LeeAnn Schreiner, left, Jean Jannasch and Pam Uhrina are co-owners of Nature’s Remedies in Valparaiso. The business opened Sept. 15, six weeks after the closing of the former health food store in the same location. (Photograph by John L. Hendricks/The Times.)

Organic foods, herbal supplements and natural vitamins are among the products stocking the shelves of store whose name explains its function. Nature’s Remedies opened Sept. 15, six weeks after the closing of the former health food store in the same location. The new shop is owned and operated by Pam Uhrina, Jean Jannasch and Leeann Schreiner.

“We took over the location, but not the business,” Uhrina said. “It’s a brand new everything.” The three Valparaiso residents worked in the closed health food store and now help staff Nature‘s Remedies.

“We share the stress, and that’s the good thing,” Uhrina said.

The store also employs three women who worked at the previous shop. Together, the six have more than nine decades of experience in the health food business. The three owners say they all are well-versed in the value of nutrition and nutritional foods, and they are able to offer customers advise on healthy diet and healthy living, not just products to promote them.

“The three of us love doing this,” said Uhrina, who is enrolled in college classes on nutrition. “We love the alternative healing thing. We study it and have been studying it and going to seminars for years.”

Jannasch is a massage therapist while Schreiner, who is a former science and physical education teacher, is a nutrition consultant with certification with the American Association of Nutritional Consultants.

The three pooled savings to open and stock the store, which is located in the same shopping center as Blythe’s Sports Shop. They hope to recoup their investment in about a year, Uhrina said.

“We’re getting small salary, but not getting fully paid,” she said. “We’re putting the money back into inventory.”

Putting the business together was hard because they had to start from scratch, but now they’re having a blast, Uhrina said.

“It was very stressful,” she said. “Now that people really like it and the way it looks, it’s becoming fun because we’re doing what we like to do and helping people.”

Indiana is among three states sharing a $4 million grant from the U.S. Department of Labor to help workers find green jobs and retrain workers affected by the automobile industry contraction, Labor Secretary Hilda Solis said Wednesday.

The State Labor Market Information Improvement grant will fund efforts to identify the skills workers need in the restructured auto industry among other initiatives, Solis said.

The Indiana Department of Workforce Development and agencies from Michigan and Ohio will work in a partnership to also identify opportunities for jobs in energy-efficiency and renewable-energy industries, and research current and projected skill gaps of auto industry workers into green occupations and other high demand sectors. During the program, state agencies are expected to work with employers to post jobs through online job banks, Solis said.

“The Midwest has borne the brunt of the upheaval in the domestic automobile industry,” said Teresa Voors, Commissioner of the Department of Workforce Development.

“This tri-state partnership will help the automakers and autoworkers in our states arm themselves with the best practices and skills needed to flourish.”

The grants are part of a $500 million initiative with the American Recovery and Reinvestment Act for green job training grants to promote economic growth.

Solis said one of the Labor Department’s goals is to turn “20th century blue collar jobs into 21st century green collar jobs.”

“Today’s announcement is another sign of the Recovery Act, under the leadership of (President Barack) Obama, is helping our economy get back on track,” said U.S. Rep. Andre Carson, D-Indianapolis.

Carson said Indiana has more counties affected by the crisis in the auto industry than any other state in the country, and he’s confident workers can land jobs in clean energy or green technologies if properly trained.

Solis said any person who participates in state workforce investment programs could benefit from the grant. An expected number of jobs the grant could create wasn’t immediately available.

The consortium will launch the project in December and is expected to produce a report and present its findings and recommendations in 2011.

The budding economic recovery isn’t getting much help from the home-building industry, which normally creates jobs and drives growth when a recession ends.

Uncertainty over whether a homebuyer tax credit would be extended weighed down construction last month—a sign of how much the fledgling recovery depends on government support.

Home building unexpectedly plunged to its lowest point since April, the Commerce Department said Wednesday. The figures show that builders fear there aren’t enough buyers to soak up the glut of unsold homes already on the market—a supply magnified by record-high foreclosures.

Congress renewed the homebuyer tax credit earlier this month and broadened its reach. But even with government aid, the weakness of the housing sector is dragging on the economy.

“It will take a while before residential construction begins to contribute meaningfully to growth,” Jennifer Lee, an economist at BMO Capital Markets, wrote in a research note.

The tepid recovery is also holding down inflation. While consumer prices edged up faster than expected in October, they remain lower than they were a year ago. And inflation is expected to stay subdued.

The Labor Department said consumer prices rose 0.3 percent in October, a bit more than the 0.2 percent economists had expected. Core inflation, which excludes energy and food, rose 0.2 percent, compared with expectations for a 0.1 percent rise.

The higher figure was driven by another increase in energy prices and the biggest jump in new-car prices in 28 years. The prices of used cars and trucks also rose by the most since September 1980. Together, new- and used-car prices accounted for 90 percent of the increase in core inflation last month, government analysts said.

Analysts said the jump in used-car prices was due partly to the government’s Cash for Clunkers rebate program. The program reduced the stockpile of used vehicles. This happened because cars that qualified for the clunkers program were junked and so weren’t available for resale.

The clunkers program also drove up new-car prices, analysts said. It helped reduce the supply of new cars just as the latest model-year vehicles, which typically carry a premium, were arriving in showrooms.

“The Cash for Clunkers program may have wiped out the ‘09 models that have been sitting there, but the brand-new 2010 models come, and they can command a higher price for those,” said James Brock, an economist at Miami University in Oxford, Ohio, who studies the auto industry.

On Wall Street, stocks edged down after the unexpected drop in home construction and disappointing forecasts from technology companies. The modest drop came a day after major stock indicators closed at 13-month highs, including the Dow Jones industrial average, which has risen nine of the past 10 days. The Dow lost more than 32 points in afternoon trading Wednesday, and broader indexes also dipped.

The report on home construction said building of homes and apartments fell 10.6 percent in October to a seasonally adjusted annual rate of 529,000, from an upwardly revised 592,000 in September. Economists polled by Thomson Reuters had expected a pace of 600,000.

“There has not has not been much improvement in the underlying demand for new and existing homes,” said Mark Vitner, senior economist with Wells Fargo Securities. “That’s a warning for 2010.”

So is a decline in applications for building permits—a gauge of future activity. Applications fell 4 percent to an annual rate of 552,000 units. That was the lowest since May and missed analysts’ expectations of 580,000. Still, applications for single-family homes fell only 0.2 percent.

The National Association of Home Builders said this week that its housing market index remained unchanged in November, reflecting a cautious outlook from home builders. The trade association said its index stood at 17 for the second straight month; readings below 50 indicate negative sentiment.

Developers, facing weak demand and competition from low-priced foreclosures, have scaled back sharply. The number of homes under construction last month fell 3.4 percent to 560,000, the lowest on records dating to 1970.

With construction levels low, however, the inventory of unsold homes has been dropping. At September’s sales pace, it would take about 7.5 months to sell off all the new homes on the market. That’s down from a peak of 11 months last fall. But it’s still short of a healthy level of around a six-month supply.

“It’s still not a great market,” said Brad Hunter, chief economist with Metrostudy, a real estate research firm. “But it’s not as bad as it was six months ago.”

People who have owned their current homes for at least five years can now claim a tax credit of up to $6,500 for a home purchase. First-time homebuyers qualify for up to $8,000. To qualify, buyers must sign a purchase agreement by April 30.

Since the tax credit was extended earlier this month, Beazer Homes USA Inc. and other builders have said they’re gearing up to buy land in some markets, citing expectations that sales will improve next year.

Foreclosures, though, remain sky-high. And many experts predict a new wave starting next spring. More than 332,000 households, or one in every 385 U.S. homes, received a foreclosure-related notice in October, according to RealtyTrac Inc.

Those trends are weighing on the economic rebound.

In an interview with Fox News on Wednesday, President Barack Obama said he’s worried that spending too much government money to help revive the economy could undermine a fragile U.S. recovery and cause a double-dip recession. That occurs when the economy begins to recover briefly from a recession only to be dragged back under.

Obama said his administration is considering tax breaks that could encourage businesses to begin hiring again. But he added that if the nation keeps adding to deficit spending through tax cuts or more stimulus spending, people could lose confidence in the U.S. economy, and that could “lead to a double-dip recession.”

Associated Press Writer Ken Thomas contributed to this report.

Tierra Boyd right, and her mother, Annette Crump, check out the kitchen amenities while touring a Hammond home with Realtor Kris Hoge. Boyd, 23, is shopping for a home and looking to take advantage of an up to $8,000 tax break. The credit was set to expire at the end of this month, but Congress recently extended the deadline to April 30. (Photograph by Tony V. Martin/The Times.)

Congress’ recent extension and expansion of homebuyer tax credits is already bringing out buyers and may help extend the current modest rally in home sales, according to local real estate agents.

“It has been pretty active out there,” said Tim Reed, a Realtor with Century 21 Pace Estates in Valparaiso. “I was hoping and praying they would get the extension through. It has made a lot of difference to a lot of people.”

On Nov. 5, Congress voted to extend through the end of April the current $8,000 credit for first-time homebuyers that was slated to expire at the end of this month. And the legislation added a $6,500 homebuyer credit for existing homeowners looking to buy a new home.

Realtors like Jane McMullan, also at Century 21 Pace Estates, said they already are seeing the effect.

This fall, McMullan was helping a young Valparaiso University math professor look for her first home. But the professor just missed being able to cash in on the current first-time homebuyer credit when she found her Victorian dream home because the closing would not take place by the Nov. 30 deadline. Then Congress took action on the extension, and President Obama signed the measure.

“And now she’s going to get it,” McMullan said.

The tax credits are what is known as “fully refundable,” meaning the amount by which the credit exceeds taxes owed will be paid out in cash to the taxpayer, according to the Internal Revenue Service. If the first-time homebuyer elects to amend a 2008 return and already has paid all taxes owed, he or she could get a check for the full $8,000. A current homeowner buying a new home this year could collect the full $6,500.

Buyers say it’s not just the tax credit. Historically low interest rates and the abundance of deeply discounted homes on the market also have them out shopping.

“It’s a buyer’s market,” said Tierra Boyd, 23, as she looked through a four-bedroom home in Hammond on Friday, with Realtor Kris Hoge, co-owner of Remax Realty Associates.

The young accountant is working on her master’s of business administration degree at Governors State University but still is taking time to look for a deal on a new house. In May, Boyd just missed out on an “unbelievable” deal on a five-bedroom foreclosed home in Chicago when another buyer beat her to it.

Much of the third quarter’s jump in home sales was due to the first-time homebuyer credit, according to the National Association of Realtors. Total existing home sales in the July-September period jumped 11.4 percent to a seasonally adjusted rate of 5.3 million—the highest level in two years.

At Ayers Realtors in Miller Beach, owner/broker Gene Ayers said about half his buyers this year have qualified for the first-time homebuyer credit. They are buying mainly in the $80,000 to $150,000 range.

Real estate agents are brushing off concerns home sales could sag once the credits expire in April. By then, the economic recovery should be well under way, Reed said. And May traditionally kicks off the strongest home sales season of the year.

“I think it was absolutely needed,” Reed said of the extension and expansion of the tax credits. “The market would have rebounded anyway, but what we’ve done is energize it.”

Rep. Charlie Brown, D-Gary, left, meets with Rep. Eric Turner, R-Marion, and Rep. Peggy Welch, D-Bloomington, during organization day Tuesday at the Statehouse in Indianapolis. Indiana lawmakers got a jump-start on the upcoming legislative session by holding committee meetings a month early on issues including property taxes, unemployment insurance and ethics. (Photograph by Darron Cummings/The Associated Press.)

Reform was the word on everybody’s lips Tuesday at the Statehouse.

A brief “organization day” meeting of the General Assembly saw the introduction of proposals to add property tax caps to the Indiana Constitution, impose stricter limits and reporting requirements on lobbying and delay a scheduled hike in the unemployment tax rate.

Lawmakers will return to the Statehouse for rare December committee hearings to start working on these proposals ahead of the 10-week regular session that begins Jan. 5.

“We have a lot of issues, but it’s got to be a fast session because it’s a short session,” said state Rep. Earl Harris, D-East Chicago.

The early committee meetings also will consider legislation requiring 80 percent of workers on public works projects to be from Indiana and a proposal to prohibit further outsourcing of state welfare programs in the wake of Gov. Mitch Daniels canceling a $1.34 billion welfare management contract with IBM.

At the same time, with state revenue since July coming in $309 million less than forecast, leaders of both parties in both chambers vowed not to add to Indiana’s fiscal woes.

“We can’t have it. We can’t do it,” said Senate President David Long, R-Fort Wayne. Long promised to be “absolutely brutal” on any legislative proposal that would spend new money.

That attitude concerns Harris, who said he will protect education spending. Education is the most costly state budget item.

“We’re going to make sure, in the midst of this recession that we’re in, that we look closely at education and how we’re going to keep it in the flow,” Harris said.

With so many potential flash points for reform-related controversy, and elections looming less than a year away, state Rep. Charlie Brown, D-Gary, said he expects “things are going to heat up,” especially when lawmakers get around to discussing redistricting.

“There will be a lot of things said and done that are not pleasant at all by both sides,” Brown said.

Redistricting reforms could determine which party controls the General Assembly for the next decade, making any changes to the redistricting process especially important, he said.

“If we, the Democrats, do not maintain the majority in the House, things will just be totally different,” Brown said. “If both houses are in control of one party and they draw the maps, it will be unbelievable.”

A South Bend-based company that provides friction welding technology and services was honored as the state’s Small Business of the Year by the Indiana Chamber. Manufacturing Technology Inc. was chosen from a field of dozens of nominees from around the state. MTI and other top small businesses were recognized at the recent annual awards luncheon held in downtown Indianapolis.

A fourth-generation family-owned business, MTI primarily builds machines that carry out the friction welding process (the solid state joining of two parts using frictional heat and applied force to create a forge-quality weld). MTI also sells the only line of frictional welders worldwide that includes all three major variations: rotational linear and stir.

The Small Business of the Year award is open to all Hoosier companies with 250 employees or fewer.

Twenty-three dedicated funds are on an initial list that Gov. Mitch Daniels’ administration expects to tap to combat the revenue shortfall—and a quarter of those have missions related to the state’s environment or natural resources.

Those include funds that promote recycling, help remove invasive aquatic plants clogging some of the state’s lakes and support efforts to redevelop old industrial sites.

Hoosier Environmental Council executive director Jesse Kharbanda said it’s understandable that state funds have to make sacrifices during a budget crisis. Tax collections continue to fall millions short of estimates, and Daniels has said the surplus that stood at $1.3 billion in July would be wiped out by next August if the trend continues.

But Kharbanda questions whether funds intended to help the environment or the state’s natural assets are “getting the short end of the stick in terms of being raided.”

“One wonders how much of it is a reflection of the lack of clout of the stakeholders of these different funds and how much of it is merit?” Kharbanda said.

State Budget Director Chris Ruhl said environmental groups aren’t being targeted and that the Indiana Department of Environmental Management maintains more such funds than most other agencies.

“Its target list is larger than other agencies, and frankly, IDEM has a lot of funds where there’s excess or surplus monies,” he said.

Ruhl said the budget agency has analyzed many of Indiana’s more than 100 dedicated funds, focusing on those with balances of $500,000 or more. The state then assessed how much was obligated and how much money was drawn from each fund on an ongoing basis.

Other funds on the list include an Indiana State Police fund that aids DNA collection and analysis and a court fee-financed fund that supports alcohol- and drug-prevention efforts.

Ruhl said budget officials expect to tap about 30 dedicated funds and that together they should provide hundreds of millions of dollars.

In June, the state shifted $11 million from a fund that finances loan and grant programs to attract recycling businesses to Indiana to the state’s main checking account to help offset last fiscal year’s revenue shortfall.

That fund, sustained by state fees trash haulers pay at landfills, is going to take another hit to its balance, which currently stands at $6.5 million. Ruhl said he questions how successful the recycling fund and other funds on the state’s list have been at delivering their intended results.

Jeff Miller, a member of the Recycling Market Development Board that oversees the grant and loan programs, said the panel is pursuing a cost-benefit analysis to quantify the jobs and environmental benefits of the recycling businesses the program brings to Indiana.

“Many of us board members see our program as differing from other funds, in so far as our program creates jobs,” he said. “Job creation is of such great importance.”

While the state is preparing to siphon away millions of dollars from dedicated funds, it’s also scouring its agencies for far smaller amounts to tap.

The state Department of Natural Resources opted not to renew the $75,000 contract for the executive director of a panel that promotes the cultural and natural heritage of the Wabash River, Indiana’s official river. The agency cited the revenue shortfall and Daniels’ order that state agencies cut their budgets by 10 percent.

John Gettinger, chairman of the Wabash River Heritage Corridor Commission, said the DNR’s action leaves the panel without an executive director for the first time since 2002 and will threaten its efforts to promote recreational and cultural activities along the 470-mile river.

“We feel that we have a right to manage our own budget, that it was a power that the Legislature gave us,” he said. “We ran our own show up until this situation developed.”

DNR spokesman Phil Bloom said the contract isn’t the only one the agency may cancel as it works to meet the governor’s directive. He said all funds, accounts, grants and contracts are under review.

“We are taking a look at all contracts and putting on hold those that aren’t mission critical or duplicative in how they function and this is one of them,” Bloom said.

John Goss, a former DNR director who now serves as executive director of the Indiana Wildlife Federation, hopes the state doesn’t deplete a fund that helps control invasive aquatic weeds and prevent sediment buildups on Indiana lakes and rivers.

Goss said the fund, which is supported by a fee on boat trailer licenses, has improved water quality, fish habitat and navigation on dozens of Indiana lakes over the last decade.

“If they’re going to wipe it out, that would be a setback for all these weed control and sediment control programs. They’ve been a big success,” Goss said.

A Nordstrom shopper is shown Wednesday in Portland, Ore. Recent earnings reports from stores paint a picture of two classes of American shoppers: The affluent finally are being enticed to spend, buying designer clothes at places like Nordstrom, while those on lower economic rungs are still scrimping by, heading to Walmart for the basics. (Associated Press Photo)

American shoppers are splitting again: The affluent are finally starting to buy, picking up designer clothes at places like Nordstrom, while those on the lower economic rungs are still scrimping by, heading to Walmart for the basics.

Recent earnings reports from major retailers suggest that the wealthy, who pulled back their spending the hardest during the financial meltdown last fall, are once again being enticed to open their wallets and going back to higher-end outlets.

“It’s a good sign, but we don’t see the same across the board,” said Richard Hastings, a consumer strategist with Global Hunter Securities LLC.

It’s still a far cry from the era of conspicuous consumption.

No matter the tax bracket, people are still focused on value and trying to avoid overspending—whatever that might mean to them.

Luxury chains like Nordstrom Inc. and Bloomingdale’s, owned by Macy’s Inc., say shoppers are spending again on items like shoes and dresses, but still shopping for lower prices and classic pieces that get a lot of use.

On the other hand, discounters like Wal-Mart Stores Inc. are lowering prices even further to coax their less-well-off shoppers to keep spending. And it’s not on anything glamorous. We’re talking basics, like food and socks.

Think of it as two different groups as the economy recovers—spenders and savers.

THE SPENDERS

Luxury department stores like Nordstrom and Saks are starting to get more traffic. Part of the reason is that they’ve rolled out some merchandise at slightly lower prices, which is helping to keep the affluent from trading down to other stores.

“If they do spend, it’s very scrutinized and it’s very value-driven,” said luxury retail analyst Robert Burke. “And they want items they can wear multiple places.”

Other expensive stores like Abercrombie & Fitch are taking the lesson. The preppy clothing seller said Friday it will offer some lower-priced basics and stock up on denim early next year.

Nordstrom’s third-quarter profit rose as sales improved compared with last year. Of course, last year marked a sharp drop in luxury spending as the financial crisis deepened.

Shoppers like Patricia Murnane show what’s still changed. The 47-year-old risk manager from New York was shopping for black dress slacks Friday at a Nordstrom in Chicago.

She says she goes to more stores now to make sure she’s getting the best price. “I used to consider shopping entertainment, but now I don’t think it’s entertainment,” she said.

THE SAVERS

Middle-class and poorer shoppers are still clutching their wallets and focusing on basics, even as they start to venture out to stores more.

Kohl’s, a chain of midrange department stores, said more customers came into its stores in the third quarter and made more purchases, but they’re still limiting their spending.

Its shoppers are on a mission for a set list of items and not straying, CEO Kevin Mansell said.

“We’re not able to convince them to buy that extra thing,” he told The Associated Press.

Faced with slower sales, J.C. Penney Co. has cut its inventory so it doesn’t have to rely on as much discounting. Sales were still weak as its shoppers continued to worry about job security and tight credit.

Walmart continues to benefit from higher customer traffic as it aggressively discounts everything from electronics to food. But its sales at stores open at least a year slipped for the second straight quarter as shoppers spent less.

Walmart noted more pronounced swings in spending between paycheck cycles—a sign that people have little extra to spend.

That makes sense because Walmart customers who earn the least money are among the economy’s hardest-hit as unemployment tops 10 percent and gas prices edge upward, said Hastings, the consumer strategist.

“The lower-income Walmart shopper, they start to become poorer than usual, and they’ll really start to lag behind,” he said.

Check out BusINess’ weekly newsletter online or click here to subscribe and get the latest NWI business news delivered weekly, straight to your inbox.

Indiana one of handful of states “emerging” from recession, according to prominent forecasting firm; nearly all NWI casinos post October revenue gains, even as Majestic goes into loan default; officials in Schneider defend trash-to-ethanol plant. The rich are buying again, as the middle class keeps hurting; officials across region see huge increase in poor relief inquiries and lobbyists continue central role in state’s General Assembly. Jobless claims fall; local hunters looking to feed families in tough economy and Hammond native moves to top of Walt Disney Studios.—Pat Colander, Editor and Associate Publisher, BusINess magazine, serving Northwest Indiana & Chicagoland

BusINess story of the week

• Indiana ‘fighting this recession to win’
Efforts to grow Indiana’s economy during a rough recession are starting to pay off: Moody’s Economy.com, an economic forecasting firm, recently said Indiana is one of 11 states “emerging” from recession. Gov. Mitch Daniels said it’s because Indiana is “fighting this recession to win.” nwi.com/inbusiness

what’s news

• More green for NWI casinos
Most Northwest Indiana casinos are seeing more green: All but one of the area riverboats posted revenue gains in October, compared to September one year ago, according to figures released Monday. But the Majestic Star Casino LLC went into default (read about it here) on a major loan. nwi.com/inbusiness

• Officials see no political dirt in trash-to-ethanol deal
A garbage-to-ethanol plant proposed for the rural town of Schneider will be taxpayer-owned the day it opens for business, county officials confirmed, seeking to dispel rumors that a politically connected lawyer might have a controlling stake in the enterprise. nwi.com

• Rich buying again, but middle class still hurting
Recent earnings reports from major retailers suggest that American shoppers are splitting again: The affluent are finally starting to buy, picking up designer clothes at places like Nordstrom, while those on the lower economic rungs are still scrimping by, heading to Walmart for the basics. nwi.com

• Township trustees see the changing face of need
With the unemployment rate at its highest point in more than 25 years, township trustees’ offices throughout Northwest Indiana and the south suburbs are seeing an influx of poor relief inquiries for food, utility, even burial bills. And it’s from people who’ve never before had to ask for help. nwi.com

this week on our website

• Times parent posts $1.76M profit for 4Q
Lee Enterprises Inc., publisher of The Times, The St. Louis Post-Dispatch and dozens of other newspapers, Thursday said it earned a small profit in the latest quarter, helped by cost cuts and lower prices for paper. nwi.com/inbusiness

• Local group lauded for trying to help NWI go greener
U.S. Rep. Pete Visclosky was among the guests sharing in the 10th anniversary celebration of South Shore Clean Cities Inc. Thursday at Horseshoe Casino in Hammond. The SSCC is a coalition of Clean Cities, a voluntary federal program designed to reduce petroleum consumption in the transportation sector by advancing the use of alternative fuels and vehicles in communities throughout the country. nwi.com/inbusiness

• Fiber link boasts cost, speed and security
Significant cost savings, phenomenal speed and enhanced security are key points underscoring the benefits of the South Shore Fiber Link in ongoing workshops throughout the region. nwi.com/inbusiness

• Can’t find the hot new toy? Blame the economy
Robotic toy hamsters, the latest Barbie dolls and stylish boots are disappearing from store shelves as holiday shoppers start to get serious. But don’t confuse this with the days of Tickle Me Elmo. Instead of a throwback to great buying binges of the past, the empty shelves are just another sign of bad times. nwi.com/inbusiness

beyond the region

• INDIANAPOLIS—The third house of the General Assembly
They are lobbyists: You never vote for them, but they might actually represent you and your interests in the General Assembly better than your elected representative. Or, maybe just the reverse. nwi.com

• WASHINGTON—Jobless claims fall, but hiring gains seem far off
Fewer people are claiming unemployment benefits—but still too many to signal that the economy is close to gaining jobs. First-time claims for jobless benefits dropped during the first week of November to a seasonally adjusted 502,000, the Labor Department said last week. That’s the fewest claims since the week ending Jan. 3. nwi.com

upcoming and interesting

• Tough economy has more local hunters looking to feed their families
Realistic Taxidermy of Lowell is helping south Lake County deer hunters save time and money this season by dressing and storing meat for deer hunters. “You pay $65 for processing, and you can get 100 pounds of meat from a doe,” co-proprietor Laura Taylor said. nwi.com

• Hammond native earns a princely position at Disney
Disney veteran biz whiz Bob Chapek, ’77 graduate of Clark High School, was promoted to a new high-profile position, as part of the Walt Disney Studios restructuring of marketing, distribution and operations divisions that was announced Wednesday. nwi.com ]]> http://nwitimes.com/app/inbusiness/?feed=rss2&p=2576 http://nwitimes.com/app/inbusiness/?p=2559 http://nwitimes.com/app/inbusiness/?p=2559#comments Mon, 16 Nov 2009 17:10:16 +0000 inbusiness http://nwitimes.com/app/inbusiness/?p=2559 Indiana isn’t taking the recession lying down, and its efforts are starting to pay off

Valparaiso resident Jim Reno scores newly poured concrete for traction and drainage Wednesday as he and others work on the Interstate 65 interchange at 109th Avenue in Crown Point. Indiana is one of 11 states “emerging” from the recession, an economic forecasting firm said last week. (Photograph by John Luke/The Times.)

Three hundred-fifty manufacturing jobs in New Albany; 100 construction jobs in Indianapolis; up to 50 automotive jobs in Elkhart. Surprisingly, this isn’t the latest list of jobs lost during the Great Recession. These are new jobs coming to Indiana over the next year. How can Indiana possibly be attracting new businesses during the worst economy in a generation?

Gov. Mitch Daniels said it’s because Indiana is “fighting this recession to win.”

“Everybody understands that somehow keeping taxes and the other costs government imposes down is the most important thing we can do, so jobs come here,” Daniels said. Growing the Indiana economy is “the single best way” to pull Indiana out of recession, he said. And it seems to be working.

Moody’s economy.com, an economic forecasting firm, said last week Indiana is one of 11 states “emerging” from recession.

In the Midwest, Iowa and Missouri also are emerging. In all other nearby states, including Illinois, the recession is merely “slowing.”

In September, Indiana’s unemployment rate was 9.6 percent, lower than the current national rate of 10.2 percent and better than Ohio’s 10.1 percent, Illinois’ 10.5 percent, Kentucky’s 10.9 percent and Michigan’s 15.3 percent.

One reason for Indiana’s relative success could be the Indiana Economic Development Corp., a state agency. The IEDC aggressively sells Indiana—its location in the center of the nation, its low business taxes, its skilled work force and its lifestyle—to businesses around the country and around the world. The IEDC coordinated Daniels’ recent economic development mission to China and Japan.

And Daniels has not been shy about using the IEDC to get companies from other states to relocate to Indiana. At least 42 companies this year have closed up shop elsewhere and relocated or added jobs to existing operations in Indiana. Some of those companies could receive tax credits based on their job-creation record.

So far this year, IEDC has commitments for the creation of 14,056 jobs statewide. However, just 120 of those jobs are in Northwest Indiana. UGN Inc., an auto-parts manufacturer, plans to add 120 jobs in Valparaiso.

At the federal level, stimulus dollars have saved or created 18,876 jobs in Indiana, according to the White House. Most of those jobs have been in road projects. The Indiana Department of Transportation accounts for $497 million of Indiana’s $848 million in stimulus spending.

But even if Indiana is starting to pull out of the recession, the trickle-down effect of earlier weakness in the economy now threatens the jobs of thousands of more workers: state government employees. Since the state budget took effect in July, income and sales tax revenue have fallen far below what was expected to come in. That has knocked Indiana’s budget out of balance.

Last week, the governor ordered an additional 5 percent cut out of state agency budgets. That’s on top of the 5 percent cut he ordered in July. State employees now are being encouraged to take voluntary unpaid days off. But if revenues don’t improve, those voluntary days off soon could turn into mandatory furlough days or layoffs.

House Speaker Patrick Bauer, D-South Bend, thinks the way out is a state jobs program, paid for by Indiana Toll Road lease funds. A state stimulus would create jobs and lead to higher income and sales tax receipts as newly hired workers get paid and spend money, he said.

Daniels disagrees. Indiana shouldn’t spend its reserves in a single shot but instead invest those assets to improve the overall business climate, the governor said.

“Until we have a stronger economy in this country and in this state, we’ll always be chasing our tail in terms of state revenue,” Daniels said. “Our objective is a stronger Indiana economy over the long, long term.”