Chamber Releases New Study on Indiana Water Supply

A new study from the Indiana Chamber of Commerce Foundation warns that without planning and proper management, the state’s water supply – a longtime natural resource strength – could become a challenge for both businesses and citizens.

While Indiana is not facing the dramatic shortages of California or other states in the West and Southwest, its current economic advantage – plentiful water supplies – will dry up, according to Water and Economic Development in Indiana: Modernizing the State’s Approach to a Critical Resource.

“This is definitely a jobs and economic development issue,” says Indiana Chamber President and CEO Kevin Brinegar. “Our state’s economy is growing more diverse, but we always will make things. And it often takes large, reliable supplies of water to do so.

“We experienced a seasonal drought just two years ago and at previous times in our state’s history. The goal is to ensure those droughts and more prolonged shortages do not negatively impact our state in the future,” he explains.

The importance of this issue is underscored in the Indiana Chamber-led Indiana Vision 2025 economic development action plan, which lists the development and implementation of a state water strategy as one of its 33 goals. What’s more, a recent report out of Michigan found that Indiana is the most water-dependent state in the entire country as it pertains to its impact on the economy.

The Indiana Chamber study was commissioned in late 2013 and conducted over the first half of this year. It was led by Bloomington-based Jack Wittman, Ph.D., principal geoscientist with INTERA Incorporated; Wittman has frequently consulted with water providers throughout the state. A water advisory council, comprised of key water users and producers, provided insight and guidance through a series of regular meetings.

Among the findings:

• In Southern Indiana, local water resources are not always able to meet anticipated future needs. For example, there are few aquifers or perennial streams immediately south of Bloomington – a prime area for business development with the expansion of Interstate 69 and the continued work at the Crane Division of the Naval Surface Warfare Center.
• While water supplies in Central Indiana are diverse and utilities are making plans, continued population growth leads to projections of an additional 50 million gallons per day to meet the needs of the region by 2050.
• North of the Wabash River, water is relatively abundant. The area, however, is seeing significant increases in water usage for irrigation. These seasonal fluctuations require additional monitoring, in part to determine impact on other water users.

“Not only does water matter today,” according to Wittman, “but management of water will be even more essential in the future.”

Wittman says a separate study conducted earlier this year found that Indiana ranks first in the nation in the percentage of its economy that depends on water. He also notes various agencies (state, federal and local) and universities already do work in the areas of water management and analysis, but that one entity must be designated to lead the way. Among the specific recommendations:

• Creating widespread awareness about the need for water supply planning
• Coordinating current efforts, including the funding of additional water research
• More robust monitoring of water resources
• Standardized systems for data analysis and water resource management

“What this study does is set the stage for creation of a long-needed, long-range water plan for the state,” offers Vince Griffin, Indiana Chamber vice president of energy and environmental policy. “While a credible plan may take three to five years, legislators – from the Senate and House, as well as both parties – understand the importance of this issue and are prepared to lead on the next steps.”

Brinegar adds, “Additional financial investments will be needed to ensure a reliable water future. That’s why we commissioned this study now and why we encourage all involved to take these results and use them as a playbook for development of a long-range water plan.

“Indiana should be taking advantage of its current water supplies to help attract and retain businesses – and jobs. If we plan properly for the future, those resources will continue to be an economic advantage.”

Additional comments from four members of the water advisory council:

“The release of this study is a good first step in starting the important dialogue about water use in our state. Even though agriculture is a small user compared to other sectors, a stable and abundant water supply is crucial to growing the crops and livestock that feed Hoosier families. Indiana Farm Bureau looks forward to continuing our participation in this important project that will ensure an adequate water supply for all of Indiana.”
– Don Villwock, president of Indiana Farm Bureau

“This report, and the efforts of the (Indiana) Chamber’s Water Advisory Council, are a call to action for Indiana to prepare for meeting the broad range of water needs that form the foundation of the economic future and quality of life for all Hoosiers. By improving the understanding of our current water resources, we can be better prepared to assure their continued availability for the state’s businesses and residents.”
– Thomas M. Bruns, president, Aqua Indiana, Inc. and representing the Indiana Chapter of the National Association of Water Companies

“Indiana corn and soybean growers realize that water is a critical resource needed to produce our crops and for our industry to flourish. This report gives us all a starting point to ensure that our state thrives while our farmers continue to provide food for their families, neighbors and the world.”
– Mike Dunn, director of production research, Indiana Soybean Alliance and Indiana Corn Marketing Council

“The Indiana Section of the American Water Works Association believes this study is an important step toward ensuring an uninterrupted supply of water for Indiana. The availability of water is vital to the continued growth of business and industry and to the quality of life for all Hoosiers. Congratulations to the Indiana Chamber Foundation on its foresight in taking a long-term approach to addressing the importance of water to Indiana’s future.”
– John A. Hardwick, chair, Water Utility Council, Indiana Section American Water Works Association

New Indiana Fair Employment Poster a Required Change

The Indiana Fair Employment Poster (released by the Indiana Civil Rights Commission) has been changed to add veterans as a protected category and prevent discrimination against them. This stems from House Enrolled Act 1242.

It is against the public policy of the state and a discriminatory practice for an employer to discriminate against a prospective employee on the basis of status as a veteran by:
(1) refusing to employ an applicant for employment on the basis that the applicant is a veteran of the armed forces of the United States; or
(2) refusing to employ an applicant for employment on the basis that the applicant is a member of the Indiana National Guard or member of a reserve component.

We are updating our poster sets to comply with this mandatory change.

You can order our new Indiana state/federal poster sets online, or contact customer service at (800) 824-6885 or customerservice@indianachamber.com.

Better yet, make life much easier for yourself and join our FREE poster subscription service!

Chamber Comments on State’s Blue Ribbon Panel on Transportation Infrastructure

Indiana Chamber of Commerce President and CEO Kevin Brinegar on the release of the report from the state’s Blue Ribbon Panel on Transportation Infrastructure:

“The recommendations of the Blue Ribbon Panel on Transportation Infrastructure are an important first step. The group has identified priority projects and clearly defined the funding challenges. Equally important will be the work called for in HEA 1104 (2014), legislation outlining an Indiana Department of Transportation study of financing alternatives that will help meet future funding needs.

“In addition, it’s time for Washington to get its act together and assure that federal funding shortfalls are addressed. Some states are already cutting back on important projects in fear of Highway Trust Fund deficiencies as soon as August 1. What is truly needed – instead of short-term, crisis-avoiding extensions – is a multi-year renewal of the federal transportation plan.

“Superior infrastructure is one of the four drivers of the Indiana Chamber-led Indiana Vision 2025 and strong transportation via road, rail, air and water is critical to our state’s economic future.”

Gov. Pence Convenes Tax Conference

The Pence administration is looking for big and little ideas regarding taxes. The Governor – through the Department of Revenue and Office of Management and Budget – recently conducted an all-day discussion on ways to simplify Indiana’s tax code and tax administration as a means for making Indiana even more competitive in its quest to attract more business activity to the state.

The day began with comments from Indiana’s own Al Hubbard, former director of the National Economic Council and a longtime Indiana Chamber board member. His insights were followed by a panel of nationally recognized tax experts who discussed – at a high level – tax structure and the impact of taxes and tax reforms. Well-known economist Art Laffer (of the Laffer Curve fame) spoke at lunch.The afternoon consisted of breakout panels of various Indiana tax professionals who addressed different aspects of our tax system. Each session and all the talks were captured on video and most of the panelists also submitted papers or written comments on the topics they discussed (see the Indiana Chamber’s remarks, under the Tax Simplification section at www.in.gov/dor/5122.htm). The video link and other conference materials are available for review at www.in.gov/dor/index.htm. You can also submit your own ideas (up to two weeks post conference) at www.in.gov/dor/5120.htm.

The event was generally intended to generate, collect and consider ideas on how to make Indiana’s system simpler and better. Everything from big picture sweeping changes to down-in-the-weeds process tweaks were put on the table. There were many references to “broadening the base and lowering the rates.” The taxation of business personal property came up in a number of times. And a wide range of suggestions and recommendations on tax policy and procedure in the contexts of sales, income and property tax were brought forth. Indiana Chamber staff and numerous members of the Chamber Tax Policy Committee took part in the panel discussions and otherwise participated.

The question now is how this host of ideas will be digested by the Pence administration and the Legislature. Many members of the tax policy committees in the Legislature participated and were in attendance. And many of the attendees will also be participating in some way with the Legislature’s Blue Ribbon Tax Commission that will get under way later this summer. The Governor indicated that he hopes the commission and ultimately the General Assembly will give consideration to some of the things discussed at the conference. It seems likely that the conference will create momentum for some proposals. Many appear very doable and could be realized in the near term, others may take a much longer course or never pan out. Of course, only time will tell which ones fall into which category.

Accountabilty Panel Continues to Work; Core 40 Panel Getting Started

Nearly a year has passed since the media storm surrounding Indiana’s school accountability measures and the decision by state leaders to appoint a panel to develop new accountability metrics. Unfortunately, despite 10 day-long meetings, the panel remains far from completing its work.

The Indiana Chamber’s Derek Redelman serves on the panel and reports that he and several other panelists have been frustrated by the lack of support. For example, despite being told at the panel’s first meeting last fall that both the Department of Education and the Legislative Services Agency would have data sets to separately test any ideas that the panel developed, they were not informed until the fourth meeting of the panel that neither agency actually had the promised data. Similarly, despite member requests at the very first meeting to engage national experts to help with this work, the first opportunity for the panel to meet with any experts did not occur until the panel’s eighth meeting – more than six months into their work.

The panel made some limited progress at its latest meeting on June 26, but significant issues – like the preferred method for measuring student growth; the main reason for the panel’s formation – remain far from decided. In the meantime, the timeline for completing this work is quickly approaching, so the panel will meet again on July 8.

Meanwhile, a new task force – this one charged with a review of Indiana’s Core 40 diploma requirements – began meeting on June 11. The panel was originally formed in response to legislation mandating the development of a new CTE (career and technical education) diploma that would have created Indiana’s fifth and least rigorous diploma option. The Chamber opposed that mandate and joined with the governor’s office, the Commission for Higher Education and the Department of Education to kill the proposal, while agreeing instead to review our current diploma options.

The new task force is co-chaired by Teresa Lubbers, Indiana Commissioner for Higher Education, and Glenda Ritz, state superintendent of public instruction. It also includes representatives from K-12 education, career and technical education, higher education, and the business community – including the Chamber’s Derek Redelman.

Three questions appear likely to be the focus: 1) How can the diploma options provide an attractive and effective pathway for career and technical education students; 2) How can Algebra II (and/or other math requirements) be structured to effectively serve all college and career options; and 3) How should the diploma options be adjusted in response to rising remediation rates for college-bound students?

The next meeting of the task force is scheduled for July 24; recommendations are expected next summer.

Chamber Survey: Nearly 40% of Employers Left Jobs Unfilled Due to Under-Qualified Applicants

Jobs are there, but the employability of some Hoosiers isn’t matching what’s available says a new statewide survey by the Indiana Chamber of Commerce. Of the 532 participating employers, 39% (202) said they recently have left jobs unfilled due to unqualified applicants.

“That number is way too high and speaks to the work that policymakers, educators and employers still have to do. And also what individuals often need to do to make themselves more marketable for the type of employment they desire,” asserts Indiana Chamber President and CEO Kevin Brinegar. “Collectively, we need to do better at connecting the dots regarding the open jobs and the qualifications it takes to land one of them.”

The survey, in its seventh year, asked employers about their recruiting practices, training and continuing education offerings and skills needs in their workforce. More than 40% of the survey participants had under 50 employees and just over one-third represents manufacturing or advanced manufacturing industries.

In response to what education level is required for their unfilled jobs, two-thirds (67%) indicated beyond a high school degree, with 38% saying middle skills (certificates, certification or associate’s degree) and 29% a bachelor’s degree or higher. The most often cited occupations in need of good applicants were those in the skilled trades (such as an electrician or plumber) and engineering (from technician to design).

What makes getting the right talent pool mix all the more critical, Brinegar notes, is that 96% of the respondents said they expected the size of their workforce to increase or stay the same over the next 1-2 years. The majority – at 57% – are actually looking to add more employees during that time.

On a related topic, more than 70% of respondents (72%) said that filling their workforce was challenging, with nearly 20% labeling it the single biggest challenge they faced. “So even those that are able to find people for their open positions are having to spend more time on it than they would like, and more time away from the company’s direct mission,” Brinegar offers.

When it came to identifying what skills are the most difficult to find among applicants and new hires, several “soft skills” that are traditionally not assessed in an education setting were at the top.

Work ethic was the most lacking at 55%. Communication, problem solving and attendance/punctuality each registered 42-43%. Each of these soft skills was indicated as far more challenging to find than academic skills, such as reading, writing and math. Only 10% of the respondents said they had no challenges finding the skills they needed.

Derek Redelman, the Indiana Chamber’s vice president of education and workforce policy, emphasizes that “employers have tried to help themselves and their workers by offering tuition reimbursement, but not enough are taking advantage of the opportunity.”

Case in point: Over half of employers surveyed (242 of 447) reported having tuition reimbursement programs. Yet, 64% of those respondents (156 of 242) stated the programs were seldom used by their employees and 5% said they were never used. Only 31% of employers reported that their tuition reimbursement programs were used frequently.

“Hoosier employers are frustrated by the skills of available workers,” Redelman declares. “They are willing to invest time and resources to address those challenges, but what’s too often missing is the willingness of workers and applicants to pursue the training and skills that employers value.”

Employers surveyed also expressed interest in working with the education community to a greater extent. Two-thirds of respondents (67% of 458) said they felt businesses should be more involved in reviewing high school diploma and college degree requirements. And 90% felt employers should be more involved in the design of career and technical education (CTE) programs to make sure they were on target. Over half of employers (56% of 458) reported that they are currently involved with local schools, including internships (35%), classroom presentations (18%), job shadowing (16%) and more.

Consistent with last year’s results, over two-thirds of employers (72% of 508) said they were getting little to no support from Indiana’s workforce development system: Some 36% reported knowing about WorkOne but never having had any contact; 25% accessed the system but were not finding the services helpful; and 11% had no knowledge of these services. Only 19% of employers reported success in hiring applicants using WorkOne recruiters or the Indiana Career Connect job matching system.

“Given the continuing needs of employers and the persistent number of unemployed adults, these responses point to the critical importance of the Governor’s focus on these issues and, specifically, the development of a strategic plan through the Indiana Career Council and local employer engagement through the Works Councils,” Redelman concludes.

According to Brinegar, the results of this employer survey will also guide how the Indiana Chamber concentrates its efforts to achieve several goals under the organization’s long-term economic development plan, Indiana Vision 2025.

Among those goals: increase to 60% the proportion of Indiana residents with high quality postsecondary credentials, especially in the STEM-related fields (of science, technology, math and engineering); see a notable increase in Hoosiers having bachelor’s degrees or higher; and develop, implement and fully fund a comprehensive plan for addressing the skills shortages of adult and incumbent workers who lack minimum basic skills.

View the survey results and executive summary at www.indianachamber.com/education.

July/August BizVoice Building a Buzz

Today, we’re unveiling our July/August edition of BizVoice magazine.

And the headline is actually a joking nod to our cover story about drones… assuming they make some sort of buzzing sound as they fly. If they don’t, well, let’s just ignore it and move on.

This issue covers a gamut of topics. Here are a few of the top stories (but you can view the full edition via our interactive online version):

A Day at the Farm: Planting Memories, Exploring a Legacy

Pictures will speak a thousand words in the upcoming issue of BizVoice® in my feature story on twins Ted and Tom McKinney. For me, images of my day at the family farm in Tipton where they grew up are etched in my mind. The experience was among my most enjoyable memories – professionally and personally.

I visited the farm to interview them for an article that will appear as part of our agriculture series in the July-August issue. Why the McKinneys? That’s the question Ted humbly asked as we met and shook hands.

First, the family history is deeply rooted in farming. There’s the strong Purdue University connection (they’re third generation graduates of the College of Agriculture). And like their parents and grandparents before, both Ted and Tom are dedicated to making a difference in their community.

Tom is a seventh-generation Indiana farmer (he guides operations at the Tipton farm and another family farm in neighboring Clinton County). Ted is director of the Indiana State Department of Agriculture.

Touring the farm, which spans a few thousand acres, brought the McKinney legacy to life. Their passion for agriculture was contagious. Their childhood memories were rich. I could almost see the old yellow barn that served as a clubhouse of sorts in their youth before it was destroyed by straight line winds and made way for a modern shop.

I could picture them working alongside teens in the 1970s detasseling seed corn (the McKinneys were just 16 years old when they started managing their own crews) as they cultivated a strong work ethic and spirit of camaraderie. Tom operated the business for more than three decades.

“It was more than a money-making business. It was about transforming people’s lives,” declares his brother Ted.

Both have spent their lives trying to do just that.

Ted, among other causes, has been heavily involved in FFA and was instrumental in bringing both the organization’s national center and its convention to Indianapolis. Tom is president of the Indiana 4-H Foundation and has donated his time to a variety of other state and local initiatives. Each has brought his leadership to a variety of roles at Purdue.

Check out our memorable afternoon with one of Indiana’s first farming families in BizVoice when the July-August issue debuts on June 30.

Throwback Thursday: Purdue’s Long History of Agricultural Contributions

While digging into the fertile soil of our archive room, staff has discovered an Indiana Chamber report from August 1945 titled, “Aids Behind the Farm: A Directory of Functional Analysis of Governmental and Civic Organizations in the Field of Farming.” (Yes, the title is certainly a mouthful – potentially equaling a bushel of vegetables from a Hoosier farm.)

The booklet includes features on major farm-related organizations in Indiana – and the nation – like the Indiana Farm Bureau, The Grange, the National Farmers Union and the National Council of Farmer Cooperatives. One such prominent organization highlighted is Purdue University. The 1945 entry about the school reveals its history and mission, and why it’s such a benefit to the agricultural industry:

In 1869 the Indiana General Assembly took steps to establish an institution of learning and it received $340,000 from the Federal government which sum is held in trust by the state at interest. In 1869 the General Assembly accepted from John Purdue, a philanthropic businessman of Lafayette, and other public spirited citizens of Tippecanoe County, the sum of $200,000 and a tract of 100 acres of land. It also voted to name the institution ‘Purdue University.’

In 1879 the College of Agriculture was founded. Prior to 1900, few students attended the college and intensive efforts had to be made to acquaint farmers with the value of agricultural training. The first short course in agriculture was held in the winter of 1887-1888. These intensive winter short courses are still permitting hundreds of farmers to attain further knowledge of profitable agricultural practices.

Even then, Purdue’s county extensions played a major role in building the state’s agricultural climate. (The school has an extension in all 92 Indiana counties.):

An integral part of the work of the Extension Department is carried on through the efforts of more than 30,000 volunteer local and neighborhood leaders. County Extension Committees, organized in each county, are composed of local people who know the immediate needs of the county and who help to plan the extension program of their counties to meet the local problems. These people help to bring to Indiana farmers the information and facts which they need to meet their particular problems speedily and proficiently, and to advise returning veterans interested in farming.

In 4-H Club work, more than 3,600 young men and women serve as junior leaders and 2,200 parents and other adults serve as volunteer local leaders.