Editorial: Tax refund plan is not only option for spending reserves

It’s easy to forget, given the U.S. Supreme Court’s decision about abortion, that the original reason Gov. Eric Holcomb planned to call the Legislature into a special session July 6 was to talk about money.

The Republican governor has asked lawmakers to send $1 billion back to Hoosier taxpayers, with individuals receiving $225 each. That would be on top of $125 refunds the state is sending out now as part of Indiana’s automatic taxpayer-refund program.

Before lawmakers could commence that special session, however, the Supreme Court ruled that states could make their own rules about abortion. And, so, the special session has essentially been delayed until later this month so Republicans have time to decide what direction to take on that highly controversial issue. But the delay has also given Republicans—who have a supermajority in the House and Senate—time to contemplate Holcomb’s proposed taxpayer refund. We think that’s a good thing. Even in the context of the state’s $36 billion, two-year budget, a $1 billion taxpayer refund is significant, especially in a state with some obvious needs related to talent, education, public health and infrastructure.

As IBJ reporter Peter Blanchard writes in a page 1A story in this issue, some lawmakers (and others) are questioning whether taxpayer refunds are the best use of the state’s immense surplus or whether the money might be better spent closing the state’s teacher pension shortfall. There’s a question, too, about whether a recession could mean the state should hold onto the money to make up for what could be lower tax receipts in the coming year.

It’s a worthwhile conversation. Indiana has more than $5 billion in reserves. This is money that has not been earmarked to pay for an ongoing program, such as education or economic development or social services. It is a collection of funds made up of tax receipts that exceeded annual spending needs, federal pandemic relief grants, cash the state stashed for a rainy day and interest the state earned on that money.

It’s certainly easy to see Holcomb’s motivation in proposing to send some of that money back to taxpayers. Higher prices at the pump, in the grocery store and, well, everywhere are squeezing Hoosier families.

But we remember 2009, when a sudden recession led to a drop in the state’s tax receipts and eventually to cuts by then-Gov. Mitch Daniels in the money allocated to K-12 schools, universities and state agencies overall.

The state is in a much better financial situation now than it was in 2009. And this economic slowdown appears to be rolling out more gradually.

But history is worth reviewing here. So, too, are other big concerns, including how Indiana closes an achievement gap in education, improves public health, retains more college graduates, secures its future water supply, prepares existing workers for jobs of the future, and so much more.

We hope lawmakers spend as much time thinking about those issues as they do whether to change the state’s abortion laws.

Editorial: On abortion, Hoosiers should make their case

The day is approaching when legislators will gather at the Statehouse to further restrict — or ban — abortion in Indiana. They will do their work in a special session called by Gov. Eric Holcomb.

While this will represent an official gathering of lawmakers, they have already been meeting about the issue. Just not at the Statehouse. And not all elected legislators are participating. Only Republicans are involved in this initial process because they are the only members that really matter, thanks to the extreme gerrymandering employed in the state that gives the GOP a super majority in both legislative chambers. That means they can do state business without the presence of the rival party.

Republican legislators are sure to adopt restrictive abortion laws in wake of last month’s U.S. Supreme Court ruling striking down federal constitutional protections on women’s rights to abortion. The ruling returns authority over abortion to the states, and Indiana is controlled by the Republican Party. Its counterparts in a number of other red states have already taken steps to, in many cases, ban abortion in most or all circumstances.

The issue on the table is how far Hoosier Republicans will go in their quest. That’s where public participation and input could play a role in the outcome.

To be decided is whether abortion restrictions will provide exceptions in cases where the mother’s life is in danger, or when a woman is pregnant due to rape or incest. Enforcement methods will also be on the table. There will likely be some disagreement among Republican legislators, although we may never know how much.

There have already been demonstrations and protests at the Statehouse in Indianapolis and throughout the state by groups advocating their points of view. Those are likely to increase when the legislature goes into session later this month.

Republican lawmakers have, for the most part, declined to comment on the upcoming debate. That leaves the public in the dark about where this is going. Independent polling in the past has shown Hoosiers are split on the state’s path forward and that abortion is not viewed in all-or-nothing terms. Voices from the public, spoken civilly but forcefully, will be what influences lawmakers.

Holcomb has pledged to call for more restrictive abortion laws but isn’t sharing specifics on what that means. He acknowledges he is having discussions with GOP legislators and has encountered varying viewpoints on the abortion question. He says he and his colleagues are listening to voters.

Hoosiers should take the governor at his word. If you feel strongly about the abortion issue, speak up. Be part of the conversation.

Editorial: Purdue’s next presidency rooted in electronics

The semiconductor business has its ups, with record demand for electronics, and downs, with rising tensions between China and microchip dominator Taiwan.

There are predictions that the U.S. would need to boost its semi-conductor job market by 50% or at least 70,000 jobs to remain competitive.

But first, understand the importance of semiconductors in handling electricity. If a substance conducts electricity like copper or aluminum it is a conductor. If it doesn’t, it’s an insulator like glass. Semiconductors are halfway between, working as one or the other depending on temperatures. Semiconductors are vital components in phones, cars or air conditioners to name a few.

Mung Chiang, the incoming president of Purdue University, certainly understands the role of semiconductors in society. Born in northern mainland China, Chiang, currently the John A. Edwardson Dean of Engineering and Executive Vice President for Strategic Initiatives, will replace Mitch Daniels early next year.

Much of Chiang’s role, however, is rooted in the future of semiconductors.

In June 2019, Purdue announced a deal bringing research by the global Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest semiconductor contract manufacturer, to the West Lafayette campus, establishing the Center for Secured Microelectronics Ecosystem.

TSMC revenue in June alone was $5.8 billion ($175 billion in New Taiwan dollars) an increase of 18.5% from the previous June but a 5.3% decrease from May. TSMC is doing well.

So well in fact that for the year ending 2021, TSMC was in the Top 10 for equity holdings in the Indiana Public Retirement System.

In December of 2019, Chiang took a year’s leave to work as science and technology adviser to the U.S. Secretary of State. In May 2020, Chiang attended a State Department briefing that addressed China’s efforts to dodge U.S. export controls. Officials there announced a $12 billion investment in the U.S. by TSMC.

Chiang likened the deal to “the old Bell Lab days, if you will. We can now anticipate a full blossom of American innovations in the coming years.”

In 2021, Congress authorized the CHIPS for America Act for which Chiang gave hearing testimony titled “Ensuring American Leadership in Semiconductors.”

In May of this year, Purdue launched its Semiconductor Degrees Program in hopes of addressing the need for trained engineers.

Last December, Chiang withdrew his name from consideration as president of the University of Southern Carolina. By withdrawing he may have indicated that his work was not done in West Lafayette.

Chiang’s pending role harkens back to the five-year term of Daniels’ predecessor, France A. Cordova, herself a researcher in astrophysics who secured research funding of more than $1 billion through private philanthropy.

His presidency may mark a refocused face of Purdue, heading from the homespun yet savvy Daniels to the often behind-the-scenes work of raising research dollars.

Chiang has an admirable direction in mind by touting innovation.

With fortitude, creativity and funding, Chiang’s vision for innovations in microelectronics may well keep Purdue’s research centers as vital and relevant as they have been in the past.

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