Indiana House jobs bill gives boost to Warrick County's Village Earth plan

INDIANAPOLIS — The Indiana House unanimously has endorsed a jobs-creation bill that would give developers the funding mechanism they say they need to build Village Earth, the massive educational attraction proposed for rural northern Warrick County.

The proposal would allow the nonprofit Village Earth to capture $150 million in sales taxes from surrounding for-profit businesses over 25 years to pay down construction bonds.

It was amended into Senate Bill 396 on Tuesday, then approved and sent on to joint House-Senate conference committee negotiations Wednesday. If the proposal by Rep. Russ Stilwell, D-Boonville, can survive there and pass both chambers again next week, it would take a huge leap toward becoming a reality.

Stilwell called Village Earth "a project that's really important to a big area in Southwestern Indiana."

It's part of a package of proposals majority House Democrats have advocated.

The bill includes tax credits for small businesses with fewer than 150 employees that hire new workers; tax breaks for new Indiana businesses for the first two years of their operations; and the requirement that companies with state contracts hire 80 percent of their work force from Indiana. It also includes spending $20 million to draw down $100 million in federal stimulus funds so companies can hire poor people who are out of work.

Rep. Dale Grubb, D-Covington, said the package could create 10,000 to 30,000 jobs.

Senate Appropriations Chairman Luke Kenley, R-Noblesville, said he had not reviewed the package and the bill would go to a conference committee. He gave the proposal a hearing before his Senate committee, but he never called for a vote.

Republican Gov. Mitch Daniels and Senate Tax and Fiscal Policy Chairman Brandt Hershman, R-Lafayette, have said they also oppose the creation of a sales tax incremental finance district in Warrick County because it would drain tax dollars that would go to the state.

Republicans were skeptical over the Democratic package.

The bill passed 98-0.

Because Senate Republicans did not call a bill for second reading Wednesday, Democrats did not have the chance to offer several amendments they planned in an effort to slow the growing costs of health insurance.

No second chance

The bill, which needed to advance through the second-reading stage Wednesday, has died and will not get a chance to be heard today.

Sen. Allen Paul, R-Richmond, passed on his chance to call his bill for second reading, the time when all senators can debate amendments to be added to potential legislation.

Sen. Bob Deig, D-Mount Vernon, was upset the Democrats' amendments were not considered because of increasing insurance rates not only in Indiana but across the country.

"Without a doubt I'm upset, because these insurance companies are holding people hostage right now," Deig said.

"I think it's unfortunate that we didn't get a chance to look at the amendments for the bill."

The Democrats had four major amendments they planned to introduce for House Bill 1240:

Courier & Press correspondent Evan Shields and The Associated Press contributed to this report.