Indianapolis, Indiana – With the state’s budget unlikely to accommodate another $500 million allocation for the Regional Economic Acceleration and Development Initiative (READI) program, local and state leaders are exploring new ways to keep economic development projects moving forward. While READI 1.0 and 2.0 funds remain unspent in some areas, other regions are rapidly advancing their strategic growth plans and need additional funding options to sustain momentum.
In response to this challenge, the Indiana Chamber and other stakeholders recently met with legislative and administrative leaders to propose a new approach—one that could serve as an alternative to future READI funding. The concept, often compared to a regional tax increment financing (TIF) model, would allow regions to leverage projected increases in tax revenue to secure bond financing for critical infrastructure and development projects. This revenue would be drawn from various sources, including commercial and business personal property taxes, as well as state income and sales taxes.
The proposal is particularly significant for regions like Northwest Indiana, where the NWI Forum, a key regional economic development organization, lacks the statutory authority to issue bonds due to its nonprofit status. Under the new plan, groups like the NWI Forum would have the ability to establish a regionwide finance authority, empowering them to issue bonds and accelerate economic development without relying on continued state appropriations.
Importantly, the proposal includes numerous safeguards to ensure accountability and requires approval from both state and local officials before implementation. Lawmakers have long emphasized that regions should not expect indefinite state funding for economic development projects and have encouraged them to explore sustainable financing alternatives. Feedback from recent discussions has been largely positive, with legislative leaders expressing optimism about the plan’s ability to place more financial responsibility on local entities while still fostering economic growth.
Though it remains uncertain whether the proposal will be included in legislation this year, early indications suggest it has a strong chance of moving forward. Nearly every READI recipient has signed a letter supporting the measure—a clear signal that, if passed, it would likely gain traction at the local level.
As regions continue to navigate economic development challenges, this proposal could provide a much-needed solution, ensuring that growth efforts remain on track even without additional state funding. While the fate of the plan remains in lawmakers’ hands, it represents a promising step toward a more self-sustaining future for regional economic development in Indiana.
