Photo Credit: Shutterstock.com/Alexander Lukatskiy
By Egon Terplan
California’s economy continues to lead the nation — but its success has often been driven by accidents of history rather than deliberate, coordinated strategy. From the Gold Rush to Silicon Valley, California’s prosperity has emerged through moments of opportunity rather than a durable, long-term system of economic development.
That’s beginning to change. Over the past several years, the state has launched ambitious efforts such as California Jobs First, K–16 Collaboratives, and the Master Plan for Career Education, signaling a shift toward more intentional coordination between workforce, education, and industry development. These initiatives are an important foundation. But to achieve sustained, equitable growth, California needs a system that endures beyond any one administration — a “regions-up” model where state policy, funding, and regional priorities are fully aligned.
To help chart this path, CA FWD studied how other states structure durable, regionally based systems for economic development. The resulting white paper, Learning from Other States, explores how states like Indiana, Michigan, New York, North Carolina, Ohio, Oregon, and Pennsylvania have built models that can inform California’s next chapter.
What Other States Can Teach Us
Indiana – Regional Development Authorities (READI)
Indiana empowers self-defined regions to plan and implement development through Regional Development Authorities. The state funds these regions directly — but only if they bring significant local and private matching dollars — reinforcing shared ownership and measurable outcomes.
Michigan – Regional Prosperity Initiative
Michigan’s Prosperity Regions improved coordination between economic, workforce, and infrastructure planning. Though funding ended after several years, the framework helped institutionalize a regional lens across state programs, showing how modest investments can strengthen alignment.
New York – Regional Economic Development Councils (REDCs)
New York created ten permanent Regional Economic Development Councils with annual state funding tied to regional priorities. A Consolidated Funding Application streamlines access to multiple state programs, ensuring that funding decisions reflect regional plans and long-term strategy.
North Carolina – Prosperity Zones
North Carolina’s eight Prosperity Zones co-locate state agency offices for Commerce, Transportation, Environmental Quality, and Workforce Development, bringing state expertise closer to communities and improving coordination between state and regional initiatives.
Ohio – JobsOhio
A quasi-public corporation funded by liquor profits, JobsOhio provides long-term, independent funding for economic development and works through seven regional partners. The model offers durability and flexibility though with ongoing debates about transparency.
Oregon – Portland Metro
Oregon’s Metro government coordinates regional land-use and transportation planning under state law. Its shared authority ensures alignment across jurisdictions while maintaining local autonomy — a model of cooperative, rather than centralized, governance.
Pennsylvania – Ben Franklin Technology Partners
A state-funded network of four regional innovation centers, Ben Franklin Technology Partners supports startups and early-stage companies. The program’s consistent funding has generated billions in economic returns, proving the long-term value of state support for regional distinctiveness and investment in innovation.
Seven Lessons for California
- Unify economic development under one agency.
A single, durable entity (building on GO-Biz) could align funding across state programs and articulate a clear statewide strategy. - Establish formal state–regional relationships.
Regional “arms” for state economic development could bridge statewide goals with local implementation and accountability. - Adopt consistent regional boundaries.
Align regional workforce, education, infrastructure, and economic development activities by using the same set of regional boundaries. - Create regional economic councils with dedicated funding.
Standing councils or authorities would provide continuity, cross-sector leadership, greater transparency for action, and shared responsibility. - Improve transparency and data sharing.
Develop a unified, open data platform to track outcomes and inform state–regional coordination. - Provide reliable annual funding.
Replace one-time grant cycles with multi-year, predictable investments tied to regional plans. - Expand regional financing tools.
Enable regions to use flexible tools and mechanisms such as tax increment financing (TIF) and pooled revenue tools for strategic investments.
A Call to Build What Lasts
California has the innovation, talent, and resources to lead the nation in creating a durable system of regional economic development. The following white paper provides some lessons from peer states about how to align state and regional priorities, provide consistent funding, and empower regions to become investment ready. By applying some of these lessons, California can ensure that every community contributes to — and benefits from — shared prosperity.
Read the full white paper, “Learning from Our Peers: Lessons and Case Studies On Regional Economic Development from Various US States” here.
