Nate Feltman: 3 big challenges await Indiana’s next governor

I have the opportunity through my work at IBJ to participate in many meaningful conversations about the future of our city and state. Two such conversations occurred last week: one a public panel discussion moderated by IBJ Editor Lesley Weidenbener at our inaugural Education Power Breakfast, the other a private roundtable discussion that included four former Indiana commerce secretaries, a former governor and senior business executives. Both conversations were focused on the future of our state and what can be done to provide more opportunities for more Hoosiers.

While Indiana’s positive momentum on the economic development front the past few years was noted (including record-setting job-creating investment deals announced by the Indiana Economic Development Corp.), both groups shared troubling trends on the horizon that Indiana must address in order to maintain that momentum. While participants in both forums acknowledged that we shouldn’t always turn to government for solutions to what ails us, government action (or the serious threat of action) might be needed to address three significant challenges that will impact Hoosier incomes and opportunities in the future.

◗ The first challenge is our failing K-12 education system. Studies show that if a child is not able to read by third grade, the chances of that child graduating high school and obtaining a job at living wage are slim.

Money is not the primary factor—teacher and school system accountability is. Rather than ensuring a child is able to meet certain reading standards (and follow the law), too many children are simply passed on to the next grade level, so the school won’t be penalized. As Indiana House Speaker Todd Huston stated at IBJ’s Education Power Breakfast: “You cannot break broken.” Our education system is broken when schools fail our children.

The next governor must work with our Legislature to build more accountability into our education system. While unions protect the teachers, who is protecting our children? The results are shattered Hoosier lives and families, as well as not enough educated workers to fill the coveted, high-paying jobs of the future.

◗ The second problem that will limit Indiana’s potential is the rising cost of energy. For the first time in history, Indiana last year became a net importer of energy.

The war on coal is largely to blame. Indiana is blessed with enormous coal deposits, but coal is no longer an acceptable energy source. As a result, Indiana’s electricity rates—a selling point when I was secretary of commerce 15 years ago—no longer are an advantage. We have an abundance of water, but advanced-economy jobs require lots of electricity, and importing power is much more expensive than generating our own.

Indiana’s next governor and Legislature will need to devise an energy plan that likely includes nuclear, hydrogen and other sustainable-energy sources.

◗ The third challenge that will impede Indiana’s economic success is our cost of health care. When employers’ insurance rates rise due to the rising costs, Indiana is at a disadvantage as companies evaluate expansion sites.

The overall health of our population contributes to our rising costs and worker productivity. In the 1990s, Indiana ranked middle of the pack for overall health (26th). Today, we rank 40th. The next governor must work with the Legislature to prioritize public health investments and seek ways to make health care delivery more efficient in Indiana.

Gubernatorial candidates Sen. Mike Braun and Jennifer McCormick have an opportunity to explain to Hoosiers their ideas to address our (1) failing K-12 education system, (2) rising energy costs and (3) rising health care costs. Doing so will lay the groundwork for action in 2025.•

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Feltman is publisher of IBJ and CEO of IBJ Media. Send comments to nfeltman@ibj.com.