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Neither Republican Gov. Eric Holcomb nor legislative leaders sought to include money for additional grants in the new state budget adopted last month.
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Under the initiative, three areas were chosen to each receive a $42 million grant to push projects that improve quality of life.
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The hiking and biking trail will eventually run from Huntington, through Wabash, and to Peru, linking scenic overlooks while providing access for canoeing, camping and fishing.
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The projects recommended by the Northeast Indiana Regional Development Authority could get part of $42 million in state Regional Cities Initiative funds.
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Regional Cities is the state's first major effort to motivate counties to collaborate on economic development.
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The three Regional Cities winners - northeast, north central and southwest Indiana - cover 18 counties.
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Full funding for all three winners of Indiana's Regional Cities Initiative is in jeopardy after Speaker Brian Bosma said Thursday a bill to provide those dollars is stalled in the House.
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A bill to fully fund all three winners of the Regional Cities Initiative breezed through the Senate Appropriations Committee Thursday.
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The General Assembly allocated $84 million - taken from the Tax Amnesty program - to award $42 million each to two regions in the Regional Cities Initiative. But the Indiana Economic Development Corporation and Gov. Mike Pence instead chose three winners, declaring their intent to ask the legislature for more money from tax amnesty to pay the full $42 million to all three regions.
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Gov. Mike Pence announced Tuesday that three Indiana regions - North Central, Northeast and Southwest - were chosen from a group of seven to receive funding from the Regional Cities Initiative.