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Boone County residents seek deeper review after IEDC audit

Boone County group urges stronger oversight following LEAP spending findings
Boone County residents seek deeper review after IEDC audit
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BOONE COUNTY — An op-ed by the Boone County Preservation Group is calling for a deeper investigation after a financial audit of the Indiana Economic Development Corporation raised questions about spending, particularly money used to develop the LEAP district.

The audit of the IEDC is more than 100 pages. Some Boone County residents say it brought to light what they call questionable purchases and raised concerns about what they view as excessive spending on travel and dining.

"It's not easy to earn this money, no matter what you do,” Jim Love, a lifelong Boone County resident and co-author of the op ed, said. “Whether you are working in a restaurant or you are farming, or you are standing in a factory. This money is hard to earn and very easy for these legislators to spend. "

The audit, ordered by Governor Mike Braun, found a total of $6.7 million in international travel costs. The Boone County residents also expressed concern that there wasn't sufficient oversight of $495 million spent on the LEAP project and that some contracts should have gone through a bidding process.

"They've said that there is no criminal activity, but they are setting a low bar in some ways,” Brian Daggy, a lifelong Boone County resident and co-author of the op ed, said. “Because the ethics and what we expect from our public officials should be a higher bar than that. "

Those concerns have led the group to call on the inspector general to take a closer look at the audit's findings.

"It seems like it's very easy to create an idea, gather up a bunch of taxpayers' money over it, and when it fails, they go, 'Oops, it failed,'” Love said. “Where did the money go, folks?”

Daggy said entities that didn’t properly report spending should be banned from working with the state and that the IEDC needs an overhaul.

"IEDC needs to be completely re-worked into a different entity that is more publicly oriented, has oversight and is clear on what they are doing,” Daggy said.

We reached out to the IEDC for comment, but did not receive any by our deadline. The governor's office says that throughout the audit, the inspector general was given all relevant findings, including any potential ethics violations. It will be up to the inspector general's office if additional action is taken.

The full audit is available. You can read it by clicking here. The op-ed can be found below.

When Leaders Fail to Lead, Hoosiers Pay the Price

Hoosiers deserve more than platitudes, conflicts of interest and unbid contracts. We deserve leaders who answer to the people, not to a select circle of insiders with the right connections. Unfortunately, the unfolding scandal at the Indiana Economic Development Corporation (IEDC) proves yet again that when politics, money, and power collide, it is everyday Hoosiers who are left footing the bill.

The recent revelations about “The Three Kings”—former IEDC executive Dave Roberts, Purdue Research Foundation President Chad Pittman, and former advisor to Governor Mitch Daniels, Paul Mitchell—should concern every taxpayer in Indiana. Over six years, entities tied to these men collected more than $180 million in taxpayer-funded grants and no-bid contracts. These weren’t isolated missteps. They were patterns of behavior, aided and abetted by a quasi-public state agency that operated in secrecy and with little accountability.

Let us be clear: while Governor Mike Braun’s audit may have reportedly found “no criminal activity,” that is hardly a stamp of integrity. Ethical impropriety does not need to rise to the level of criminality in order to erode public trust. Rules were clearly bent, disclosures were kept behind closed doors, and oversight was bypassed. Ordinary citizens know that if you break the rules, there are consequences. Yet when politicians or their allies do it, the refrain is always the same: “Mistakes were made, but let’s move on.”

We reject that.

What message does it send if those responsible are allowed to continue cashing in on state contracts? Is the message that corruption is acceptable as long as you wear a suit and call it economic development? A factory worker who cut corners would be fired. A farmer who failed to meet reporting requirements would lose subsidies. But insiders with access to millions in public funds are excused with a shrug. That double standard is corrosive to democracy. These findings need to be referred to the Inspector General and an investigation launched.  

Governor Braun has dubbed himself as a reformer, but his actions suggest otherwise. His administration’s first instinct was to control the narrative by hiring an out-of-state firm for nearly a million dollars to conduct a tightly managed audit, then withholding findings until after a legal review. That is not transparency; that is damage control. And when it came time to answer questions from the press, the Governor literally walked away. Hoosiers see through this.

The Boone County Preservation Group cares about this issue because the IEDC was less than transparent on plans for the LEAP district in our community.  The recently-released audit shows that during the review period, one-third of overall IEDC expenses went to the LEAP Project - about $495 million. Of that, $77 million went to Pure Development, which kept about $18 million for its work and paid the remainder to subcontractors. The Pure contract was not bid out and was just given to them with no competition. 

We believe the solution is not another round of half-measures or insider promises of “better controls.” The solution is independent oversight, free from political ties. We need further investigation from the Inspector General and an executive order banning the individuals who violated ethical norms from participating in future contracts, grants, or state business. Otherwise, bad behavior is not punished: it is rewarded.

We also believe it is time for the Governor to stop pretending that this scandal is someone else’s mess. The LEAP District, the IEDC’s crown jewel, continues to swallow up farmland, deplete water resources, and saddle Hoosiers with billions in hidden costs. These deals weren’t coincidences; they happened because Indiana’s leaders, both past and present, placed secrecy and speed over accountability and stewardship.

Governor Braun cannot phone in reform. He cannot duck out of press conferences. He cannot promise transparency with one hand while delaying reporting with the other. If he truly serves the people of Indiana, he must stand up to the very insiders who built their empire on the backs of Hoosier taxpayers.

Until that happens, we will continue to speak out. Because preserving Indiana’s farmland, our water, and our communities requires more than ribbon cuttings and glowing press releases; it requires honest leadership. And right now, that’s what’s missing at the Statehouse.
By: Brian Daggy and Jim Love, Members, Boone County Preservation Group