INDIANAPOLIS — The Indiana Economic Development Corporation (IEDC) has come under increased scrutiny since Governor Mike Braun took office. A new board has been appointed, and Braun assures that this board will differ from its predecessors by placing a greater emphasis on transparency and small businesses, alongside its traditional focus on larger enterprises.
"Keeping the ones you've got is a lot easier than trying to lure the ones in you don't have and that's where I think, maybe, the focus on smaller businesses and giving them the odds to get through the gauntlet is an organic way of making our economy healthy in the long run," Governor Braun said.
The primary function of the IEDC is to attract and retain businesses in Indiana, often promising high-paying jobs in the process. However, Democratic leadership has voiced concerns that Hoosiers are questioning the value of such promises.
"We want to make sure that there is an economic disclosure of what is being promised, and are Hoosiers being left to have a high price tag without the benefit of having an economic opportunity in their communities," State Senator Shelli Yoder, Democratic Minority Leader, stated.
In light of these concerns, an audit of the agency's finances is currently underway. FTI Consulting has been contracted to conduct the audit, which will review IEDC activities starting from January 2022 through December 31, 2024. The audit team is expected to complete its work within six to 12 months, where they will analyze the flow of IEDC funding to various entities and assess how those funds have been utilized. A comprehensive forensic review of all IEDC activities will also be conducted to ensure accountability.
Earlier this week, Governor Braun announced the replacement of all board members. He clarified that the changes were not due to any misconduct but rather a desire for a board that shares his vision and that of his administration. He emphasized that the new board will respond appropriately to whatever the audit uncovers.
"We will see what it reveals and deal with it accordingly, and make sure the new board maybe navigates differently if that is even something you glean from it, so we will see what it comes up with,” Braun said.
The IEDC has recently approved eight investment awards for projects that include tax incentives, four of which are data centers. These new projects are projected to generate 1,900 new jobs, with a combined average wage of over $42 an hour.
