INDIANAPOLIS - Because Indiana has lost over 100,000 jobs over the past two years, Indiana Auditor of State Connie Nass today sought an agreement from Governor Frank O'Bannon and Treasurer Tim Berry to reinstate funding to the Indiana 21st Century Research and Technology Fund ("21st Century Fund").

"Many of the over 100,000 jobs lost over the past two years are gone for good. We must address this long-term challenge with long-term solutions aimed at job creation," remarked Auditor Nass. "By contrast, this biennium's budget shortfall is largely a function of over-spending and the recession, which have hit Indiana particularly hard. Thankfully, we have taken steps to maintain a general fund surplus at the end of this biennium on June 30, 2003. Now our attention should be focused on helping draw new jobs to Indiana for the people who need them most."

The 21st Century Fund supports projects designed to develop new products and industries that hold the promise of attracting industry and high-wage jobs to Indiana in sectors from technology to manufacturing. On April 8, 2002, the State Board of Finance granted the Governor's request to transfer all 21st Century Fund monies to the general fund to help balance the state's budget for the biennium. At that time, Auditor Nass spoke of the importance of the 21st Century Fund for Indiana's future and expressed concern over halting its projects. Since then Treasurer Berry and Governor O'Bannon have echoed her sentiments.

In her letter to Governor O'Bannon and Treasurer Berry, Auditor Nass proposed reinstating $13.4 million for the 21st Century Fund either by transferring $13.4 million from various dedicated funds or by rescinding $13.4 million of the order to transfer Build Indiana Funds. Either action would restore 21st Century Fund projects that had been previously approved to begin receiving installments this spring.

Taking April's revenue numbers into account, the state is predicted to have nearly a quarter billion dollar surplus at the end of the biennium on June 30, 2003. Throughout May, the Governor has hinted that he would take steps to restore the 21st Century Fund if the legislature raises taxes to help keep the budget balanced. Auditor Nass believes that the 21st Century Fund is the rare government program that pays for itself. It encourages projects that enable Indiana to progress through the creation of jobs and generation of the revenues that ultimately support state government. For those reasons she is calling on the State Board of Finance to return funding to programs under that fund before any more jobs are lost.

"The Governor has said that our ultimate goal must be to create jobs, and I agree," Auditor Nass said. "We must resurrect this Fund immediately. We have no time to waste when it comes to job creation."

Auditor Nass added, "Job creation and education are our top priorities. I know the Governor and the Treasurer agree. In addition to reining in spending, the long-term solution to our State's budget woes must focus on the growth and opportunity programs like those the 21st Century Fund offers. We should give future job creation initiatives a running start by restoring the 21st Century Fund now, so Indiana can look further down the road of economic development and not have to retrace steps already taken."

A copy of the letter Auditor Nass sent to Governor O'Bannon and Treasurer Berry is attached to this News Release