The LEAP District was created in order to allow the state to move more quickly to land deals, said Secretary of Commerce David Rosenberg. Back in 2021, the IEDC lost a bidding war against Ohio for Intel, a chip manufacturer. One reason Indiana lost, Rosenberg said, was because Indiana didn’t have readily available land for use, and wasn’t able to move as quickly as Ohio.

Indiana-based drug manufacturer Eli Lilly and Company was the first to announce it would be building two manufacturing sites in the LEAP District, investing $3.7 billion and creating up to 700 jobs. Indiana is in the running for other companies as well. 

“LEAP is not in any way or shape designed to compete against what other Indiana cities are doing,” Rosenberg said. “LEAP is designed to compete against international locations that are playing for the same types of companies of the future and other places throughout the United States, like Nashville or Austin, Raleigh, Phoenix.” 

Why does the IEDC say Lebanon was chosen for the LEAP District?

Location, location, location. Lebanon is located 45 minutes from Purdue University and Rosenberg said it was relatively easy to piece together enough acreage in the city. Plus, unlike other areas of the state, it’s located within a 30-minute drive to an international airport and can pull from the central Indiana population center for talent. 

Why does the LEAP District need outside water?

The IEDC already has a central Indiana source in place to provide 10 million gallons of water a day to the LEAP District. That’s enough to handle the current needs of the district, including those of Eli Lilly. 

But, Rosenberg said that won’t be enough water should a high-water user decide to move to the LEAP District, which is the state’s goal. In June, the IEDC announced that Indiana is a finalist for a $50 billion semiconductor plant, the type of industry that depends on large amounts of water. 

Rosenberg added that should a high water user not decide to settle in the LEAP District, the IEDC will no longer be involved in water discussions. Regardless, he said water scarcity in central Indiana is an issue that will have to be addressed in the future, even if a major water user doesn’t choose Indiana to expand in. 

“Even outside of anything happening at LEAP, this is a problem that is staring the state in the face over the next few decades,” Rosenberg said. “Our premise was can we use economic development to unlock the resources to not only provide additional water for potential companies coming into these areas, but really solve a regional, generational water issue that everyone has identified and known about for decades and decades.” 

An Indiana Finance Authority central Indiana water study released in 2021 estimated that the daily water demand in central Indiana would increase by more than 100 million gallons by 2070. 

What is Indiana’s water solution?

The IEDC is looking at the Wabash Alluvial Aquifer as a likely solution to its water woes. 

IEDC signed a $9 million contract with Black & Veatch Corporation earlier this year to manage water infrastructure. The contract itself outlined a plan to “convey raw water from a series of collector wells and pump stations located adjacent to the Wabash River” for the LEAP district. 

But, Rosenberg emphasized the pipeline is not a done deal. At the request of the IEDC, INTERA Inc., has started testing how much water can sustainably be withdrawn from the aquifer adjacent to the Wabash River. 

How much extra water does the LEAP District need? 

Rosenberg said the IEDC has not placed a number on how much water it would need to pull from the aquifer. That would depend on which companies choose to move to the LEAP District, he said.

Intel in Ohio, for example, is expected to use 5 million gallons of water per day. That’s the kind of water usage Indiana should expect to see if the IEDC lands a chip manufacturer. 

Preliminary results from the INTERA study show that two collector wells at the site will sustainably produce more than 30 million gallons of water per day. That’s the equivalent of more than 40 Olympic-sized swimming pools.

The actual amount of water withdrawn could be much larger. Water from the aquifer could be used for other central Indiana uses outside of just the LEAP District, to help address the expected 100 million gallons a day increase in water needs for central Indiana over the next 50 years.

There’s not yet an estimate of the maximum amount of water that could sustainably be moved from the aquifer. 

Why are Tippecanoe County residents concerned?

Elected leaders and Tippecanoe County residents are worried that if the IEDC takes water from the aquifer adjacent to the Wabash River, it could negatively impact the county’s water supply and its own ability to expand economically in the future. 

“The concern is once you develop that pipeline, Indiana doesn’t have any real rules in place to determine how much can be moved,” Deery said. 

Plus, the LEAP District is located well outside of Tippecanoe County, which means the benefits to the community aren’t as obvious as they would have been had the IEDC chosen a location closer to the Wabash River for the development. 

Does Tippecanoe have enough water to share?

That’s what the IEDC has been studying.  

The preliminary results from the INTERA, Inc. study show that two wells on the site will sustainably produce more than 30 million gallons per day, with “minimal impact on home-owner wells” according to the IEDC. 

Those opposed to the project, however, aren’t confident that the IEDC will be able to provide an unbiased look at what the impact on the Wabash River would be. 

“Typically, you research before you buy,” Deery said, “and there’s been a sense around here that the decision has been made. And now it’s in search of the evidence to support that.”

What did Holcomb propose to ease concerns? 

Last month, Gov. Eric Holcomb directed the Indiana Finance Authority to take over oversight of the INTERA water supply study. 

“I am confident that these new efforts led by IFA will provide the necessary data to gain a greater understanding of the amount of excess water that is truly available to support all the surrounding region’s growth prior to any action being taken that could inadvertently jeopardize this needed resource,” Holcomb said in a statement. “ No entity is better suited to lead this overall pursuit than the IFA which will approach this study in the same methodical, collaborative, and transparent manner the organization has conducted in the past.” 

Moving oversight of the water study to a different agency was praised by some critics of the project as a step in the right direction. 

IFA will also start a comprehensive regional water study for north-central Indiana, expected to be completed in fall 2024. 

What is Tippecanoe County doing to try to stop the pipeline?

Last month, Tippecanoe Commissioners unanimously advanced a nine-month moratorium on “high volume water export(s).”

Rosenberg said the commissioners’ moratorium would have no impact on the IEDC’s plans because the agency would not be in a place to pump water from the aquifer in the next nine months. 

“I think the action was unnecessary and it was playing to some of the rhetoric and misinformation,” he said. 

How will state lawmakers address water during the 2024 legislative session?

Republican legislative leaders say they want to avoid legislating on the water issue until they get the data. That means they have no plans to finance such a pipeline yet. 

“We’re not going to take any other steps until we have an opportunity to study to make sure that there’s ample water for the projects that we’re trying to bring into the state of Indiana,” Senate President Pro Tem Rodric Bray said last month, “and we understand just how much is too much to take away from a particular community.” 

Those who represent Tippecanoe County, such as Deery, hope to implement some guardrails “that would help protect all communities against any potential harm of large water transfers to another community,” he said in a press release. 

What’s next?

The INTERA water supply study is expected to be completed in early 2024. Rosenberg said it’s “too premature” to say whether a water pipeline would move forward without the blessing of Tippecanoe County, should studies show the capacity to move large amounts of water is there. 

“We’re not going to in any way inhibit Lafayette from their ability to to grow economically,” Rosenberg said, “because they’ve had so much success already.”

The legislative session convenes on Jan. 8 and must wrap up by mid-March. 

Contact Kaitlin Lange on X @kaitlin_lange or email her at [email protected]. 

Contact Steve Brown on X @Steve_Brown_TV or email him at [email protected]

X @stateaffairsin

Facebook @stateaffairsin

Instagram @stateaffairsin

LinkedIn  @stateaffairs

“I couldn’t continue to do that unless I was willing to do that myself, willing to take the risk, willing to lead by example,” she said, adding, “When the call came for me, I jumped. Yeah, I’m in. Let’s go.”

Holcomb said in making this historic nomination: “Here are several key reasons I believe Anne is the right person at the right time for this role. Anne’s resume of service to the Republican Party is as extensive as just about anyone’s in the country, having served with distinction at the local, state and national levels throughout her entire career. Furthermore, with experience in running campaigns at every level of government, she has the knowledge and relationships to not only keep our party moving forward, but to continue to take it to the next level.”

Hathaway’s roots are in the tiny Illinois town of Galva just north of Peoria. After graduating from high school with a class of 77, and then from the University of Illinois, she decided to spend a year in Washington, D.C., where she began as a typist at the Department of Treasury. 

Hathaway served in the White House as assistant and director of scheduling for former Vice President Dan Quayle, was program director for the 2012 Republican National Convention, and was executive director of the Indiana House Republican Campaign

Committee.

Following Hathaway’s resume is a lesson in stewardship and power. 

“Sen. Lugar would be more excited about me being state chair than I am just because, Judy Singleton and Teresa Lubbers were ecstatic,” said Hathaway.

She now helms the party at (or nearing) its historic apex. The Indiana GOP holds all the state constitutional offices, nine of 11 congressional seats, maintains General Assembly super majorities, more than 90% of county offices, and as of the municipal elections earlier this month, 76 mayors. If a Republican is elected governor in 11 months, the party will increase its historic dominance to five consecutive terms.

Hathaway will lead the party through the five-way gubernatorial primary. Following next June’s Indiana Republican Convention, she will head to Milwaukee, where Republican National Chairwoman Ronna McDaniel tabbed her to head the RNC’s Arrangements Committee.

Hathaway has committed to serve only through the May primary. “At that time, she will work together with the gubernatorial nominee and you all to decide who is best to finish out the remainder of the term,” said Holcomb.

Asked if there was a chance to continue as chair beyond the May election, she said, “That’s a conversation to be had.

“I have agreed to stay at least through the state convention. I believe the gubernatorial nominee should have his or her own political partner here. I’m just focused on the time between now and then, she said.

Senior reporter and columnist Brian Howey sat down for a 45-minute, wide-ranging interview with Hathaway where she discussed what it means to make history as the first female state Republican chair, how her work at the Lugar Series prepared her for this new role, the Republican party’s diversity programs and other topics. Read the full conversation on State Affairs Pro here.

Brian Howey is senior writer and columnist for Howey Politics Indiana/State Affairs. Find Howey on Facebook and Twitter @hwypol.

Earlier this year Klutz announced she would resign Nov. 30, roughly a year after she was reelected. Klutz, who was first appointed by Holcomb in 2017, is the fourth state auditor in a row to not finish their term, enabling the sitting governor to choose a replacement. 

Nieshalla was already well-known within  Republican circles. She previously ran for treasurer in 2022 against three other Republicans, losing to current Treasurer Daniel Elliott at the state Republican  convention. At the time, the convention loss of Nieshalla and other Republicans more closely aligned with the party establishment was seen as a rebuke of the Holcomb wing of the party. 

Nieshalla, who lives in Zionsville, is also president of the Indiana County Councils Association and the chairwoman of the Association of Indiana Counties’ 2023 Legislative Committee. She has a bachelor’s degree from Oral Roberts University and a master’s degree from Indiana University.

She’ll be sworn in on Dec. 1 and will serve until at least the 2026 election when voters will have the option to choose the next state comptroller. 

Holcomb praised Nieshalla in an emailed statement.

“Elise is a dedicated and proven public servant who has committed much of her professional life to bettering her community through service,” Holcomb said. “She has shared her financial expertise to help steer and shape the bright future of Boone County which gives me great confidence she’ll do the same serving Hoosiers as our next State Comptroller.”

Contact Kaitlin Lange on X @kaitlin_lange or email her at [email protected]. 

X @stateaffairsin

Facebook @stateaffairsin

Instagram @stateaffairsin

LinkedIn  @stateaffairs

Reading proficiency

Both Huston and Senate President Pro Tem Rodric Bray, R-Martinsville, said they want to limit the situations in which schools allow third graders to advance to fourth grade when they fail the IREAD-3, the state’s reading comprehension test. 

During the 2021-2022 school year, more than 18% of students failed the test because they were not reading at a third grade level.

“When you pass that kid on, and they aren’t prepared to succeed, you’re not doing that kid a favor,” Huston said, following his Organization Day speech in which he laid out his caucus’ priorities. 

Huston’s goal is to make Indiana the No. 1 state in the nation for third grade reading proficiency by 2027. 

Democrats cautioned that it may be too soon to make major changes to how IREAD scores are handled in Indiana. During the 2023 legislative session, lawmakers passed a science of reading bill. 

“We need to make sure that schools have the opportunity to train their teachers, to implement these strategies across the board before we start throwing new legislative hurdles in the way,” said Sen. Andrea Hunley, D-Indianapolis.  “We have to give [new recommendations] time to work before we start, say, failing all children or retaining a whole class of children.”

Continuing to re-think K-12 education

Last legislative session, lawmakers passed a bill seeking to expand work-based learning in high school, but Huston emphasized during his Organization Day speech that legislators can still do more to transform the K-12 school system. 

Huston said House Republicans will push to allow state money typically set aside for students pursuing a college education to be used to obtain certificates and certifications for “high demand, high wage jobs.” 

“We must continue to adjust the way we think about K-12 education in order to meet the needs of all students, including those who aren’t interested in pursuing a two-or four-year degree,” Huston said. “Let’s use this session to build on skill and work-based learning, and let’s align our funding to this goal.” 

This fall the Indianapolis Chamber of Commerce took a delegation of Indiana lawmakers and others to Switzerland to see how the country’s apprenticeship program operates. Expect more changes in the coming years that would enable Indiana’s K-12 system to more closely mirror that of Switzerland’s. 

Child care access

During his own Organization Day speech, Bray emphasized a need to expand affordable child care options for young children. 

“Day care is a constant challenge from the Ohio River to the Michigan line, trying to find day care at all if you can find it and whether it’s affordable,” Bray said.

He pointed to a legislative study committee on the topic which recommended some minor reforms to the system, such as lowering the age requirement for working unassisted in an infant or toddler classroom to age 18 from 21 and requiring the state to review how it can streamline child care regulations to increase availability. 

Don’t expect lawmakers to throw more money at the child care system since 2024 isn’t a budget-writing year.

Health care costs

Lawmakers passed multiple bills during the 2023 legislative session aimed at cutting health care costs, ranging from limiting physician noncompete agreements to creating benchmarks for how high hospital prices in the largest hospital systems should be.

But Bray said he expects lawmakers to offer more legislation on the topic this year in order to help drive down costs long term. 

A legislative study committee on the topic backed recommendations to require more disclosures by insurance companies on their “prior authorization” process for medical care, as well as require medical providers to give lawmakers a six-month notice for mergers or acquisitions. 

Water access

It’s unclear whether legislation on water access will actually pass either chamber, but the topic is almost certain to come up in discussions. 

Earlier this year, the Indiana Economic Development Corp. announced plans to pump water from the Wabash River aquifer to the LEAP district in Lebanon. Tippecanoes citizens have been vocal in their opposition to the plan, and just this week the Tippecanoe County Commissioners voted to put a moratorium on high volume water exports. 

Legislative leaders say they want to avoid legislating on the issue until they get more data. The Indiana Finance Authority and the Indiana Chamber of Commerce are studying the issue.

“We’re not going to take any other steps until we have an opportunity to study to make sure that there’s ample water for the projects that we’re trying to bring into the state of Indiana,” Bray said, “and we understand just how much is too much to take away from a particular community.” 

But, even if leadership would rather wait to address the elephant in the room, lawmakers are almost certain to file legislation. 

Issues that won’t move: Gaming

For at least the past two legislative sessions, lawmakers have filed bills to legalize internet casino gaming, or iGaming. It appeared momentum was on proponents’ sides. Until this month. 

Earlier this month former state Rep. Sean Eberhart agreed to plead guilty to criminal fraud charges that federal prosecutors say stem from influencing casino legislation in return for the promise of a $350,000-a-year job.

Both Bray  and Huston said Monday they don’t expect any gaming legislation to move in 2024. 

During Monday’s Chamber panel, Bray said the federal investigation “makes gaming extremely hard to engage in.”

“It taints the Statehouse, it diminishes the confidence that people have in the integrity of the Statehouse, it causes an awful lot of problems and it makes it particularly difficult to engage in that kind of policy,” Bray said.

Issues that won’t move: Marijuana

Lawmakers studied the impact legalizing marijuana would have on the workforce and youth in an interim committee this fall, but the committee never issued any recommendations for legislation.

Both legislative leaders and Holcomb have emphasized their reluctance to legalize marijuana until at least after the federal government reschedules it. Huston reiterated his hesitation on Monday.

“No one has made a compelling case to me yet on why legalizing marijuana or having more people use cannabis in the state of Indiana is a positive thing,” Huston said. “So until I hear that answer, I wouldn’t expect a whole lot of change.” 

Likewise, Bray said its passage “seemed unlikely.” 

What’s next?

The ceremonial start of the legislative session is just that. Lawmakers won’t start moving bills until they return to the Statehouse in January. 

Contact Kaitlin Lange on X @kaitlin_lange or email her at [email protected]. 

X @stateaffairsin

Facebook @stateaffairsin

Instagram @stateaffairsin

LinkedIn  @stateaffairs