News Summary
A study by Indiana University’s Kelley School of Business confirms the effectiveness of Indiana’s regional economic development strategy, funded through state and federal efforts. The report highlights the success of the Regional Economic and Acceleration and Development Initiative (READI) in promoting regional collaboration and growth. It suggests that the regional boundaries align well with economic activities but notes challenges in southern Indiana where divisions may hinder cohesive planning. As Indiana continues to invest, attention to regional cohesion will be crucial for equitable development.
Indianapolis, Indiana — New Study Validates State’s Regional Economic Development Strategy
A recent report has confirmed the effectiveness of Indiana’s regional economic development approach, a strategy that has been supported through state and federal funding efforts. The study, commissioned by the state and conducted by researchers from Indiana University’s Kelley School of Business, underscores the success of the Regional Economic and Acceleration and Development Initiative (READI) in fostering regional collaboration and economic growth across the state.
Support for Indiana’s Regional Development Model
The report, spanning just 12 pages, was publicly released on Thursday and highlights how Indiana’s regional divisions align with economic activity in different areas of the state. Developed in response to a directive from Governor Mike Braun, the assessment was completed by the Indiana University Kelley School of Business with input from the Indiana Business Research Center. The evaluation aimed to analyze whether the regional boundaries currently in use effectively capture economic dynamics and promote strategic planning.
READI Funding and Projects
Since its inception in 2021, the READI initiative has been a cornerstone of Indiana’s economic development efforts. The program initially allocated $500 million from state and federal sources to fund public-private projects designed to enhance the quality of life for residents. Projects funded through READI span a wide range of community improvements, including housing, transportation, parks, and community centers.
As demand for funding grew, lawmakers approved an additional $500 million in 2023, bringing the total to $1 billion. The first round of funding, involving 17 districts, received 800 project proposals requesting approximately $1.5 billion. Initially, disbursing funds was slow, but subsequent rounds gained momentum, especially during the recent state budget sessions that prioritized quicker project approval and distribution.
Regional Configuration and Analysis
In its first phase, READI’s projects were organized across 17 districts. For the second, local governments restructured into 15 distinct regions, which served as the basis for the IU-led analysis. These regions were evaluated for their ability to consolidate economic activity, promote regional cooperation, and facilitate targeted development efforts.
Findings from Indiana University Study
The Indiana University researchers, led by Phil Powell and Tim Slaper, concluded that READI regions effectively capture economic activity and encourage collaboration among local government officials, economic development agencies, and private partners. The study highlighted the intergovernmental cooperation within these regions as a key strength, fostering comprehensive planning and investment strategies.
However, the report also pointed out certain challenges. Specifically, it noted that in southern Indiana, some regions are divided across multiple READI areas, which could hinder cohesive planning and equitable distribution of resources. Of particular concern is the nine-county Economic Growth Region around Evansville, which is split across three different READI regions, potentially affecting regional unity.
Implications for Future Development and Policy
The study emphasizes that the current regional setup allows Indiana to develop focused and effective strategies aimed at increasing population, wages, and opportunities within clearly defined areas. It also notes that other state agencies use varying boundary definitions for different economic initiatives, but the READI regions show promise in providing a unified framework for regional growth.
Moreover, the report recommends paying special attention to southern Indiana. As the state continues to allocate project funds, consideration should be given to maintaining regional and community integrity, especially where regions are segmented across multiple development areas.
Conclusion
This new study validates Indiana’s approach to regional economic development, affirming that the strategic boundaries and collaborative efforts fostered by READI are effective tools for promoting statewide growth. As Indiana moves forward with additional rounds of funding and project implementation, attention to regional cohesion—particularly in the southern part of the state—will be key to sustaining balanced and inclusive economic progress.
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Additional Resources
- Indiana Capital Chronicle
- WTHR
- Building Indiana
- Encyclopedia Britannica: Economic Development
- Google Search: Indiana Economic Growth
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