September '18

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rv-pro.com September 2018 • RV PRO • 145 firm of Katz, Sapper & Miller and for a number of years – the top issue was work- force skills finding adequate workforce skills and the people. To our surprise this last year, that came in as the second most important issue. The most important issue was capital investment and technology, which tells us the workforce issue remains and that to solve that, companies are looking for investment technology to make up for the productivity loss of the shortage of those workforce skills. RV PRO: One part of IMA agenda included a measure that would exempt some people who move to Indiana for a job from paying state income tax for a number of years, with the goal of attracting workers to replace the 40 percent of the state's current manufac- turing employees are expected to retire in the next few years. What happened to that IMA initiative? Burton: We not only have a skills issue, we also have a population issue. It is estimated that Indiana's workforce will increase by 1 percent between now and 2040. The U.S. average is 18 percent. Our economic developers in Indiana do a great job of attracting business to locate here and invest here. We need tools also to attract the population to locate and invest here. We must increase our workforce population in order to sustain future economic growth. RV PRO: So? Burton: We pushed in this last session a relocation tax credit, which would be for individuals – not corporations – to relocate to Indiana. If it was certified that they came to Indiana to take a job here in occupations that are needed, then they would have their state income tax elimi- nated for a period of years. That was discussed during the General Assembly, but it was not passed. It got a hearing, we testified at it, and we talked to numerous legislators. We were told they could not do it in a non-budget session. RV PRO: So, that means you'll revisit it next time? Burton: Absolutely. We also, for our workforce system, have been pushing employer training tax credits. We spend about a billion dollars a year of state and federal money on workforce training spread out over 30 different departments and agencies. It's a confusing and complex system that is difficult to navigate. Therefore, we pushed driving those decisions to a more consumer-based model that would allow individual employers to direct their employees to training that they deem is essential to their operation. RV PRO: How did that fare? Burton: That did not pass the ses- sion, either. Unfortunately, in Indiana we renamed a State Workforce Innova- tion Council to the Governor's Workforce Cabinet. We renamed a council to a cab- inet, with the understanding that most major changes to our workforce system will occur next year. Elite ®

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