Key issues in the Indiana gubernatorial campaign

Republican Lt. Gov. Eric Holcomb and Democrat John Gregg are facing off to succeed Indiana GOP Gov. Mike Pence. Here are some key issues in the gubernatorial race:

ECONOMY

Holcomb says "priority No. 1" will be maintaining the state's balanced budgets and the $2.2 billion in cash reserves that help attract business investment to Indiana. The Republican touts those balances for helping drop the state's unemployment rate to 4.5 percent in September, which is below the national 5 percent jobless mark.

Gregg, a former legislator and speaker of the Indiana House, proposes ending state tax subsidies for businesses providing low-wage jobs. He says he wants to focus on the quality of jobs created and raising the state's average income. Indiana's 2015 per-capita income of $38,813 was 36th in the country. That income number has increased 8.1 percent since 2012, which lags behind the national increase of 8.7 percent to $48,112, according to data from Indiana University's Indiana Business Research Center.

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INFRASTRUCTURE

Both candidates say increasing road funding is a priority. They suggest major projects such as a new I-69 bridge over the Ohio River near Evansville, estimated to cost $850 million, and adding a second rail line for much of northwestern Indiana's South Shore commuter railroad, which is projected at some $200 million.

Holcomb won't specify funding sources, saying "everything should remain on the table" for talks with legislators next year. He doesn't rule out increases in the gasoline and cigarette taxes that some legislative Republicans proposed this year to pay for road projects. Those funding sources were rejected by Pence.

Gregg proposes borrowing up to $3 billion for road and infrastructure projects and repaying the loans with future federal highway funding. Holcomb says he opposes additional state borrowing.

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LGBT RIGHTS

Gregg calls for a repeal of the state religious-objections law, which opponents said sanctioned discrimination against gay, lesbian, bisexual and transgender residents when it was signed by the governor last year. Revisions were made by GOP legislators, but activists say the changes didn't go far enough. Gregg said the state needs to extend state civil rights protections to the LGBT community to help businesses recruit top employees to Indiana.

Holcomb says few people have raised the topic to him as he campaigned across the state. He said lawmakers are unlikely to find a compromise after an attempt failed during this year's legislative session. He believes cities and counties can adequately address the issue with local ordinances.

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SCHOOL TESTING

Gregg wants an overhaul of the state's standardized testing system, saying the current ISTEP exam forces "teaching to the test." He wants to do away with the current A-through-F rating system for schools and replace it with an evaluation method that considers more factors than a single standardized test.

Holcomb calls for replacing ISTEP with an exam that requires less testing time for students and will more quickly provide results to teachers and parents. He favors retaining a single-letter grade rating for schools, saying: "We have to have some kind of measurement, and the A through F is a way that we can get there."

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PRESCHOOL

Both candidates say they want to expand the state's current pre-K program, which was launched in five counties last year and sent about 2,300 low-income children to preschool at annual cost of about $10 million.

Gregg has proposed making the program available for all of Indiana's roughly 80,000 4-year-old children by phasing it in over three years. He says adding 20,000 children in the first year would cost about $150 million and could be covered by existing state funds.

Holcomb calls for a slower approach, focused on opening the program to low-income families. He says Gregg's proposal could be too expensive.

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ABORTION

Gregg says he opposes abortion but would veto bills like the one signed by Pence this year that would ban abortions sought because of fetal genetic abnormalities. A federal judge has blocked the law from taking effect.

Holcomb said he also is anti-abortion but won't make new legal restrictions a focus of his agenda. Holcomb said he would work with lawmakers to resolve issues with abortion proposals before they reach the governor's office.