Elephant Race: Analyst Ranks ’16 GOP Candidates

AGreg Valliere of the Potomac Research Group recently ranked the likelihood of 10 Republican hopefuls for the 2016 candidacy for President. Business Insider offers a summary for each candidate, but here’s the list. (And you’ll notice our governor made the list — and some in the media speculate he has a much better shot than that.):

10. Mike Pence
9. Scott Walker
8. Rick Santorum
7. Paul Ryan
6. Chris Christie
5. Mitt Romney
4. Ted Cruz
3. Rand Paul
2. Marco Rubio
1. Jeb Bush

Tour Events in Lafayette, Southern Indiana Connect Education with Industry

20140625_TF_Subaru_Legacy_Associates-8The Indiana Chamber recently co-sponsored two industry tours that brought educators and employers together to find ways to align efforts and better meet the needs of students.

The first event was in Lafayette at Subaru of Indiana Automotive. Educators, counselors and administrators listened to representatives from Caterpillar, Nanshan America, Kirby Risk, Duke Energy and Chrysler Group. Each employer seemed to be facing the same issue – a significant portion of their employees will soon be eligible for retirement and the current talent pool cannot replenish their workforce.

The group toured the Subaru plant, where they saw nearly every process for building a vehicle. Subaru, like many manufacturers, hires employees of almost all educational backgrounds, from high school diploma to master’s degree.

The next industry tour was in the southwest region at NSA Crane, a United States Navy installation. The base is the third largest naval installation in the world by geographic area and employs approximately 3,300 people.

Representatives from GKN Sinter Metals, TASUS Corporation, Cook Group and Jasper Engines all spoke about their workforces. Overwhelmingly, employer needs center on soft skills (communication, basic math and professionalism) and workforce readiness.

Matt Weinzapfel of Jasper Engines reported that 48% of their workforce hold an associate’s degree and/or technical certification and 36% hold no post-secondary degree, while only 16% hold bachelor’s degrees.

The group toured the Crane naval base and learned about jobs in electronic warfare, strategic missions and special missions. The base also offers internships within the various sectors.

“All of these jobs sitting open can be filled if we break down the knowledge barriers and reach students,” said Dan Peterson, vice president industry & government affairs, Cook Group.

The Indiana Youth Institute hosted the events, with the Center for Education and Career Innovation and the Center of Excellence in Leadership of Learning also co-sponsoring.

I-69: Time to Take Full Advantage

cropped-another-i69-headerProgress on the construction of Interstate 69 from Evansville to Indianapolis continues to take place. Among the next steps is taking economic advantage of this expansion.

The I-69 Regional Summit…Driving Opportunity is a one-day event for businesses and organizations interested in tourism, defense, economic development, government, trade and logistics, commerce and education.

Hoosier Voices for I-69 and The Greater Bloomington Chamber of Commerce are serving as hosts. The Bloomington/Monroe County Convention Center is the location on October 21, with a pre-summit welcome reception on October 20 at Indiana University’s Stadium Club.

Indiana Lt. Gov. Sue Ellspermann will deliver an opening keynote. Also included are an I-69 congressional caucus panel, full corridor perspective from Canada to Mexico and economic development discussion. Breakout sessions include site selection perspectives, local planning, trade/logistics and public private partnerships.

Access full details and registration.

Performance Reviews: Why the Compliment Sandwich Isn’t So Delicious

16248269Hooray! It’s time for a performance review.

Chances are, your team won’t have this reaction. At many organizations, annual evaluations create anxiety among employees. But what about supervisors? Many of them are nervous, too – especially when they need to broach uncomfortable topics.

According to a World of Business Ideas story, one of the worst things bosses can do to soften the blow of criticism is to serve a “compliment sandwich.” Here’s an excerpt:

What is a Compliment Sandwich? Well, beyond being one of the worst management techniques ever invented, it’s a way of trying to give critical feedback to somebody without making them feel bad. Basically, you give somebody a compliment, then you layer in a criticism, then you complete the sandwich with another compliment.

Don’t make the common mistake of trying to squeeze a negative performance critique or correction between layers of positive reinforcement. Imagine you’re Frank and your boss has just called you in for a little feedback. “Frank, you’re a world-class programmer, the absolute best. You’re probably the smartest guy in the department. You’ve been pretty nasty during our weekly meetings and it’s causing some hurt feelings. But I’m saying all this because you’re just so darn talented. I really just want to see you flourish.”

If I’m Frank, I just heard: “I’m great. I’m smart. Waa waa waa. I’m great. I’m smart.” Frank heard some compliments, then the sliding trombone sound of Charlie Brown’s teacher, then some more compliments. But he certainly didn’t hear anything about his job being in jeopardy or even that his performance is anything other than great.

Interesting. This amusing video starring “Puppet Mike” and colleagues shows the compliment sandwich in action.

IFA, INDOT Address Transportation Committee About Toll Road, Future Plans

The Interim Committee on Roads and Transportation heard from both the Indiana Finance Authority (IFA) and the Indiana Department of Transportation (INDOT) on the Indiana Toll Road and current and future road infrastructure needs on Sept. 23. IFA Public Finance Director Kendra York and INDOT Commissioner Karl Browning testified.

York reviewed the status of several public-private partnership (P3) projects around the state, but most of the interest and questions concerned the pre-packaged Chapter 11 bankruptcy of the private operator of the Indiana Toll Road, ITR Concession Company, LLC (ITRCC) and its affiliates. ITRCC filed for bankruptcy on September 11.

York testified that the bankruptcy proceeding is expected to result in either the sale of all assets of ITRCC (including lease rights to the toll road) to a new entity or a restructuring of the existing debt. Under either scenario, the toll road will continue to be owned by the IFA on behalf of the state of Indiana. IFA will continue to have the rights it negotiated in the original lease agreement including the right to approve any new operator and that operator will be strictly held to the same operational standards set forth in the original lease agreement. There will be no change to the current toll rate structure under the lease agreement. Road operations will continue as usual during the bankruptcy process without impact to drivers, employees, vendors and the communities served by the road.

York said IFA will continue to monitor the bankruptcy and work with related parties to protect the public interest. In other words, any concerns about adverse effects of the bankruptcy proceeding on the toll road or the state of Indiana are misguided at best, misleading at worst.

Browning provided a broad overview of the state of Indiana’s roads and bridges during his testimony. When adjusted for inflation, INDOT is operating much more efficiently than in years past: Operating expenses in 2014 are approximately $74 million less than in 2005, but while INDOT is operating more efficiently, the state needs more revenues to address a growing need for maintenance of existing infrastructure, let alone expansion of the state’s highway network.

Within the next five years, all fuel excise tax revenues from the state’s highway fund will be required for maintenance of existing infrastructure; no funding will be available for expansion projects. Additionally, more than half of the state’s bridges are in the last 25 years of their useful life (50+ years or older) and will need significant reconstruction or remediation.

Both federal and state highway revenues are expected to remain flat or slightly decline due to a number of factors, including increased fuel efficiency standards and alternative-fuel vehicles. This will cause the state to have to look for creative ways to finance projects (such as P3s) or find new sources of revenue. INDOT is in the middle of a legislatively-mandated two-year study of needs and funding sources.

In short, while the state did well in the Major Moves era with strategic investments, it is facing increasing challenges to pay for future upgrades to its surface transportation network. New sources of revenue need to be found and the Indiana Chamber looks forward to the final analysis by INDOT in the two-year study.

Deja Vu for School Accountability

SIt’s only been a couple of years since the uproar over Indiana’s school accountability measures. To be sure, there were a lot of reasons for the pushback from educators and eventual legislation invalidating the current system. But one of the leading reasons was the decision to base “student growth” measures on comparisons of students to other students with similar starting points rather than measuring their progress toward the state’s academic standards.

But a year after legislative leaders, the Governor and the state superintendent convened a panel to construct a new accountability system, nothing has changed and the majority of the panel is set to recommend the same approach that is already in place – the same “growth” measure that has already been forbidden by the state Legislature.

How could this happen? Well, there are lots of factors.

Most importantly, the staff of the Department of Education and the Governor’s Center for Education and Career Innovation have simply worn out the panel. After 11 all-day meetings, committee members have been given none of the data that has been requested (and promised at the first meeting) to help develop alternatives; and the staffs have provided no outside experts other than people who developed Indiana’s current accountability model.

The staffs have also played games with terminology, suggesting most recently that they have accomplished the law’s focus on “criterion standards” because their peer-based growth measures create a new target performance level.

But the law doesn’t call for that. Rather, it is quite a bit simpler – as stated in the 2013 legislation:

“The new standards of assessing school performance: (1) must be based on a measurement of individual student academic performance and growth to proficiency; and (2) may not be based on a measurement of student performance or growth compared with peers.”

The final proposal must still be reviewed by the Legislature and approved by the State Board of Education. But if passed as currently drafted, it’s hard to imagine how a school that’s unhappy with its grade wouldn’t have solid standing for challenging it.

The state superintendent has been an outspoken opponent of school accountability, generally, and Indiana’s accountability system, specifically. But why the Governor’s staff would support this re-adoption of a failed and outlawed accountability system is baffling.

Numbers to Ponder

rThree totally unrelated, but intriguing, numbers courtesy of Governing magazine:

  • 33%: Americans with past-due debt that’s been turned over to a collection agency
  • 15%: Proportion of voting-age residents who cast ballots in the 25 states that held primaries in the first six months of this year. In 15 of those states, turnout was the lowest ever. (Indiana’s primary turnout was slightly below the 15% average)
  • 146: Number of U.S. counties that account for half of the country’s 316 million people. The rest of the population is distributed across the remaining 2,998 counties. Indiana’s largest and smallest counties, respectively, are Marion with 928,281 people (54th largest in the country) and Ohio with 5,994 people (ranked 2,758 nationally)

Time to Talk Area Code Changes

FIt must be a sign of advancing age that I fondly recall the days of three area codes that covered the state of Indiana. Today, that number is six with a seventh set to go into effect next month and public field hearings underway now on 317 area code relief.

Indiana had three telephone area codes (219 for the north, 317 for Central Indiana and 812 in the south) from the mid-1950s until the mid-1990s.

Today, the state has six area codes with a seventh to go into effect in October 2014.

Technology brought pagers, fax machines, wirelese phones and more. The Indiana Office of Utility Consumer Counselor says efforts to conserve existing number supplies and prolong the life spans of area codes have been successful, but the only way to provide new numbers in the long run has been to introduce new area codes.

The number of area codes throughout the United States, Canada and the Caribbean has more than doubled since 1995, with Indiana, 38 other states and eight of the 10 Canadian provinces adding new area codes.

The 317 area code was changed in 1996 with the addition of 765. Now, 317 is projected to run out of numbers in 2017. A hearing took place in Indianapolis last Friday. Four more are scheduled in Carmel (October 1), Franklin (October 14), Danville (October 29) and Greenfield (December 1).

An overlay method is being proposed. A similar procedure is being implemented in the current 812 area code with the new 930 coming into play yet this year.

Full details, including additional opportunities to submit comments.

John Green Talks About Authenticity at ExactTarget Connections Conference

Indianapolis resident John Green, most famous for authoring the best-selling book “The Fault in Our Stars” — and a series of notable Crash Course videos about history, among other things — gave the keynote address at ExactTarget’s popular Connections conference yesterday. Other speakers included TV writer/actress Mindy Kaling and rapper/seven-time Grammy winner Will.I.Am.

Retirement Plan Sponsors: Feeling Out of the Loop?

ProCoursePrince is with ProCourse Fiduciary Advisors, LLC, a registered investment advisor.

Seventy-three percent of human resources professionals said they have needed to become experts on health care and retirement to do their job effectively. When was the last time you were comfortable stating that you understood all of the rules and regulations your job title or position requires you to comply with?

With regard to regulatory matters, one thing is constant: change. As regulators are starting to more closely examine retirement plans, it is important for those individuals who are responsible for overseeing their company’s retirement plan to pursue continuous training and stay up-to-date with industry-related best practices. Fortunately, you do not have to go far to seek this training as the Indiana Chamber of Commerce is hosting, “Best Practices for Retirement Plan Fiduciaries,” which will help you:

  • Learn from the mistakes of others by reviewing recent court cases (with an emphasis on what they should have been doing)
  • Review current trends from the Internal Revenue Service and the Department of Labor and know what to be on the lookout for
  • Identify how you can perform a self-audit of your retirement plan and potentially uncover easy fixes that could otherwise lead to costly errors
  • Hear about what politicians and regulators are considering changing with respect to your role in administering your retirement plan

Our goal is to help retirement plan sponsors obtain a better grasp on their roles and responsibilities and determine areas where they can improve their efforts so to better protect themselves as a fiduciary and, in the end, provide a better retirement plan for their employees.