10 Hoosier Banker November 2014 COVER STORY Indiana Gov. Mike Pence: Balancing Budgets and Priorities The Indiana banking industry is fortunate to operate in a legislative environment that is largely supportive of business and banking concerns. Consequently the Hoosier state has developed a reputation for fiscal solvency and economic strength, with mutual respect forged between lawmakers and the business/ banking community. A striking example of legislative support of banking came in 2013 with the passage of HEA 1018. This landmark legislation, signed into law by Gov. Mike Pence, provided Financial Institutions Tax (FIT) relief and gave permanent protection to the Public Deposit Insurance Fund, a $300 million bank-funded pool of funds that protects local taxpayers. Again this year, the Indiana General Assembly passed legislation with positive, long-term ramifications for Indiana banking. In March Gov. Pence signed into law SEA 1 which, among other provisions, phases down Indiana’s Corporate Income Tax rate from 6.5 percent in 2015 to 4.9 percent in 2021, and also phases down the FIT rate to 4.9 percent in 2023. By comparison, the FIT rate had been 8.5 percent prior to last year’s passage of HEA 1018. The Indiana Bankers Association appreciates that Gov. Pence understands banking issues and the importance of banks in maintaining a strong economy. The governor was elected to office in 2012 and inaugurated in January 2013; he has the distinction of serving as Indiana’s 50th governor. Pence previously served in public capacity when he represented Indiana’s Sixth Congressional District in Congress for six terms. Earlier in his career, he was employed with the Indiana Policy Review Foundation as president and also was radio host of “The Mike Pence Show.” The governor and First Lady Karen Pence are the parents of three grown children, Michael, Charlotte and Audrey. In October Hoosier Banker had the opportunity to interview The Honorable Mike Pence. In your first year as governor, you signed into law HEA 1018, impacting the Financial Institutions Tax and the Public Deposit Insurance Fund. What were your reasons for signing the bill? “We like to say, in this office, that we make job creation job No. 1, and our financial institutions play a vitally important role in the life of our economy in Indiana. Over the last two years, as we were moving forward legislation that was lowering income taxes, lowering the inheritance tax and lowering the corporate tax, we thought it was important also to take the opportunity to lower the tax on financial institutions. “To continue to make Indiana more competitive, we’ve got to keep an eye on hardworking Hoosiers, on our businesses and on our financial institutions so that, all working together, they have more resources to invest in ways that will create jobs and opportunities. We thought that was an important step in the last two years of moving forward the kind of tax relief that is resulting in our economy growing, and in our labor force growing in Indiana at a pace that exceeds that of almost every state in the union. “Indiana has seen our unemployment rate drop from over 8 percent to below the national average of 5.7 percent. We’ve seen our labor market grow in Indiana by more than 50,000. We’re on pace in this state for another record year in total deals by our economic development team. Gov. Mike Pence serves Hoosier citizens from his historic office at the Indiana Statehouse.
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