The Sacramento Regional Research Institute, a joint venture of SACTO and Sacramento
State, released its 2006 Prosperity Index results analyzing critical economic
indicators that affect the region’s long-term prosperity and competitiveness
around the categories of Business, People and Place.
“Although the Sacramento Region experienced a slight decline in the People component
from last year’s Index, the 2006 Index continues to demonstrate the strength
of the Sacramento Region’s people—a critical building block to the overall prosperity
of a region. Further strengthening the region’s competitive position requires
that we sustain a strong People component and make improvements in the areas
of Business and Place,” said Sacramento State economics professor and Sacramento
Regional Research Institute economist Suzanne O’Keefe.
The Sacramento Region ranked eighth on the 2006 Prosperity index, receiving
a 7.1 out of a possible 10 overall. Sacramento posted a high score on the People
component but a fairly low score on the Business and Place components which
placed the region in the middle of the list.
The Prosperity Index was introduced in 2005 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 provides business and community leaders with a tool to
measure regional economic prosperity and track the region’s performance against
competitor regions in order to evaluate the competition and identify opportunities
for improvement. The index reveals how well the Sacramento Region stacks up
against its competitors—where it excels and where it falls short.
“Even in the short time since it was introduced, the Prosperity Index has proven
to be a valuable tool in evaluating and guiding the region’s economic development
strategies. Economic development partners and policy developers are better able
to benchmark the Sacramento Region against the competition, set measurement
targets and measure progress,” said Jeff Koewler, SACTO’s 2006-07 Chair.
The Sacramento Regional Research Institute updates the Prosperity Index on an
annual basis. The Business component is evaluated on a quarterly basis throughout
the year with results appearing in SACTO’s Quarterly Economic Report. For the
2006 Index and for future updates, visit SRRI’s web site at www.srri.net. The
2006 Prosperity Index is sponsored by Los Rios Community College District, McDonough
Holland & Allen PC, Sacramento Works and Wells Fargo & Company.
Media assistance is available by contacting the Sacramento State Public Affairs
office at (916) 278-6156.
About the SRRI Prosperity Index: Indicators or “characteristics”
within three main categories are analyzed, measured and assigned a score from
0 to 10. They include Business (measured indicators: establishment growth, job
growth, office vacancy rate, payroll growth, unemployment rate, venture capital
investment); People (measured indicators: college enrollment, educational attainment,
graduation rate, median household income, household income spread, population
growth); and Place (measured indicators: air quality, charitable contributions,
commute time, crime rate, fair market rent growth, housing affordability). The
three categories are aggregated to create the Prosperity Index. All indicators
used in the project reflect a balance of historical, current and future performance.
Criteria for indicators include the following: They must be a key characteristic
in describing Business, People or Place overall; comparative data must be available
nationally from sources that provide consistent methodology across regions and
over time; and indicators must have a relation to aspects that regional communities
can influence or directly affect.
About the selection of competitor regions: In addition to the
national average, ten competitor regions were chosen as benchmarks. The competitor
regions are those that the Sacramento Region most often competes with for corporate
site locations. Half of the regions are located in California and the other
half are scattered throughout the western United States. They include Austin,
TX; San Francisco Bay Area, CA; Denver, CO; Inland Empire (Riverside/San Bernardino),
CA; Los Angeles, CA; Phoenix, AZ; Portland, OR-WA; Reno, NV; Salt Lake City,
UT; and San Diego, CA.
2006 Prosperity Index Report (pdf 887k)
State University, Sacramento Public Affairs
6000 J Street Sacramento, CA 95819-6026 (916) 278-6156
California State University, Sacramento Public Affairs
6000 J Street Sacramento, CA 95819-6026 (916) 278-6156 email@example.com