Latest news with #MichaelHicks
Forbes
07-05-2025
- Business
- Forbes
Escaping The AI Groundhog Day Loop
Michael Hicks is Senior Vice President and Chief Information Officer at Jackson. getty After the past two years of binging on the elixir of AI, I was lured into thinking a sense of normalcy had finally returned when the inevitable shiny objects emerged. Innovations like Deepseek AI, which is challenging conventions around cost and performance, and creations such as OpenAI Operator, which is taking the idea of agentic AI from concept to reality, are now peppering the leadership agenda with new questions and new expectations. When these disruptions pass, it is now certain that new ones will fill the void left behind, resulting in yet another vicious cycle. Sounds a little like the film Groundhog Day, doesn't it? In this iconic film, Bill Murray's character, Phil Connors, relives the same day over and over again with much hilarity. However, when you dig a little bit deeper into the nuances of Connors' experience, there are some lessons he learned that can benefit a company's AI journey, including becoming good at something, being present and reassessing your goals. Become Good At Something In Groundhog Day, Connors appears to relive the same day hundreds of times over; however, throughout the course of the film, Connors learns to speak French and becomes an expert at ice sculpting and a virtuoso pianist. Based on this article, to master all those skills, it would have actually taken him nearly 34 years! So, what does this have to do with how a company can best manage through AI disruption? According to an article in Time Magazine, experts in the laws of scaling predict a 50% probability that AI will be able to perform any human task by 2047. While Connors had 34 years to learn new skills that allowed him to redefine himself to become a better person, companies may have just 22 years to become good at using AI to transform significant aspects of their business before AI becomes intelligent enough to do it for them! To succeed, companies need to exhibit the same discipline Connors displayed. We have a fundamental choice of either being consumed by continuous AI disruption or becoming focused on solving key business challenges using a test-and-learn approach to AI adoption. When looking back on previous generations of technology disruption such as the internet, smartphones and cloud computing, the ultimate winners were those companies that mastered the technology to become good at something that differentiated them from their competition. Be Present Early on in Groundhog Day, Connors doesn't know what to do with his predicament, so he uses his knowledge of what will occur each day to take advantage of those around him. He isn't mentally or emotionally present and instead goes through the motions knowing he will get a do-over the next day. It isn't until Connors realizes he must learn to be present to improve the lives of those around him and find a meaningful existence. This is why he held himself accountable to be disciplined enough to learn new skills, which allowed him to become a better person and ultimately escape his Groundhog Day purgatory. The relationship of being present to how a company approaches its AI journey includes having the epiphany that approaching AI through a technology lens will only result in an unfulfilling outcome. Companies must realize that AI is a means to an end to improving customer and employee experiences and achieving amazing business outcomes. Those who place their mission and strategy ahead of chasing continual advances in AI technology and learn to use AI to deliver business value will avoid being trapped in the purgatory of constantly feeling they are lagging behind their competitors' use of AI. Reassess Your Goals Through his journey of reliving the same day repeatedly, Connors reassesses his personal goals and learns to become a better person by being empathetic and using servant leadership to benefit those around him. He transitions from being selfish to being mindful and placing the importance of others before his own priorities. Connors redefines his mission, which results in a personal transformation to ultimately escape the torment of a never-ending Groundhog Day. Given the tremendous speed of AI advancements and the self-imposed pressure companies create to showcase their use of AI to deliver business value, it is inevitable that many will place the value of AI over creating value for the customers they serve. Those who reassess their goals in the same way Connors did and use AI as a means to achieving a mission of delivering customer and, ultimately, business value will benefit most from the incredible promise that AI provides. Are You Ready To Break The AI Groundhog Day Cycle? The power of AI is now more obvious than ever. However, without first thinking about how AI can enable extraordinary outcomes through becoming good at something, being present and reassessing goals, many companies will unintentionally find themselves in an AI purgatory of their own making. Using history as our teacher, technological innovations, such as the internet, smartphones and cloud computing, have resulted in transformative eras and the passing of the baton from a Kodak to an Apple, from a Sears to an Amazon and from a Blockbuster to a Netflix. If your company is going to survive and thrive in the AI era and become an Apple, Amazon or Netflix in your own industry, you must ensure your mission and customers are your top priorities. Only then will you be able to exploit the potential of AI to transform your business. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Indianapolis Star
29-04-2025
- Business
- Indianapolis Star
SB 1 cut property taxes. But will local governments hike income taxes? How much you could pay
AI-assisted summary Indiana's SEA 1 will provide property tax relief to homeowners and businesses, with businesses receiving the largest cuts. Local governments can offset property tax revenue by increasing income taxes. That could mean some families pay over $1,000 more per year on income taxes. Cities across Indiana are evaluating the impact of SB 1 and considering measures like hiring freezes and delays to infrastructure projects. In northern Indiana, the Democratic mayor of South Bend called Senate Bill 1 a " sweeping anti-growth policy" that sabotages local governments. In southern Indiana, the Republican mayor of Jeffersonville responded with cost-cutting measures including a hiring freeze on all but "essential and critical" roles and tighter restrictions on overtime and work-related travel. And in Central Indiana, Noblesville's Republican mayor is contemplating new income taxes and delays to major infrastructure projects as he expects his city to miss out on tens of millions in property tax revenue over the next few years. Much remains unclear as municipal leaders reckon with how much property tax revenue they stand to miss out on from the 345-page SB 1, an overhaul of local government finance signed into law by Indiana Gov. Mike Braun April 15. Tax revenues will still increase as property values keep rising, but by far less than local leaders had expected under the current system. With lost revenues statewide at an estimated $1.4 billion from 2026 to 2028, local leaders say that years of belt-tightening will entail tough decisions about how to maintain crucial services like road maintenance, public education and emergency response systems. Multiple experts say they expect most communities to increase income taxes come 2027, which could completely offset the property tax savings for the typical Indiana homeowner and wring out more money with no relief from the nearly 30% of Hoosiers who rent. Many communities could tax a Hoosier family with an income near the median $80,000 over $1,000 more per year, according to Michael Hicks, a Ball State University economist who leads the university's Center for Business and Economic Research. "The income tax increases are delayed a year, so we will have a year of tax cuts and service cuts before we start seeing schools, counties and cities scrambling to plug budget holes," Hicks told IndyStar. The tax cuts, he added, "take an awful lot out of local government and expose an awful lot of taxpayers to potentially paying a much higher income tax." How the new law helps homeowners, businesses The new law will save most homeowners some money, mainly through tax credits of 10% on their property tax bill, with a $300 max credit. Wealthier homeowners will receive the full $300 while most homeowners whose assessed value falls below $300,000 will save less, aside from added relief for seniors, veterans and people with disabilities. Republicans say they expect two-thirds of homeowners to pay a lower property tax bill in 2026 than they will this year. Businesses will receive the most tax relief as the minimum threshold for filing taxes on business equipment, such as computers and machinery, rises from $80,000 to $2 million by 2027, meaning most Indiana businesses won't pay any property tax, according to Hicks. Cuts to taxes on depreciating business equipment bought after Jan. 1 will also drain money from local coffers over the next decade, Hicks said. Crucially, the bill allows cities and towns to make up for lost revenue by imposing income taxes, which are currently applied at the county level. Most homeowners are likely to see their property tax savings offset by higher income taxes levied by local governments desperate to shore up their budgets, multiple public policy experts told IndyStar. The governor and Republican legislators tout that the law will reduce the local income tax cap in each county from 3.75% to 2.9%. Because most counties already impose a rate well below 2.9%, however, the new law is still likely to increase the income tax that most people pay, said Paul Helmke, a former three-term Republican mayor of Fort Wayne who now teaches public policy at Indiana University. Under the current system in which local governments rely heavily on property taxes, only seven of the state's 92 counties have local income tax rates over 2.8%. Marion County's levy, for instance, is 2.02%, while Hamilton County's rate is 1.1%. Dwindling property tax revenues will strain local leaders' ability to deliver high-quality services like a robust police department or well-maintained parks without somehow scraping together more revenue, Helmke said. It's possible that local governments won't take the political risk of setting tax rates near the 2.9% cap, Helmke said, but the corresponding quality-of-life reductions could prove even more unpopular. "For the elected officials, the challenge is going to be how to provide first-class services that people expect with these property tax changes," Helmke said. "For the city and the county, I think it means you're going to have to hike the income tax." If local units in Hamilton County were to increase income taxes to the maximum rate, that would mean someone with a median county household income of just under $118,000 could pay an additional $1,800 in income taxes per year. Even just bumping the rate up to 1.4% — well beneath the limit allowed under law — would offset the max savings from the property tax credit. "Since the (SB 1) tax cuts are the broadest and largest business tax cuts in state history," Hicks said, "most local governments will need to maximize most of that income tax." Justin Ross, an IU economist specializing in state and local tax policy, said he would be surprised if most local governments don't tax near the maximum 2.9% rate in the next couple of years. Otherwise, they sacrifice amenities like ample parks, strong schools and robust police and fire departments that give cities and towns the edge in the competition for new residents. "Local governments, for good or for bad, are the closest to being like a business," Ross said. "Their property taxes are largely tied to their ability to make the place a desirable place to be." Republican legislators aim to increase transparency by requiring local governments, starting in 2031, to vote annually on the income tax rates. Tax levies will no longer continue indefinitely but will be discussed and voted on during standalone public hearings. "If local units of government choose to raise other taxes, like a local income tax," State Sen. Chris Garten, R-Charlestown, said in a statement, "those units will have to justify to their taxpayers why they need more hard-earned taxpayer money instead of first looking to make their operations more efficient." How local governments are reacting so far A consequence of local governments' shift from depending less on property taxes and more on income taxes will be greater difficulty forecasting revenues and planning long-term capital improvements, Accelerate Indiana Municipalities CEO Matt Greller told IndyStar. "Property tax is very stable. You know what you're going to get for the most part. Every year, it doesn't fluctuate a whole lot," Greller said. "Income taxes can fluctuate a lot more." Under the new property tax law, Marion County is forecast to miss out on roughly $77 million in property taxes from 2026 to 2028 while Hamilton County forgoes $133 million, according to a state fiscal report. In Marion County and statewide, schools are poised to face the largest losses. In 2024, nearly half of the roughly $1.6 billion in property taxes collected in Marion County went to schools. The consolidated city-county government of Indianapolis and Marion County received a third of the taxes, about $513 million, that year. Smaller disbursements went to township trustees' offices, libraries, hospitals and public transit. Many local officials told IndyStar that the complexity of Indiana's property tax system means the looming changes are uncertain and require further analysis. But as towns and cities begin forming their 2026 budgets this summer, officials will act in anticipation of the millions of tax dollars they expect to miss out on in the coming years. "The way we fund local government is shifting pretty significantly," Greller said, "and there's going to be a whole lot of nuances in order to figure out what it looks like now." Officials with the Indianapolis mayor's office and the Marion County assessor's office declined interviews on how the bill may reduce services in the state's largest city. The same was true of leaders in Carmel and Westfield. All said they are still analyzing how the bill will affect their cities. Noblesville Mayor Chris Jensen said extensive internal analyses show his city could receive about $36.5 million less than projected over the next four years. Those numbers far exceed Legislative Services Agency estimates — about $21 million for the city and school system combined — because the city is taking more factors into account than merely the tax credits, Jensen said. With healthy cash reserves, the city is likely to manage the losses by pulling back on plans to boost its already "very lean" staffing levels, Jensen said. The lost revenue will also probably delay some of the 284 capital projects in Noblesville's 10-year plan. The mayor wasn't specific on which projects could be delayed, but Noblesville lists a number of road projects, such as improvements to State Road 37 and 38, as under design on its website. "Even though we won't probably see the fiscal impact for another eight or so months until we get to 2026," Jensen said, "we'll certainly be budgeting based on those fiscal impacts here in the next 90 days." Deb Whitfield, the Democratic mayor of Lawrence, said the law may benefit homeowners but places intense strain on local governments. Lawrence city government could lose more than $1.2 million from 2026-2028, while the Lawrence school district stands to miss out on nearly $2.7 million. Starting this budget season, Whitfield said, she's intent on figuring out how to maintain high-quality public safety, schools and libraries with less money. Whitfield said that for her and her fellow mayors, there are "going to be a lot of sleepless nights coming."
Yahoo
03-03-2025
- Politics
- Yahoo
Indiana Republicans prioritize Illinois voters over Hoosiers
Indiana families are working harder than ever, yet wages remain stagnant. Our health care remains amongst the most dire in the country. Affordable housing is increasingly out of reach for working Hoosiers. These are the challenges that should be front and center for our state legislature. Instead, Indiana's Statehouse Republicans have spent a better part of this legislative session focused on the people of Illinois. You read that right. Instead of addressing the needs of Hoosiers, Republican leaders are pushing an unprecedented effort to redraw state borders and annex Illinois counties that voted to secede. This isn't a joke — it's a real legislative priority for them. And it does absolutely nothing to help struggling families in our state. Hicks: Why are we lowering Indiana's one really low tax? Adding to the absurdity, this entire effort is being justified by a ballot initiative in Illinois — where voters got a say in their own future. Yet, in Indiana, Statehouse Republicans refuse to give Hoosiers that same power. Our state is one of the few where citizens can't put issues on the ballot, no matter how much public support they have. Instead of working to give Hoosiers a real voice in their government, Indiana Republicans are bending over backwards to listen to the needs of Illinois voters. Where is that same urgency for the Hoosiers who are struggling to get by? Where is the commitment to ensuring our own residents feel represented, heard and supported? While Republicans are standing up for Illinois, they are abandoning Hoosiers. They are cutting investments in public health, driving up costs for everyone. They are gutting bills to regulate medical preauthorization safeguards, meaning Hoosier health care will continue to be delayed or denied. They are waging a full-scale attack on public schools, paving the way for complete privatization at the expense of students, teachers and families. This is not about economic development or improving Indiana's quality of life. It's about consolidating political power. Indiana's Statehouse Republicans have already gerrymandered our state beyond recognition — rigging maps to keep themselves in control year after year. Now, they are reaching beyond our borders, cherry-picking voters in a does-nothing-for-Hoosiers political land grab. Meanwhile, actual Hoosiers — Republicans, Democrats and Independents alike — are ignored and left behind. And make no mistake — Hoosier taxpayers will foot the bill. A recent analysis from Ball State economist Michael Hicks found that if these Illinois counties were their own state, they would be the second-poorest in the nation. The residents that Indiana Republicans want to absorb currently pay less than $3,000 in taxes per year while requiring over $5,000 in government support. If this annexation were to happen, Indiana's per capita income ranking would immediately drop three spots nationally and Hoosiers would be forced to pay an additional $2 billion in taxes to subsidize the costs. That's right — while hardworking Hoosiers struggle to make ends meet, Indiana Statehouse Republicans are proposing a plan that would increase taxes on Indiana families to bankroll services for residents of another state. Hicks: Free Indianapolis from state laws and watch it grow This isn't about party politics. Every Hoosier, no matter their political beliefs, should expect their state government to focus on real issues — jobs, schools and health care — not partisan gimmicks that drain resources and shift attention away from what truly matters. At a time when families across Indiana need real leadership, Indiana Statehouse Republicans have chosen to spend their time on an ill-conceived power grab. This has nothing to do with improving lives. It has everything to do with maintaining control. Hoosiers — regardless of political party — deserve a government that works for them. They deserve leaders who will put aside political games and focus on what truly matters — good jobs, affordable health care and strong public schools, not those who continue to pursue this legislative malpractice. This is not about Democrats versus Republicans. It's about making sure Indiana families can thrive. We urge our colleagues on the other side of the aisle to join us in setting aside distractions and working together on real bipartisan solutions that will improve the lives of all Hoosiers. Because at the end of the day, we are not just representatives of a party — we are representatives of the people. Hoosiers are counting on us to get this right. Let's focus on them. State Sen. Shelli Yoder, D-Bloomington, is the Senate minority leader. This article originally appeared on Indianapolis Star: Illinois secession bill shows Indiana GOP ignores its voters | Opinion
