Urban Systems Reforms and Community Revitalization in Indianapolis During the Stephen Goldsmith Years (1992 – 1999)

THEIndy STORY

Prepared by: Janet Reingold and Jennifer Wootton Reingold Associates Andrew Hahn Brandeis University Additional copies of the report may be obtained from:

701 St. Paul Street Baltimore, MD 21202 410.547.6600 410.547.6624 fax www.aecf.org

Urban Systems Reforms and Community Revitalization in Indianapolis During the Stephen Goldsmith Years (1992 – 1999) ACKNOWLEDGEMENTS

In every way this document is about the future, not the past. Surely the monograph documents the urban reforms undertaken during Stephen Goldsmith’s tenure as Mayor of Indianapolis (1992-1999)—and certainly we would not have been able to research this report without the assistance of the past officials and knowledgeable citizens listed below and cited throughout the report. The utility of a report like this, however, depends upon the manner in which the current Mayor of Indianapolis, Bart Peterson, brings his own ideas to the forefront—picking up and refining successful practices from the past and jettisoning initiatives that no longer fit the policies and vision of his new administration.

In urban government, we often think of administrations as a succession of separate stories. Yet in Indianapolis, the transition from Goldsmith to Peterson has exemplified more continuity than conflict. Mayor Peterson has fostered a healthy evolution to his own era of reforms (surely worthy of a monograph, in its own right, several years from now), and his administration is commit- ted to continuous refinement as new circumstances are revealed.

In writing this report, we must first acknowledge the funder of this project, the Annie E.Casey Foundation. This organization’s commitment to our nation’s cities and neighborhoods is unpar- alleled, and their dedication to the City of Indianapolis and to this project is highly valued. We would like to thank Ralph Smith of the Annie E.Casey Foundation, who suggested that although the creative reform initiatives in Indianapolis would be of great interest to other cities, a suc- cinct and accessible story of the city’s reforms had not yet been written. The authors also express gratitude to two other Casey Foundation representatives—Donna Stark, who provided strategic assistance and served as an accessible sounding board throughout the process; and Connie Dykstra, who offered her unique skills to the production of the report.

The preparation of this report was truly a joy,and reflects a total team effort. Andrew Hahn provided thoughtful policy guidance and a national perspective. The Reingold team conducted the field research and crafted this report. If readers find this report useful, the credit goes to the entire team. If there are errors or misstatements, they rest on the authors’ shoulders.

About the authors

Janet R. Reingold is President of Reingold, a full-service consulting firm providing strategic planning, management and organization development, public policy,marketing, and communications. She has authored more than 75 publications and positioned clients to receive millions of dollars in earned income and contributed support. Clients include leading corporations, nonprofit organizations, government agencies, and foundations.

Jennifer L. Wootton has diverse experience in communications and publications, with an emphasis in the areas of education, development, and law. A writer and editor, she has authored a variety of publications, including strategic plans, case studies, marketing literature, and articles.

Andrew B. Hahn is professor and director of the Program on Innovations in Social Policy in the Heller School for Social Policy and Management, Brandeis University. He conducts policy analysis, evaluation, training, and demonstration projects for federal agencies, corporations, and major foundations on employment, education, youth, and community development. His books are syntheses of practical lessons for program managers and policymakers about effective anti-poverty and neighborhood-based strategies. An advisor and board member to many groups, he also serves as guest columnist for Youth Today. In 2000, Professor Hahn will co-direct the Heller School’s new Institute for Sustainable Development which is devoted to work that crosses boundaries in the youth, community and sustainable development fields. CONTENTS

INTRODUCTION 1

INDIANAPOLIS IN PERSPECTIVE 4

GUIDING PRINCIPLES AND CORE COMPETENCIES 5

INFRASTRUCTURE AND PROVISION OF MUNICIPAL SERVICES 7 Guiding Principles 7 Outcomes and Challenges 11 Lessons Learned 12

NEIGHBORHOOD EMPOWERMENT AND FAMILY STRENGTHENING 15 Guiding Principles 16 Outcomes and Challenges 20 Lessons Learned 21

ECONOMIC DEVELOPMENT 24 Guiding Principles 24 Outcomes and Challenges 28 Lessons Learned 29

CONCLUSION 31

APPENDIX A: MARKETIZATION 34 APPENDIX B: ACTIVITY-BASED COSTING 36 APPENDIX C: PURCHASING 37 APPENDIX D: POTHOLES — A CASE STUDY 38 APPENDIX E: NEIGHBORHOOD REVITALIZATION 39 APPENDIX F: COMMUNITY POLICING 41 APPENDIX G: THE FRONT PORCH ALLIANCE 43 APPENDIX H: THREE NEIGHBORHOODS CASE STUDY 44 APPENDIX I: NATIONAL COLLEGIATE ATHLETIC ASSOCIATION 47

BIBLIOGRAPHY 49

INTERNET SOURCES 50

INDIVIDUALS INTERVIEWED 51 INTRODUCTION

These days, Indianapolis attracts much This report was commissioned by the more than motorsports enthusiasts for Annie E. Casey Foundation in Baltimore, the Indianapolis 500. Once considered a Maryland, to chronicle Indianapolis’ suc- sleepy Midwestern town, Indianapolis is cesses and lessons learned that are of sig- a vibrant, prosperous city—the twelfth nificance to other public officials, grass- largest in the nation. It has attracted and roots leaders, and policymakers. The kept three Fortune 500 companies, the Foundation is dedicated to fostering NCAA headquarters, and two profes- urban systems reform, strengthening fam- sional sports teams. As a result of the ilies, and assisting communities to build economic renaissance in the downtown better futures for disadvantaged youth area, retail ventures and the hospitality and their families. The goal of this report and tourism industry thrive. is to provide a concise overview of former Mayor Stephen Goldsmith’s signifi- And like all large cities, Indianapolis has cant reforms for those who want to learn its share of problems—a crumbling inner the Indy Story. city infrastructure, disenfranchised neighborhoods, urban sprawl, crime, substance The Indy Story abuse, domestic violence, and health issues. Under the leadership of Mayor There are hundreds of stories within the Stephen Goldsmith, Indianapolis has fun- Indy Story. The story of changing the damentally changed the way it addresses way local government does business. problems, provides services, and interacts The story of reclaiming communities with citizens. Mayor Goldsmith’s ambi- abandoned and ignored. The story of tious and innovative reforms have helped building upon values and morality revitalize the core of the city, cultivated throughout the communities. The story neighborhood empowerment, fostered of capacity building at the local govern- an environment that attracts businesses ment and neighborhood levels. The story and growth, and significantly reduced of true collaboration among city agen- costs of providing municipal services. cies, community-based organizations, neighborhood associations, businesses, Each year, countless policymakers and philanthropists, and faith-based organiza- leaders make pilgrimages to Indianapolis. tions. The story of what it takes to foster They come to study urban systems change that abides. The story of achiev- reform, community building, and neigh- ing a unified vision for the city—of posi- borhood revitalization at work. They tively impacting the lives of citizens. come to learn from public officials, stakeholders, and neighborhood leaders. They The lessons featured in this report have come with questions: What makes universal value for all elected officials Indianapolis unique? What were the and policymakers and, therefore, are major reforms? How was change meant to transcend political agendas and brought about? What are the indicators partisan considerations. The "Indy Story" of success? How will these reforms be is in many ways a reflection of a contin- sustained? What lessons and best prac- uum of enlightened leadership, built tices can I apply in my community? upon a legacy that preceded Stephen Goldsmith's administration, and setting They come to learn the "Indy Story." the stage for the Peterson administration and others that follow.

1 It is always a sensitive issue when Economic Development chronicles the reports such as these are issued after strategies used to entice—and keep— political transitions have occurred. business in Indy, expand economic However, the purpose of the "Indy Story" opportunities, develop brownfield sites, is not to trumpet one man's or one and contain sprawl to the suburbs. The administration's achievements, but rather final chapter, Conclusion, describes to highlight some of the innovative poli- unfinished business and explores the cies and collaborative activities that important issues local leaders will face in helped bring about powerful urban sys- the next five years. tems reform in the city of Indianapolis. The process was bi-partisan; the lessons A few caveats. Though our comments are non-partisan; and hopefully their are evaluative, the report is, by no means, application is universal. a formal program evaluation. It is not a political biography, nor is it the Stephen User’s guide. Our report is divided into Goldsmith story. It is the story of urban six chapters. The first chapter, systems reform. It is a description and Indianapolis in Perspective, describes synthesis of the guiding principles and the rich history of governance in key strategies employed in the Goldsmith Indianapolis, chronicles the conditions administration, the sequence of events, and unique challenges Mayor Goldsmith and the meaningful outcomes of those inherited in 1991, and provides a brief strategies. overview of the city’s accomplishments and future challenges. The chapter also The authors of this report approached uses comparative data and statistics to this task without a political agenda or a place Indianapolis in a national context. pre-conceived point of view. We interviewed a broad cross-section of people, The second chapter, Guiding Principles including loyalists and critics. To those and Core Competencies, outlines the readers who are looking for a critique, if vision and guiding principles champi- this report seems overwhelmingly posi- oned by Mayor Goldsmith, and the char- tive, it reflects what we saw and what we acteristics and factors necessary to carry heard. To those readers who are looking out the city’s mission successfully. for biased, political testimonials, this is sure to fall short. Much of what we Infrastructure and Provision of record here is based on reviews of Municipal Services tells the story of dozens of documents, publications, web "marketization"—of introducing competi- pages, and third-party evaluations, struction into the public sector to streamline tured interviews with individuals both in services and cut costs. This chapter also Indianapolis and elsewhere, site visits, describes initiatives that infuse account- and even serendipitous opportunities to ability, performance-based contracting, interview restaurant waiters, hotel desk deregulation, and customer service orien- clerks, and taxi drivers. tation into the provision of municipal services.

The fourth chapter, Neighborhood Empowerment and Family Strengthening, tells the story of rebuilding and reclaiming disinvested communities; empowering citizens to develop their vision, their voices, and their skills to influence change; facilitating collaboration and cooperation; and leveraging resources.

2 This is not a comprehensive report on every reform, initiative, program, or activity. We focused on a few strategic issues, and on a few selected neighborhoods, to document what happened when the mayor and his team turned the paradigm upside down—listening to the people, asking them to decide what they want, and getting the bureaucracy out of the way.

One of the largest challenges in synthe- sizing the Indianapolis story is to reflect both the fabric and the individual threads, and to do both with clarity and perspective. The mayor’s ambitious reform agenda includes dozens of threads which, when woven together, create a tapestry with a rich picture of history, tradition, culture, civic participation, and change.

The danger in this task is that we may not weave the story together in the same way as others might. The strength of the distillation is, perhaps, in its brevity and focus. We hope the principles articulated, the points of view reflected, and the quotes and anecdotes referenced are as close as possible to the essence of the Indy Story.

3 INDIANAPOLIS IN PERSPECTIVE

1990 Indianapolis is the twelfth largest city in Ripeness for change. Though the city Population Demographics the United States, with a population of had problems, there was no pivotal event 813,670 in 402 square miles. Located that prompted the mayor’s ambitious south of Chicago, Illinois, Indianapolis reform agenda. Taxes were relatively low, was ranked the eighth "best place to live" the public workforce seemed lean, and in the Midwest by Money magazine in the city had a healthy bond rating. 1998. It is home to the two largest sin- Nonetheless, the inner city was slowly gle-day sporting events in the world, the decaying. The Indianapolis Chamber of Indianapolis 500 and the Brickyard 400, Commerce had identified $1.1 billion in and the largest children’s museum in the needed infrastructure repairs. At the world,The Children’s Museum of neighborhood level, residents—predomi- White Indianapolis. nantly Democrats—felt ignored and for- 75.9% gotten by City Hall. Rosemary Dorsa of A history of leadership. When African-American The Indianapolis Foundation described 22.5% Stephen Goldsmith became mayor of the state of the inner-city neighborhoods Indianapolis in 1992, he followed on the in 1992: of Hispanic Origin 1.0% heels of two progressive Republicans, Richard G. Lugar (1967-1975) and William "What you have are people in neigh- Asian/Pacific Islander 0.9% H. Hudnut (1975-1991). In 1970, Lugar borhoods who are just hungry for merged city and county government to attention and resources from down- Other 0.4% create a system called Unigov. With town." American Indian 0.1% Unigov, the City of Indianapolis Source: Bureau of the Census expanded its boundaries to include all of From an economic development stand- Marion County, increased its population point, Indy businesses—tempted by by nearly 50 percent, expanded its tax lower taxes and fewer regulations—were base, and centralized governance respon- trickling from the city boundaries into sibilities and functions. Under Hudnut’s the suburbs, taking with them jobs and leadership, Indy attracted more big busi- part of the tax base. Though there ness and launched two of the largest pro- wasn’t an immediate crisis, Goldsmith jects in the history of the city: the con- recognized a crisis in the making. struction of the Circle Centre Mall downtown and the relocation of United Airlines’ maintenance hub to Indianapolis Airport. According to Goldsmith:

"Part of what distinguishes our experience in Indianapolis from some other efforts is that we were not prompted to change because of a crisis. While Indianapolis has its share of big-city problems, the city also benefits from more than 20 years of enlightened corporate involvement and strong leadership."

4 GUIDING PRINCIPLES AND CORE COMPETENCIES

The story behind the Indy Story. Philosophy of governance. All of the "There was no politics in it To put into context the ambitious agenda activities and initiatives of the administra- of Indianapolis’ urban reforms, the tion were tied to Goldsmith’s vision and at all....The standard was authors of this report looked at the story philosophy that smaller, more efficient to do the right thing, and behind the Indy story—the cast of char- government is better. The tenets of hopefully that would be acters and the philosophy and principles Goldsmith’s philosophy, drawing primar- good politics." that guided them; the core competencies ily on those articulated by David Osborne — Stephen Goldsmith needed to implement the agenda; the and Ted Gaebler in Reinventing unifying vision for the city; and the style Government, include: and speed with which the administration effected change. 1. Government should be a rudder, not an engine. Vision. Goldsmith consistently articulated his vision for Indianapolis as "a 2. People know better than government competitive city with safe streets, strong what is in their best interest. neighborhoods, and a thriving economy." Nearly everyone we interviewed, from 3. Government should be measured the the mayor’s senior staff to grassroots same way every other enterprise is neighborhood leaders, understood and measured: by its results. supported this vision, often using the same language to describe efforts occur- 4. Government works in collaboration— ring across the city. According to not in isolation. Goldsmith: 5. Government should do no harm. "We started with a very specific vision and set of reforms we wanted to The Sixth Tenet: Do the right thing. accomplish. We didn’t start with a series Nearly everyone we spoke with used the of programs that later got generalized phrase "doing the right thing" to explain up into an enterprise. Everything that the actions of the administration. Taking we and the neighborhoods proposed risks—investing resources in poor, inner- needed to fit inside the vision and guid- city neighborhoods; curtailing the patron- ing principles or we didn’t want to age system; pushing reforms through do it." quickly and persistently; injecting competition into the provision of municipal services—was politically costly, painful, and difficult. Yet, to achieve the vision for the city, they were the right things to do. According to Goldsmith:

"There was no politics in it at all. Bureaucrats would get caught up in trying to do the right political thing. We didn’t want to do the wrong political thing, but that wasn’t the standard. The standard was to do the right thing, and hopefully that would be good politics."

5 Unique characteristics. The unique Intellectual curiosity. Goldsmith "Indianapolis is a labora- elements and characteristics of the and his staff tracked urban renewal tory for new ideas. We can administration include: efforts across the country in search of get things tested more ideas or strategies that could be quickly than other cities, Leadership. Mayor Goldsmith exem- adapted to make a difference in and we have the freedom plifies two types of leadership— Indianapolis. Pinchas Landau, in The to test new ideas without visionary leadership and Jerusalem Post Money Magazine, having to run it up the flag entrepreneurial leadership. Visionary writes: pole and see if everyone leaders articulate a clear and com- salutes." pelling vision and mission from "the "It’s worth noting that Goldsmith big picture" point of view. has become famous because of what — Bill Stephan, Entrepreneurial leaders take that he achieved in Indianapolis, Chief of Staff and Special vision and translate it into goals, although he has not invented any Counsel objectives, and strategies—into dis- revolutionary concepts. The things cernable action. Goldsmith, according he has done have all been done to the people we interviewed, pro- before, or at least thought of in vari- vided vision and the tools and the ous places or formats." motivation to achieve that vision— a rare combination in one leader. Willingness to succeed at the risk of failure. Many staff members Staffing. Goldsmith, for the most reported to us that Goldsmith was part, hired staff members from the pri- willing to try nearly anything to solve vate sector. He sought out people problems—that he was willing to take who thrive on challenges and whose reasonable risks. Bill Stephan, the strengths and interests matched the mayor’s chief of staff, observed: needs of the citizenry. Goldsmith hired people he knew, people he had "What excites [Goldsmith] is heard of, and people who approached ideas—contagious among staff. him with ideas. Nancy Silvers-Rogers, Indianapolis is a laboratory for new former Deputy Mayor, noted that ideas. We can get things tested more "career bureaucrats and people from quickly than other cities, and we outside the 317 area code generally have the freedom to test new ideas didn’t work out." Goldsmith wanted without having to run it up the flag people who understood and champi- pole and see if everyone salutes." oned his vision, who were capable of pushing reforms through quickly and effectively, and who approached problems in innovative and thoughtful ways.

Speed. Described as "consistently impatient for results" by staff members, Goldsmith moved very quickly. According to former Director of Transportation Mitch Roob, the administration "took 5 or 10 or 15 years worth of work and just did it in 2 years." As a result, the surprise ele- ment worked in favor of the administration—opponents did not have time to organize effective opposition.

6 INFRASTRUCTURE AND PROVISION OF MUNICIPAL SERVICES

During his campaign in 1991, Goldsmith Guiding Principles "Mayor Goldsmith believes joked that he could run City Hall with one mayor and a handful of purchasing Guided by the core belief that smaller it’s important to have a agents. Though Indianapolis boasted a government is better, Goldsmith and his core, a vital core, a down- high bond rating and was considered by team followed six principles: town....If we would experts a tightly run city, Goldsmith set strengthen downtown, out to reduce the size and scope of gov- 1. A strong foundation and vital core is he believes that it would ernment; remove the restrictions of critical to success. anchor our bureaucracy; and increase the creativity, neighborhoods." productivity, and efficiency of city 2. Government monopolies restrict inge- — Susan Brooks, employees while decreasing costs. nuity and are unresponsive to the needs and concerns of citizens. Deputy Mayor Financial hurdles. Upon his election, Goldsmith received the Getting 3. Government should do a few things Indianapolis Fit for Tomorrow (G.I.F.T.) well. report from the Indianapolis Chamber of Commerce, which outlined $1.1 billion 4. Government should be efficient and needed in infrastructure repairs and entrepreneurial. improvements—streets, sidewalks, sewers, bridges, curbs—to ensure a prosper- 5. Workers know better than govern- ous future for the city. At the time, the ment how to best do their jobs. city was spending approximately $40 million annually on infrastructure 6. Government should serve its citizens. maintenance. Principle #1: A strong foundation Infrastructure needs—coupled with the and vital core is critical to success. funding needed to complete a down- According to Deputy Mayor Susan town shopping mall (approximately Brooks, Mayor Goldsmith focused on the $220 million), finance a deal with United revitalization of the downtown and sur- Airlines (nearly $250 million) to move its rounding neighborhoods: maintenance hub to the Indianapolis International Airport, and refurbish the "Mayor Goldsmith believes it’s impor- Convention Center—inspired the mayor tant to have a core, a vital core, a to vigorously implement a series of downtown. If you don’t have a vital reforms that ultimately changed the way center, then the benefits can’t go to the city government conducted business. neighborhoods or suburbs. If we would Based on the Administration’s projec- strengthen downtown, he believes that tions, Indianapolis will have realized $1.3 it would anchor our neighborhoods." to $1.5 billion in savings and revenues by 2007. To finance the costly,needed infrastructure repairs and kick-start the stagnating downtown economy,Goldsmith refi- nanced the city debt and scoured city budgets to find savings. Turning to entrepreneurs in Indy,Mayor Goldsmith formed the Service, Efficiency,and Lower Taxes for Indianapolis Commission (SELTIC) to identify strategies for improv-

7 ing government services, decreasing costs, services, including police and fire protec- eliminating waste, and increasing production, were not bid out competitively, tivity. Composed of nine entrepreneurs though the departments applied princi- who led study teams, SELTIC recom- ples of competitive government and mended selling unused and underutilized became more efficient and effective. To government assets, reorganizing some determine whether a government service departments and divisions, and bidding should be marketized, Goldsmith and his out non-essential city services. aides conducted "the Yellow Pages test." If a service was provided by at least one Principle #2: Government mono- private vendor, it passed the test and was polies restrict ingenuity and are bid out for competition. If there were no unresponsive to the needs and private vendors, the city did not attempt concerns of citizens. According to to marketize the service. For more infor- Goldsmith: mation on the competition effort, please see Appendix A: Marketization. "Government cannot go out of business, government controls revenue, gov- A corollary to Principle #3: ernment is allowed to spend more than Government should not be in the it takes in, government delivers ‘essen- business of saving souls and healing tial services.’ Without competition, gov- hearts. Goldsmith believes that govern- ernment is not competitive. It is ineffi- ment is ill-equipped to shape values, save cient, unresponsive, and inflexible. It souls, or heal hearts. Government has a doesn’t change rapidly, and often the role, but not as a direct service provider. services it provides are unnecessary, Rather, government should facilitate and outdated, and costly. Rather than cut enhance the work of community- and costs, government officials spend more faith-based organizations and other value- money." shaping, human services entities by fostering collaboration, removing restric- Once a champion of pure privatization, tions, building capacity, and leveraging Goldsmith introduced the concept of resources. "marketization" to the provision of municipal services. Under the privatiza- Principle #4: Government should be tion model, non-essential government ser- efficient and entrepreneurial. While vices are bid out to private vendors. recognizing that government is not a Marketization, however, encourages pub- business, Goldsmith introduced competi- lic employees to compete for their jobs tion into the government marketplace to against the private sector—in effect, tighten the proverbial belt, increase pro- breaking up the government monopolies ductivity and efficiency, and realize sub- rather than transferring the monopoly to stantial savings. To compete with the pri- the private sector. vate sector, public employees needed to change the way they viewed their posi- Principle #3: Government should do tions and the systems used to measure a few things well. Government should the cost of services provided. Goldsmith be selective and competitive in the provi- and his aides designed and implemented sion of municipal services. Early in his strategic tools to increase efficiency and administration, Goldsmith gave careful entrepreneurialism, including: thought to which services the government should provide, and which should Activity-Based Costing (ABC). With be privatized and marketized. Those he the help of a consultant, the city thought were not within the purview of developed a government-customized local governance—such as management form of Activity-Based Costing (ABC), of public golf courses and the tree nurs- an accounting method widely used in ery—were privatized (the public employ- the private sector. ABC measures unit ees were not allowed to compete). Core costs of activities or outputs while tra-

8 ditional bureaucracies measure costs Purchasing system. Goldsmith in terms of inputs (staff, labor, equip- reengineered the purchasing and ment, etc.). Rather than measure how financial management systems to help much it costs per year to run the solid managers streamline procurement waste management department, for processes. The previous purchasing example, administrators using ABC system was characterized by compli- could determine costs for trash cated procedures, multiple levels of removal by the ton. approvals, and confusion about policies. The new system relies on an By comparing costs between districts, electronic approval process designed supervisors could examine ways to to make procurement easier and become more efficient. They could, faster. For more information on the for example, sell underutilized assets, new systems, please see Appendix C: see the benefit of removing or reduc- Purchasing. ing an activity, or eliminate or consoli- date job positions. According to for- In addition to fostering competition in mer Director of Transportation Mitch the provision of municipal services, Roob, ABC has fundamentally Goldsmith reduced the size of city gov- changed the way supervisors ernment by removing middle managers approach budgeting, hiring, schedul- and eliminating redundant positions. He ing, and equipment management. For also changed the job classification system a detailed description of how ABC (cutting the number of classifications works, please see Appendix B: from 18 to 9) so the city could be more Activity-Based Costing. flexible in hiring and compensation, and provide its employees with a broader Incentives. Mayor Goldsmith range of responsibilities. Likewise, the actively encouraged city employees to city decreased the number of job uncover wasteful practices, devise descriptions from 740 to 425. cost-saving measures, and identify strategies to be more efficient. To Principle #5: Workers know better reward entrepreneurial spirit, than government how to best do Goldsmith instituted two award pro- their jobs. Goldsmith believes that most grams, the Hot Idea$ Award and the city workers are competent but that they Golden Garbage Award. Launched in are trapped in poor systems that stifle 1992, the Hot Idea$ Award rewards individual responsibility and entrepreneur- employees who identify ways to ship. In a traditional bureaucratic struc- improve city government by creating ture, front-line workers generally have lit- significant cost savings, generating tle, if any,input into decision-making, and substantial new revenues, or signifi- are not held accountable for job perfor- cantly improving the quality of ser- mance and customer satisfaction. vice or the working environment. Award amounts depend on the idea’s Every month Goldsmith performed a dif- significance. The Golden Garbage ferent city job and listened to workers’ Award is given to an employee who and supervisors’ ideas for saving money identifies government wastefulness. and being more efficient. Goldsmith freed One winner, for example, discovered up traditional bureaucratic restraints on in his budget a garbage truck that worker creativity and accountability by costs $90,000 new had had $242,000 eliminating unnecessary layers of manage- in repairs in the last year. Using ABC ment. Workers now had more direct methods, the employee determined access to their supervisors. Competition that the truck cost nearly $39 per fostered worker accountability and mile to operate. responsibility,as well as teamwork to find and eliminate unnecessary expenses. Appendix D contains a case study

9 chronicling the steps the Department of Principle #6: Government should Public Works took to prepare a winning serve its citizens. To ensure city gov- bid for street repair. ernment is responsive to its citizens, Goldsmith surveyed citizens, fostered Working together. Workers and accountability and responsibility among supervisors together discussed cost- city employees, and trained employees in saving measures and brainstormed customer service. He also reengineered ideas to be more efficient. Trash col- the structure of city government to lectors, for example, devised a solu- change with the changing needs of its tion that saved the city thousands of citizenry. Reforms implemented by the dollars. Previously, when a trash truck city to better serve its citizens include: was filled, the five-man crew drove the truck to the landfill, emptied it, Performance measures. All con- and returned to its route. To save time tracts with the city are based on per- and staff expense, crew workers iden- formance measures, including output tified the points on the route where measures (how much of a service was trucks usually got full and recom- performed) and outcome measures mended sending out an empty truck (how well the services were per- to meet the crew. The crew would formed in terms of customer satisfac- continue on its route while the driver tion, efficiency, and effectiveness). of the empty truck drove the full Performance measures are the basis truck to the landfill. for awarding contracts, rewarding and disciplining employees, and instituting Incentive pay. Workers who provide accountability. savings to the city, beyond those articulated in their agreements with the Customer service training. All city, receive part of the savings. front-line employees and new employ- Unlike merit pay, which is based on ees receive customer service training individual performance, incentive pay for both internal and external is based on team performance. customers.

Merit pay. Individuals receive pay Mayor’s Action Center. Based on increases based on their performance. feedback from citizens, the city imple- Because of the shift from inputs to mented a one-call, one-stop shop outputs, the Human Resources called the Mayor’s Action Center Division retooled the city’s job perfor- (MAC). Residents call the MAC with mance evaluations to tie job perfor- complaints and requests, and speak mance with outcomes and factors with a customer service representa- such as communications and team- tive. The representative is account- work skills. able for assuring the complaint or request is delivered to the proper Labor-management relations. To department or agency and handled improve labor-management relations, until the customer is satisfied. the Division of Human Resources meets monthly with the union, and Flexible government structures. the director, like the mayor, performs In addition to reclassifying jobs and a city job once per month. Goldsmith decreasing the number of job descrip- also replaced the standard grievance tions, the structure of city government system with employee mediation, adapted to meet the needs of the citi- which aims to prevent employee dis- zens and react to specific problems. satisfaction from escalating into for- Once those needs have been met or mal procedures. the problems solved, those structures are dissolved and new ones take their place.

10 More responsive government. The At the Indianapolis Fleet Services, for "The people have city combined dispatch operations of example, which maintains and repairs five public service departments city-owned vehicles, the threat of redesigned their tools and (Indianapolis Fleet Service, competition encouraged workers to their teams to think in dif- Department of Metropolitan devise strategies for reducing costs. ferent ways, and they win. Development, Department of Parks The city supported the workers in People who aren’t compet- and Recreation, Department of Public implementing their plan, and as a itive are moved out or their Works, and Department of result: departments eliminated." Transportation) with one central dis- — Stephen Goldsmith patching center. In addition to saving Spending decreased by $8 million millions of dollars, dispatch service over six years; was made available 24 hours a day, employees responded more effec- Employee complaints dropped from tively to citizen requests and com- 149 in 1990 to 5 in 1994; plaints, and customer service satisfaction levels were raised. Although the number of employees decreased from 117 in 1991 to 86 in Outcomes and Challenges 1994, billable hours increased from 1,190 in 1991 to 1,442 in 1994; Changing the way government does business. According to several sources, The percentage of vehicles repaired Goldsmith has taken the bureaucratic within 8 hours increased from 71 paradigm and turned it upside down. percent in 1991 to 82 percent in As a result, the city has experienced: 1996.

Significant savings. The city has Revitalized employee morale and realized significant savings and rev- investment. Mayor Goldsmith enues from competition efforts, which described the shift in employee atti- have, in turn, been invested in eco- tudes: nomic development and neighborhood revitalization efforts primarily in "The people have redesigned their the inner city. According to Deputy tools and their teams to think in differ- Mayor Susan Brooks, the city will have ent ways, and they win. People who invested $1.5 billion—$400 million aren’t competitive are moved out or more than outlined by the G.I.F.T. their departments eliminated. The ones Report—in infrastructure improve- that are left are convinced that they are ments by the year 2000. Due to the good at what they do. They have a savings, the city has not once raised sense of pride that they are better than the property tax. In fact, the city has the private sector. That makes a big dif- lowered the property tax repeatedly. ference in their whole attitude toward work, the quality of the work they do." Increased productivity, creativity, and efficiency. Even though Union members who opposed employee numbers are substantially Goldsmith’s election now support the lower than in the early 1990s, produc- Mayor’s competition effort. Stephan tivity is at record highs. Workers, who Fantauzzo, Midwest regional director and are now more invested in their jobs, former executive director of Council 62 look for ways to remain competitive of the American Federation of State, and to find creative strategies to lower County & Municipal Employees, costs. remarked in a newspaper article:

"[Goldsmith] stopped asking city employees to check their brains at the door."

11 National and international inter- For example, the city worked to elimi- "We have commitment to est. Leaders from across the country nate the layer of middle management, discipline in the system. and around the world visit Indy each usually benefactors of the patronage sys- Performance-based con- year to learn more about the mayor’s tem. As Mitch Roob said: tracting generates competition efforts and small-govern- accountability for those we ment approach to big-city problems. "Job abolishment was the way to go. serve and ourselves. If we In addition, Indy has been cited by We didn’t have mandatory collective are to be successful, then experts as a living example of bargaining for public employees. We we need to do what we say "Reinventing Government." never laid off a union member. That we’re going to do." was a commitment to the union I Awards and honors. In 1994, Indy made, and we always managed to live — Moira Carlstedt, won the program award from the up to it.” Former Director of the National Council for Public-Private Department of Partnerships, and in 1995, won the Criticism. Critics point to financial Metropolitan Innovations in American Government issues and the question of paying back Development Award from the Ford Foundation, the the bonds the city took out to fund capi- Exemplary State and Local Award tal projects. Some think that the city is from Rutgers University, and the in good shape to pay them off, while oth- Pioneer Institute’s Better Government ers aren’t certain. Nonetheless, even the Competition. In 1995, Mayor toughest critics acknowledge the suc- Goldsmith was named Governing cessful results of the competition effort. magazine’s Public Official of the Year, and won the Founders Freedom and Sustainability. Moira Carlstedt, former Governance Award from the Free Director of the Department of Congress Foundation. Financial Metropolitan Development and small World named Indianapolis one of the business owner, believes that the strate- top ten well-managed cities in the gies the mayor implemented (ABC, com- nation in 1995. petition, customer-service focus) will sur- vive the test of time and new leadership: A capital plan. When Goldsmith received the G.I.F.T. Report from the "We have commitment to discipline Chamber upon taking office in 1992, he in the system. Performance-based con- and his aides looked for a capital plan for tracting generates accountability for the city. Mitch Roob, former Director of those we serve and ourselves. If we are the Department of Transportation, recalls: to be successful, then we need to do what we say we’re going to do. It has "There was no capital plan for the become a way of doing business, and I city, so we had to develop one. That don’t see us slipping back anytime turned out to be a blessing. There were soon. Expectations have increased, and projects on the books that had sat there that’s a good thing." over the years. Some that were started when I was a sophomore in high Lessons Learned school—more than 10 or 11 years ago. It was not a focused effort, so we made Government is not a business. Concept to Concrete in three years or Government should be entrepreneurial fewer. We put together a $500 million and seek to earn revenues, but it is not a capital improvement program over business. As Moira Carlstedt attests: three years." "One week after starting I realized Better management, not more. By that the decision filter was different cultivating accountability and equipping from the private sector. Generally, in managers with strategic tools and flexi- the private sector it’s about profit today ble budgets, the city was managed better or tomorrow, or recapturing money I with fewer resources. lost last week. Working with the mayor

12 I learned that the filter needed to be Marketization is unpopular. Despite broadened to include social, economic, the successes the administration has and political factors. I’ll look at projects achieved, adversaries continue to object. and think, ‘This project makes no eco- According to Goldsmith: nomic sense.’ There have been times when it didn’t make sense politically. "A lot of people have vested interest There were times when the political and in the status quo. They don’t want economic factors were screaming ‘no’ things to change, they’re worried about but the social benefit exceeded the eco- risk, and they’re worried about con- nomic and political. Then it was fine. tracts with the city. It’s easy to distort Seeing things happen that didn’t make what we are trying to do because it is so economic sense was ok." radical that that can create fear, and there is fear around the privatization Small, quick victories will help you concept." win the war. Mayor Goldsmith cam- paigned on privatization, which was Five objections to marketization heavily opposed by city employees and stand out: the unions. Rather than prevent the employees from competing, Goldsmith 1. Competition reduces government encouraged them to compete and hired control by turning the public’s consultants to help them prepare their business over to private interests. bids. As evidenced by the case study on Goldsmith argues that his administra- street repair (Appendix D), when the city tion has more tools to ensure quality employees won the bid, workers and responsiveness from contractors throughout the city took notice and and winning city employees than understood that the mayor was serious from employees in a traditional about including them in the process. bureaucracy.

Do not use a cookie-cutter approach. 2. Competition is anti-worker For each of the more than 70 city ser- because the lowest-priced vendor vices that were put up for bid, public will either be a nonunion vendor officials applied the same principles and or a government agency that cuts tests to ensure the service was appropri- salaries to be competitive. ate for competition. Next, supervisors lis- Goldsmith argues that city workers— tened to workers to find creative solu- union members—win the majority of tions to unique problems or issues indi- bids in competition, and that salaries vidual departments or divisions faced. have almost never gone down. The city made a number of costly mis- takes by attempting to privatize certain 3. Competition with private firms is transportation services and snow not fair. Goldsmith agrees: because removal without fully examining the government agencies do not have to impacts and potential problems. pay taxes or turn a profit, they have nearly a 25 percent advantage over Marketization is politically costly. the private sector. Supporters and critics alike allege that Goldsmith lost the Governor’s race in 4. Privatization is patronage. To 1996, in part, because of his marketization ensure that privatization in Indy is fair efforts. By switching gears from "privatiza- and rigorous, Goldsmith developed a tion" to "marketization," and eliminating public process involving a special the patronage system, Goldsmith rankled commission, hearings and testimony, many Republicans. In addition, the perse- and open competition. verance and "shock therapy" required to push marketization through in such a short time frame earned him many enemies.

13 Major Employers in the Indianapolis Metropolitan Statistical Area 5. Private firms care about profits, not people. Goldsmith argues that competition creates incentives to pro- Office Operation # Employees Product/Services duce more efficient procedures that increase customer satisfaction— Local Government 57,400 City, county, and township not hurt citizens. State of Indiana 28,200 State government Federal Government 16,700 Federal government Some services can be supplied by community- and faith-based organi- Clarian Health * 10,000 Healthcare zations. Rather than contract certain Eli Lilly and Company * 10,000 Pharmaceuticals services out to private vendors, Marsh Supermarkets, Inc./Village Pantry * 7,000 Grocery, retail Goldsmith asked community- and faith- St. Vincent Hospital and Healthcare Center * 6,000 Healthcare based organizations to maintain parks The Kroger Company 5,400 Grocery, retail and playgrounds. Indiana University Purdue University at Indianapolis (IUPUI) 5,250 Higher education In the next section, Neighborhood Empowerment and Family Allison Transmission/Div. of GMC * 5,000 Automatic transmissions Strengthening, we will examine how Community Hospital * 5,000 Healthcare Goldsmith used the dollars saved in com- Allison Engine/Rolls Royce * 4,300 Gas turbine engines petition efforts to invest in the crumbling Bank One, Indiana, NA * 3,810 Bank and processing center infrastructure of inner-city Delphi Energy & Engine Management Systems 3,550 Automotive components neighborhoods. Delphi Interior & Lighting Systems 3,550 Automotive components PSI Energy 3,366 Utility services St. Francis Hospital Center * 3,200 Healthcare Ford Motor Company 3,100 Automotive components GM Metal Fabricating Division 3,066 Body stamping Anthem, Inc. * 3,000 Insurance/health care Federal Express 3,000 Express mail service NBD Bank, Inc. * 3,000 Bank Roman Catholic Archdiocese of Indianapolis 3,000 Religion

*Denotes home office, regional or division headquarters located in Indianapolis Source: Indianapolis Chamber of Commerce and IEDC listings, 1999

14 NEIGHBORHOOD EMPOWERMENT AND FAMILY STRENGTHENING

The Indy Story is really one of civic The Indy approach. In 1992, the city’s restoration at the neighborhood economic development strategy included level. It is in the neighborhoods where not only rebuilding the center city, but so many of the urban reforms and com- empowering residents in the ring of munity-building efforts come together. It long-neglected inner-city neighborhoods. is here that we see the many facets of The common-sense nature of this idea the mayor’s strategies—creating seems simple—take the savings from pri- public/private partnerships, fostering vatization and competition and invest competition, promoting privatization, them in the neighborhoods and the peo- building better neighborhoods, and ple who are living there. Support the improving infrastructure. In the mayor’s leaders who have the ability to empower words, "Each of these is simply a means people in the neighborhood so they to an end, and the end is a higher quality become a community again, and reclaim of life of citizens in all neighborhoods." the neighborhood from the thugs and drug dealers. Ripeness for change. When Stephen Goldsmith ran for office on a platform Upon Mayor Goldsmith’s election, he promising strong commitment to neigh- selected seven (later eight) inner-city borhood revitalization, Indy’s inner-city neighborhoods to participate in neighborhoods—and their residents— Indianapolis’ Neighborhood were ready for a change. As a result of Empowerment Initiative (NEI). policymakers’ lack of attention, inner-city Indianapolis’ neighborhood initiatives neighborhoods faced an increasing num- and programs encompass dozens of sepa- ber of serious problems. During the rate threads which include the Front 1980s, unkept promises from the city Porch Alliance, Building Better government and local funders had dis- Neighborhoods, the Rebuilding Families heartened the remaining neighborhood Initiative, neighborhood and housing ser- activists. Rosemary Dorsa, vice president vices, beautification programs, crime for programs of the Central Indiana Com- watch programs, volunteer programs, and munity Foundation (The Indianapolis several others. For more information on Foundation), characterized the public these initiatives, please see Appendix E. sentiment when Goldsmith took office: Many of Indianapolis’ neighborhood ini- "You [government and funders] are tiatives were not new ideas, and Mayor always asking us [neighborhood resi- Goldsmith is the first to admit that he dents] to plan. Could you please use appropriated good ideas from wherever these plans? You never fund anything he found them. The Neighborhood that is in the plan. How much plan- Empowerment Initiative most clearly ning can we do before we see some- illustrates the way the Mayor "made thing happen in response to what is in good" on his campaign promises to revi- the plans?" talize Indy’s inner-city neighborhoods.

The vision of the Neighborhood Empowerment Initiative is to empower the residents of Indianapolis neighborhoods to have a true voice in improving every aspect of the quality of life in their communities.

15 The goals of the Neighborhood 7. Communicate your vision and values "Professionals need to Empowerment Initiative have clearly and broadly throughout learn to be on tap, not on been to: the city. top. Rather than a master plan for the neighborhood, Create structures that will permit peo- The anticipated outcomes of the an infusion of neighbor- ple to govern their own neighbor- Initiative included: hood-based entrepreneur- hoods democratically; and ship and innovation meant Building the organizational founda- that for the first time, un- Give to those who choose to partici- tion—an umbrella group with paid tutored people were the pate in the governance of their neigh- staff. experts, and the paid borhoods real authority and power people were their over services and programs that affect Developing social capacity of neigh- consultants." them and their neighborhoods. borhoods to plan and implement their own solutions. This includes — Robert Woodson, The strategy used was to ask each of building skills and capacity in strate- President, the seven select communities (since gic planning, discussing issues, reach- National Center for expanded to eight) to gather its existing ing consensus and cooperation, creat- Neighborhood Enterprise neighborhood associations, councils, ing communications networks, devel- organizations, etc., and form a singular, oping current and future leaders and umbrella coordinating group for its spe- staff, achieving widespread commu- cific geographic area, with an agreed nity participation, establishing link- upon mission and purpose. Each ages, leveraging resources, and evaluat- umbrella organization hired a Neighbor- ing progress. hood Coordinator, paid for by the city and housed within the neighborhood. Achieving and celebrating commu- Each umbrella organization also received nity results to improve the quality a noncompetitive allocation of U.S. of life. Department of Housing and Urban Development Community Development Guiding Principles Block Grant funds for neighborhood- initiated projects. Principle #1: Operate with the fundamental belief in the intelligence, The overarching principles applied in wisdom, and insights of the citi- this initiative are: zenry. In many cities, urban planners make the decisions and transplant "reme- 1. Operate with the fundamental belief dies" into the neighborhoods without in the intelligence, wisdom, and regard to community culture or senti- insights of the citizenry. ment, only to find that residents don’t want or need the new programs being 2. Equip neighborhood leaders to take offered. In many cities, leaders invest charge. millions in improving public housing stock, only to find their investments 3. Nurture leadership. deconstruct in a matter of years. These top-down approaches often fail. Why? 4. Encourage the neighborhoods to take Because they lack the buy-in, participa- control. tion, and grassroots common sense of the people they serve. 5. Hold neighborhood folks to a higher standard. In Indianapolis, the staff of city agencies were retrained to become servants to the 6. Recognize the economic conse- people. There was a clear focus on deal- quences of neighborhood-based ing with bread and butter issues of disad- innovation and entrepreneurship. vantaged people. This approach was best summed up by Robert Woodson, founder

16 and president of the National Center for Principle #2: Equip neighborhood Law Enforcement Neighborhood Enterprise (NCNE), whose leaders to take charge. Provide neigh- involvement with Indianapolis dates back borhood leaders with training and tech- Full-Time Law Enforcement to 1992. As Woodson describes it: nical assistance in strategic planning, Employees in Indianapolis budgeting, and scheduling for neighbor- Officers 1013 "Professionals need to learn to be on hood improvement projects. This sup- Civilians 262 tap, not on top. Rather than a master port was provided by the city and ini- Total 1275 plan for the neighborhood, an infusion tially funded through the Community of neighborhood-based entrepreneur- Development Block Grant Program— Police Officers per ship and innovation meant that for the $100,000 for the Near Westside 100,000 people 130.3 first time, untutored people were the Cooperative Organization (WESCO), and Source: Crime in America’s Top-Rated experts, and the paid people were their $50,000 each for the other six neighbor- Cities: A Statistical Profile, 1997-98 consultants. First the city officials were hoods whose development was consid- defensive, then they enjoyed themselves ered slightly less advanced. Several inter- National Full-Time Law as they became ‘bureaucrats in recov- mediary groups, the National Center for Enforcement Personnel ery.’ They began to relate to the neigh- Neighborhood Enterprise, the Police Officers per borhoods as citizens, as mothers, as Indianapolis Neighborhood Resource 1,000 people 3.4 workers, as colleagues. They began to Center, and United Way, were called upon Source: Uniform Crime Reports, help the neighborhoods find their way to help neighborhoods build capacity. Department of Justice, 1998 through the bureaucracy and red tape. While the stories and the successes of They developed personal relationships." each neighborhood are different, all were provided consultants and coaches to In addition, recognize the need to help them accomplish their goals. Their coach communities through their development was evolutionary, as options without completely remov- described by the mayor’s assistant, ing government support. Although Charlene Hederick: the Administration did not want to dic- tate what communities should do, it "In the first year, some of the neigh- wanted to ratchet up the communities’ borhoods were not fully equipped to capacities to devise their own solutions. think strategically. Some communities One illustrative example of the impor- devised plans that looked superfluous tance of coaching communities through in the face of the size of their chal- their own options is a story the mayor lenges. But we honored their plans, tells about rebuilding every single park kept our commitments to fund what and playground in Indianapolis: they wanted, and then the next year, we provided more coaching and facilita- "Originally, the Parks guys went in tors for their planning." and said, ‘here’s how your parks should look.’ This wasn’t malice or being auto- This training and technical assistance cratic, but it was wrong. The neighbors included insisting that the neighbor- got upset—‘we don’t want the play- hoods leverage their resources, and ground there, we want baseball, not teaching them how to do it. In NCNE basketball.’ So next time, I said ‘let’s lis- In Indianapolis: A Case History, ten to the community.’ So they went Robert Woodson described how a back in and said ‘what kinds of parks $360,000 public/private investment in or playgrounds do you want?’ And the the National Center for Neighborhood neighborhoods looked at the Parks Enterprise leveraged more than $80 mil- department staff and said, ‘How should lion in development grants to the tar- we know, we’re not park designers.’ It’s geted neighborhoods, and made possi- the coaching through options that is ble a $700 million industrial and com- important." mercial revitalization campaign to rebuild low-income neighborhoods. This emphasis on leveraging resources is also illustrated clearly by former

17 Crime Rates President and current Vice President of tacted other neighborhood presidents WESCO Olgen Williams: and organized a city-wide meeting to Crime in Indianapolis is down address the issues: overall 12.57% for the first quar- "The city taught us how to leverage ter of 1999: resources. We get extra points on com- "We’re not going to take this any- Murder -21.43% petitive grants and contracts if we lever- more. There are open drug markets in Rape -43.08% age resources. Now we have a $3 mil- all of our neighborhoods. We don’t Robbery -16.33% lion Youth Fair Chance program, want them there, they hurt the quality Workforce Investment Act and School to of life, and we want to do something Vehicle Theft -13.97% Work funds, and HOPE VI, from HUD. about it. Instead of us as a neighbor- Aggravated Assault -9.29% We sat down with the city, and the hood trying to fight crime alone, why Source: Uniform Crime Report for Department of Justice awarded us a not work with the other targeted neigh- Indianapolis reported to the Weed and Seed grant. We got $629,000, borhoods and come up with a plan." FBI, 1999 and we began to do things people can National crime rate for cities in see. Now we have over 100 projects." According to Warner, she and the leaders 1998 with a population between of the other neighborhood organizations 500,000 and 999,999 is down Principle #3: Nurture leadership. met regularly and drafted a Memorandum from 1997: Often government either ignores or over- of Understanding (MOU) outlining roles whelms leadership—it finds someone and responsibilities of the neighbor- Murder -10% good and tends to heap extra burdens on hoods, the Indianapolis Police Robbery -12% them—without equipping them with the Department, the mayor’s office, the Vehicle Theft -13% capacity to assume such great responsi- Marion County prosecutor’s office, and Aggravated Assault -6% bility. This administration was careful to Health & Hospital (code compliance) to avoid this trap. As it taught grassroots eradicate the drug problem. They took Crime rate for the Midwest: leaders to plan, make decisions, and take the MOU to the city, requested a meet- control of their future, the administration ing, and presented their case to the city Murder -5% also equipped its staff members to work officials. The city accepted the terms and Robbery -8% with the leaders in the neighborhoods. conditions of the MOU and signed the Vehicle Theft -8% Mayor Goldsmith offered one key piece agreement. Aggravated Assault -2% of advice to succeed in this regard: Source: Uniform Crime Reports, 1998 As a result, open air drug markets were "One thing to watch is the matura- wiped out, crime decreased, and neigh- tion rates of government and commu- borhoods held the city and themselves nity-based leadership along the same accountable for their roles and responsi- lines—providing capacity, technical bilities. Clara Warner advises other com- assistance, learning to know when you munities that want to take control: can help, and how to help both systems develop. Otherwise, you ensure their "Get a workplan together, decide what failure." your top issue is that you want to address, and identify those people who Principle #4: Encourage the neigh- are in charge of the City and let them Indianapolis boasts one of the borhoods to take control of their know you are going to hold them lowest crime rates for a major destinies. The mayor invested in build- accountable for what they do. Don’t U.S. city. ing capacity of local leaders to solve take no for an answer. We have the right Source: America’s Top-Rated Cities problems, develop and implement strate- to request things we need to make our gic plans, and, ultimately, take charge. neighborhoods a better place to live." The pivotal moment for neighborhood empowerment in Indianapolis occurred Another MOU was signed by all eight tar- in response to an increase in open air geted neighborhoods, the mayor, chief of drug markets and the attendant violence police, the prosecutor, and the executive and disinvestment. Clara Warner, former director of Health & Hospital in August president of Mapleton–Fall Creek, was 1999. The MOU continues the work of fed up with drug-dealing in her neighbor- crime and drug eradication from the hood and across the city, so she con- neighborhoods through August 17, 2000.

18 Taking charge. When the neighbor- among the people suffering the prob- "Mayor Goldsmith knew hood leaders complained that they did lems. He respected neighborhood people not know their police officers, and didn’t in a way we haven’t seen in any public and had an idea that some feel they could trust them, the city official. It takes a major shift in think- of the remedies were abid- responded, implementing a vigorous ing and understanding." ing among the people suf- community policing program. Now fering the problems. He there is a much greater self-help coopera- Principle #6: Recognize the eco- respected neighborhood tive effort to reduce crime and the fear nomic consequences of neighbor- people in a way we haven’t of crime in the neighborhoods. When hood-based innovation and seen in any public official. the neighborhoods first interpreted pri- entrepreneurship. Goldsmith fostered It takes a major shift in vatization as a means to contract out "to an environment of innovation and thinking and the mayor’s white cronies," the mayor entrepreneurship to spark economic understanding." reached out to the faith-based organiza- opportunity and foster accountability. tions, created the Front Porch Alliance, While some elected officials hire plan- — Robert Woodson and told the neighborhoods he would ners to make decisions on community like to contract out with the churches, development, this mayor did not. neighborhood associations, and other Goldsmith had a clear vision of what he non-government, value-shaping institu- wanted to happen in neighborhoods. He tions to provide activities for children told them that he would be spending a and strengthen community renewal. half billion dollars on infrastructure, and See Appendix F for more information on he wanted to ensure that the neighbor- Community Policing and Appendix G for hoods prospered. As Goldsmith more information on the Front Porch explained: Alliance. "It didn’t seem like everyone had an According to Olgen Williams: equal opportunity to participate in the economy—just too small a group of "Our neighborhood controls our individuals. So we set out to rigorously own destiny. We got to interview the open up the market so as many small new police chief, and ensure that he businesses could participate in this was community policing-minded. When enormous expansion as possible." we were having repeated problems outside a local liquor store, the city helped To help local businesses tap into this us learn how to remonstrate against a expansion, Goldsmith established the new liquor store permit. We collected Commercial Façade Design and Building crime statistics. We testified. We closed Rebate Program in 1994. The Program that liquor store. We’ve been taught provides grants of up to $10,000 to busi- how to work together. We don’t fool ness owners to complete exterior reno- with politics. We just know what we vation and rehabilitation projects. The need." program has distributed more than $750,000 in five years to dozens of area Principle #5: Hold neighborhood businesses, sparking economic growth folks to a higher standard. As a result and improving quality of life in the of many of these reforms, residents were neighborhoods. responsible for setting their own priorities in a strategic plan, shaping their own Goldsmith also launched the Code solutions, and measuring their results by Compliance Pilot Project to target and qualitative and quantitative measures. eliminate housing code violations and Again,Woodson describes the metamor- complaints by homeowners and busi- phosis: nesses. Working in collaboration with the Department of Metropolitan "Suddenly a team evolved. Mayor Development, Department of Public Goldsmith knew and had an idea that Works, Health and Hospital Corporation, some of the remedies were abiding the Community Organization Legal

19 School Composition Assistance Project, and the Indianapolis "You decide what you want to do, Police and Fire Departments, the city and I’ll get my bureaucracy out of Metropolitan School Data focused on improving interagency com- the way." Indianapolis Public Schools munication and collaboration and 1997–1998 strengthening remedies. The Pilot Outcomes and Challenges Elementary Schools 264 Project, launched in the near eastside, Middle Schools 86 focused on: To illustrate the Neighborhood High Schools 60 Empowerment Initiative’s effects in palpa- Identifying and targeting repeat ble ways, the authors of this report inter- Total enrollment 237,640 offenders; viewed individuals from three specific Average pupil/teacher neighborhood organizations—the Near ratio 17.7 Coordinating legal proceedings among Westside Cooperative Organization Average expenditure/ agencies where code violations overlap; (WESCO), the Southeast Umbrella pupil $4,750 Organization (SUMO), and the Mapleton– Graduation rate 91% Scheduling special court sessions as Fall Creek Neighborhood Association,Inc. Source: Indianapolis Economic needed to avoid a backlog of cases; Development Corporation, WESCO has received approximately $55 1998 Linking agency databases to facilitate million in grant funding and has used this U.S. Average information-sharing; money to implement numerous initiatives aimed at reducing crime and drug Expenditure/pupil in average daily attendance Helping needy property owners find use, creating outreach programs for com- in 1997–1998 264 resources for repairs and abatement munity members, and attracting new business to the area. SUMO, in addition Graduation rate in 1997 89% of violations; to crime reduction efforts, has facilitated Source: Digest of Educational Using the Department of Public Works a $15 million investment in combating Statistics, 1999 National Center for Education to assist in removing trash in alley- pollution, promoting economic develop- Statistics ways and common property; and ment, and revitalizing homes and community spaces. The main source of pride Implementing pro-active clean-ups for SUMO, however, has been its track based on neighborhood inputs and record in health and hospital code com- priorities. pliance, zoning, and education. Similarly, by creating partnerships among commu- Principle #7: Communicate your nity members, outreach organizations, vision and values clearly and and government institutions, Mapleton– broadly throughout the city. Perhaps Fall Creek has reduced crime, been able one of the most striking elements of the to offer a broader range of outreach ser- Indianapolis story is the degree to which vices, and built and renovated more than both the city officials and the neighbor- 400 homes and apartments. See hood leaders were synchronized in their Appendix H for the full description of views of the neighborhood relationships, reforms in each neighborhood. and the results. They share the same vision, and speak in the same vernacular. The mayor’s strong reliance on tra- The underlying credo is: let’s do the ditional, statistical outcome mea- right thing. sures often reflects an incomplete story. The experiences of Center The mayor acknowledged the complica- Township may also point to the difficulty tions involved with figuring out how to of using statistics to quantify every be strong enough to surmount bureau- result. Ellen Annala, President and CEO, cratic obstacles, setting a standard, and United Way of Central Indiana, worried avoiding dictating how people should do that the results-driven measuring stick their jobs. The mayor said to the might ignore powerful reforms. For neighborhoods: example, an organization once asked the United Way to fund a project that would provide dental work for low income first-

20 and second-grade children. Although it functional families, violence that affects was intuitively clear to the United Way education. It is difficult to centralize it that a child’s academic performance as an initiative because really it’s a would be negatively impacted by the neighborhood." pain caused by tooth decay, the United Way staff struggled to correlate dental Lessons Learned work and academic performance. How can one measure whether having healthy In looking back over successes and fail- teeth increases one’s test scores? In ures in neighborhood strategies, mem- other words, there are some necessary, bers of the mayor’s inner circle admitted positive reforms that cannot be gauged that they learned a few things along the with the use of traditional outcome way that might be instructive to other measures. communities launching neighborhood- based community change strategies. The The changes brought about by the following points are an amalgam of vari- neighborhood reforms are intellec- ous officials’ comments, provided as col- tual and institutional. On the plus legial advice for strengthening neighbor- side, Rosemary Dorsa,Vice President for hoods and families. Programs, Central Indiana Community Foundation (The Indianapolis Spend time and money engaging Foundation), commented on the subtle neighborhoods, getting the word but powerful changes in thinking that out, and seeking broad-based partici- have come about: pation from all stakeholder groups. Where possible, build around existing "Several neighborhood examples coalitions, neighborhood associations, really caused us to think differently.... and community development corpora- With emphasis on accountability and tions. outcomes, all of us have redefined the business we’re in. Ten years ago, you Invest in strategic planning at the would have heard us describe our busi- community level. Don’t lead with the ness as raising and allocating dollars. money—lead with a plan based on what Now we have a clearer sense that we the citizens want and need, and invest in are in the business of building commu- facilitators to assist in the planning nity, helping children succeed, strength- process. ening families, and making neighborhoods safer." Keep your commitments to doing what the neighborhoods ask for. The complexity of neighborhood Where there are inevitable disagree- revitalization and family strengthen- ments, make sure the Chief Elected ing is enormous. A broad array of Official is prepared to make the resource complex and interrelated issues faces calls. many inner-city neighborhoods and their residents. As described by Mayor Make sure all projects that are Goldsmith: funded are tied to the strategic plan. Use these strategic plans as a platform to "Part of the problem is no matter leverage resources or catalyze collabora- what door you enter, you see the same tion with other partners. context. You see the same environment. You can walk through the housing door When there are questions of and you see crime and family and job. whether a neighborhood umbrella You walk through the job door and you group should be a service provider see family and drug therapy and educa- or not, opt for "not." The umbrella tion. Walk through the education door organization is in the best position to and you see problems in the home, dys- serve as a broker, a facilitator, and a

21 Educational Attainment deal-maker. If the umbrella organization advantage—enabling them to accomplish also gets into the service delivery busi- an agenda before interest groups could 76.4% ness, it is a set up to compete with the organize in opposition. In other cases, of Indy’s population are high other neighborhood organizations with failure to develop a consensus among school graduates. which it seeks to collaborate. stakeholders would later negatively Source: 1990 Census of Population impact an initiative. and Housing, Summary Tape Find a few funders who are willing File 3C to invest on the strength of your chief When asked how Indianapolis managed 82.8% executive and his/her vision, and use that to get some neighborhoods over the of the U.S. population have funding to build momentum and further curve, Mayor Goldsmith reflected: completed high school. investment over time. Recognize that Source: Educational Attainment in the some of your most likely and closest phi- "I think where we were successful— United States, March 1998 lanthropic partners may wish to hold and we were not uniformly successful, (Update) back until they see results, not just by the way—it was where we moved 21.7% rhetoric. quickly enough and invested enough of Indy’s population has a public money, and we had the right bachelor’s degree. Provide hands-on technical assis- configuration of neighborhood partici- tance and training. Provide quarterly pation. It’s speed, it’s investment, and Source: 1990 Census of Population and Housing, Summary Tape training sessions or development insti- it’s neighborhood capacity—when they File 3C tutes for neighborhood coordinators, come together." boards, and staff. Provide expert coaches 24.4% to work hand-in-hand with neighborhood The consequence of ignoring civic of the U.S. population has activists. renewal is quick failure. In one neigh- completed a bachelor’s degree borhood in Indianapolis, the Meadows, or more. Invest in community leaders, and an attempt to revitalize the area failed Source: Educational Attainment in the work hard to develop the "bench because public safety issues were not United States, March 1998 (Update) strength" needed to sustain neigh- addressed at the start of the initiative. borhood momentum. It is too easy to As Mayor Goldsmith attests: burn out the most dedicated leaders, and it is difficult but essential to groom and "We failed in the Meadows because mentor the next generation of leaders. we did retail before we got the safety Make succession plans for leadership a piece right. It was a tough urban area, part of the neighborhood strategic and the community had wanted a gro- planning process. cery store there forever. So we built one. We spent $2 million, cleared the prop- Evaluate everything you do. Quantify erty, cleaned up the brownfield site, and results. Make public report cards. opened up a grocery store. The neighborhood saluted, the people cheered, Acknowledge the inevitability of col- and one year later, this enterprise lision between desirable consensus failed. It failed because the area wasn’t and necessary speed in pushing for safe, and the grocery store was in the reforms. The key to reclaiming neigh- wrong place…" borhoods lies in achieving the right configuration of quick-paced, results-driven The reward for facilitating civic investments by the city with the right renewal is economic revitalization. neighborhood leadership capacity and Indianapolis, however, has had many participation. The administration recog- more successes than failures. One such nized that if too much time is devoted to example is a small business owner, Jack developing consensus, the community Dickey, Jr., who was encouraged by the will become frustrated and give up. Thus, city to relocate his $1.6 million machine the administration opted more often for tool business to the inner-city neighbor- speed, and sought to build consensus hood of Haughville (WESCO). In a 1997 around events after they had transpired. newspaper article, Dickey said: In some cases, speed worked to the city’s

22 "Business has never been better since it moved to Haughville. The company’s "Business has never been backlog on orders is nearly six months better since it moved to long, and we may have to add a third Haughville. The com- shift just to keep pace. And the people pany’s backlog on orders have been remarkable. When the plant is nearly six months long, is closed in the evenings and on the and we may have to add a weekends, they call police if they see third shift just to keep anybody messing around on our prop- pace. And the people have erty. I was really ready to pick up and been remarkable.... I was move, but the city just did everything to really ready to pick up and get us to stay. It’s just worked out great move, but the city just did for everyone…" everything to get us to stay. It’s just worked out Thus, the city’s restoration efforts were centered around creating strong neigh- great for everyone…" borhood organizations that could sort — Jack Dickey, Jr., out the issues, help set priorities, and small business owner regain authority over their own destinies. As Robert Woodson describes it:

"Mayor Goldsmith’s civic restoration gave people a clear understanding of where their neighborhoods can be. He gave them the tools to develop a strategic plan and gave them the means to implement that plan. The city put money into the hands of the neighborhood leaders. Infrastructure improvements were the priority. Once a handful of people changed, and others saw that their efforts were rewarded, the community changed. People sitting on the sidelines came out."

23 ECONOMIC DEVELOPMENT

Economic Profile Mayor Goldsmith often joked about the 5. Collaboration with stakeholders is view from his office on the 25th floor of essential. Indianapolis is home to three the City-County building: "I can watch Fortune 500 companies: Anthem the tax dollars float over the county Principle #1: A vital core is neces- Insurance, Bindley Western, and line." With the promise of lower taxes sary to promote growth. As Eli Lilly; three of America’s 200 and less regulation in the suburbs, city Goldsmith argues in his book, The best small companies; and one of dwellers and businesses move out of the Twenty-First Century City, "The America’s 100 fastest-growing city boundaries, leaving holes in the Indianapolis competition effort was private companies. city’s tax base. Naturally, to make up for designed not just to save money, or even Source: Inc. 500, 1997, Forbes, 11/3/97, the lost revenues, taxes go up, and the just to produce city services more effec- Fortune, 4/28/97 flight of wealth from the city increases, tively. It was a way to free up operating leaving pockets of poverty and dollars to reinvest in critical infrastruc- Indianapolis is the 5th best metro disinvestment. ture problems." He continues, "Good area for starting and growing a transportation and functioning sewers lit- business. As in all urban areas, Indianapolis grap- erally produce the foundation for ples with suburban sprawl, prohibitive growth." Goldsmith believes a vital city Source: Cognetic’s Entrepreneurial Hot Spots, 1998 rates of taxation, and the resulting disin- center is the first step in ending the tegration of the inner city. To complicate flight from the inner city. matters, Indianapolis has no natural Since 1992, Indianapolis has boundaries—no rivers or mountains—to When Goldsmith took office in 1992, the generated over 25,000 new jobs contain sprawl. And the interstate high- downtown area was characterized by and retained more than 100,000 ways that intersect in Indianapolis (thus vacant lots and rapidly deteriorating existing ones. the nickname "The Crossroads of buildings and infrastructure. Goldsmith Source: Fortune, 11/24/97 America") conveniently lead out of focused on infrastructure improvements the city. in the heart of the city—Center Township. Using the dollars saved by Guiding Principles bidding out certain municipal services, Goldsmith invested nearly $1.5 billion in Indianapolis ranked seventh To stop the vicious cycle of increasing infrastructure improvements—curbs, out of ten on Fortune’s list of taxes and the flight of wealth to the sub- sewers, sidewalks, parks, streets, and "North America’s Most urbs and to attract—and retain— bridges. Improved Cities." economic opportunities to the city, Mayor Goldsmith followed five guiding The Circle Centre Mall project, initiated Source: Fortune, 11/24/97 principles: under Mayor Hudnut, came to a virtual standstill after the city had invested $80 1. A vital core is necessary to promote million. Only one anchor store had com- growth. mitted to staying in the Mall, and several prominent downtown businesses 2. An appealing business climate will announced they were moving to the sub- attract growth and expansion. urbs.

3. Excessive regulations or high taxes Using the savings from the competition price the city out of competition. effort and collaborating with area businesses, Goldsmith invested millions in 4. Tax abatements and financial incen- the downtown mall project and in infras- tives are tools to attract prospective tructure repairs in the downtown area businesses and make them account- and immediate circle of neighborhoods. able for economic growth. Circle Centre Mall opened in September

24 1995 and is the centerpiece of the down- 3. Evaluate the current management and Housing town revitalization effort. Restaurants, strengthen the oversight of hotels, shops, and businesses now thrive Indianapolis' public and other subsi- Average sale price, single family in the heart of the city, once character- dized housing. home: $125,307 ized by blight and disinvestment. Source: Indianapolis Chamber of 4. Preserve and increase the number of Commerce, 1st quarter, 1999 Principle #2: An appealing business subsidized rental units located outside Average rent for an apartment in climate will attract growth and of Center Township. Indianapolis: $600 expansion. Prospective businesses look at many factors beyond short-term finan- 5. Expand opportunities for first time U.S. average rent for an apart- cial incentives, including utilities and home buyers with a variety of special- ment: $569 infrastructure, workforce development ized financing products designed to Source: ACCRA, Cost of Living Index, and education, and quality of life for address down payment and credit 3rd quarter, 1997 employers and employees. From a 1996 issues. survey of Indianapolis businesses, the Administration knew that 82 percent of 6. Identify geographic areas with hous- businesses favor less regulation and ing stock affordable to the first time lower taxes over other incentive pack- home buyer, or where additional qual- ages. To create the appealing business ity affordable housing stock could be climate necessary to attract and retain developed, and ensure it is ready for businesses, Goldsmith improved housing, and worthy of investment. addressed workforce development issues, lowered utility costs, developed brown- 7. Increase the number of low income field sites, built on the city’s sports homeowners who are assisted with image, assisted small businesses, and affordable home repair products, encouraged minority- and women-owned thereby reversing the trend of deteri- business participation in city business orating, owner occupied housing projects. stock.

Housing. The Mayor’s Housing Task 8. Identify geographic areas where signs Force, convened in 1998, commissioned of deterioration have begun. Focus a study on affordable housing in resources on those identified areas to Indianapolis and determined that almost stem further deterioration. all extremely low-income renters were finding housing in very old housing 9. Increase the number of neighbor- units, most of which were in substandard hoods with home ownership oppor- condition. The Task Force crafted eleven tunities, to include both single and recommendations that set the course for multi-family housing products, ranging investment for the next five to ten years, from affordable to market rate. including: 10.Develop financial products for urban 1. Increase the number of quality, afford- Indianapolis which encourage stabi- able units available to the extremely lization of existing home ownership low- and very low-income renter and rentals. through a combination of actions: targeted, special needs (new) construc- 11.Expand the supply of market rate tion, rehabilitation, and rental rental units in urban Indianapolis. supplements. In response, many agencies and organiza- 2. Require effective social services and tions joined efforts to construct 500 new employment programs be connected units of affordable housing, remodel or with all units in order to assist repair 5,284 units, tear down or overhaul extremely low-income renters' move 450 abandoned units, help the toward self-sufficiency. Indianapolis Neighborhood Housing

25 Cities with the Three Partnership (INHP) to assist thousands of (NCAA) to relocate its headquarters to Lowest Unemployment low- and moderate-income families find Indy. See Appendix I for more informa- and afford their own homes, and leverage tion on the NCAA’s relocation to Rates in the Nation millions of dollars in public and private Indianapolis. Minneapolis-St. Paul, MN 1.9% support. By the close of 1999, the city Indianapolis, IN 2.1% estimates the total neighborhood hous- Small businesses. Several initiatives ing investment at $56,397,326 and that help new and small businesses address Hartford, CT 2.1% 6,364 units of affordable housing will be financing, strategic planning, training, Source: Bureau of Labor Statistics, constructed, rehabilitated, or repaired. marketing, permitting, technology, Metropolitan Employment & Unemployment Summary, research and development, exporting, August 1999 Workforce development. Mayor labor-management relations, expansion, Goldsmith encouraged the Indianapolis evaluation, and other critical areas of Private Industry Council (IPIC) to focus operation. on workforce preparedness. IPIC serves as the community broker of job training Minority- and women-owned busi- and placement resources. The city has nesses. The Mayor’s Minority Business worked in collaboration with the private Initiative expanded opportunities sector in developing a number of youth through public/private partnerships to employment initiatives, including part- increase minority participation in city nerships with Indianapolis Public business projects. Schools to encourage youth to explore career options. In 1997, Goldsmith com- Principle #3: Excessive regulations missioned the High-Tech Task Force to and high taxes will price the city out develop strategies to help Indy attract of competition. Indianapolis busi- and grow high-technology business nesses cited government regulations and opportunities. taxes as the most significant factors affecting their future growth. In 1992, Utilities. Using competition and privati- Goldsmith created the Regulatory Study zation, Indianapolis’ utilities cut costs and Commission (RSC) to review existing and became more efficient. As a result, the proposed City and Health Department costs for electricity and natural gas are regulations to ensure that the benefits 30 percent lower than average; water and outweigh the costs to businesses and tax- sewer services are among the lowest of payers. The RSC follows five guidelines: any investor-owned utility; and local phone service rates have not increased 1. Regulations should be used as a tool in 13 years. to achieve a policy objective only as a last resort. The use of a regulation Brownfield sites. Brownfields are aban- means a failure of all other means to doned, idled, or underutilized property achieve a policy objective. where redevelopment is inhibited by actual or perceived environmental con- 2. The cost of a regulation should be no tamination. Indianapolis established the greater than the benefit it creates for Environmental Ombudsman Office to the community. create and update an inventory of brownfield sites, encourage redevelop- 3. Regulations must be simple, fair, and ment, and indemnify purchasers of the enforceable. sites from legal liability. 4. Regulations must be written to mini- Sporting industry. Building on its rep- mize the imposition of constraints utation as the "Amateur Sports Capital of upon businesses and individuals. America," Indianapolis has attracted more than 250 motorsports-related businesses, and, most recently, persuaded the National Collegiate Athletics Association

26 5. Regulations must never exceed exist- "Every business receiving a tax Average Household ing federal or state standards unless abatement has to file an annual report Income there is an overwhelming, compelling, on its progress toward meeting the jobs and uniquely local reason. creation, jobs retention, average wage Average household income in level, and investment goals which were Indianapolis: $35,946 A sensible regulatory climate. The set before its abatement was awarded. Average household income in the RSC reviews all proposed regulations If an awarded business is not creating U.S.: $38,453 prior to their adoption by municipal or retaining jobs at agreed-to or higher Source: 1990 Census of Population and boards or submission to the City-County wage levels or investing new capital, Housing, Summary Tape Council. The RSC has saved businesses, the city has the ability for the first time File 3C taxpayers, and government $20 to $50 to revoke the tax abatement. In the million. According to William Styring, past there was no system to track the who chaired the deregulation effort, the business’ performance or hold the busi- Cost of Living in RSC "eliminated about one quarter of all ness accountable after the abatement Indianapolis the regulations that should have been had been granted. But now a company eliminated," including more than 200 has two years to fulfill its agreements Cost of Living Index in useless business licenses, outdated regu- on investment and job creation. If the Indianapolis: 96.0 lations, and regulations that restricted company does not complete its annual The National Average of Cost of growth and competition. As a result of survey, the abatement is automatically Living Index: 100 the thorough review process, regulations revoked. If the company turns in its Source: American Chamber of serving the public interest are encour- survey but falls short of its goals, the Commerce Researchers’ aged and those that are overly costly or city has three options: terminate the Association Cost of Living burdensome are discouraged. abatement, put the company on proba- Index, 1st quarter 1999 tion, or grant the company an Taxes. Cities continue to compete with extension." one another for businesses and residents, but the toughest competition now To ensure fairness of the policy, the city comes from the suburbs. According to retains a group of community leaders, Goldsmith, "‘no new taxes’ is not a politi- the Greater Indianapolis Progress cal pledge—it is an economic necessity." Committee, to review property tax Due to the savings generated by competi- abatements. tion and revenues from privatization, Goldsmith had not raised property taxes Principle #5: Collaboration with since assuming office in 1992. stakeholders is essential. Mayor Goldsmith created the Existing Industry Principle #4: Tax abatements and Task Force in 1992 to identify the needs of financial incentives are tools to existing Indy businesses and ways to bet- attract prospective businesses and ter support the local business community. make them accountable for eco- Composed of twelve manufacturing execu- nomic growth. Traditional incentive tives, the Task Force encouraged dozens of packages do not hold businesses expansion projects, assisted in creating accountable if they fail to meet the com- hundreds of new jobs, and leveraged mil- mitments they made for expansion or lions of dollars in investments. Before it employment. In 1993, the city adopted a disbanded in 1993, the Task Force: set of guidelines requiring businesses to pay back a portion of their financial Surveyed more than 1,600 manu- incentives if they failed to meet their facturers and distributors. The commitments in terms of employment, Task Force learned that the issues of revenue, neighborhood impact, or capital primary concern to industry leaders investment. As Goldsmith writes in his were the burden of taxes and regula- 1997 collection of essays, A Small tions, the need for an infrastructure Government Prescription for Big City rebuilding program, workforce devel- Problems: opment, and incentive and assistance programs for small businesses.

27 Employment by Industry Created the Existing Business to handle the needs of that particular Reference Guide, which provides industry. And if not, how much it will Services 26.8% up-to-date information on financial cost to bring it to capacity." Retail Trade services, training, and technical assis- 19.9% tance opportunities. As a corollary principle, ensure that all citizens have opportunities to Established the annual Eagle participate in the expansion. In Awards for businesses that excel in Indianapolis, one out of every ten African- workforce development, environmen- American males ages 16 to 24 is institu- tal/recycling efforts, charitable com- tionalized (includes all forms of institu- munity involvement, or have invested tional care). Clearly, a large percentage of in new or expanded facilities or capi- the African-American male population is tal equipment. not able to participate in the neighborhood revitalization efforts transforming Led a series of Existing Industry the city. Government Township Seminars/Town Hall 12.3% Meetings, during which 360 execu- In 1992, Mayor Goldsmith established the Manufacturing tives and plant managers provided Indianapolis Commission on African- 15.1% input on the city’s economic develop- American Males (ICAAM) to examine the Finance/ ment assistance programs and initia- conditions facing young African- Insurance/ tives. American males in Indianapolis and to Real Estate 7.5% develop a strategy and a series of recom- Wholesale Trade 6.6% Organized the Mayor’s Volunteer mendations to enhance the quality of Transportation/ Plant Visitation Program in 1993, their lives. The Commission held a series Public Utilities 6.1% during which Task Force members of town meetings attended by over 450 Construction 5.6% visit other businesses to reinforce a individuals from across the city, reviewed relevant research, commissioned the Mining .1% positive business climate and foster goodwill between the public and pri- development of a database on African- Source: Bureau of Labor Statistics vate sectors. American males, and developed recommendations for strategies to ensure that Convening stakeholders. In 1993, the every citizen in Indianapolis, particularly city, the Indianapolis Economic African-American males, has access to Development Corporation, local utilities, economic and social opportunities. and workforce development groups ICAAM continues to implement strate- formed the Indianapolis Economic gies to address its recommendations Development Alliance. The Alliance, rec- through community collaborations. ognized by Congress as one of the three most innovative local economic develop- Outcomes and Challenges ment structures in the nation, encourages public/private collaboration to promote A thriving economy. Indianapolis has economic growth and attract and retain received national accolades for its eco- businesses. nomic development initiatives and the resulting friendly business climate. According to Brad King of the Vacancy rates downtown are less than Indianapolis Economic Development one-half the national average, and new Corporation, the Alliance strengthens construction projects have sprung up all Indianapolis’ ability to attract new busi- over the city. Unemployment is at a nesses to the city as a one-stop shop: record low of 2.1 percent. Companies including Alcoa,American Funds, "Alliance members can help us iden- American Trans Air, Bank One, BMG tify existing infrastructure at sites of Music, Federal Express, Fruehauf Trailer, interest to the industry. We can call up RJR Nabisco, Rolls Royce, and USA Group Indianapolis Water Company and they have relocated to or expanded within can tell us whether the site is equipped Indianapolis since 1992.

28 Challenges and opportunities. ages get larger and larger. As Goldsmith Arts and Entertainment in writes, Indianapolis was guilty of this Although the economy is thriving, Indianapolis Indianapolis—like other cities—faces as well: challenges in training and retaining a Museums: 14 skilled workforce, moving people from "In 1991, about one week before my Symphony Orchestras: 2 welfare to work, and improving public election as mayor, Indianapolis and Opera Companies: 2 transportation to jobs in the suburbs. Indiana assembled a financial package According to Joseph Slash, Indianapolis that lured United Airlines to develop a Dance Companies: 2 Power & Light Company, who serves on massive maintenance facility at Professional Theatres: 3 the Indianapolis Private Industry Council Indianapolis International Airport. Zoos: 1 Board: United Airlines will eventually invest at Major League Pro Sports least $750 million…and employ 6,000 Teams: 2 "The numbers of [applicants] coming people in Indianapolis as a result of the Minor League Pro Sports in through the front door goes up con- deal, causing some national observers to Teams: 2 siderably from year to year, yet the skill call it the economic jewel of the year. Source: International Directory of the level of the workforce is extremely United Airlines, a great corporate citizen, Performing Arts, 1996; Official short-falling. We need to close the gap is keeping all of its promises of invest- Museum Directory, 1998; between business and education." ment and job creation, and is helping Chamber of establish the airport as the preeminent Commerce/Economic Development, 1997 Slash also identifies property tax equal- aircraft maintenance center in the coun- ization—where citizens pay higher taxes try. But Indianapolis taxpayers will be to compensate for non-taxable prop- paying for the deal until the year 2017." erty—as another challenge. Work with suburbs, not against "One third of the property in [Center them. Though the fiercest competition Township] is not taxable—it belongs to may come from the suburbs, the city government or another non-taxable found it counterproductive to launch an entity. To make up the difference, there economic development war. Instead, the is a gross inequity of property tax paid mayor formed the Metropolitan in this district. Look at a house down- Association of Greater Indianapolis town and a house of similar value built Communities (MAGIC) to address in the suburbs—the difference in the regional issues and promote awareness house payment is $65 or $70 per among the outlying areas that their eco- month, just by virtue of what district nomic future is linked to that of the it’s in. We have to fix the tax equaliza- inner city’s—that the heart of the city is tion problem. There is no reason for exactly that—a vital organ for the entire businesses to relocate or retain their region. The mayor also developed an location in Center Township." agreement with the wealthiest adjoining county, which provided for shared infras- Lessons Learned tructure investment, regional transportation and sewer planning, shared strate- Mayor Goldsmith, public officials, service gies for targeting key industries, and elim- providers, community leaders, and busi- inated economic cannibalization. ness executives offered us the following lessons learned. Teach disinvested neighborhoods the benefits of replacing government The benefits of a business locating regulations with neighborhood or expanding in the city should out- covenants. Deregulation efforts were weigh the costs of the incentive met with great opposition by inner-city package. Though this idea seems self- neighborhoods. Mitch Roob, who also evident, leaders frequently use tax breaks served as CEO of Health and Hospital and financial incentives to lure busi- Corporation, the organization responsible nesses to their cities. And as the compe- for health code regulations and compli- tition grows stiffer, the incentive pack- ance, said:

29 "I’ve never expended more political Make workforce development capital and did less than on [the dereg- resources available in the commu- ulation] process. The neighborhoods nity, by the community, for the com- want someone to have arbitrary and munity. Byron Jenson of Goodwill capricious regulatory authority. They Industries described the success job want someone to enforce laws—zoning training and outreach programs have had laws, code compliance. People want at the neighborhood level. Goodwill has government to have tremendous code partnered with other community-based enforcement capacity. When I wanted organizations to provide job training and to change [the regulations] to ease their placement services in neighborhood burden, people in those neighborhoods sites, often hiring residents of those let us know that that was the wrong neighborhoods. Neighbors reaching out answer here. They wanted more regula- to neighbors are more effective in tion, more heavy-handed enforcement. encouraging the unemployed or working It took me a long time to get why. My poor to seek education and training answer is that if you go to the neigh- opportunities. borhood I live in—a subdivision—we have neighborhood covenants. These Rely on businesses to find unfair neighborhoods don’t have covenants, so restrictions, permitting processes, they look to the government for that." and fees. The Regulatory Study Commission turned to local businesses to identify excessive regulations, which fostered communication between the public and private sectors, sent the message that Indy cares about the needs and concerns of businesses, and fostered a friendlier climate for conducting business in Indy.

30 CONCLUSION

Transforming government philoso- and decay in the neighborhood creates “Because you built those phy. Stephen Goldsmith and his admin- an unpublished tax on the residents, istration transformed nearly all aspects of particularly the elderly. Cleaning up the homes over in Riverside local governance in Indianapolis. Some crime and decay and fostering opti- for the community, my have suggested that, prior to 1992, gov- mism creates value." house went up in value ten ernment regulations and red tape—well- percent last year, and it’s intentioned as they were—impeded cus- Acknowledging external success fac- never gone up in value tomer satisfaction, effective service provi- tors. The city’s successes do not lie before.” sion, the work of community- and faith- solely with the mayor’s office or agenda. — United Northwest Area based organizations, economic growth, Other factors, such as national and homeowner and city-neighborhood collaboration. regional trends in crime and economics Goldsmith took the traditional bureau- are contributing factors. As with all cratic model and turned it on its ear to elected representatives, the mayor and ensure accountability, reduce expendi- his administration benefit from circum- tures and waste, respond to the needs stance and from the good work facili- and concerns of citizens, be results- tated by preceding administrations. driven and outcome-oriented, and make Often, elected officials are blamed for government leaner, more accountable, economic recession or praised for and more effective. As a result, the gov- economic development that may have ernment has fundamentally changed how been precipitated by the actions of their it conducts business, interacts with citi- predecessors or outside influences. zens, generates results, and solves problems. Likewise, Indianapolis’ success is due, in part, to the economic boom that swept Impacting the lives of citizens. the country during the mid- to late- According to Goldsmith, the greatest 1990s, and the progressive work of Indy’s accomplishment of his administration previous mayors, Richard Lugar and was increasing confidence and hope William Hudnut. Other success factors among those who were previously include the relatively low number of neglected. Goldsmith described a recent unions, the consolidated city-county gov- experience he had at the Indianapolis ernment model (Unigov), and strong cor- International Airport: porate participation in civic matters.

"I went through the metal detector in The citizenry itself played a major role in Indianapolis. The security officer proba- the success of the community revitaliza- bly makes very little money and has a tion work. Collaboration and participa- very tough job. He stopped me and told tion have become the norm—for the me that he had a house in the United most part, citizens leave their agendas Northwest Area, where we had recently and their politics at the proverbial door. built some new homes and parks. He had one of the old homes, and each Indy is also known for its large and dedi- year for 15 years before we had done cated volunteer pool and for the pres- that, his home was worth less. He ence of one of the country’s largest thanked me and said, ‘Because you philanthropies, the Lilly Endowment. built those homes over in Riverside for According to Ellen Annala of the United the community, my house went up in Way, a national foundation was hosting a value ten percent last year, and it’s large event in Indianapolis, and never gone up in value before.’ Crime approached the United Way for help

31 staffing the event. The foundation Project and Educational Alternatives, Literacy wanted to hire people to staff the event Inc., to open schools in Indianapolis. 20% of the adult population in because of volunteer shortages and no- When all of these avenues failed, I cre- Indianapolis (over 16 years old) shows, but United Way convinced them it ated a bipartisan political action com- read at the lowest literacy could recruit enough volunteers. The mittee called the Alliance for Quality standard, Level One. foundation agreed on the condition that Schools to support reform candidates Source: The State of Literacy in United Way advertise for 300 volun- for the IPS school board. And when that America teers—three times the number of staff did not accomplish all we hoped, I needed. Despite protests from United authored reform legislation giving the More than 20% of adults in the Way, 300 volunteers were solicited, and, district broad powers to hold schools U.S. read at or below a fifth grade in the end, the 300 volunteers who more accountable. level. signed up showed up. Source: National Institute For Literacy In short, I have probably notched Addressing unfinished business. more unsuccessful attempts to improve Critics and supporters agree that the education than any mayor in America, public education and child welfare sys- a distinction I wear with honor." tems need improvement in Indianapolis. What is remarkable is that neither system Though the public school system falls under the purview of city-county remained virtually intractable throughout government—the public education and Goldsmith’s administration, his staff made child welfare systems are under the some significant inroads into addressing purview of the State of Indiana. problems with the child welfare system. Nonetheless, Goldsmith and his aides According to Karen Glaser, child health attempted to impact state government and welfare liaison, the mayor’s office has initiatives. In a discussion about the suc- influenced planning and practice in the Scholastic Aptitude Test cesses and failures during his administra- State Office of Family and Children. In (SAT) tion, Goldsmith said: 1994, for example, more than 80 percent of the budget was dedicated to expen- 995 "Education is the biggest frustration. sive group home and institutional care, Average combined SAT score in It really overwhelms everything else. while less than 5 percent was dedicated Indianapolis Public Schools. I’m not sure that our focus was as to post-placement services, less than 10 Source: Indianapolis Economic intense as it should have been on the percent to foster care, less than 5 percent Development Corporation, 1998 child welfare and family policy. We did to in-home services, and no resources for all right things, but not with quite the prevention services. 1016 same degree of intensity. The systems Average combined SAT score in that we couldn’t affect were the most With funding from The W.K. Kellogg American Public Schools. frustrating. That was schools and the Foundation for a project called "The Source: Digest of Educational child protective services—state-run sys- Families for Kids Initiatives," the city and Statistics, 1999 National Center tems—we couldn’t fix them." state worked together to analyze and for Education Statistics restructure child welfare service delivery As he states in The Twenty-first Century systems. As a result, the 1998 budget City, Goldsmith tried repeatedly to influ- dedicated 3 percent to prevention ser- ence Indy’s education system: vices, 20 percent to in-home services, 51 percent to group home/institutional care, "Like most mayors, I have no author- nearly 10 percent to foster care, and 15 ity over schools. I have spent…years percent to post-placement services. The trying to make an impact on the system Marion County Office of Family and in every way imaginable. I pressured Children is more focused on devising the districts publicly not to raise taxes, solutions in the home, following up on with little effect. I lobbied unsuccess- placement, and developing effective pre- fully for state legislation to create pub- vention programs. licly funded vouchers and charter schools. I negotiated with private education providers such as the Edison

32 Spearheading system-wide reform. Final thoughts. The authors of this "Goldsmith ran for mayor In contrast to other American cities, report have attempted to capture the Indianapolis does not have a reputation essence of the Indy Story and chronicle using a reform platform for one particular success story. Boston the successes and shortcomings, the sem- that promised voters he and New York have been praised for inal points and lessons learned, and the would make the city work crime reduction; Cleveland and highlights of this acclaimed model for better and more efficiently, Milwaukee have been acclaimed for their local governance. Pinchas Landau while investing the savings education reforms; Portland for health summed up the Indy experience in an in infrastructure and inner- initiatives; and Philadelphia and San article for The Jerusalem Post Money city projects that required Diego for economic development. Each Magazine: residents to take control of of these cities is renowned for making the decision making. That tremendous progress in at least one of "Goldsmith ran for mayor using a voters gave him a chance the traditional measurements of whether reform platform that promised voters seems plausible. That he a city is "a good place to live." he would make the city work better and delivered the goods pro- more efficiently, while investing the sav- Instead, Indianapolis boasts reforms and ings in infrastructure and inner-city vides hope and inspiration improvements in numerous systems projects that required residents to take for cities around the across the city. Indy’s many success sto- control of the decision making. That world.” ries have made it difficult to identify any voters gave him a chance seems plausi- — Pinchas Landau one reform that stands head-and-shoul- ble. That he delivered the goods pro- ders above the others. Mayor Goldsmith vides hope and inspiration for cities and his administration have spearheaded around the world." successful initiatives in the areas of crime, health, neighborhood revitalization, race relations, and economic development. Introducing "marketization" to the provision of municipal services, changing the ethos and ethic of the government employee, and removing the restrictions imposed by the traditional bureaucracy have generated tremendous interest and enthusiasm nationally. And though the reforms were disparate, the mayor provided a central guiding vision, and articulated it clearly and consistently.

Remaining a work in progress. The Indy story continues to unfold even as this chapter comes to a close. Mitch Roob, former Goldsmith aide, said:

"This is the Indy we promised. We took the city built by Lugar and Hudnut. We’re done with ideas now, and we hope someone else has new ones."

33 APPENDIX A: MARKETIZATION

The City of Indianapolis has "marketized" more than 70 municipal services since 1992. The following chart identifies several significant reforms, describes the key changes, and lists the projected fiscal impact.

Source: "The Indianapolis Experience: A Small Government Prescription for Big City Problems," June 1997

“Marketized” City Services Highlights of Changes Made Fiscal Impact

Public Works: Advance Wastewater Treatment Plant opera- Anticipated savings at Wastewater Advance Wastewater tion and management bid process resulted in Treatment Plant over 5 years of $65 Treatment Plant an award to a partnership that provides exper- million. tise of more Ph.D.s in civil engineering than Indianapolis has employees. Contractor brought in state of the art technology, cutting costs by 44%.

Sewer System Now managed by Wastewater Treatment Plant, $13 million savings over 5 years. which hired city employees.

Sewer Billing Now combined with water bills; single office Increased savings and revenue of to call with billing questions. $3.7 million per year.

Trash Collections Much more efficient collection process at $15 million savings over 5 years. lower cost per household.

Street Repair City workers eliminated middle management, City workers trimmed 25% of pothole reduced crews, re-examined every process and filling costs and 60% of crack-sealing cost, and became more efficient. costs.

Fleet Services City workers won empowered self-managed $8.5 million saved. teams; eliminated unnecessary jobs; shrunk inventory. Turn-around time for repairs decreased although more cars in fleet.

Building Authority Outsourced certain functions, including win- Decreased rents in county buildings dow washing and tenant construction; 5 years in a row. charged tenants for previously unbilled services; and became more efficient.

Permits Consolidated three departments into one; Decreased permitting costs by 40%. assembly line to caseworker approach in which caseworker walks each applicant through the permit process.

34 “Marketized” City Services Highlights of Changes Made Fiscal Impact

Parks & Recreation: Pros bid on contracts to run each of 12 munic- Instead of paying $500,000 annually to Golf Courses ipal golf courses. Pros maintained the courses operate the golf courses, the city with their own supplies and equipment, hired receives 20% of course revenue and personnel, operated the snack bar and pro earns $700,000 annually from the golf shop, and rented golf carts. Within first year, contracts. City invests 25% of that courses were upgraded; and many improve- amount in capital improvements to ments were made to facilities. Privately run courses. golf academy was added to city’s golf network.

Transportation: Until privatization, airport costs – including Airport contractor projects a 10-year Airport Management concessions, rent and parking – per passenger savings of $105 million and has guaran- rose 38% from 1984 to 1994, while airline teed $32 million of those savings. industry profits grew only 2% in a good year. Anticipated cost savings per passenger Contractor selected owns and operates 7 air- over 10 years is 30%. ports in England. Contractor hired all of airport staff and is required to make sure airport concessions do not exceed prices for same items in greater Indianapolis. Contractor is investing $.5 million in airport improvements.

Public Transportation More public transportation routes. $3 million savings over 4 years by Involvement of minority-run business. privatizing 10 routes.

Parking Enforcement Upgraded technology and improved collec- 30% reduction in costs. tion. Free assistance – jump starting batteries, opening locked vehicles – when car is dis- abled at a meter.

Health & Safety: Privately run jail. Contractor contributing Operating cost reduced from $42/day Jail $4 million to renovation. per prisoner to $35/day.

Dispatch Operations Combined operations of five departments. $206,000 annual savings.

Abandoned Vehicles Street collections increased by 140%. $1.4 million savings and revenue over 3 years.

Information & Referral: New equipment obtained and serviced on a $26 million savings over 7 years. Computer Systems regular basis. Computer systems networked across departments and divisions. Technical advice and training provided to city offices.

Microfilm Division Higher quality equipment and product. $240,000 annual savings. Backlog eliminated.

Copying and Printing Consolidated 3 print shops into 1 with over $800,000 annual savings. Services 121 pick-up points.

Messenger Services More efficient. Contract awarded to down- $15,000 annual savings. town minority-run business, thus increasing employment of inner-city residents.

35 APPENDIX B: ACTIVITY-BASED COSTING

Activity-Based Costing (ABC) is an accounting method adapted from the private sector to evaluate and estimate costs based on outputs rather than inputs. Outlined below is the five phase approach for using ABC in local government.

Phase I: Phase IV: Define project objectives and estab- Develop an ABC model. lish department activities and out- Develop an ABC model by using the cost puts. drivers to assign activity cost pools to The first phase focuses on familiarizing departmental outputs. the project team with department operations, personnel, and means of quantify- Phase V: ing data. The most effective means of Summarize cost information; expand identifying activities and outputs, the departments’ capabilities to continue foundation for the ABC model, are to use the ABC model. determined. Hold training sessions to assist departmental personnel in learning how to use Phase II: the ABC model on an ongoing basis. Collect and analyze appropriate costs and cost drivers. Collect relevant cost information. Choose appropriate cost drivers for the activities defined in Phase I. Determine the most effective means of measuring departmental outputs.

Phase III: Collect remaining direct and indirect cost information. Establish activity cost pools on PC-based spreadsheets. The most probable activity cost pools are personnel, direct materi- als, vehicles and equipment, fixed asset and facility costs, and administrative overhead.

36 APPENDIX C: PURCHASING

Mayor Goldsmith updated the cumber- some purchasing system to streamline and speed up the purchasing process, simplify record-keeping, and cut costs. Outlined below is a comparison of the old system to the new system.

Old System New System

Written quotes for most purchases. Written quotes only when necessary for clarification.

For $25, vendors were put on a list that The list is discontinued for non-bid had to be notified even for non-bid opportunities. opportunities. This generated great amounts of paperwork.

Bid bonds were routinely required of Bonding requirements not legally man- non-public works projects under dated are abolished. $100,000, even though they were not mandated by statute. The result was that some firms chose not to compete for bids. Those that did often inflated their prices.

All price quotes were recorded online. Only the top three are recorded online.

Purchases were recorded on multi-part Purchases are recorded and routed elec- requisitions forms and physically routed tronically. for approval.

Multiple approval levels. Streamlined approvals.

Records filed. Records stored electronically.

Amounts were inflated in bidding to get Bidding is now done on the basis of best quantity discounts that never material- estimates. ized.

Many contracts were within departments Contracts are now citywide. rather than citywide.

Cash receipts were often not recorded Cash receipts are always recorded on the on the day of deposit. day of deposit.

37 APPENDIX D: POTHOLES — A CASE STUDY

How much does it cost to fix pot- Identifying the "fat." Prior to the ABC holes? Roughly $307 per ton of asphalt. study, the city had been spending $425 Arriving at this answer, however, required per ton for pothole work. The city team a change in thinking about how govern- won the bid and reduced the cost to ment services are provided. Before $307 a ton. In fact, the workers com- Activity-Based Costing, no one in the pleted the project for $20,000 less than Department of Transportation knew how their bid. Workers were empowered by much it cost to repair streets. their triumph, and the city was pleased with the savings. Using a consulting team and Activity- Based Costing, Department of Pothole repair, in retrospect, was not a Transportation head Mitch Roob engaged good choice for this first endeavor. Roob the workers who were out on the front commented, "No private contractor fills lines actually filling potholes. They dis- potholes. It failed what Skipp Stitt, cussed how the process could be made Director of Enterprise Development, calls more cost effective and efficient to com- the ‘Yellow Pages test:’ If you can’t find a pete with the private sector. service in the yellow pages, you should not attempt to privatize it!" Overcoming obstacles. The first obsta- cle the union workers identified was the More than an exercise. Even though overhead caused by a surplus of supervi- the process turned out to be non-com- sors. There were 32 supervisors manag- petitive, it created a significant paradigm ing 94 workers. The solution? Eighteen shift within the city. The project cut of these middle managers were immedi- costs, boosted union morale, and funda- ately terminated. mentally altered the way services were delivered. Competition was proven to be The team then searched for ways to cut an effective strategy for alleviating hid- costs and enhance delivery of their prod- den costs in municipal services. uct. Before the ABC analysis, street repair crews worked with six to eight people and two trucks. After completing the evaluation, the workers realized the task could be executed with only five workers and one truck.

38 APPENDIX E: NEIGHBORHOOD REVITALIZATION

Reform Initiatives Highlights of Changes Made Key Benefits

Special Projects: Downtown Safety Initiatives Installed radios in 30 organizations, 173 down- Easier reporting of suspicious activity. town businesses, and 400 security and police Quicker response time in emergency agencies to expand security network. Added situations. bicycle police to the city’s police force.

Graffiti Busters Program Created program involving the mayor and Beautification of city and heightened cit- Resource Development Program, "Keep izen confidence in neighborhood safety. Indianapolis Beautiful," and the Marion County Sheriff’s Department to remove graffiti from public and private structures.

Neighborhood Revitalization: General Infrastructure Rebuilt curbs and sidewalks, resurfaced streets, Repaired 440 miles of streets. Curb and Improvements rehabilitated bridges and public housing facili- sidewalk repair quadrupled under the ties, and upgraded police stations. program. Hundreds of improvements were made and paid for without raising taxes.

New and Improved Park Invested $41.2 million in more than 80 projects Since 1992, city parks have grown by Facilities to upgrade and expand park facilities and 159 acres. Nearly 175 miles of fitness attractions. and recreational trails are under development.

Project 180 Implemented plan to recruit volunteers from Community revitalization through col- community and local businesses who help lective efforts. neighborhoods with clean-up and restoration.

Seven Targeted Targeted seven troubled neighborhoods: built Resurgence of neighborhood leadership, Neighborhoods new parks, installed curbs and sidewalks, new construction, and economic launched crime-control initiatives, and reno- progress. vated houses. Implemented job creation initiatives.

Public Housing Made improvements to public housing com- City public housing went from being on plexes. Launched initiatives to create job the HUD "troubled housing" list to scor- opportunities within facilities for residents. ing perfect scores on 10 of the 12 HUD public housing performance indicators.

Community Service Recruit jail inmates to perform community ser- Community revitalization. vices such as park beautification, graffiti removal, and painting.

39 Reform Initiatives Highlights of Changes Made Key Benefits

Neighborhood Empowerment: Indianapolis Neighborhood Established INRC to provide information to Trained leaders and advocates are able Resources Center community organizations and neighborhood to initiate and implement constructive groups so they can mobilize to remedy prob- change in their own neighborhoods. lems in their neighborhoods.

Leadership Training Created National Neighborhood Leadership Rebirth for neighborhoods that lacked a Development Institute to train low-income voice for their concerns. Inspired new community residents to become better leaders. leaders to act for the well-being of their communities.

Geo-Based Services: Hired residents to be local coordinators in their Needs of individual communities are Township Administrators neighborhoods and assigned municipal employ- better assessed and met. and Neighborhood ees as Township Administrators in each town- Coordinators ship. Groups worked together to allow local vicinities authority in decision-making.

Grants Awarded $50,000 project grants, $500-$5,000 Successful projects include the building community enhancement grants, and $2,000 of a new community center, new day resident participation grants to community- care and youth educational programs, based organizations for resident-driven projects. and neighborhood beautification.

Neighborhood Nuisance Empowered neighborhood residents to fight the Residents have forced liquor stores to Abatement renewal of liquor licenses for problem establish- change business hours, provide extra ments. Established code compliance commit- lighting and security,and to clean their tees, made up of neighborhood residents and premises. Residents are also empow- housing inspectors, to seek out community ered to report housing violations. properties that violated the housing code.

Customer Service Adopted philosophy that citizens should be More rapid response rates to citizen treated like customers. Created Mayor’s Action inquiries. Center, a central switchboard for the city government that residents can use to file sugges- tions or complaints, access information, and make service requests. Created Rapid Response Teams, assigned to individual town- ships, who handle small improvement jobs for city residents.

Parks Made parks an integral part of neighborhood Established new ties between parks and redevelopment and community relations by surrounding neighborhoods. Increased forging partnerships between Parks attendance and participation in park Department and local residents and churches. events and facilities.

Rebuilding Families Launched 27 initiatives aimed at encouraging More collaboration between the reli- responsible fatherhood, discouraging teen preg- gious community,non-profit organiza- nancy,and improving the support and eco- tions, and social service agencies. nomic opportunity for teen mothers and vul- Increased arrest rate for those who com- nerable families. Renewed commitment to mit statutory rape and for fathers who enforcing existing child support and statutory refuse to pay child support. New pro- rape laws. grams have placed over 300 able-bodied, but unemployed fathers into jobs or work programs.

40 APPENDIX F: COMMUNITY POLICING

Within the public/private partnerships lems, respond aggressively, and resolve that emerged in Indianapolis was an those issues. As part of these new initia- undercurrent of a new social contract in tives, the Indianapolis police force better which those directly affected by policies serves local communities by: were at the heart of the dialogue; where racial and cultural diversity was a founda- Seeking opinions of neighborhood tion for community-building; where residents. Deputy Police Chief Barker, active citizenship and responsibility were who serves the WESCO neighborhood, fostered; and where the community’s described its new commitment to collab- strengths and assets served as the launch- orating with local citizens: ing pad for progress. But even with these fundamental principles as guides, "We surveyed the neighborhood to many neighborhoods were beset by ask what they needed from us. We seemingly intractable crime, fear, and thought they would say ‘eliminate the helplessness. homicides, rapes, assaults.’ Instead, they talked about quality of life things. They Thus, just as other major American cities said ‘fix the streets and curbs, pick up have done, Indianapolis moved toward a the trash, fix burned out bulbs in street vigorous program of community polic- lights, take care of the junk cars in ing. What is community policing? vacant lots.’ We work with other city According to the individuals we inter- departments to take care of these viewed, it is a combination of enforce- things, to take these concerns seriously, ment and compassion—a targeted effort to build trust. No problem was too to identify the troublemakers, and to small for us. We have plainclothes offi- offer them options and alternatives if cers going door to door. They can get a they behave—and tough consequences if sip of water, and a tip, too." they don’t. Fostering citizens’ trust and coopera- It is a recognition that the role of law tion. Deputy Chief Barker told the story enforcement officials is more than simply of growing rapport with the citizens of reacting after an incident—it is prevent- WESCO: ing the incidents; participating in the neighborhoods’ civic activities; and doing "We work closely with the neighbor- whatever it takes to solve problems, even hood. Anytime we get a request for an when those problems are not within the officer to attend a function, we go. immediate jurisdiction of the police Everyone who calls gets a return phone department. It is a process of building call. I can’t require my officers to sit in relationships and trust between neigh- the dunking booth at the school fair, borhood residents and the police who but I can ask them to go to neighbor- serve them. It is an organic web of net- hood meetings, interact with [citizens], works and partnerships with the commu- and listen. Now little old ladies give us nity, the prosecutors, the school police, slips of paper with addresses of crack the social workers, the clergy, parents, houses. Within 24 hours, she pulls her and youngsters themselves. drapes back and sees ten police breaking down the door and dragging six It is a process of listening very carefully guys out. She sees results immediately." to what the citizens want and need, and responding quickly to unpack the prob-

41 Establishing relationships with Increasing citizens’ confidence in neighborhood youngsters. Deputy the police. In Indianapolis, the result of Chief Tim Martin of SUMO talked about these new community policing initiatives the transition from relying on technology is a new sense of neighborhood pride and being "rapid responders" to building and appreciation for their police. Olgen relationships with the neighborhood Williams, former president and current leaders and the kids: vice president of WESCO, described his community’s relationships with the "There are so many kids with no police: adults at home—they are going to be out on the street and become a victim "We like our police. We have a great or get into trouble, or both. Some offi- working relationship with them. They cers don’t think police work is playing call us when something happens so we ball with kids or eating ice cream cones, can dispel the rumors and get the facts but if something happens—gang prob- to the neighborhoods. They attacked the lems, hate crimes—that kid will crack cocaine problem. They help us approach the officers." solve problems that are not within their immediate job descriptions—they get Cultivating citizens’ sense of control the city departments to fix streetlights, and collective responsibility. pick up the trash, get rid of abandoned Whether the initiatives are curfew cars. People now put drug tips for the sweeps of juveniles on probation or police in the church collection plates." parole, closing open air drug markets, creating family nights or after-school pro- Olgen also commented: grams that provide academic tutoring, or providing other positive recreational "I’ve gotten local businesses to alternatives, residents have greater sense donate pancake breakfasts for ‘Police of community control over their own cir- Appreciation Day.’ We gave them lapel cumstances. When we spoke to Robert pins they wear on their uniforms. Woodson to get an outside expert’s opin- Business donated pen and pencil sets. ion from the neighborhood perspective, We’ve been working together seven he, too, echoed the same message: years, and it is ongoing. The police are playing basketball with the older youth, "The neighborhoods are working in and kickball with our kids 13 and partnership with the police, the under. The kids won. We all won." churches, local banks, business owners, and the city agencies. Neighborhoods And the pride and appreciation is reached out to business owners. A white reflected by the police, as well. As an undertaker collaborated with a black illustration of their strong neighborhood landscaper, formed a small construction relationships, Deputy Chief Barker company, and began to build houses for bragged: the city…Everybody in the neighborhood is a public snitch. In one neigh- "Now they throw us breakfasts, give borhood, a neighborhood leader con- us pins, give us pens…. fronted a drug dealer who pulled a gun. The neighborhood leader shot the drug dealer, and was arrested. The neighborhood rallied to his defense."

42 APPENDIX G: THE FRONT PORCH ALLIANCE

Originated by the Mayor’s Office in 1997, Government’s role. According to The Front Porch Alliance is an initiative Randolph, the government is good at that puts the full energy of the City of three things—convening, leveraging, and Indianapolis behind the community- highlighting. The churches are good at building work of churches, synagogues, translating these three things into mosques, neighborhood associations and human, personal dimensions—working other non-government, value-shaping door to door, street by street, neighbor- institutions—the organizations that are hood by neighborhood, giving people uniquely designed to support families, faith and hope. Working together, these provide activities for children, and facili- forces can learn from each other what tate community renewal. The Alliance is works best in dealing with neighborhood an outgrowth of the Neighborhood problems. From this learning process, Empowerment Initiative that looks to the private and public resources can be faith community to develop the civic matched to the neighborhood needs. virtue and values needed for communi- According to Isaac Randolph: ties and their citizens to succeed. "We leveraged every resource—sur- While citizens could see evidence of plus computers, furniture, the mayor’s repair to the physical infrastructure of power, the media, school partnerships, Indy, there was a social disconnect—the superior courts, Indianapolis police social infrastructure still needed repair. department, the prosecutor’s office, rela- Executive Director Isaac Randolph, a for- tionships, and dollars. We put $100,000 mer firefighter, described some of the on the table, and sparked substantial social challenges facing Indy—redlining, foundation investments. We emulated desegregation, economic segregation, the mayor in his processes. This is not a family disintegration, gangs, rising homi- white vision or a black vision. It is a cide rates, and the isolation of churches vision of a city of wholesome virtue. from one another. They give credit to us for helping reduce homicides, creating a new energy. We’re Building a more civil society. When working with the kids, looking at why the mayor invented the Front Porch they are in gangs. Most are followers, Alliance it was first called the "civility seeking commitment, structure, param- project," reflecting efforts to build a civil eters. We use that to foster leadership, society, rebuild the social infrastructure, opportunities, respect, and love. Kids and develop youth leaders. But to get want to do right. Few folks can argue people engaged in their communities, against effectiveness." the city sought a powerful symbol. The front porch—where families and neighbors gathered and looked after one another—embodied the sense of community the mayor hoped to foster. Thus the idea was born to initiate a "front porch" meeting place on every city block, where teams of local pastors, neighborhood leaders, and residents would work together to rebuild and strengthen their communities.

43 APPENDIX H: THREE NEIGHBORHOODS CASE STUDY

Our examination. The authors of this accountability for achieving visible, last- report focused on three specific inner- ing results. city neighborhoods—WESCO on the near westside, SUMO in the southeast, The Near Westside Cooperative and Mapleton–Fall Creek. To gain a sense Organization (WESCO) of different perspectives on these neighborhoods’ "before" and "after" stories, we Indianapolis’ near westside reflected spoke to Neighborhood Coordinators, many of the city’s urban ills—high crime, police officials, community-based organi- distrust of neighbors and of city hall, apa- zations, faith-based leaders, Community thy, lack of economic opportunity. As for- Development Corporation executives, mer WESCO president and current vice business leaders, city officials, and others. president, Olgen Williams describes it: We spoke to advocates and admirers, insiders and outsiders, and critics and "My neighborhood is a 50/50 racial cynics, to gain a deeper understanding of mix, and the sides used to throw rocks what we saw. at each other. There were cultural problems all over. It was pretty mixed up, We recognize that what we describe is and no one had any trust in the other." mostly impressionistic, and based on only a handful of interviews and third-party However, even with these circum- accounts in each neighborhood. We fur- stances, WESCO was viewed as a ther recognize that each neighborhood neighborhood with significant progresses at a different pace, and potential. Compared to other neighbor- achieves very different results, and we hoods, it began in a position of relative know that we did not examine neighbor- strength, and based on this strength, it hoods that had serious difficulty in meet- commanded twice the initial seed money ing these new challenges or developing as did other neighborhoods—$100,000 their local leadership. Some will say we rather than $50,000. WESCO has also gave short shrift to important initiatives, been involved in the Department of or that we failed to note with precision Justice’s Weed and Seed program, the every accomplishment or every failure, Department of Labor’s Youth Fair Chance and they will certainly be right. project, and in other local and regional initiatives. We hope that the summaries of selected experiences of WESCO, SUMO, and Neighborhood projects have focused Mapleton–Fall Creek might be instructive primarily on youth and seniors and to others seeking to improve their own crime prevention. Crime rates have circumstances, strengthen their commu- decreased, perhaps in part because of nities, rebuild their neighborhoods, sup- neighborhood initiatives to install addi- port their families, and engage individuals tional street lights, and to bring in private in shaping their own destiny. The experi- security patrol on weekends. The com- ences of these Center Township neigh- munity has implemented a broad range borhoods may point to some common of programming to reduce prostitution principles: the importance of providing and drug-use, combat domestic violence, access to City Hall and encouragement and educate citizens about HIV and AIDS. and support from it, and the impacts of a The neighborhood also provides activi- driving emphasis on customer-driven, ties for its residents of all ages, including results-driven, bottom-line outcomes— family nights, soap-box derbies, and tech-

44 nology enrichment. Olgen Williams zoning and health code violations and reports that these outreach activities are dire safety hazards. This small commu- especially valuable for children: nity had the highest death by fire in the city. After three pre-school aged children "Children have hope and they have died in a tragic house fire, the neighbor- leadership roles. We get them hooked on hood went up in arms. education and leadership before they get hooked on greed." Creating a more impressive track record. While this neighborhood tack- Partnerships and collaborations are led all of the usual challenges—crime continually being formed. As and relationships with the police, eco- described in a National Center for nomic development, pollution—its great- Neighborhood Enterprise report on est source of pride is its track record in "NCNE in Indianapolis: A Case History," code compliance (health and hospital WESCO (the umbrella organization in code compliance), zoning, and education. Near Westside comprising Haughville) Other initiatives include more than 250 has received approximately $55 million youth programs, 125,000 square feet of in grant funding, including $2.1 million community space, and five parks. in Weed and Seed money; $3.5 million Property values have appreciated; 70 from the Department of Labor; and $30 homes were bought, refurbished, and million from Housing and Urban sold. Since 1991, a total of $15 million Development (HUD) to build and rehabil- has been invested in revitalizing these itate homes and promote home owner- communities. ship. In addition, several new manufacturing plants have been built in the Building strong community partner- Haughville area, including a machine tool ships. Strong relationships have been company and a medical equipment com- forged among neighborhood residents, pany, as well as numerous retail busi- corporations, and educational institutions nesses. in these communities. For instance, universities have extended their vast Williams is hopeful of his neighborhood’s resources to neighborhood residents, and prospects and secure in its aspirations: local schools rely on the universities to inspire children to attend college. "We work with the Governor, and we Yvonne Margendant, Neighborhood will work with the new mayor. We want Coordinator for SUMO, spoke about part- to create more neighborhood busi- nerships that have brought about impor- nesses. We need to train more commu- tant neighborhood transformation: nity leaders. We have the safest city in the country for its size. My dream is to "We’ve developed rich relationships, be a national model. We’ve been at it partnerships in the neighborhood, and for seven years and it’s ongoing. We are with the schools and universities.…Our too strong to be cut out." residents did not have a positive image of education. People coming door to The Southeast Umbrella door from the schools never had good Organization (SUMO) news. It was assumed that kids would drop out at 16. Now for the first time, The near southeast neighborhood our kids are talking to these university describes itself as one of the neighbor- folks about college." hoods Indianapolis couldn’t kill off. One of the city’s oldest neighborhoods, it was Local corporations have also begun to isolated by the Interstate, ignored by pre- play a more significant role in the better- vious city administrations, and crippled ment of surrounding communities. by a crumbling infrastructure. Absentee Margendant spoke of one corporation’s landlords subdivided housing, creating efforts:

45 "We had houses in terrible condition. Fall Creek has just reinstated its Memo- We’ve had those houses torn down, randum of Understanding with the city, fixed up. Lilly’s volunteers (we call the police department, the neighborhood them Lillyhammers) come into our association, prosecutor, and health neighborhood to paint and repair department. This area has also forged houses. Our neighborhoods feel free partnerships between the Front Porch now to go directly to corporations, hold Alliance, Goodwill, the Raphael Health them accountable. Neighborhood pres- Center, and others to offer support to sure has developed into a fine tool." those currently or formerly involved in the criminal justice system. And according to Margendant, the SUMO area residents felt a new sense of Remaining challenges. Although many empowerment after they began holding positive strides have been made, eco- corporations responsible for their nomic development remains a challenge actions: for the Mapleton–Fall Creek community. According to Polin, the government does "We don’t accept pollution as easily not have record of 35 to 40 percent of as we used to. We had a pretty tena- economic transactions in the area, there- cious fight over an automobile shredder fore making it difficult to prove to new operation that would spit shrapnel and enterprises that the area is capable of effluent all over the neighborhood. supporting their business ventures. They dumped gas tanks in our alleys. You would be hard pressed to find those In addition, the Mapleton–Fall Creek here now." area, like all economically disadvantaged communities, has the need for extensive Mapleton–Fall Creek programming, especially for children and Neighborhood Association, Inc. youth. And according to Polin, the problems that are characteristic of poorer The story of Mapleton–Fall Creek is simi- neighborhoods must be addressed not lar to that of many inner-city neighbor- only by the city government, but by hoods—it was once grand, and has dete- neighborhood associations and private riorated over the years. Although many funders. He offers his solutions for com- Mapleton–Fall Creek homes are among munity revitalization: the oldest in the city, the cost of renovat- ing them had proved prohibitive. Debris "What works? Take organizations, and trash lined the streets. Crime was find their strengths, figure out who is rampant. doing what well, support them to continue to grow. Look to the private sec- New initiatives. Neighborhood initia- tor as much as possible. Use the tives have helped to ameliorate some of mayor’s office as a bully pulpit to go Mapleton–Fall Creek’s problems. out and find new resources." Residents, government agencies, and community organizations have worked together to build 100 new apartments, repair 250-300 homes, and rehabilitate and sell 15 new homes. Crime has been reduced. According to Al Polin, Coordinator of the Weed and Seed Initiative and Neighborhood Coordinator for Mapleton–Fall Creek, eight years ago, there was an average of one murder per week in Mapleton–Fall Creek, but in the last six months, only one murder has been reported. In addition, Mapleton–

46 APPENDIX I: NATIONAL COLLEGIATE ATHLETIC ASSOCIATION

An exciting move. In June 1997, the that has become a model for economic National Collegiate Athletic Association development in Indianapolis, we have (NCAA) announced its decision to relo- been assured of meeting our vision and cate its national headquarters to commitment of the national office with- Indianapolis. A voluntary association of out economic burden to the member- more than 1,200 collegiate athletic insti- ship." tutions, conferences, organizations, and individuals, the NCAA "is the organization A winning proposal. Although the through which the nation’s colleges and NCAA had been in the Kansas City universities speak and act on athletics metropolitan area for 48 years, the NCAA matters at the national level." The chose Indianapolis because its proposal Association’s decision to move to Indy would result in the greatest overall sav- has been hailed as a major victory for ings in operating expenses. Smith said in economic development in the "Amateur a press release, "We really struggled with Sports Capital of America." the disruption that the move to Indianapolis will cause in terms of staff The NCAA selected 13 cities to receive turmoil and service to the membership. requests for proposals, and then nar- But the Indianapolis proposal provides rowed the choices down to four semi- such significant long-term advantages finalists: Indianapolis, Kansas City, Dallas, that the Joint Policy Board determined and Denver, and then to two finalists: that they offset the short-term disrup- Indianapolis and Kansas City. tion."

The NCAA’s new headquarters building, According to the NCAA 2000 working Hall of Champions, research center, and group, the membership committee that library have brought some 300 jobs to evaluated cities’ proposals, the most the Indianapolis metropolitan region, expensive option, continuing to lease the with an annual payroll of more than $12 current space, would cost up to $54 mil- million. lion more than the least expensive option. In fact, the working group esti- An exemplary public-private part- mated that the Kansas City proposals nership. Indianapolis has also been ranged from saving only half of what praised for its successful public-private Indianapolis proposed to actually being partnerships. In this case, the Lilly more expensive than the NCAA’s current Endowment made a $10 million match- space. ing grant to the Indiana Sports Corporation (ISC), a private nonprofit Other factors that contributed to the organization dedicated to representing attractiveness of the Indianapolis pro- Indianapolis in the national and interna- posal were: tional sports marketplace. ISC received the $10 million only after raising $15 mil- Short-term gratification. The lion from private funding. "We asked all Indianapolis package provided incentives the cities that received the request for during earlier stages of the project. All of proposal to be creative in their the proposals from Kansas City only pro- response," Sam Smith, chair of the NCAA vided incentives that would take place Joint Policy Board, said. "Indianapolis after longer periods of time. certainly was. Through a combination of state, private, and philanthropic funding

47 Lower construction costs. The Although the new facility will benefit Indianapolis proposal did not require any other local businesses—suppliers, distrib- construction financing, but the Kansas utors, construction and maintenance, City area proposals included multi-mil- hospitality and tourism, and other service lion dollar, long-term financing for the industries—the NCAA’s presence will NCAA to cover the construction costs of also enhance the educational value of the both the headquarters facility and the State Park, which features educational Hall of Champions, resulting in annual- organizations including the NCAA’s Hall debt service costs. of Champions, the Eiteljorg Museum, IMAX Theater, the National Institute of Flexible agreement. While the Fitness and Sport, and the new State Indianapolis package required no long- Museum. term commitment from the NCAA, the Kansas City area proposals required the NCAA to make a 20-year commitment to remain in Kansas City. The penalty for breaking the commitment would be the loss of most of the Kansas incentive package.

Lower land-lease costs. Both of the most cost-effective Kansas City proposals included land-lease costs with market- driven rents. Although one Kansas City proposal included an open-ended lease, the other proposal required a 10-year lease. In contrast, the Indianapolis package required only an annual rent of $1 and an open-ended lease. The Indianapolis proposal also provided for lower parking space costs.

A benefit for all Indiana residents. State and city residents and leaders especially welcomed the NCAA because of its potential to increase the tourist and educational value of both the city and White River State Park, the actual location of the headquarters in the southwest cor- ner of downtown Indianapolis.

"You’ve all heard us talk about the many reasons this is good for Indiana," Indiana Governor Frank O’Bannon said in a press release. "With the NCAA here, that means we’ll host many of their committee meetings during the year and, hopefully, a few more cham- pionship events during the coming years."

48 BIBLIOGRAPHY

Crawford, Sue S. et al. “Turning Towards Neal,Terry M. "The Mayor Who’s Making Neighborhoods.” Center for Urban Bush’s Domestic Agenda." Washington Policy and the Environment: School of Post. 5 June 1999: A3+. Public Affairs, Indiana University. Publication No. 94U31. 1994. Office of the Mayor. The Indianapolis Experience: A Small Government "Dawn at the Meadows." Editorial. Prescription for Big City Problems. Indianapolis Star. 1 March 1995. 1997.

Elsner,Alan. "Bush Adviser: Churches to Osborne, David. “Review of The Twenty- Control Social Programs." Reuters. First Century City: Resurrecting Urban 27 August 1999. America by Stephen Goldsmith.” New Public Innovator. Winter 1999: 34-5. Goldsmith, Stephen. "Bureaucracy Shackles the Urban Poor." The Wall Street Osborne, David and Ted Gaebler. Journal, Midwest ed. 10 June 1992. “Reinventing Government: How the Entrepreneurial Spirit is Transforming the Goldsmith, Stephen. "Creating Public Sector.” Plume. 1992. Neighborhood Economies." Downtown Rotary Club Luncheon, Indianapolis. Penner, Diana. "Thirty-eight Percent 2 February 1993. Drop in Homicides Tied to Community Action." Indianapolis Star. 19 August Goldsmith, Stephen. "Mayor’s State of the 1999. Neighborhoods." Oasis of Hope Baptist Church, Indianapolis. 24 March 1997. Potapchuk,William R., Jarle P.Crocker, and Bill Schechter. "Systems Reform in Goldsmith, Stephen. The Twenty-First Two Cities: Indianapolis, Indiana, and Century City: Resurrecting Urban Charlotte, North Carolina." National America. Washington, DC: Regenery Civic Review. Fall 1998, 87: 213-225. Publishing. 1997. Potapchuk,William R. “The Transforma- "Housing Turnaround." Editorial. tive Power of Governance: Strength- Indianapolis Star. 19 July 1994. ening Community Capacity to Improve Outcomes for Children, Families, & Indianapolis Coalition of African- Neighborhoods.” Program for American Males. A Call to Action: Community Problem-Solving. 1998. Report to the City. 1992. Schneider, Mary Beth. "Peterson Wants Indianapolis Police Department. 1998 Parks to Appeal to Youths Again.” Annual Report. Indianapolis Star/News. 18 August 1999. King, Bill, ed. "Education Quotient ’98: Sizing Up the Labor Force." Expansion Schneider, Mary Beth. "Public Works Management: Ratings Issue. 1998: Union Throws Support to Gilroy." 1-12. Indianapolis Star/News. 17 August 1999.

49 Star Staff Report. "Ministries to Clean Six Parks Under New Deal With City." Indianapolis Star. 4 May 1995.

"Suing Nuisances." Editorial. Indianapolis Star. 4 April 1994.

Sword, Doug. "Lilly Couldn’t Refuse State’s Offer." Indianapolis Star. 18 August 1999.

"Welcome Turnaround." Editorial. Indianapolis Star. 29 July 1995.

Woods, Nicole Y. "Lack of a Crossing Guard Decried." Indianapolis Star/News. 18 August 1999.

INTERNET SOURCES

www.citystats.com www.morganquitno.com America’s Top-Rated Cities: A Statistical Morgan Quitno Awards: 5th Annual Handbook. Individual City Profile– America’s Safest and Most Dangerous Indianapolis. Universal Reference Cities List Publications, 1998 www.uwci.org www.easidemographics.com United Way of Central Indiana Quality of Life Report and Analysis– Indianapolis

www.iedc.com/stats.htm Indianapolis Economic Development Corporation

www.indianablackexpo.com Indiana Black Expo

www.indygov.org Official Web Site for the City of Indianapolis

www.money.com Money Magazine’s Best Places to Live 1998

50 INDIVIDUALS INTERVIEWED

We thank the following individuals for Marshall DePew sharing with us the Indy Story during Sergeant two site visits (August 23–26, 1999 and Indianapolis Police Department,West September 20–21, 1999) and by tele- District phone and e-mail. Unless otherwise noted, all individuals are located in Kim Derchak Indianapolis, Indiana. Former Director of Enterprise Development Donna Allen Department of Administration Rosemary Dorsa Office of the Mayor Vice President for Programs Central Indiana Community Foundation Shelby Anderson Vice President of Policy and Government J. June Dugan Relations Administrator Health and Hospital Corporation of Economic Development Division Marion County Department of Metropolitan Development Ellen Annala President and CEO Larry Gigerich United Way of Central Indiana President Indianapolis Economic Development Jerry L. Barker Corporation Deputy Chief Indianapolis Police Department,West Karen K. Glaser District Child Health & Welfare Liaison Office of the Mayor Donald A. Bender Lieutenant Stephen Goldsmith Indianapolis Police Department,West Mayor of Indianapolis District Angela J. Green, MSW Susan Brooks Director Deputy Mayor Neighborhood Alliance for Child Safety Office of the Mayor Beth A. Grigsby Dr.Virginia Caine Business Ombudsman Director of Public Health Economic Development Division Marion County Health and Hospital Department of Metropolitan Corporation Development

Moira M. Carlstedt Kelly Gulley President President Indianapolis Neighborhood Housing Indianapolis Private Industry Council Partnership Former Director of Department of John Hall Metropolitan Development Deputy Mayor of Neighborhoods Office of the Mayor

51 JoAnn Hartford Al Polin Public Scheduling/Ticket Event Coordinator Coordinator Weed & Seed Initiative Office of the Mayor Mapleton–Fall Creek Neighborhood Association, Inc. Leighton Haynes Principal Shirley Purvitis Twin Phoenix Marketing Community Policing Officer Indianapolis Police Department, South Charlene Hederick District Senior Executive Office of the Mayor Issac Randolph Executive Director James Higgs Front Porch Alliance President James Higgs Associates Lyman B. Rhodes Director Joseph R. Humkey Indianapolis Commission on African- Sergeant American Males Indianapolis Police Department,West District E. Mitchell Roob, Jr. President and Managing Partner Marty Irwin WREP (White River Environmental Manager of Operations Partnership) Indianapolis Water Company 2001 World Police and Fire Games Former Head of the Department of Former Special Assistant to the Mayor Transportation

Byron Jensen Peter Rusthoven Vice President of Human Services Partner Goodwill Industries of Central Indiana Barnes & Thornburg

Joe Loughmiller Sherry Seiwert Public Information Officer Program Director Office of the Mayor Local Initiatives Support Corporation (LISC) Dr. David Mamlin President Nancy Silvers-Rogers Indiana University Medical Group Consultant Silvers & Associates, Inc. Jeff Marble Former Deputy-Mayor of Neighborhoods Executive Director Mapleton–Fall Creek Community Joseph A. Slash Development Corporation Vice President Community & Corporate Effectiveness Yvonne Margedant Indianapolis Power & Light Company Neighborhood Coordinator Southeast Umbrella Organization Bill Stanczykiewicz Executive Director Tim L. Martin The Indiana Youth Institute Deputy Chief Former Policy Director for Community Indianapolis Police Department, South Renewal District Front Porch Alliance

52 William B. Stephan Chief of Staff and Special Counsel Office of the Mayor Former Indianapolis Private Industry Council President

Mark R. Stokes Executive Director Westside Community Development Corporation

William Styring Senior Fellow The Hudson Institute

William G.Taft Executive Director Southeast Neighborhood Development (SEND)

Clara Warner Weed & Seed Mapleton–Fall Creek Neighborhood Association

Clay Whitmire Director of Applied Technology Department of Capital Asset Management

Mike Williams Chief Financial Officer Department of Capital Asset Management

Olgen Williams Executive Director Christamore House

David Woodrupp Board President Mapleton–Fall Creek Neighborhood Association, Inc.

Robert Woodson President National Center for Neighborhood Enterprise Washington, DC

We also interviewed several other individuals who preferred to remain anonymous.

53 701 St. Paul Street Baltimore, MD 21202 410.547.6600 410.547.6624 fax www.aecf.org

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