Like all children, my son and daughter, when being raised, would get excited about some idea they had and describe it in terms of what they were “going to” accomplish. While trying not to thwart their enthusiasm, I advised them to talk about what they had accomplished, not about what they were going to do.
Recently I heard a speaker, who said that: “A plan without action is a dream, and action without a plan is a nightmare.” Being a plan-focused person, I found that statement to be abundantly clear.
The two concepts mentioned above could be consolidated to: “Plan first, act second, and brag last.” During my lengthy career, I have witnessed and participated in many successful projects … and in some failures. Rarely have I seen anything of the magnitude of a recent, successful outcome for the Indiana banking community — it truly was planned first, acted on second, and now we can brag. I am referring to last Friday’s passage and enactment of Indiana HB 1018. The process was culminated by a formal signing by Gov. Mike Pence before IBA board members, key staff and the insightful senators and representatives who marshaled HB 1018 through the legislative process. This bill accomplished four goals that have ranked high on banking’s agenda.
First, HB 1018 will lower the Financial Institutions Tax from 8.5 percent of net income to 6.5 percent over a four-year period of time, at the rate of ½ of 1 percent per year. At present levels of net income, when fully phased in, this measure will save Financial Institutions Tax payers, mostly banks and thrifts, about $20 million per year.
Second, the $50 million that was borrowed by the State of Indiana from the Public Deposit Insurance Fund (PDIF) a decade ago will be paid back in increments of $5 million per year for 10 years, beginning in 2013. Third is the reversion of income generated by the PDIF, after expenses of operating the PDIF, back to the fund. A dozen years ago, that income had been diverted to the pre-1977 Police and Firefighters Pension Fund. At current interest rates, this is a couple of million dollars per year. Over the past 12 years, however, it amounted to over $100 million lost to the PDIF.
Finally, HB 1018 strengthens the safely of the PDIF by putting into place further restrictions on legislative access to it.
The IBA government relations team, represented by Amber Van Til, Dax Denton and Josh Myers; past IBA board chairmen Dave Geis and Pat Glotzbach; and current chair Jim Marcuccilli worked diligently over a two-and-a-half-year period of time to develop a plan and execute it to perfection. For the duration, the full IBA board of directors remained united and steadfast in the goals set out. Senators Travis Holdman and Jim Arnold, and Representatives Mark Messmer, Tom Dermody, Dan Leonard and David Neizgodski led the charge by sponsoring and promoting this bill.
Every banker in Indiana owes these people a huge debt of gratitude. I know they will not brag about their accomplishment and their individual contribution to it, so I will brag for them. Thank you, one and all, for this remarkable success!!!