Latest NewsHogsett eyes new jail, focus on mental health in criminal justice systemWorkers at endangered Indiana plant feel forgotten by TrumpAfter Carrier deal, will more manufacturers threaten to leave?
http://ftr.fivefilters.org/makefulltextfeed.php?url=http%3A%2F%2Fwww.ibj.com%2Frss%2F9&max=5 The latest headlines, breaking news and updates, with in-depth coverage, only from IBJ. http://www.ibj.com/articles/61647-hogsett-eyes-new-jail-focus-on-mental-health-in-criminal-justice-system http://www.ibj.com/articles/61647 <div><img src=”http://www.ibj.com/ext/resources/aa-stock-images/og-logo.jpg” class=”ff-og-image-inserted”/></div><p>Indianapolis’ mayor is proposing construction of a new jail and changes to the local criminal justice system to place a greater emphasis on assessing inmates for mental illness and substance abuse problems.</p> <p>Mayor Joe Hogsett’s proposal would tap mental health professionals and law enforcement to assess people for mental illness and substance abuse and divert some of them from jail into treatment. Social workers and paramedics would also team with police officers to help the most troubled and vulnerable.</p> <p>”It will profoundly change the way justice is dispensed,” Hogsett, a former federal prosecutor, told The Indianapolis Star.</p> <p>The Democrat will outline his more than 100-page plan Monday afternoon during an address before Marion County’s Criminal Justice Planning Council.</p> <p>Several of the proposals have been in the works for months in response to the growing reliance on law enforcement officials to handle issues of mental illness, addiction and poverty as part of their mission to battle crime and violence.</p> <p>The Marion County Sheriff’s Office declared the county’s jail system to be in “crisis mode” in May, lacking sufficient beds to house inmates.</p> <p>Within days of the sheriff’s office’s comments, Hogsett announced his intention for a new jail. The first-term mayor, who took office in January, then created a task force to study all facets of criminal justice, and those findings form the basis for his proposals.</p> <p>Marion County can currently hold 2,500 inmates. But Hogsett’s office is drafting plans for a new jail that would combine the county’s three existing lockups under one roof, creating room for 2,600 to 3,000 people.</p> <p>The mayor’s office plans to have a cost estimate for the proposed new jail completed by Feb. 28, and a finance and construction plan by March 31.</p> <p>Hogsett’s predecessor, Republican Greg Ballard, had proposed building a new jail and criminal justice center, but that plan collapsed amid concerns over its $1.75 billion price tag and the public-private financing model.</p> <p>Hogsett’s administration has said the jail is expected to cost hundreds of millions of dollars, but the mayor has vowed not to raise taxes to pay for the project.</p> <p>”It’s never a good time to build a new jail,” said Councilman Leroy Robinson, a Democrat who chairs the public safety committee. “But when it’s being implemented with a strategic plan for overall criminal justice reform, it is more palatable.”</p> <p><strong><a href=”https://blockads.fivefilters.org”>Let’s block ads!</a></strong> <a href=”https://github.com/fivefilters/block-ads/wiki/There-are-no-acceptable-ads”>(Why?)</a></p> Mon, 12 Dec 2016 00:51:00 +0000 Hogsett eyes new jail, focus on mental health in criminal justice system Mayor Joe Hogsett is drafting plans for a new jail that would combine Marion County’s three existing lockups under one roof, creating room for 2,600 to 3,000 inmates. Article http://www.ibj.com/ext/resources/aa-stock-images/og-logo.jpg es text/html http://www.ibj.com/articles/61647-hogsett-eyes-new-jail-focus-on-mental-health-in-criminal-justice-system http://www.ibj.com/articles/61646-workers-at-endangered-indiana-plant-feel-forgotten-by-trump http://www.ibj.com/articles/61646 <div><img src=”http://www.ibj.com/ext/resources/aa-stock-images/og-logo.jpg” class=”ff-og-image-inserted”/></div><p>A full parking lot and 50-hour workweeks belie the anxiety at the United Technologies-owned factory outside a small northeastern Indiana city, where Mike Harmon and co-workers wonder whether they aren’t just stockpiling parts for when the company sends their 700 jobs to Mexico.</p><p>Their situation has gained scant attention compared to the sister Carrier Corp. factory two hours away in Indianapolis, which became a rallying cause against plant closures during the presidential campaign and where President-elect Donald Trump intervened to stem some — not all — job losses.</p><p>”I don’t think they look at us, being from a small town …” said Harmon, a 44-year-old Huntington native who’s worked at the factory for seven years. “The whole time during the campaign he talked Indianapolis, Indianapolis, Indianapolis, never heard one word about Huntington.”</p><p>It’s a perceived slight that stings in a county where 72 percent voted for Trump and manufacturing makes up about one-fifth of all jobs.</p><p>On Dec. 1, Trump and Vice President-elect/Indiana Gov. Mike Pence touted Trump’s role in Carrier deciding to reverse about 800 planned job cuts at the Indianapolis plant — a move that also provides United Technologies $7 million in state incentives. Neither they nor company CEO Greg Hayes mentioned the Huntington plant or discussed the some 500 Carrier jobs still being lost.</p><p>Employees at the United Technologies Electronic Controls factory in Huntington say they’ve been working mostly seven days a week since late October, making control panels for the furnace, air conditioning and refrigeration industries. Leaders of their union believe the company is doing so ahead of the factory’s layoffs expected to start in April and continue into 2018.</p><p>But Connecticut-based United Technologies said in a statement that its plans haven’t changed. It declined a request to interview a company executive. Hayes has cited a belief that the Trump administration will cut corporate taxes and stem business regulations.</p><p>Nationwide, the U.S. Labor Department has issued over 1,600 approvals for layoffs or plant closings since 2015 as a result of shifting production overseas or competition from imports, according to the American Alliance of Manufacturing. Indiana has one of the nation’s most manufacturing-dependent economies even though it has lost 144,000 such jobs, or 22 percent, since 2000.</p><p>Trump has warned he’ll impose a 35 percent tariff on goods imported by companies that outsource production, and a week ago on Twitter ripped plans by Milwaukee-based Rexnord to close a 300-worker Indianapolis bearings factory in another production shift to Mexico.</p><p>But isn’t clear whether Trump intends to keep personally intervening in corporate decisions. Three days after the Carrier factory trip, Pence told ABC’s “This Week” that Trump will “make those decisions on a day-by-day basis in the course of the transition, in the course of the administration.”</p><p>Government leaders have long been involved in cutting deals with corporations, according to Scott Paul, president of the American Alliance for Manufacturing.</p><p>”It is a fact of life in the real world. Governors engage in economic development on a regular basis, usually they are trying to attract jobs,” he said. “Countries do the same thing every day.”</p><p>Some Huntington workers are upset over the tax incentives for a company that also owns Pratt & Whitney — a big supplier of fighter jet engines that relies in part on U.S. military contracts.</p><p>Bob Breedlove, a 66-year-old who’s worked at the plant for a decade, voted for Trump and still thinks he’s the right person, even though he’s “not crazy about this deal.”</p><p>”My tax dollars are going to save them, but they aren’t going to help save my job,” Breedlove said. “I know how much money this company makes, they don’t need our help to stay in business and make a profit.”</p><p>Manufacturing jobs are a valuable part of Huntington County’s economy, with average annual pay topping $57,000 in 2015, according to the Indiana Business Research Center. That’s nearly 50 percent more than the county’s overall average earnings.</p><p>The United Technologies factory, which draws employees from several nearby communities, is seen as stable employment. Tucked along a bypass of the 17,000-person city and surrounded by miles of farmland, it recently seemed to be the busiest of the 10 or so businesses in an industrial park.</p><p>Rouie Hawkins met her husband, Ford, at the factory. They’re both still there but have a Plan B: He’s making plans to start a used-car business and she’s weighing whether to take advantage of the union’s severance agreement for reimbursement toward up to four years of college.</p><p>”I’ll be 50 soon and I worry about even if I go back to school, then I’ll be in my mid 50s when I finish a degree and who’s going to want to hire me,” Hawkins said.</p><p>Harmon, whose wife also works at the factory, said it’s his third factory closing. He’s worried he won’t find anything close to the $17 an hour United Technologies provides. The couple has two children in college and two in high school and is doing what he called “major couponing” and cutting back on non-necessities.</p><p>”I’ve told my family that ‘You’ve got DirectTV right now. Next year at this time, you may have antenna TV,'” Harmon said. “Our main thing right now is banking money so that we can try to survive when we are let go.”</p><p>At a downtown diner, Lori Guy explained that her vote for Trump already is paying off, even if it didn’t help her town. “I’m sure if there was a way, he would have saved more jobs,” said Guy, who works at an apartment complex where many United Technologies staffers live.</p><p>Blake Hancock, his mother and his aunt all work at the plant. While he’s grateful for the jobs that are staying in Indiana, the 25-year-old believes Trump was trying to buff up his image, not protect workers.</p><p>”There are still 1,300 people who are losing their jobs,” Hancock said. “I feel like it was a numbers game … to buy the favor of the American public.”</p> <p><strong><a href=”https://blockads.fivefilters.org”>Let’s block ads!</a></strong> <a href=”https://github.com/fivefilters/block-ads/wiki/There-are-no-acceptable-ads”>(Why?)</a></p> Sat, 10 Dec 2016 16:56:00 +0000 Workers at endangered Indiana plant feel forgotten by Trump Connecticut-based United Technologies, the parent firm of Carrier Corp., said in a statement that its plans to send 700 Huntington jobs to Mexico haven’t changed. Article http://www.ibj.com/ext/resources/aa-stock-images/og-logo.jpg de text/html http://www.ibj.com/articles/61646-workers-at-endangered-indiana-plant-feel-forgotten-by-trump http://www.ibj.com/articles/61628-after-carrier-deal-will-more-manufacturers-threaten-to-leave http://www.ibj.com/articles/61628 <p>At recent cocktail parties, site-selection expert Katie Culp has heard this more than once: “It must be a great time to be in your line of work.”</p><p>Culp, president of KSM Location Advisors, said people assume the situation playing out at Carrier Corp. will inspire a long line of other companies to put their hands out for public incentives. KSM’s services include helping clients apply for incentives.</p><p>“I joke, ‘Yeah, it would be nice if that’s the way it was going to be,’” Culp said. But despite the fact that Carrier itself said state incentives—a package that included an uncommon tax break—helped convince it to retain some of its Indianapolis workforce, Culp doesn’t think Indiana’s incentives floodgates are about to swing open.</p><p>Carrier <a href=”http://www.ibj.com/articles/57162-carrier-plans-to-lay-off-1400-indy-workers-in-mexico-move”><span>had announced in February</span></a> that it would cease production at its Indianapolis facility, moving that work to Monterrey, Mexico. But late last month, the company <a href=”http://www.ibj.com/articles/61498-update-state-pledges-7m-in-incentives-to-carrier-as-it-retains-some-indy-operations” target=”_blank”><span>reversed course</span></a>, saying it would maintain its gas furnace production in Indianapolis.</p><p>Of the $7 million in economic development incentives the Indiana Economic Development Corp. has offered Carrier, $5 million comes in the form of a rarely offered tax credit—one aimed at job retention rather than job creation.</p><p>“I don’t think there are a lot of companies who are willing to threaten to leave in order to secure incentives,” said Culp, who was not involved with the Carrier deal.</p><p>But not everyone agrees with Culp’s view.</p><p>Mohan Tatikonda, professor of operations management at the Indiana University Kelley School of Business in Indianapolis, said “it’s almost inevitable” that a growing number of companies will seek incentives for job retention rather than job creation.</p> <div class=”ibj-mugLeft-Lg”><img alt=”Culp” src=”http://www.ibj.com/ext/resources/mugs-Large/C/culp-katie-mug.jpg”/> Culp</div> <p>Those on both sides of the fence offer multiple reasons why the Carrier deal will—or won’t—inspire a rush of other companies trying for retention incentives.</p><p>The particular tax credit offered to Carrier is known as the Economic Development for a Growing Economy Tax Credit for Job Retention—or EDGE-R, for short. Companies that receive this incentive can claim tax credits for a certain period of time if they maintain a specified number of jobs at a given wage level.</p><p>IEDC offers the EDGE-R incentive much less frequently than it offers EDGE for Job Creation, which offers employers tax credits for adding jobs. That’s by design, the agency says.</p><p>“The mission of the IEDC is to help companies locate and create great new jobs across Indiana, which by definition means that retention projects in the state are rare,” IEDC spokeswoman Holly Gillham said in an e-mail to IBJ.</p><p>From 2005 to 2015, IEDC offered EDGE incentives to 1,467 employers. The largest of these, offered to Salesforce.com Inc. in 2013, topped$24 million.</p><p>In comparison, IEDC offered EDGE-R incentives to only 11 employers during those same years. The incentive carries more rules and restrictions than does the EDGE credit, and by state law IEDC cannot offer more than $10 million in EDGE-R incentives during a single year.</p><p>“The Indiana General Assembly set this cap in the interest of fiscal discipline, helping create an environment where the IEDC must be very strategic when offering tax credits for job retention, as we were in this case with Carrier,” Gillham wrote.</p><p><strong>Big deal</strong></p><p>To date, the largest single EDGE-R award was for $8 million. That award, granted in 2014, went to Fort Wayne aerospace manufacturer BAE Systems Controls Inc. In exchange for the tax credits, BAE agreed to maintain 1,000 jobs and build a $32.3 million manufacturing facility for its local operations. That facility, which makes commercial aircraft electronics, ultimately cost $39 million. It opened in September 2015.</p><p>Under the terms of its deal with IEDC, BAE can claim up to $800,000 annually in EDGE-R tax credits over a 10-year period ending in 2023. To date, the company has claimed $1.6 million, according to an online IEDC database.</p><p>Companies that are offered incentives typically receive packages containing two or more types of tax credits or funding. In addition to EDGE-R, IEDC is also offering Carrier $1 million in training grants and up to another $1 million in tax credits based on the company’s plans to invest $16 million in the plant. IEDC is set to consider the entire incentives package at its Dec. 13 meeting.<img alt=”rop-incentives-table-121216.jpg” src=”http://www.ibj.com/ext/resources/IBJ-Print2/2016/121216/rop-incentives-table-121216.jpg”/></p><p>Chad Sweeney, senior principal at Fishers-based consulting firm Ginovus, described EDGE-R as “a tool that has a high bar.”</p><p>Sweeney, who worked at IEDC from 2005 to 2009, said EDGE-R is generally considered an economic development tool for use in “extraordinary circumstances.”</p><p>Though he was not involved with the Carrier deal, Sweeney said the case qualifies as extraordinary. Carrier had already announced its intentions and started to lay the groundwork for moving the jobs.</p><p>It’s unlikely that a company would be willing to take such steps just for the purpose of securing job-retention incentives, Sweeney said.</p><p>For that reason, he said, he doesn’t think Carrier’s situation will lead to a flood of other requests. “I honestly don’t think it’ll have a significant impact.”</p><p><strong>Behind the veil</strong></p><p>Another reason companies might not rush to apply for incentives: The deals open a company up to public scrutiny.</p><p>All the incentives contracts IEDC signs with employers are made available to the public—and not every employer wants to attract that level of publicity, Culp said.</p> <div class=”ibj-mugLeft-Lg”><img alt=”Tatikonda” src=”http://www.ibj.com/ext/resources/mugs-Large/T/tatikonda-mohan-mug.jpg”/> Tatikonda</div> <p>Carrier declined to comment for this story, referring IBJ back to the brief statement it issued Nov. 30 when it announced it would keep some jobs in Indianapolis. But the company continues to be in the news because of the Indianapolis situation.</p><p>“Most companies want to fly under the radar,” Culp said. “If you look at the Carrier announcement, there’s been a ton of positive press—but there’s been a ton of negative press, too.”</p><p>IU’s Tatikonda agreed with Culp and Sweeney that Carrier’s situation is unique. He still predicted, though, that job-retention deals will become more common.</p><p>For one thing, he said, companies have a more mobile mind-set than they used to.</p><p>Under the traditional theory of economic development, Tatikonda said, state and local governments have operated under the assumption that, once a company came to town, it would stay put. That thinking is out of date, he said.</p><p>Though economic development agencies often differentiate between job creation and job retention, Tatikonda said that difference is somewhat artificial.</p><p>“It is different, but it’s not that different and it’s becoming less different,” he said.</p><p>Modern manufacturing processes are more portable, Tatikonda said, because they use equipment configured in modular units that can be set up and moved as needed. That means companies are more willing to consider relocation if it’s financially advantageous.</p><p>“The mobility of manufacturing is increasing, and that—combined with this constant pressure to provide greater returns to shareholders—means that we are going to see more companies making these types of requests,” he said.</p><p>Also, the Carrier publicity might have introduced the concept of retention incentives to some midsize or small companies who could now be inspired to try for them, Tatikonda said.</p><p>Per state law, recipients of both EDGE and EDGE-R incentives can receive the tax credits only if they meet promised job-retention or -creation metrics. And for both types of incentives, recipients have a two-year, post-contract period in which they must remain in compliance or become subject to clawback provisions.</p><p><strong>In vain</strong></p><p>Regardless of these rules, there’s no guarantee that a given group of jobs will stick around indefinitely.</p><p>Steuben County employer Multi-Plex, for instance, was approved for $370,000 in EDGE-R credits in 2007. The company, a division of Detroit-based Magna Powertrain, ended up closing that facility before it claimed any of those credits, IEDC’s Gillham said.</p><p>A more recent example is Paoli LLC, an Orleans-based furniture maker that in October announced plans to cease operations at the southern Indiana facility.</p> <div class=”ibj-mugLeft-Lg”><img alt=”sweeney-chad-mug” src=”http://www.ibj.com/ext/resources/mugs-Large/S/sweeney-chad-mug.jpg”/> Sweeney</div> <p>IEDC approved a $275,000 EDGE-R credit for Paoli in 2010, claimable for tax years 2009-2014. At the same time, the company was approved for another $275,000 in EDGE tax credits, and $185,000 in training grants. In return, the company pledged to retain 380 jobs, create 82 additional full-time jobs, and invest at least $425,000 in the facility.</p><p>The company has since claimed the full amount of its EDGE and EDGE-R tax credits, and $117,000 in training credits. 2016 marks the final year of its post-contract reporting period—and it plans to begin shutting down the plant in January, putting it right outside the clawback period.</p><p>Paoli’s corporate parent is Iowa-based HNI Corp. Gary Carlson, HNI’s vice president of community relations, said the company had every intention of keeping the Orleans plant open indefinitely when it accepted the retention incentives six years ago.</p><p>At that time, Carlson said, HNI had just shuttered an Owensboro, Kentucky, plant and moved that work to Orleans. The thinking, Carlson said, was that this extra production—plus additional production from new business—would be enough to help the Orleans plant operate more profitably.</p><p>But those plans never came to pass, he said. Domestic and international competition in the office-furniture business, coupled with overall consolidation and a tough economy, all took their toll.</p><p>The work currently being done in Orleans will be sent to other HNI facilities in North Carolina, New York and Iowa.</p><p>Carlson said it’s pure coincidence that the Orleans plant is winding down just as the company is coming to the end of its incentives reporting period.</p><p>“Ultimately, you have to align with what the market needs,” he said. “It’s a very difficult decision to close a facility.”•</p> <p><strong><a href=”https://blockads.fivefilters.org”>Let’s block ads!</a></strong> <a href=”https://github.com/fivefilters/block-ads/wiki/There-are-no-acceptable-ads”>(Why?)</a></p> Sat, 10 Dec 2016 07:11:00 +0000 After Carrier deal, will more manufacturers threaten to leave? The state rarely has to dole out incentives to retain jobs. Experts differ on whether that’s likely to change in the wake of the $7 million deal state officials cut to keep an Indianapolis HVAC plant open. http://www.ibj.com/ext/resources/IBJ-Daily/00-2016/12-December/Carrier_Corp_worker_440px.jpg?1480607878 Article de text/html http://www.ibj.com/articles/61628-after-carrier-deal-will-more-manufacturers-threaten-to-leave