Braun signs series of executive orders taking aim at Indiana Economic Development Corporation

Gov. Mike Braun signed three executive orders Tuesday targeting the Indiana Economic Development Corporation (IEDC) and looking to reshape the executive branch's approach to economic development.

Standardizing economic development

The first executive order signed by Braun seeks to upturn more than 10 years of economic development programs led by the state. Braun said in a statement his administration "is starting from scratch on the map."

The order said, "the current landscape of regional designations creates confusion, duplication, and inefficiency."

That landscape was built through two Republican-led economic development programs: The Regional Cities Initiative and the READI grant program. Both asked cities, towns and counties to develop projects that catered to their regions' strengths.

Former Gov. Mike Pence's Regional Cities Initiative developed plans for more than 400 projects. And former Gov. Eric Holcomb's READI grant program distributed $1 billion in state and federal funding to community-led projects.

Notably, these economic development initiatives were IEDC programs.

Braun's executive order directs the Indiana secretary of commerce to make new economic development maps — in consultation with local and regional economic development officials, politicians and business representatives.

A statement from the governor's office said the new regional designations will represent the industry clusters, workforce capabilities, infrastructure, and natural resources that vary across Indiana.

Government-affiliated nonprofit transparency

Braun's second executive order lists nine state government-affiliated nonprofits, including the Indiana State Museum Foundation and the Indiana Destination Development Foundation.

However, the executive order calls out the Indiana Economic Development Foundation as the only one among the list exempt from filing certain tax documents. The IED Foundation is a government-affiliated nonprofit that works with the IEDC.

"If organizations like the Indiana Economic Development Foundation were created to assist state agencies with public business, then Hoosiers need full transparency into how these nonprofits operate, who funds them, and what they do with the money," Braun said in a statement.
 

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Braun also said in a statement the IED Foundation hasn't filed annual reports with the state budget committee since 2019.

The order mandates the nonprofits file a decades' worth of tax documents and financial reports by the end of the year.

The IEDC has been highly criticized — most of the controversy traces back to the LEAP district and concerns over water use.

Economic development metrics

The third executive order is a little more straightforward than the other two: It mandates the state measure success of its economic development efforts primarily by the number of jobs and average wage of the jobs created.

"Indiana is focusing our economic development efforts on the things that affect your family the most: raising wages and new job opportunities," Braun said in a statement.

The governor called the executive order Indiana's "North Star" of economic development.
 

Lauren is our digital editor. Contact her at lauren@ipbnews.org or follow her on Bluesky at @laurenechapman.bsky.social.