University, SACTO launch Prosperity Index

The Sacramento Regional Research Institute, a joint venture of SACTO and Sacramento State, has released its newly created Regional Prosperity Index. The index looks at critical prosperity indicators that affect the region’s long-term prosperity and competitiveness.

The Prosperity Index was developed as part of SACTO’s five-year business attraction and marketing plan entitled “Building a First-Tier Economy,” and as an outcome of Partnership for Prosperity’s regional economic development strategic planning process. It will provide business and community leaders a valuable tool to measure regional economic prosperity and track the region’s performance against competitors and identify opportunities for improvement. In the 2005 Report, the Sacramento Region falls in the middle of the pack overall, while the Region’s people rank number one.

The Sacramento Region ranked fifth overall out of 10 competitor regions on the inaugural Prosperity Index, receiving a score of 8.4 out of a possible 10, presenting about average economic prosperity and a moderate competitive position compared to its main competitors. The Sacramento Region received the best score in the “people” category, but lower scores for “business” and “place.” Among the regions in California, Sacramento ranked second, behind the Bay Area (which received one of the best scores on the index) and ahead of San Diego. Salt Lake City obtained the highest overall score while Los Angeles placed last.

Strong scores in the Sacramento Region’s college enrollment, household income spread and graduation rate, along with middle-of-the-road performance in all other people indicators, gave it a first place ranking in this area.

“The index demonstrates that our strength is our people, and we should be very proud of that. But a region must achieve high marks in all three categories to sustain its competitiveness. The report demonstrates there is always room for improvement,” said Sacramento State economics professor and Sacramento Regional Research Institute economist Suzanne O’Keefe.

“While in the past organizations have benchmarked the region in areas like job growth, unemployment or income, this contemporary barometer of economic prosperity is the first effort of its kind for the region. Moving forward, the Prosperity Index will be a valuable tool to help guide and evaluate the region’s economic development efforts and competitiveness,” said Gary Orr, Senior Vice President of Wells Fargo & Company and SACTO’s Chair.

The full 2005 report is available at the Sacramento Regional Research Institute’s website at www.srri.net. The institute will update the Prosperity Index on an annual basis, with the Business component evaluated on a quarterly basis throughout the year in its “Quarterly Economic Report.” The Prosperity Index is sponsored by Downey Brand, Wells Fargo, and GenCorp.