Lilly making record donation to help Indiana towns, Holcomb says in last State of the State

Indiana Gov. Eric Holcomb reflected on the previous year’s economic investments and announced a substantial new one in his final State of the State address Tuesday night.

Holcomb also shared his priorities for his final year in office – several of which are shared by his Republican colleagues in the legislature.

This week is the start of a year of “lasts” for Holcomb, who is termed out after eight years in the governor’s office. Eight candidates have lined up to run for the open seat. 

Here’s what Hoosiers can expect to see Holcomb and the General Assembly do in 2024.

Read between the lines:Indiana Gov. Eric Holcomb's final State of the State, annotated

READI 2.0 boost from Lilly Endowment

Holcomb announced the Lilly Endowment is donating $250 million this year to support projects under the state’s READI program, which the governor noted is the single largest award in the endowment’s history. The initiative, which he first announced during the 2021 legislative session, provides matching grants around the state for projects that make Indiana communities more attractive to live and work.

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The first series of READI grants were announced in late 2021. Holcomb shared plans in September for READI 2.0, another $500 million for projects focused on population growth and quality of life. Proposals are due to the Indiana Economic Development Commission in February.

The extra $250 million from the Lilly Endowment will be earmarked for projects that address arts and culture initiatives and blight and redevelopment, particularly in rural towns across the state. 

In Central Indiana, the White River Regional Opportunity Initiative covering Marion, Hamilton and Madison counties, Zionsville and McCordsville received $20 million from the state in the first round of funding in 2021. Dollars have already been allocated toward projects like Carmel Clay Parks and Recreation’s extension of the White River Greenway. 

Third-grade reading

About one in five third-graders failed the standardized reading test, known as IREAD, last year – a 10% decline over the past decade.

Republican lawmakers have discussed narrowing the exceptions that allow students who fail the test to continue to fourth grade, or in other words, holding back more third graders than the state does now. Holcomb agrees.

He also proposes requiring schools to administer the test to second graders, too – not punitively, but to track students’ reading proficiency and offer summer school for those who are not on track.

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Child care

Holcomb is in lock-step with Republican lawmakers on what to do about the accessibility of child care in Indiana, naming several specific initiatives that came out of a legislative study committee.

Republicans hope to reduce some regulations while maintaining safety in the field. Some specific ideas include:

• Add early childhood education credential training to the state’s existing workforce training grant programs.
• Allow child care employees to be eligible for the federal and state programs that provide free or reduced child care for their children.
• Reduce the age requirement for being alone with children in licensed facilities

Workforce development

Holcomb kicked off day one of the 2024 legislative session Monday by announcing a workforce development campaign designed to provide resources to Hoosier employers and people looking for jobs, training and grants offered by the state. 

The website, OneStopToStart.IN.Gov, also features a team of people to provide one-on-one assistance on state workforce programs. 

“Streamlined concierge service,” Holcomb called it Monday. “It would be like any other service that we're trying to make sure is as simple, as seamless as possible. Sometimes, as I mentioned, you can almost drown in options and acronyms, and we want folks to know, if they feel left out of this economy, they're not. There is a program that has been contemplated and put in place that will help them.”

The recent announcements follow other major business and economic development steps taken since Holcomb has been in office, including last year when Stellantis and Samsung SDI announced plans for a $3.2 billion electric vehicle battery plant. 

Contact IndyStar's state government and politics reporter Brittany Carloni at brittany.carloni@indystar.com or 317-779-4468. Follow her on Twitter/X @CarloniBrittany.

Contact IndyStar state government and politics reporter Kayla Dwyer at kdwyer@indystar.com or follow her on Twitter@kayla_dwyer17.