While economists worry about a ‘jobless recovery’ nationally, here in Indiana manufacturing employment has risen nearly 5% since the end of the recession – but how do we keep this momentum going?

On Friday, CICP's Conexus Indiana initiative and the Ball State Center for Business and Economic Research released the 2011 Manufacturing and Logistics Report Card, an annual analysis of the strengths, challenges and opportunities from two of the state’s most critical industries.

The Report Card predicts a ‘record year’ for Indiana manufacturing, noting that the state ranks among the national leaders in per capita employment in both manufacturing (2^nd among states) and logistics (9^th).  It credits strong export growth and foreign investment, a competitive tax climate and big productivity gains, but warns that our weakness in education/workforce readiness along with rising healthcare costs could jeopardize future success.

Download the 2011 Report Card here, and check out the press release below:

Indiana scores ‘A’s on 2011 Manufacturing & Logistics Report Card, but poor showing on workforce threatens future growth

(INDIANAPOLIS, Ind., June 10, 2011)  Conexus Indiana and the Ball State Center for Business and Economic Research today released the 2011 Indiana Manufacturing and Logistics Report Card, an annual “grading” of the strengths, challenges and opportunities impacting the two industries that collectively employ nearly one of every four Hoosiers.

This year’s Report Card confirms that Indiana’s strengths in ‘making and moving’ products have buoyed the state’s economic recovery.  Indiana continues to rank among the top tier of states in manufacturing and logistics employment, and Ball State economists predict that the next 12 months will be a “record year” for manufacturing in the state.  Indiana's manufacturing employment has risen by 4.6% since the end of the recession.

The Report Card gives Indiana overall ‘A’ grades in Manufacturing Industry (ranking first among states in share of the economy focused on manufacturing), Logistics Industry, Global Position (measuring manufacturing exports and foreign investment) and Tax Climate.  The educational attainment of the Hoosier workforce, however, continues to be a long-term concern.

The state’s ‘C’ grade in Human Capital is a step forward from last year’s C-, based on strong enrollment in community college programs and improved high school graduation rates.  But Indiana’s adult population continues to rank among the least-educated in the nation, leaving Hoosier manufacturing and logistics firms struggling to find qualified applicants for jobs that demand increasingly advanced skills.

“This year’s Report Card reiterates that Indiana must do a better preparing the next generation of manufacturing and logistics workers,” said Steve Dwyer, Conexus Indiana’s President & CEO.  “Today’s jobs aren’t about standing at assembly lines – they’re about running computerized equipment and robotic systems, about teamwork and problem-solving.

“We have to give introduce young Hoosiers to these careers early on, and give them opportunities to acquire the skills they need at all levels to create the pipeline of talent that manufacturing and logistics employers need to grow.”

As the state’s manufacturing and logistics initiative, Conexus Indiana is working with its corporate and academic partners to develop industry-endorsed educational programs, and marketing the careers to young people through its ‘Dream It. Do It.’ marketing campaign (at www.DreamItDoItIndiana.com).

The state’s ‘A’ in Logistics Industry was a first in the four-year history of the Report Card, up from a B+ in 2010 based on stronger infrastructure investment relative to other states.  Conexus Indiana has prioritized and advocated for critical investments through its Indiana Logistics Council, an industry forum that gathers input from logistics employers across the state.

“Indiana starts with a competitive advantage in logistics based on our position as the ‘Crossroads of America,’” Dwyer noted.  “But we have to keep making smart choices to keep our edge.”

Other key findings from the 2011 Indiana Manufacturing and Logistics Report Card:

·         Indiana ranks second among states in per capita manufacturing employment and 9^th in logistics employment;

·         Indiana ranks first in per capita income derived from foreign-owned manufacturing operations, 9^th in manufacturing exports per capita and 13^th in export growth;

·         Indiana scored a ‘C-’ in Benefit Costs, based on poor rankings in healthcare and fringe benefit costs;

·         Indiana generally ranks in the top tier of states in terms of tax rates – and the recently-enacted corporate income tax cut should bolster the state’s current ranking of 21^st in corporate taxes;

·         The state’s ‘C’ grade in Productivity and Innovation represents a mixed-bag of indicators, with strong rankings in manufacturing productivity (9^th) and R&D investment (15^th) offset by poor performance in patents-per-capita (32^nd);

·         With rankings of 31^st in percentage of the workforce with a high school diploma or greater, 42^nd in college-educated workers, and 26^th in younger workers with a two-year degree, human capital remains Indiana’s biggest long-term hurdle to future manufacturing and logistics growth.

“This year’s analysis shows that Indiana is clearly still a manufacturing state that is taking advantage of its central location and pro-growth business climate,” said Michael Hicks, Director of the Ball State Center for Business and Economic Research and primary author of the Report Card.  “But I’d echo the warning that every investor has heard – ‘Past performance is no guarantee of future results.’ Policymakers need to focus on areas like workforce development and healthcare costs to maintain our competitiveness.”

Launched by the Central Indiana Corporate Partnership, Conexus Indiana is the state’s advanced manufacturing and logistics initiative, dedicated to making Indiana a global leader.  Conexus is focused on strategic priorities like workforce development, creating new industry partnerships and promoting Indiana’s advantages in manufacturing and logistics.  Learn more at www.ConexusIndiana.com.

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Commencement Address – IUPUI School of Public & Environmental Affairs

Mark Miles, May 15, 2011

Thank you, Dean Graham, Associate Dean Baumer, and the graduates and their families.  I take away two things from that gracious introduction – first, I’m getting old.  Two, I never really figured out what I was going to do to make a living.

That’s why, when I was approached about speaking at your commencement today, I must admit that my first reaction was to decline – though I have at least my share of gray hair, I don’t feel qualified to give career and life counseling, which is normally the topic of the day on occasions like this.

But then, I thought about SPEA.  I thought about what the school stands for – informing a smarter, better future for our society – and what it teaches – how to serve others and make a difference.  Most of all, I thought about what brought you here today – your desire to serve, to make our community and the world a better place.

I am also mindful that for many of you, the completion of your academic goals represents particularly significant sacrifices.  Many of you are already working and some of you already have families to support.  For you, earning this degree is a special achievement, and you deserve special congratulations from your loved ones and from all of us.

I’d offer a tip of my hat, but I don’t think I can get this back on, so let’s just offer applause to show our appreciation for these extraordinary accomplishments.

So, It was thinking about SPEA, and you, and that changed my mind.

I understand that SPEA has a motto that says, “Better You, Better World.”

I’d be inclined to reverse that. To me, it means that working to make a better world makes a better you, because public service makes your life better, more enriched, more fulfilled than a life based mainly on self-interest or private gain. You get more out of this work than you put into it.  Certainly, I have always found that to be the case, so it’s in that spirit I am happy to be here to offer words of congratulations and encouragement, and to share a few thoughts with you today.

On the topics of service and leadership…

I came across the thoughts of two great American leaders whom I admire very much, two men who have improved and are shaping our world….

Harry Truman and Mitch Daniels.

Coincidentally, they share similar sentiments about leadership…and they are equally vertically and folically challenged.

Truman said, “Men make history and not the other way around. In periods where there is no leadership, society stands still. Progress occurs when courageous, skillful leaders seize the opportunity to change things for the better.”

Governor Daniels once noted in another commencement address – “Many generations fail miserably at the challenges they confront, and their societies take steps backwards as a consequence.  Consider Japan before World War II, or Americans in the decades before the Civil War. 

“And yet in both those instances and many others, the people who followed did great things, not only redeemed all the failings but built better, fairer societies than their nations had seen before.  In fact, true greatness can only be revealed by large challenges, by tough circumstances.  And your opportunities for greatness will be large.”

With these thoughts in mind, I’d suggest that it is incredibly fitting that you are celebrating your commencement in this particular place today.  The Governor talked about the broad sweep of history, but I’d like to focus more locally: Right here, in this building, in the heart of this downtown, we’re reminded of one such example of great things, and  great leadership.

Let’s think for a minute about what’s happened at the heart of this city over the last forty years.  I must admit I’m horrified that this summer I’ll attend my 40^th high school reunion. So while I can claim no credit for this history, I do feel like I’ve been fortunate enough to have had a birds-eye view as these events actually unfolded…

You probably can’t imagine what downtown Indianapolis was like the year I graduated from high school.  (Candles for street lights, horse-drawn wagons instead of cars…well, it wasn’t that far back, but still…)

Young people called it Naptown, outsiders called it Indy-a-no-place.  We felt like there was nothing exciting to do.  Our aspiration was to go to college, then start our careers somewhere else.

A few other differences to add some perspective:

-        There was nothing resembling IUPUI.

-        The so-called Purdue extension was an ugly brick building on West 38^th Street.

-        The Med School and the other paltry academic buildings that made up the campus here were surrounded by very challenged neighborhoods.

-        Just south of campus – there was no White River State Park, no Indianapolis Zoo, no NCAA or Eiteljorg Museum; there was no Natatorium or Track and Field Stadium…you get the picture.

-        Downtown Indianapolis had 475 hotel rooms – and no respectable person would stay in most of them. (This year we added the new JW Marriott to get to the current total of 6,500 rooms, allowing us to host events like the Super Bowl and to pursue a whole new market of conventions and tourism.)

-        There was no Convention Center, and look what we have today.

-        There was no downtown mall.

-        I’m not sure anyone has an accurate count, but the number of people who actually lived downtown numbered in the hundreds.  Riley Towers was about the only market-rate option.  (Today more than 25,000 live downtown, and we will hit 40,000 before we know it with a vibrant mix of apartments, condos, new and historic homes.)

-        The Pacers played at the State Fairgrounds, in the Coliseum.  There was no Market Square Arena, no Conseco Fieldhouse.

-        There were no Indianapolis Colts – no Hoosier Dome or Lucas Oil Stadium. 

-        There was a theater on the Circle and one where the IRT now sits, but they were tired and beginning to crumble

-        Certainly, there was no Cultural Trail.

Fast forward 40 years later, and  Indianapolis is a much different place.  We tend to take it all for granted and sometimes even criticize aspects of it, but the development of Indianapolis didn’t have to happen – look at Detroit or Cleveland. People made it happen, and Indianapolis is one of America’s few, unique urban success stories.

Our city had the benefit of a remarkable generation of leaders, and they inspired and led our community to do great things. 

-        They came from the private sector.  It was expected that CEOs would be deeply engaged.

-        They came from the philanthropic sector…wealth was organized for philanthropy, and the Lilly Endowment and Lilly Foundation led the way in investing in Indianapolis.

-        We also had terrific government leadership: Lugar, Hudnut, Goldsmith, Peterson and now Mayor Ballard.

This was our special sauce.  Before anyone invented the term ‘public-private partnership’ – the leadership of our community was already working closely together.

These civic leaders had a bold vision. They embraced a huge challenge:  They were determined to do nothing less than make an ordinary city into an extraordinary city.

-        They marshaled resources;

-        They were innovative;

-        They had courage – Mayor Hudnut made the decision to build the Hoosier Dome before the Colts had even agreed to move here – a bold move with the potential of political suicide that proved visionary.

-        They brought people together to build bridges between Republicans and Democrats, between the races…

They built the kind of place where 38,000 people volunteer to help stage the Pan American Games. And where, now, when we host the Super Bowl, we raise $25 million in private contribution to meet our obligations to the NFL, but we also raise five times that (more than $125 million) for the Super Bowl Legacy initiative to meet the needs of the people of the Near East side.

Today, the leaders who made all this possible are getting a little long in the tooth; what’s left is largely gray hair.

And yet there’s much to be done to fulfill our city’s promise. Here are a few for you all to sink your teeth into – in my view, the defining priorities:

-        We must find a way to develop a workable multi-modal mass transit system.

-        We must rebuild our center city neighborhoods to create the kind of inspiring, livable places our City must have if we are going to improve everyone’s quality of life and keep and attract talented people.

-        We must create schools and a system of public education that are the envy of urban America.

Already, these goals are work in progress, but they will need your help and leadership if they are going to happen. More importantly, some of you will need to set our future course, and figure out what will define our community for your generation.

I suspect Dean Baumer is about to give me the hook, so let me just conclude by saying congratulations for attaining your academic goals at SPEA.  Congratulations for choosing a life of public service.

You’ve chosen a life that will be personally fulfilling because it will be dedicated to helping others.

I hope you will set your sights on doing great things – and I hope you’ll do them here in this community.

We are counting on you.

Various think-tanks, foundations and economic development groups release a steady stream of state rankings based on various criteria – assessing their tax climates, classifying them as high-tech hot spots or manufacturing meccas, attempting to measure their attractiveness to college grads or creating other assorted indices of economic vitality.

It would be easy to be overwhelmed by the volume of these reports, or driven to distraction by their ‘horserace’ aspect.  There are often valuable data included in these studies, the challenge is finding them and putting them in proper analytical context.

Having said all that, it may be appropriate to give special weight to the opinions of those who actually make business relocation decisions and have the authority to bring new jobs and investment to a location.  That’s why it was noteworthy that Indiana was ranked as the best place to do business in the Midwest, and sixth best nationwide, in a survey of more than 500 CEOs by Chief Executive magazine.

The magazine’s seventh annual “Best & Worst States” survey asks these corporate leaders to evaluate states based on business tax policies, regulation, workforce and livability factors. Indiana’s 2011 ranking is up from 16th place in 2010, making us one of the fastest-moving states in the survey.

Read the press release lauding the state’s performance from the Indiana Economic Development Corporation here, and view the full rankings here. 

The 2011 session of the Indiana General Assembly will likely be remembered best for the passage of far-reaching education reforms – more options for parents, the expansion of charter schools, and an emphasis on teacher quality and accountability. 

On a less positive note, however, local government reform again stalled at the Statehouse – another defeat for taxpayers and the cause of accountability at the expense of entrenched political interests.  Legislators refused to take any significant steps towards streamlining an outdated system of local government (designed during the Civil War-era) that includes a layer of township offices that provide services in an inefficient patchwork while making taxing-and-spending decisions largely outside of public scrutiny.

Proposals to eliminate township advisory boards (and providing for the complete elimination of township government by countywide referenda) were derailed by the vehement opposition of rural lawmakers and ultimately sidelined by the month-long legislative walkout. 

Two more modest bills passed both chambers but ultimately failed after conference committees.  HB1022, a proposal that curbed nepotism and conflicts of interest in local government offices, emerged from conference committee only to be rejected by the House of Representatives by a 31-64 vote.  SB526 focused on Marion County reforms, including the elimination of the county’s nine township advisory boards and transferring fiscal oversight to the City-County Council; the conference report passed the House but was defeated in the Senate by a narrow 24-26 margin.

The defeat of even these incremental reforms demonstrates the General Assembly’s continuing reluctance to disturb the status quo, which comprises a potent statewide network of local elected officials and patronage workers.  While some legislators may still believe the outdated trope that township government represents government ‘closest to the people,’ it has become clear to most (thanks to the tireless reporting of the Indianapolis Star and other media across the state) that these offices represent a drain on our tax base and an affront to transparency. 

The partnership between CICP and the Indy Partnership has served Indianapolis and the region well, connecting the regional business attraction and marketing aspects of economic development with the expertise of our industry-specific initiatives - this synergy will continue.  

But we’ve also never lost sight of our mandate to maximize every dollar we receive from our investors.  Since its launch four years ago, Develop Indy has grown into a robust and aggressive organization in its own right. So today we have two mature organizations with nearly identical structures and complementary missions – one bringing new business to the region as a whole, one focused on Indianapolis, the core of the region.

It simply makes sense to merge their  operations – marketing communications, accounting and administration, certain business development and research functions. In doing so, we’ll achieve significant financial efficiencies and drive a greater share of resources towards promoting ourselves as a destination for economic opportunities.  Simply put, the move allows us to be more competitive, even as we are outspent by many of our competitor regions (on a per capita basis) in economic development.

Here's the press release with additional detail:

Develop Indy, Indy Partnership to consolidate operations for more efficient, effective economic development effort

(INDIANAPOLIS, Ind – February 15, 2011)  Two of Central Indiana’s leading economic development organizations will formally join forces to create a more streamlined effort to maximize business attraction and marketing for Indianapolis and the greater region. 

 Indy Partnership, the regional group representing the nine-county Indianapolis metro area, and Develop Indy, the local economic development engine for Indianapolis/Marion County, will consolidate their marketing, fundraising and administrative operations to create a more efficient and effective enterprise.   The two groups will maintain their separate brand identities while pursuing their respective economic development missions.

Since 2001, Indy Partnership has promoted the Indianapolis region in partnership with local economic development organizations (known as “LEDOs”) in each of the metro counties.  Indy Partnership works to attract new businesses to the region, and provides research and project management support to the LEDOs for their local business development efforts.

Develop Indy was launched in 2007 as the stand-alone LEDO for Indianapolis/Marion County, and works primarily to help existing businesses grow and expand in Marion County.  It has grown its organizational capacity significantly over the last three years.

“We have two organizations pursuing similar missions – one representing the region, one representing Indianapolis, the core of the region,” said current Indy Partnership President and CEO Ron Gifford.  “It makes sense to bring them together in a more formal fashion to achieve our strategic goals, realize financial efficiencies, and give investors more ‘bang for their buck.’”

“We’re in a very tough competition for new opportunities, often going up against cities and regions that can’t match our business climate but do have more money to tell their stories,” said Scott Miller, Develop Indy’s President and CEO.  “This new model will allow us to maximize every dollar spent so we can aggressively pursue new job opportunities and investment from around the globe.”

The two organizations will combine operations in areas like marketing, fundraising, accounting, human resources, and IT.   Develop Indy will continue to focus on local Indianapolis business development issues, while Indy Partnership will continue focusing its marketing and business attraction efforts on behalf of the entire region. 

A new Indy Partnership Executive Committee, made up of private sector business leaders and representatives from each of the county LEDO partners, will oversee the regional effort.  The Develop Indy Board of Directors will serve as the legal governing entity for fiscal and administrative matters for both entities and will continue to oversee matters related specifically to Indianapolis/Marion County. 

Veteran economic development professional Scott Fulford will become the Executive Director of Indy Partnership, as current CEO Ron Gifford assumes the position of Executive Vice President for Policy for the Central Indiana Corporate Partnership (CICP), the regional alliance of CEOs and university presidents.  Gifford will also become a member of the Develop Indy Board of Directors.  Scott Miller will remain as CEO of Develop Indy.

“Since 2007, Indy Partnership has been part of CICP, and that relationship has fostered collaboration with CICP’s industry-specific initiatives – BioCrossroads [life sciences], Conexus [manufacturing and logistics], TechPoint [technology] and the Energy Systems Network [energy and clean technologies],” said Mark Miles, CICP’s President and CEO.  “We see this new alignment between Indy Partnership and Develop Indy as creating an even stronger regional platform to promote these clusters to new business prospects.  

“At the same time, we are committed to maintaining the synergies among these groups focused on economic growth in Central Indiana,” Miles continued.  “Ron’s new roles with CICP and Develop Indy will help ensure that industry expertise from the private sector is available on call to support economic development for the entire region.”

The new structure will also enhance regional efforts by giving the county LEDO partners a larger role in the expanded Indy Partnership Executive Committee, and by encouraging more direct participation in the region’s marketing and business attraction efforts.  A formal agreement on regional cooperation will also ensure that each member county has a fair chance to make its case to new companies looking at the region. 

“To companies located around the country, ‘Indianapolis’ is the brand that we’re all selling, whether we live in Marion County or not,” said Dax Norton, Executive Director of the Boone County Economic Development Corporation.  “By combining the marketing efforts of these two organizations, we can more effectively promote the region while giving every county a seat at the table.”

A joint fundraising campaign will take place for both organizations, ensuring that corporate supporters will not face multiple solicitations on behalf of the area’s business attraction efforts.

The consolidation of operations will become effective at the end of February.  Indy Partnership will share office space with Develop Indy in the Chase Tower in downtown Indianapolis.

Another member of our CICP Board of Directors, Collina Ventures’ Mark Hill, has penned a compelling piece on the need to reform local government – part of an ongoing editorial push on the part of the Indianapolis Star and a network of other Indiana newspapers to raise awareness of the need to streamline and consolidate the thousands of political offices that form a haphazard patchwork of bureaucracies across the state.

As someone who’s spent his career in the tech sector, Hill understands the power of technology to cut costs and enhance productivity.  A tech pundit once estimated that if progress in the rest of the economy matched progress in the computer sector, a Cadillac would cost $5.91, while ten minutes’ labor would buy a year’s worth of groceries.

Unfortunately, Indiana’s system of local government is anti-innovation – instead of becoming more efficient, it’s grown increasingly outdated and cumbersome.

Here is Hill’s op-ed:

Power of innovation can fix local government

Last week, the Indiana General Assembly convened at the statehouse to face the most daunting fiscal situation in a generation or more – a billion dollar deficit. 

But budget problems aren’t confined to the state level, and our lawmakers’ responsibilities don’t stop there either.  Across Indiana, local communities are dealing with the dual effects of the recession and property tax caps; Indianapolis alone faced a $50 million shortfall for its 2011 budget. 

The state legislature can help our cities and counties do more with less, by mustering the political courage to reform our broken system of local government. 

My career has been spent in the technology sector, a field that thrives on new ideas and change.  The power of high-tech innovation tends to cut costs and increase productivity.  My experience tells me that the big gains from technology actually come using the technology to change the process.

Unfortunately, our system of local government has not materially changed for more than a century-and-a-half; so instead of evolving to become more efficient and less costly, it’s done just the opposite.  It’s grown into a cumbersome and confusing maze of bureaucracy, notable for the quantity of political offices rather than the quality of public services provided.

An entire layer of government – the townships – exists to deliver services that could be more efficiently managed by counties.  And at the county level, too many elected officials perform purely administrative tasks – like coroner, recorder, or surveyor – that should have nothing to do with partisan politics. 

Township government is a perfect example of what’s wrong with the system.  The major responsibility of township trustees is delivering poor relief.  But there’s no common standard or procedure for doing so.  Half the townships report serving less than twenty households, and the average trustee spends eight times more in overhead to deliver every dollar in direct assistance than a typical private charity (using the United Way of Central Indiana as a baseline).  I know at United Way we work very hard to keep our overhead down so that we can deliver resources to those in need.

The situation cries out for change.  But the lack of visibility of these offices insulates them from public scrutiny – most township officials run unopposed in general elections, attracting little attention from the citizens they profess to serve. 

Township government should be abolished altogether, or at the very least have their budgets overseen and approved by county councils to bring some accountability to their taxing and spending decisions.  Counties should have the option to consolidate administrative offices and adopt a single executive form of government.

Defenders of the status quo have defeated these proposals during the last two legislative sessions.  But this year could be different.  Governor Daniels is a strong advocate of reform, and the new majority in the House of Representatives may be willing to put their belief in smaller government into action.

These changes represent their own kind of innovation, the kind of change that’s long-overdue for a system designed in an age of travel by horseback rather than broadband communications.

Hill, managing partner of Collina Ventures, chairs the Central Indiana Corporate Partnership's TechPoint technology and entrepreneurship initiative.

Let's shed a layer, join the 21st Century

Last fall, voters of Indiana approved an amendment to the Indiana Constitution “capping” the amount of property tax dollars that can be raised from individual properties. In effect, this placed a ceiling on the revenues available to local governments – a long-term limitation that’s even more severe now as local communities work through the aftermath of the national recession.  

It is now time to look for ways to provide the necessary services by local government in the most efficient manner. Local government structure was developed in a different age: Townships used to operate the schools, the roads, poor relief, care for cemeteries and other services closest to the citizens.  This role has changed over the decades, reducing the need for townships. 

Just a few examples from my home county of Monroe: a) the city (Bloomington), smaller surrounding towns and Monroe County all have park departments, b) city, towns and county have street departments, c) city, towns and county have planning and zoning departments, d) city, towns and townships have fire departments, e) city, towns, county have law enforcement agencies,  and f) county and townships both have roles assisting those in need.

In Orange County, we see two town police agencies within a mile of one another, plus two other towns and the county sheriff; two fire departments within one mile plus a township department; and two street departments plus the county highway department.  These examples are duplicated across Indiana.

We need a more streamlined system of local government at all functions. Some units – like townships – should be abolished altogether. In other cases, where many units are providing the same service, they should be combined to be operated without duplicating administrative overhead. Local governments have been given the authority to consolidate services. The leadership of all units should look at ways to consolidate the administration and delivery those services more effectively in the new era of limited resources. Historically local government had more freedom to raise revenue to provide services but this has now changed with the amendment to the Indiana Constitution.

Some changes have to be adopted by the Indiana General Assembly.  This subject has been debated since I was in the legislature (1966-‘74). It is now time to act.

Indiana has 1,008 townships that spend 400 million dollars a year. The Townships are also holding more than two hundred million in surpluses. The township should be eliminated, to avoid duplication of administration and the abuses we see across the state – more than two-thirds of the trustees hire employees with the same last name (nepotism), improper expenditure of funds, fights over who is in charge of the delivery of service, and over half of the townships providing poor relief to less than 20 families per year.

In the  latter part of the 1960’s when I was serving in the Indiana House of Representatives, UniGov was adopted for Indianapolis and Marion County. Changes in the township system were started, authority for local reorganization was given to local government from delivery of services to the consolidation of purchasing.  Recently, Vanderburgh County and Evansville have been leading discussions of about merging the delivery of city and county services. 

It is time to move forward with a long-overdue reorganization of a government whose structure was developed in the days before the Civil War.

Steve Ferguson

Chairman – Cook Group Inc.

While tough times are forcing state and local government generally to find ways to do more with less, township government is apparently doing less with more.  Townships continue to overtax their way to huge surpluses, despite serving fewer disadvantaged Hoosiers.

A feature in the Indianapolis Star over the weekend demonstrates yet again the pressing need for reform of township government:  The Star reports that the state’s 1,008 townships are holding collective budget surpluses close to (or exceeding) $300 million, as of the end of 2009 (the latest data available). 

That represents an increase of nearly $90 million since 2007, despite providing direct emergency relief (their primary responsibility) to 92,000 fewer Hoosiers.

This startling news comes as state lawmakers begin to struggle with a billion dollar deficit, and as city and county governments across Indiana contemplate deep cuts in public services – laying off police and firefighters, closing parks, deferring roadwork and other infrastructure improvements.  The effects of the recession, as well as the implementation of property tax caps, are forcing the public sector to tighten its belt.

But in the townships, it’s business as usual.  Indiana taxpayers can’t afford to allow such an inefficient and antiquated status quo continue – the time for reform is now.

Click below for a helpful database from the Star on township surpluses and spending in Central Indiana:

An impressive, bi-partisan group of elected officials and civic leaders have come together to show their support for a regional mass transit system – demonstrating positive momentum behind this critical issue.  The Central Indiana Corporate Partnership was a founding partner of the private sector-led Central Indiana Transit Task Force, which proposed the plan that was delivered to the community through the Indy Connect public input campaign over the last week. 

We continue to support a multi-modal transit system, crafting the best possible final proposal in 2011 while continuing to build support among policymakers and the public-at-large, then pushing for legislative action and popular approval by referendum in 2012.

The text of the letter is below; the piece has drawn praise from the Indianapolis Star’s editorial pages as well.

We join together today as citizens of Central Indiana.  As bipartisan elected officials we represent various constituencies:  As the Mayor of Indianapolis, seeking a more livable city and a stronger economy; as state legislators representing both Indianapolis and our metropolitan area; as your Congressman, representing the core of the region; and as CIRTA, representing the region’s transportation needs.  We are also members of the private sector.

We’re speaking with a common purpose – to move forward on a regional, multi-modal mass transit system that is ambitious yet realistic and affordable to the taxpayers.

We support a system that revitalizes and expands our bus system while adding bus rapid transit routes and passenger rail lines across Greater Indianapolis.  The system should allow both users and those who choose not to use mass transit to move around the region with greater speed and ease.  It should make dramatic improvements in the mobility of the residents of Indianapolis, commuters from surrounding suburbs, and residents of the neighboring counties traveling within their own communities.  The system should give all citizens more transportation options, connect our workforce with job opportunities, enhance our economic competitiveness and encourage investment in our neighborhoods.

Such a system has been talked about for years, and this year enormous progress has been made in developing a specific plan to move forward.   We are committed to taking the next steps toward our future transit system.

Looking ahead to 2011, there is still significant work to be done to create the best possible plan.  A reliable economic analysis of the final system plan must be completed, so that its costs and benefits are transparent to all.  The specifics of a regional transit authority empowered to build and manage the system will be refined.    Input from local officials will continue to be encouraged, and we will seek their support.

Our goal for 2012 is to present a practical transit plan that delivers a strong return on investment to the region’s taxpayers.  Our hope is that the General Assembly will decide on such a plan during the 2012 short session.  This would allow voters in the counties that wish to participate the opportunity to approve a local funding source and governance structure by referendum later that year, while also seeking federal funding for implementing the system.  Any such plan must be deemed affordable in both capital costs and operating costs before it goes to the voters for a referendum.

While large-scale public investments demand exhaustive planning and careful stewardship of tax dollars, we believe that effective mass transit is a regional priority.  The approach of refining and building public support for the plan in 2011, then taking legislative action and giving voters a voice through county-by-county referenda in 2012, will maintain positive momentum for a comprehensive, multi-modal transportation system.

As public servants and civic leaders, we look forward to working together to move this process forward, and pledge constructive action in 2011, 2012 and beyond to make effective mass transit a reality for Central Indiana.

Christine Altman                                                                                             

Hamilton County Commissioner                                                                               

Chair, Central Indiana Regional Transit Authority

Greg Ballard

Mayor – City of Indianapolis

Andre Carson

U.S. Congressman

Bill Crawford

State Representative, Indianapolis

Roland Dorson

Greater Indianapolis Chamber of Commerce

Central Indiana Transit Task Force

Al Hubbard, Co-Chair

Central Indiana Transit Task Force

Luke Kenley

State Senator, Noblesville

Mark Miles

Central Indiana Corporate Partnership

Central Indiana Transit Task Force

John Neighbours, Co-Chair

Central Indiana Transit Task Force

Bob Palmer, Co-Chair

Central Indiana Transit Task Force

Brian Payne

Central Indiana Community Foundation

Central Indiana Transit Task Force

Indiana has earned more kudos from economic developers across the country, according to a recent report by Area Development, a trade journal for business attraction and site selection professionals.  A national survey conducted by the magazine named scored Indiana 6^th among states (and best among Midwestern states) for business climate.

In a nod to our strong logistics infrastructure, the Area Development survey also ranked the state second in rail and highway accessibility.

Another recently-released report, the Milken Institute’s Best Performing Cities 2010, offers more cautiously optimistic readings for Central Indiana.  The Best Performing Cities index factors in a number of statistical measurements, including job creation, wage and salary growth, high-tech GDP growth, high-tech GDP location quotient (the concentration of high-tech industry as compared to the national average), and the number of high-tech industries with a GDP location quotient higher than the national average.

Using this data, the Indianapolis metropolitan area ranks 112^th, squarely in the middle of the pack among larger cities – but we did move up 13 spots (from 125^th in 2009).  We were better than average in job growth, and in a testament to the continued growth of our high-tech economy, earned the best sub-rankings in high-tech GDP growth (48^th) and concentration of high-tech industries (39^th).

And just to the southwest, Bloomington made a major splash in the Milken rankings, placing 16^th among the Best Performing (Small) Cities.  Using the same data, Bloomington ranked 8^th in job growth over the last year, and third in high-tech industry concentration. 

Combined with the continued vitality of our life sciences industry and steady improvement in venture capital investment, all indications are that Indiana’s pro-growth business climate is supporting an economic recovery that should see the state emerge with a stronger high-tech sector along with a solid industrial base. 

CICP’s BioCrossroads life sciences initiative received national recognition this week from the Brookings Institution, one of the nation’s most influential think-tanks on economic policy.

Brookings released a paper, “The New ‘Cluster Moment,’” reemphasizing the concept of industry clusters as a cornerstone of smart economic development planning.  Industry clusters are groups of inter-connected businesses and organizations that locate in close geographic proximity.  Clusters often start with some key competitive advantage (i.e. the presence of a major research university or large corporate headquarters) and grow as other firms seek common sources of innovation and human capital along with opportunities to form strategic alliances and streamline their supply chains.

According to Brookings, clusters are the building blocks of the ‘real economy’ – instead of driving growth through consumption and debt (as with the housing and financial bubbles), companies cluster together to drive productivity and maximize economic output. 

Clusters of firms also tend promote innovation and entrepreneurial growth, as knowledge flows more easily among companies and research institutions and more discoveries are ‘spun off’ into new business ventures.

“The New ‘Cluster Moment’” report cites Indiana’s life sciences sector as a model regional cluster, anchored by the presence of Eli Lilly and other major industry players, research institutions like IU and Purdue, and leading orthopedic device manufacturers.  It recognizes the efforts of BioCrossroads in identifying the critical needs (i.e. access to capital, encouraging industry connectivity and start-up opportunities) to maximize the growth of this cluster over the last eight years.

The BioCrossroads story was also told from a first-hand perspective this week by John Lechleiter, Chairman of Eli Lilly, in a keynote speech to the Regional Innovation Clusters Conference, sponsored by Brookings and other key public policy groups in Washington DC on Thursday.  Lechleiter, who supported CICP’s efforts in forming and setting the strategic course for BioCrossroads, discussed Lilly’s strategy for innovation and how building a life sciences ecosystem in Indiana has furthered these efforts.

He went further in asserting that the BioCrossroads model is one that should be replicated in our national effort to revitalize the economy:  “The successful effort to build a thriving life sciences hub in Indiana – in the face of some pretty strong headwinds in the state’s economy – is reason to believe that our country can overcome the economic challenges we face today.”

Read more excerpts from John Lechleiter's speech here, and view the Brookings Institution’s ‘Cluster Moment’ report here.

(The following column also appeared in the Indiana Connections e-newsletter, presented by Inside Indiana Business in partnership with Conexus Indiana, and on the Conexus Indiana blog.) 

College completion rates, manufacturing and logistics success go hand-in-hand

Andre Lacy

If asked to identify one statistic that predicts future economic success, it’s hard to ignore the percentage of young people with college degrees.  Education drives innovation, productivity and higher wages.   If the up-and-coming generation of workers is well-educated, the economy is well-positioned to grow.

That’s why it’s such a concern that the United States has slipped to 12^th among developed countries in our percentage of 25 to 34-year-olds with an associate degree or higher.  A few weeks ago, President Obama called for the United States to return to the top of the rankings by 2020 – a daunting goal that will require a 20% increase in college graduates over the next decade.

In Indiana, the climb is even steeper – we’re well below the national average in the educational attainment of young adults; just one of three young Hoosiers goes on to complete a college degree.  We’ll need to almost double that to be competitive with countries like Korea, Canada and Japan.

This educational deficit puts our future at risk.  Our capacity for technological and scientific innovation is the biggest competitive advantage that the United States has left in the global economy.  As more highly-educated workers (the Baby Boomers) begin retiring, we confront a younger workforce ill-equipped to innovate.  To be blunt, you can’t sustain a knowledge-based economy without knowledgeable workers.

In Indiana, the impact of a less-educated workforce will threaten the very foundation of our economy, manufacturing and logistics.

In June, Deloitte Consulting and the U.S. Council on Competitiveness released the annual Global Manufacturing Competitiveness Index for 2010.  The study (based on a survey of 400+ manufacturing CEOs worldwide) ranked access to educated workers capable of supporting innovation as by far the biggest determinant of success, ahead of factors like the cost of labor and materials, energy costs, and tax/regulatory climates.

Not surprisingly, the same study shows the United States slipping to fourth place in its manufacturing index rankings.  The third place country, Korea, finished far ahead of the U.S. in its percentage of younger workers with college credentials.  The top two finishers, China and India, have vastly expanded their pool of educated workers in recent years (the number of Chinese college graduates entering the job market each year has grown more than 600% from 1999 to 2009).

It’s clear that improving college completion rates is essential to maintaining our domestic manufacturing base.  In Indiana, the erosion of this base would also jeopardize the logistics industry that gets manufactured goods into the hands of customers across the country and around the world.  And as global supply chains become more complex and ‘just in time’ inventories the norm, the logistics sector faces its own skilled worker shortages.

Many of President Obama’s proposals to boost higher education focuses on affordability, aiming to increase Pell Grants and expand tuition tax credits.  But while the cost of college is a key issue, we face other hurdles in Indiana specific to manufacturing and logistics:  Too many young Hoosiers aren’t aware of the high-tech jobs available, and there’s a lack of educational programs that deliver the specific skills that employers are looking for.

These challenges make up a large part of Conexus Indiana’s mission:  We’re working to promote manufacturing and logistics careers through our ‘Dream It. Do It.’ campaign.  At the same time, we’ve used industry input to create a very specific, multi-layered skills template that details what manufacturers and logistics companies are looking for in new employees.  The Indiana Department of Education and Commission for Higher Education have both embraced this template, and we’re working with our educational partners to create ‘industry-approved’ programs that can steer students into the most in-demand job openings.

But clearly this issue is bigger than any one organization, school or government agency.  We need focus and coordinated action among policymakers, employers, educators and opinion leaders to push Indiana up the rankings in college completion rates and preserve our manufacturing and logistics edge.  The same kind of attention is needed at the federal level to build a world-class workforce.

The only certainty is that a lack of action will cause us to fall even further behind in educational attainment and economic competitiveness.  We must act now, before today’s challenge turns into tomorrow’s crisis.

Andre B. Lacy is Chairman of LDI Ltd., a holding company that focuses on value-added distribution businesses.  He is an emeritus member of the Central Indiana Corporate Partnership, and chairs the Workforce Development Task Force for Conexus Indiana’s Logistics Council.

It’s obvious to all that the Internet has fundamentally changed the business of marketing, transforming consumers from passive recipients of messages through TV, radio and print to active participants in a dialogue about the products and services they prefer through online research, user-generated reviews, blogs and other web-based media.  Jim Jay of our TechPoint initiative summed it up nicely by saying, “Today, a viral video can spark more views and ‘buzz’ than a well-placed TV ad.  A well-conceived e-mail campaign can trigger a stronger response than a blizzard of direct mail…”

Marketers have adapted.  From 2003 to 2008, the traditional media sector—including media agencies, publishing, and broadcast and entertainment—lost 32% of its market value (nearly $137 billion), while new media (online content and services) gained 102%, or $58 billion.  A recent Chief Marketing Officer survey by the American Marketing Association says that CMOs plan to triple the budgets allocated to social media over the next five years.

All of the change that’s roiling the media/marketing landscape creates great opportunities for innovators and cutting-edge companies.  Fortunately, Central Indiana is home to a growing cluster of marketing and media firms and institutions that put our region in a great position to capitalize on these trends – businesses like ExactTarget,  Compendium Blogware, Aprimo (which launched from Software Artistry), Vontoo, 5 Buckets, Lights Out Intelligence, Market Path, Cantaloupe, Delivera, Formspring and many more.  There are more than 70 companies operating in this space in the state of Indiana.

This growing e-marketing sector is also served by leading research institutions.   Our own Ball State University is a national leader in digital  media research and development through its Center for Media Design. 

It’s time for Indiana to capitalize on the potential of this high-tech ‘micro-cluster.’

Today, TechPoint, with the support from the IEDC, announced Indiana’s Measured Marketing Initiative, a national media relations campaign to position Indiana as the leader of this fast-growing, emerging technology business category encompassing social and digital media and marketing – TechPoint has dubbed it “measured marketing.” The goal for this initiative is to raise awareness, generate customers for existing businesses and attract companies to create jobs and investments in Indiana.

Measured marketing companies provide a platform or service for digital marketing via email, social media, search, video, mobile and other rapidly evolving technologies, and they provide clients with return-on-investment tracking.

Check out the press release here.  For more information on Indiana’s Measured Marketing Initiative, please go to www.indianameasuredmarketing.com.

CNBC has released its annual Top States for Business rankings – while Indiana ranks a fairly pedestrian 21^st on the overall list, the sub-category rankings are more interesting, giving several reasons for optimism and at least one looming cause for concern.

The state continues to score high in costs of doing business, ranking 9^th among states (up from 13^th in 2009), and we continue to rank among the top handful of states (6^th) in transportation infrastructure, anchoring our strong logistics sector.

We made significant progress in access to capital, moving from the bottom third of states (36^th) in 2009 to the middle of the pack (26^th) this year.  This blog has covered Indiana’s progress in making venture capital available to promising start-up firms – the state has bucked national trends by growing equity investment over the last two years, even as the national venture market contracted during the recession.  We made a tremendous jump from 41^st to 20^th in venture capital investment per capita from 2008 to 2009.

We moved up five spots in the ‘Economy’ category (mainly a measure of economic diversity and success in attracting corporate headquarters) and stayed about the same in Cost of Living (a perpetual strength) and Technology/Innovation.

Our biggest challenge continues to be found in the Workforce arena, where we slipped ten spots from last year’s rankings, from 31^st to 42^nd.  CNBC considers the educational attainment of the workforce, union membership, available workers and the placement success of vocational training programs in arriving at this category.  While the exact conglomeration of data can be argued, the broader point cannot – certainly Indiana faces a shortfall in educated workers that must be addressed.

CICP’s initiatives are working against this daunting task – Conexus Indiana is collaborating with higher education partners to create ‘industry-approved’ training programs in manufacturing and logistics, and marketing these programs to young Hoosiers as the path to high-tech careers.  The BioCrossroads life sciences initiative has partnered with Purdue University, Notre Dame and others on programs like the I-STEM Network, a resource to improve math, science and technology education at the K-12 level, as well as expanding access to Advanced Placement coursework to ease the transition from high school to college.

It will take these efforts and the focused attention of policymakers, educators, corporate and civic leaders to climb the ranks of educated states.  But in today’s knowledge-based economy, no other area is as important in predicting our future economic success.

Read more about the CNBC rankings and view the state listing here.

October 27^th will be a hectic day for those who care about scientific and technological innovation and the future of Indiana’s economy.

On that day, CICP’s BioCrossroads initiative will host the Indiana Life Sciences Summit at the Westin Hotel in downtown Indianapolis, while our TechPoint initiative holds its annual Indiana Innovation Summit across the street at the Indiana Convention Center.

Both events highlight the bold strides Indiana has made towards a more diverse, knowledge-based economy.  The nearly a decade, Indiana has added life sciences jobs faster than the national average, annually ranking among industry leaders by groups like BIO (the international life sciences trade organization).

BioCrossroads has bolstered this growth, raising more than $150 million in dedicated venture capital focused on life sciences start-ups, and providing support services to nearly 250 Hoosier biotech companies.  The Life Sciences Summit provides a venue to explore new opportunities and discuss hot topics like financing scientific innovation, the impact of healthcare reform, and successful strategies in bio-focused economic development.

The Innovation Summit, formerly the Tech Summit, is now in its second decade of bringing Indiana technology executives and policymakers together for a similar purpose – sharing ideas, setting a common agenda for the industry, and building a community that encourages new business opportunities.  Rebranding the event as the Innovation Summit acknowledged that new ideas are the primary fuel for growth in all high-tech industries – and the event certainly has attracted a thought-provoking keynote speaker this year, in iconoclastic author Nicholas Carr.  (TechPoint President Jim Jay recently penned this piece in the Indianapolis Star on the power of innovation and Carr’s role at the Summit.)

The Innovation Summit also includes a heavy emphasis on how high-tech entrepreneurs can find venture funding in today’s market, as well as panel discussions on social media (Indiana is earning a reputation as a digital marketing leader), smart grid technologies (ditto for energy innovation), cloud computing and more.

We hope you’ll be a part of these great events – learn more about the Innovation Summit here, and about the Indiana Life Sciences Summit here.

U.S. manufacturing is leading the nation out of recession with a full year of positive growth, even as the construction and housing markets continue to struggle.

The latest report from the Institute for Supply Chain Management showed July marked the 12^th straight month of expansion for the manufacturing sector.  Manufacturing employment has also grown faster than many analysts expected, good news that helped spark a modest Wall Street rally on Monday.  (See this story in the Indianapolis Star for more analysis.)

This data dovetails with the Indiana-specific economic forecast included in the Conexus Manufacturing and Logistics Report Card, which predicts that the state’s total manufacturing compensation will grow by nearly $2.5 billion over the second half of 2010 and 2011.

The future looks bright for manufacturing nationally and especially here in Indiana, the most manufacturing-intensive state in the union, as we focus on fast-growing markets like electric vehicles and medical devices. 

The question that Conexus Indiana is focused on is this – as Hoosier manufacturers seek to expand, will they be able to find the skilled workers they need to grow and remain competitive?

J.K. Wall reports in the Indianapolis Business Journal that the flow of venture capital deals in Indiana’s life sciences industry has picked up considerably from this point in 2009:  Through the first 6 months of this year, nine Hoosier bioscience firms have attracted venture investment, up from just four venture-backed companies during the first half of 2009.

Wall notes that while the number of deals has increased, the amount invested per deal has dropped somewhat.  We are confident that total venture dollars invested in promising life sciences opportunities will continue to grow as dollars from BioCrossroads’ $58 million INext Fund are distributed to its partner venture funds to be leveraged into investments in specific companies.

The overall venture market in Indiana continues to be a bright spot in the general economic picture, and we hope a leading indicator of an entrepreneur- and innovation-fueled recovery.  From 2007 to 2008, total venture investment in Indiana grew 40%, and from 2008 to 2009 increased another 70%, while national VC totals decreased over the last two years.  From 2008 to 2009, the Hoosier State leapt from 41^st to 20^th among states in venture investment per capita.

Putting these trends together, it seems fair to predict that as more promising life sciences start-ups choose to seek private equity financing, the funds will be available to capitalize on our homegrown scientific breakthroughs and lifesaving innovations.  And for a state that’s already seen life sciences employment grow by more than 17% (outpacing the national average) since 2001, it’s a promising sign for continued success.

Yesterday’s Evansville Courier & Press carries an interesting feature on city-county consolidation discussions that would merge Evansville – Indiana’s third-largest city – with Vanderburgh County – the state’s seventh most-populous county – in a ‘UniGov’-esque system.  A 12-member Evansville-Vanderburgh County Reorganization Committee was formed as a result of a petition drive led by the League of Women Voters of Southwestern Indiana.

The article acknowledges the political difficulties inherent in consolidation (this will be the fourth attempt since the mid-1970s to initiate local government merger in Evansville-Vanderburgh County), but emphasizes the potential payoffs in economic development and budgetary savings.

Such discussions are becoming more and more common around the state as communities grapple with the aftershocks of the economic recession coupled with the implementation of property tax caps limiting local revenues.  It’s become obvious to all but the most entrenched defenders of the status quo that local government reforms – like consolidation – are the only alternative to continued rounds of drastic budget cuts or local option tax increases.

Though the Evansville story doesn’t mention it, township government continues to be a prime target for reform efforts – the more than 1,000 townships across Indiana have overtaxed their way to hundreds of millions of dollars in unused surpluses as the fiscal crunch continues to plague city and county governments, while performing services that could be absorbed in county offices with greater efficiency and effectiveness.

Unfortunately, local government reform proposals based on the Kernan-Shepard Commission report have continued to stall before Indiana General Assembly (as chronicled ad nauseum on this blog), victim of political posturing and the furious lobbying of local officeholders defending their own fiefdoms.  The Central Indiana Corporate Partnership and our partners in the MySmartGov coalition remain committed to the cause of reform, and are prepared to push for progress again during the 2010 legislative session.

Many corporate and community leaders have noticed a disturbing tendency lately from Indiana’s education establishment – an inclination to make excuses rather than aim higher when it comes to student achievement.

Earlier this year, a simple but compelling reform was proposed in the Indiana General Assembly – Hoosier schools should focus more resources and attention on early reading education, and be required to teach every student to read by the end of third grade. 

Volumes of academic research showed that if students aren’t reading proficiently by the end of third grade, their chances of ever catching up to their peers plummet.  The odds of graduating high school, much less going on to college, drop dramatically as well – their futures are put in jeopardy.

The premise of reform was simple: Make reading education the top priority of the early grades, and if students aren’t reading at grade level at the end of third grade, get them special help and make sure they can read before promoting them to the fourth. 

We were dismayed by the reaction from the teachers unions and many administrators.  Some protested, incredibly, that holding students back hurt them more than being illiterate.  They demanded more funding, arguing that it was unfair to expect schools to teach kids to read within their existing budgets (more than $10,000 per pupil on average, statewide).

Eventually, the Indiana Department of Education was authorized to study the need for reading reform, and is crafting a plan to end social promotion without reading proficiency.  But the reflexive opposition against such a common-sense approach to improving accountability and learning was disturbing.

We had a similar feeling reading the reactions to the Indiana Department of Education’s recently-expressed goal that at least 25% of Hoosier high schoolers should pass at least one Advanced Placement exam, better preparing them for college studies.  The DOE asserts that the 25% goal, while ambitious, is based on PSAT tests that show at least a third of students have the ability to excel in AP coursework if they apply themselves. 

Instead of embracing the goal, some educators again turned to excuses.  Editorials arguing that AP curricula would have to be watered down in order to allow one of every four students to pass were published by the Indianapolis Star.  Others said that only higher-income students in suburban schools could hope to pass AP exams in such numbers – an especially unconscionable message, since education is the surest route out of poverty for underprivileged students.  (CICP Board member Steve Burns responded to these arguments with his own editorial.)

Taking in these arguments while recalling the third grade reading debate could evoke only one response – “Here we go again.”

In business, you motivate employees by setting high standards and challenging them to succeed.  You don’t embrace a philosophy of pessimism by setting the bar continually lower.  Schools aren’t businesses, but the same principle applies:  Students will live up to – or down to – the expectations we set for them.

Indiana ranks among the least-educated states in the nation, with fewer college graduates per capita than most states and a high school graduate rate mired in the middle of the pack.  In today’s knowledge-based economy, this is the most daunting challenge faced by Hoosiers.

To confront it, we first need a common understanding between educators, policymakers, families, civic and corporate leaders alike – we have to set our sights higher if we want to inspire real progress.  On issues like reading and Advanced Placement exams, we have a choice between making excuses and demanding excellence .  We must speak with one voice for the latter.

There is the occasional sign of progress.  The Indiana State Teachers Association recently embraced performance-based teacher compensation as part of the Department of Education’s application for a federal Teacher Incentive Fund grant.

But it still seems as if we have a long way to go towards making Indiana’s educational culture one that embraces accountability, higher standards and student learning above all.  Good teachers embrace this approach – we need more of them speaking out, and policies that empower them.