BY AMELIA JEFFIRS
ajeffirs@etruth.com
After the Associated Press, The New York Times and Time produced stories featuring Elkhart's hard times, we tracked down the Indiana gubernatorial candidates' responses to the national attention on our city.
Jane Jankowski, press secretary to Republican Mitch Daniels, answered our questions in an e-mail interview.
Gubernatorial Democratic challenger Jill Long Thompson told us where she stood during a phone interview Friday.
What does the recent national attention on Elkhart say about its economic situation?
Jankowski: Elkhart's economy has been severely impacted by problems in the RV industry, which has been hit hard by a one-two punch of higher gas prices and tightening of credit.
Thompson: It shows the problems with Gov. Daniels' approach to economic development. Elkhart County is known for its manufacturing and its dedicated work force. We need a change in the governor's office.
A recent New York Times article described Elkhart as "the white-hot center of the meltdown of the American economy." Is this an accurate description of Elkhart?
Jankowski: This characterization isn't fair or helpful. There are many other areas of the country struggling to deal with the effects of current national economic trends. Michigan, for example, is in much tougher shape.
Thompson: Elkhart's economy base is dependent on housing and influenced by gas prices; both have been an issue. Indiana was losing jobs faster than any other state this summer.
What are some specific plans to address Elkhart's economic situation?
Jankowski: Nate Feltman, the president of the Indiana Economic Development Corp. (IEDC) has met with RV industry leaders, as has the governor, and continues to discuss retention of jobs in Indiana with companies. At the same time, the IEDC is working with local and regional leaders to find ways to diversify the area's economy so it is not so dependent on a single industry. The IEDC is aggressively recruiting new opportunities to northern Indiana, such as KIK Custom Products, which plans to add 200 jobs to its Elkhart operations by the end of the year.
Governor Daniels also is working on a new program that will help with foreclosure problems. That plan will be announced soon.
Thompson: Elkhart's work force is very skilled in manufacturing, and exploring the potential in "green" areas, such as wind energy and solar panel production, would be my immediate focus.
I also propose a tax incentive for businesses bringing new jobs to Indiana. Based on unemployment rate, personal income and per capita wealth, all 92 counties will be categorized into three tiers. Depending on which tier a county falls under, businesses in that county that create new jobs could be eligible for up to $3,500.
Where does Elkhart rank in terms of needing aid as compared to other Hoosier cities?
Jankowski: Indiana is the most heavily manufacturing dependent state in the nation, and historically, we've had many Hoosiers employed in transportation manufacturing. This sector is being hit especially hard by slowing demand for autos, RVs and other vehicles.
Thompson: (According to her proposed tax incentive) All indications point toward Elkhart qualifying for the tier under which businesses creating new jobs are eligible for the highest possible tax credit of $3,500.