INDIANAPOLIS — Gov. Mike Pence’s push to get an additional $42 million for a third Regional Cities Initiative program earned its first win of the 2016 session, passing out of committee unanimously on Thursday.
Sen. Luke Kenley, R-Noblesville, authored Senate Bill 302 at the Pence’s behest. Thebillwas heard for the first time in the Senate Appropriations Committee.
The Regional Cities program was originally designed to award two $42 million grants to two regions in Indiana. The funding came from Pence’s tax amnesty program and was approved by the legislature during the 2015 session.
After the amnesty program brought in more money than anticipated, the Indiana Economic Development Corp., which was tasked with appointing the winners, decided to fund a third region. Southwest Indiana, which includes Vanderburgh, Gibson, Posey and Warrick counties, was picked as one of the three winners along with the South Bend region and Fort Wayne region.
Despite having the money, the funding for a third region still needs to be approved by the legislature.
There has been some back and forth between top lawmakers about the extra money, with House Speaker Brian Bosma (R-Indianapolis) saying he was surprised by the approval of a third region. But there was no opposition to the bill during the Senate committee hearing. No one testified in opposition to the bill and there was no discussion among committee members before SB 302 was approved unanimously.
“We strongly support the governor’s programin the Senate,” Kenley said.
Justin Groenert, spokesman for the Southwest Indiana Chamber, said this funding could be a watershed moment for the area.
“We think this is the next piece that catapults us forwards in terms of attracting new people and businesses,” Groenert said.
“Obviously, we were pleased when Senator Kenley decided to author the bill and we hope it goes forward.”
The bill will now go to the full Senate for possible amendments and a full vote. Kenley added an amendment during committee discussion to allocate any additional funds left from the tax amnesty program be put towards Indiana’s bicentennial celebration.
If the bill is not approved by either the Senate or House, the IEDC will have to come back and either eliminate a winner or split the $84 million it currently has threeways insteadof two. That would round out to $28 million each.
Southwest Indiana is using the money for a litany of projects including a research lab attached to the new downtown medical building andimprovements to the Evansville airport.