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Indianapolis Star
26-06-2025
- Business
- Indianapolis Star
Gov. Mike Braun's brand new IEDC board includes several large campaign donors
When Gov. Mike Braun replaced the entire board of the Indiana Economic Development Corp., he gave some of the spots to large donors. His firing of the previous eight board members June 23 is in keeping with Braun's efforts to cut ties with the previous administration and overhaul the beleaguered quasi-state agency that has caught criticism over transparency concerns. Indeed, he has a very different vision for the IEDC: While former Gov. Eric Holcomb's board brokered large high-tech industry deals with companies from outside Indiana, Braun wants to turn the IEDC's attention more toward homegrown, small- to-mid-size "Main Street" businesses. But he differs from his predecessor in another way: Of Braun's nine new appointees, several gave significant sums to his gubernatorial campaign, totaling more than a quarter million dollars. This board reviews and approves billions of dollars worth of economic development projects, investment awards, loans and grants. While some, including Braun, see campaign donations as a nonfactor in appointments like this ― one argument being that it's natural for Braun to pick people he knows to be on such a board, and people he knows are likely to support him ― others concerned with government ethics find the whole setup concerning. It gives an appearance of pay to play, which is "fundamentally problematic," said Abraham Schwab, psychology chair at Purdue University Fort Wayne. "It's possible that this is a happenstance ... but that seems unlikely," he said. Braun said campaign donations did not figure into his decision on appointments. Indiana business executives, among whom Braun counts himself, supported him heavily in the election, and it also is the case that he wanted to pick entrepreneurs for this board. "I pick the people that I've known to be the most entrepreneurial, and when you're mostly supported by them, I'm not going to go after the standard cardboard cutout that would normally get on boards," he told reporters following the first quarterly meeting of his new board. "I'm looking for people that are going to be transformational. I've been clear that on economic development, I'm going to fertilize the field of small businesses and entrepreneurs. He added that he plans to appoint some additional new members. By Indiana law, the governor chairs the IEDC board and can appoint up to 14 board members, at least three of whom must be Democrats. Catch up: Braun overhauls IEDC board, appoints well-known Democrat, over displeasure with state agency Collectively, five of Braun's new appointees had given about $263,000 to his gubernatorial campaign and another $16,650 to his Senate coffers. Other new board members include former Democratic gubernatorial candidate John Greggl Terre Haute entrepreneur Greg Gibson; Don Lamb, director of the state Department of Agriculture; and David Fagan of International Union of Operating Engineers Local 150. None of this shocks outgoing board member Mark Miles, the CEO of IndyCar and Penske Entertainment. It makes sense that Braun would look around among the people he knows in the business world to lead such a board, and also that people he knows in this world could have supported him in his race. "You would hope to fill boards with people you know and who have the skillset," he said. "In my mind someone would be crazy to make a donation to be on the IEDC board, which is unpaid." Previous IEDC board members did not, at least under their own names, give in nearly comparable sums to the two previous governors. Even if this isn't quid pro quo, it's an example worth noting of the power of money and relationships at this level, said Laura Wilson, politics professor at the University of Indianapolis. It makes sense to her, given the politicization of this agency, that Braun would want to choose some supporters. "The IEDC's been a political football for over 12 months," she said. "It's not just an innocuous small board on the periphery that no one's ever heard of." Even if this seems like the norm, that doesn't make the norm ethically sound, Schwab said. It not only gives the appearance that this administration may reward people who give during campaign season, he said, but raises the question of whether the board's decisions will be in the public's interest or Braun's. "Anybody who might challenge Braun's views on economic development," he said, "we get rid of them so we can have a bunch of 'yes' people."
Yahoo
15-05-2025
- Business
- Yahoo
Braun signs contract for an IEDC audit costing taxpayers up to $800,000. Here's why
The state of Indiana could pay up to $800,000 on a forensic audit initiated by Gov. Mike Braun of the Indiana Economic Development Corp. and its affiliate entities. The state-funded entity has been increasingly maligned by Republicans for its lack of transparency, culminating in Braun announcing that he wants to investigate the quasi-governmental entity for possible impropriety. The IEDC has been by funded by taxpayers since its 2005 founding under Gov. Mitch Daniels' administration but has faced criticism over the years for its sometimes-opaque practices. Braun's administration has already frozen the funds of IEDC affiliate Elevate Ventures, a nonprofit investment entity that's doled out nearly $200 million to Indiana startups, while the audit takes place. He also earlier this year signed an executive order that will result in increased financial transparency over entities like the related Indiana Economic Development Foundation, which has funded international travel for past governors. Braun's Secretary of Commerce David Adams signed a one-year contract earlier this week with Washington, D.C.-based firm FTI Consulting Inc. The firm will be paid an hourly rate of $595 for its work up to $800,000, unless the contract is eventually renewed. The firm will provide "forensic review and support services" for the state, according to a letter from the firm, which has locations worldwide including an office on the north side of Indianapolis near Carmel. Braun previously has stopped short of accusing anyone specifically of wrongdoing, but has said "transparency is essential." A Hannah News Service story published in April raised several issues, including IEDC's alleged struggles to get financial and investment data from the Elevate Ventures affiliate. "We are not rushing to any conclusions," Braun said on April 24. "We want to make sure things are reviewed independently." Elevate Ventures' CEO Toph Day, meanwhile, has defended the organization and has said it is "eager to participate in the forensic audit." Contact senior government accountability reporter Hayleigh Colombo at hcolombo@ Sign up for our free weekly politics newsletter, Checks & Balances, by IndyStar political and government reporters. This article originally appeared on Indianapolis Star: Braun signs contract for IEDC audit costing taxpayers up to $800,000
Yahoo
15-05-2025
- Business
- Yahoo
Braun signs contract for an IEDC audit costing taxpayers up to $800,000. Here's why
The state of Indiana could pay up to $800,000 on a forensic audit initiated by Gov. Mike Braun of the Indiana Economic Development Corp. and its affiliate entities. The state-funded entity has been increasingly maligned by Republicans for its lack of transparency, culminating in Braun announcing that he wants to investigate the quasi-governmental entity for possible impropriety. The IEDC has been by funded by taxpayers since its 2005 founding under Gov. Mitch Daniels' administration but has faced criticism over the years for its sometimes-opaque practices. Braun's administration has already frozen the funds of IEDC affiliate Elevate Ventures, a nonprofit investment entity that's doled out nearly $200 million to Indiana startups, while the audit takes place. He also earlier this year signed an executive order that will result in increased financial transparency over entities like the related Indiana Economic Development Foundation, which has funded international travel for past governors. Braun's Secretary of Commerce David Adams signed a one-year contract earlier this week with Washington, D.C.-based firm FTI Consulting Inc. The firm will be paid an hourly rate of $595 for its work up to $800,000, unless the contract is eventually renewed. The firm will provide "forensic review and support services" for the state, according to a letter from the firm, which has locations worldwide including an office on the north side of Indianapolis near Carmel. Braun previously has stopped short of accusing anyone specifically of wrongdoing, but has said "transparency is essential." A Hannah News Service story published in April raised several issues, including IEDC's alleged struggles to get financial and investment data from the Elevate Ventures affiliate. "We are not rushing to any conclusions," Braun said on April 24. "We want to make sure things are reviewed independently." Elevate Ventures' CEO Toph Day, meanwhile, has defended the organization and has said it is "eager to participate in the forensic audit." Contact senior government accountability reporter Hayleigh Colombo at hcolombo@ Sign up for our free weekly politics newsletter, Checks & Balances, by IndyStar political and government reporters. This article originally appeared on Indianapolis Star: Braun signs contract for IEDC audit costing taxpayers up to $800,000
Indianapolis Star
15-05-2025
- Business
- Indianapolis Star
Braun signs contract for an IEDC audit costing taxpayers up to $800,000. Here's why
The state of Indiana could pay up to $800,000 on a forensic audit initiated by Gov. Mike Braun of the Indiana Economic Development Corp. and its affiliate entities. The state-funded entity has been increasingly maligned by Republicans for its lack of transparency, culminating in Braun announcing that he wants to investigate the quasi-governmental entity for possible impropriety. The IEDC has been by funded by taxpayers since its 2005 founding under Gov. Mitch Daniels' administration but has faced criticism over the years for its sometimes-opaque practices. Braun's administration has already frozen the funds of IEDC affiliate Elevate Ventures, a nonprofit investment entity that's doled out nearly $200 million to Indiana startups, while the audit takes place. He also earlier this year signed an executive order that will result in increased financial transparency over entities like the related Indiana Economic Development Foundation, which has funded international travel for past governors. Braun's Secretary of Commerce David Adams signed a one-year contract earlier this week with Washington, D.C.-based firm FTI Consulting Inc. The firm will be paid an hourly rate of $595 for its work up to $800,000, unless the contract is eventually renewed. The firm will provide "forensic review and support services" for the state, according to a letter from the firm, which has locations worldwide including an office on the north side of Indianapolis near Carmel. Braun previously has stopped short of accusing anyone specifically of wrongdoing, but has said "transparency is essential." A Hannah News Service story published in April raised several issues, including IEDC's alleged struggles to get financial and investment data from the Elevate Ventures affiliate. "We are not rushing to any conclusions," Braun said on April 24. "We want to make sure things are reviewed independently." Elevate Ventures' CEO Toph Day, meanwhile, has defended the organization and has said it is "eager to participate in the forensic audit."
Yahoo
26-04-2025
- Politics
- Yahoo
Ken de la Bastide column: How will legislation impact Hoosiers?
Now that the Indiana Legislature has concluded the 2025 session, it will be interesting to see how their actions will impact Hoosiers. One bill that will have long-range implications enables school board candidates to declare a political party. Heretofore, school board elections have always been non-partisan in Indiana. It certainly appears that the Republican Party majority at the legislature is attempting to give school board candidates that declare the GOP label an advantage. In the past, voters would have to research the political leanings of school board candidates. Now a voter can just cast a ballot based on the political party declared by school board candidates. Will this take some interest away from school issues? Also, will it affect potential funding for school systems, sending more money to schools with boards controlled by the party in power at the Statehouse? It's similar to legislation that was proposed by local lawmaker Sen. Mike Gaskill to move municipal elections to the same year as elections for state and federal offices. Gaskill's proposal was assigned to a study committee that will make a recommendation to lawmakers in 2026. If the change is eventually adopted, it will take the focus away from local issues in municipal elections, instead encouraging voters to cast ballots based on state and national concerns. Lawmakers were also informed that Indiana is expecting to see a decrease of $2.4 billion in state revenues over the next few years. The two-year budget passed for 2026-27 is $45 billion, with funding reductions in several areas, including the Indiana Economic Development Corp. and local health departments. Spending for public health was cut from $100 million annually to $40 million. Lawmakers also approved a $2 increase in the state's cigarette tax to $2.99 per pack starting July 1. The anticipated $800 million in additional revenue will be used to help cover the state's Medicaid costs. I suspect many people will consider kicking the smoking habit when a pack of cigarettes will cost close to $12. At least for a brief time, cigarette companies will probably offer discounts on the price in an effort to keep people purchasing their products. The good news from the General Assembly is that lawmakers defeated an effort to criminalize homelessness by making it illegal to camp on public grounds. Although the intention of the bill was to help the homeless get needed services, the reality is that it would not have been effective. Over the next weeks and months, local residents will learn of the impact new legislation will have on county and city government operations.
