specifically of wrongdoing, but has said "transparency is essential." A Hannah News Service story published in April raised several issues, including IEDC's alleged struggles to get financial and investment data from the Elevate Ventures affiliate. "We are not rushing to any conclusions," Braun said on April 24. "We want to make sure things are reviewed independently." Elevate Ventures' CEO Toph Day, meanwhile, has defended the organization and has said it is "eager to participate in the forensic audit."
Yahoo
26-04-2025
- Politics
- Yahoo
Ken de la Bastide column: How will legislation impact Hoosiers?
Now that the Indiana Legislature has concluded the 2025 session, it will be interesting to see how their actions will impact Hoosiers. One bill that will have long-range implications enables school board candidates to declare a political party. Heretofore, school board elections have always been non-partisan in Indiana. It certainly appears that the Republican Party majority at the legislature is attempting to give school board candidates that declare the GOP label an advantage. In the past, voters would have to research the political leanings of school board candidates. Now a voter can just cast a ballot based on the political party declared by school board candidates. Will this take some interest away from school issues? Also, will it affect potential funding for school systems, sending more money to schools with boards controlled by the party in power at the Statehouse? It's similar to legislation that was proposed by local lawmaker Sen. Mike Gaskill to move municipal elections to the same year as elections for state and federal offices. Gaskill's proposal was assigned to a study committee that will make a recommendation to lawmakers in 2026. If the change is eventually adopted, it will take the focus away from local issues in municipal elections, instead encouraging voters to cast ballots based on state and national concerns. Lawmakers were also informed that Indiana is expecting to see a decrease of $2.4 billion in state revenues over the next few years. The two-year budget passed for 2026-27 is $45 billion, with funding reductions in several areas, including the Indiana Economic Development Corp. and local health departments. Spending for public health was cut from $100 million annually to $40 million. Lawmakers also approved a $2 increase in the state's cigarette tax to $2.99 per pack starting July 1. The anticipated $800 million in additional revenue will be used to help cover the state's Medicaid costs. I suspect many people will consider kicking the smoking habit when a pack of cigarettes will cost close to $12. At least for a brief time, cigarette companies will probably offer discounts on the price in an effort to keep people purchasing their products. The good news from the General Assembly is that lawmakers defeated an effort to criminalize homelessness by making it illegal to camp on public grounds. Although the intention of the bill was to help the homeless get needed services, the reality is that it would not have been effective. Over the next weeks and months, local residents will learn of the impact new legislation will have on county and city government operations.
Axios
24-04-2025
- Business
- Axios
Cigarette tax, higher ed cuts help cover $2B shortfall
Republicans are making up Indiana's $2 billion budget shortfall by raising the cigarette tax and cutting spending on public health and higher education. The big picture: Statehouse leaders managed to protect K-12 education spending, preserving planned 2% annual increases for public schools in the $46 million biennial budget. They also found the cash to move forward with the expansion of the state's private school voucher program to all Hoosier families, regardless of income — though that move won't happen until the 2026-27 school year. Catch up quick: Lawmakers learned last week they'd need to cut a staggering $2 billion from their two-year spending plan — or find a way to close the gap with additional revenue. An updated revenue forecast showed they'd have just $170 million in new dollars to spend in 2026 and $30 million in 2027. That's not much, considering the state spends around $22 billion annually and its Medicaid expenses are projected to grow by more than $400 million in the first year and another $375 million in the second. Between the lines: Gov. Mike Braun has tried to blame the poor forecast on former President Biden's policies but fiscal analysts who presented the outlook last week placed much of the blame on slower than expected growth in jobs and wages since the previous forecast in December, stock market declines and the effects of federal policies around tariffs, immigration and spending cuts. By the numbers: Raising the cigarette tax by $2 per pack and the tax on other tobacco products by a proportional amount will generate approximately $800 million over the biennium and go toward the cost of Medicaid. Public colleges and universities are taking a big hit. Their general appropriation is getting cut by 5%, as is the funding they use to maintain their buildings. Public health funding, which was at $150 million this year, will be slashed to $40 million each of the next two years. The move to universal vouchers will cost an extra $94 million. The intrigue: Legislators are using the budget shortfall to take aim at the Indiana Economic Development Corp., which has come under fire this week following a report from Hannah News Service that questioned the state agency's relationship with its venture capital firm. Leadership said IEDC's budget is getting cut by at least 25%. Friction point: Republicans won't pause planned income tax reductions, something Democrats said would have generated an extra $272 million over the two years of the budget. "That's a commitment we wanted to make to Hoosiers," said House Speaker Todd Huston. The other side: While Democrats applauded the increase in the cigarette tax — something their caucus had called on for years — they criticized cuts to public health spending and the lack of transparency in how the last-minute budget deal was written. Caucus leaders said they weren't consulted in budget writing or given an advanced copy before Republican leaders and Braun held a press conference Wednesday. What's next: The Indiana General Assembly is expected to wrap up the 2025 legislative session Thursday evening, with a final vote on the budget.
