Voluntary regional consolidation can deliver what corporate project teams value most: predictability, speed and scale. Indiana’s experience and international models show how optional, capacity-building frameworks make regions more investable.

A generation ago, the state of Indiana undertook a comprehensive analysis of local government structures through the Kernan-Shepard initiative, convened by then-Governor Mitch Daniels. This effort, led by a distinguished group of Indiana leaders, aimed to modernize local governance through consolidation. While fiscally motivated and well-intentioned, the initiative faltered due to misalignment with local autonomy and political self-interest — critical considerations in any governance reform. The initiative addressed financial concerns during the property tax crisis impacting the state 15-20 years ago, but overlooked operational and administrative dimensions, a gap that continues to challenge local governance today.

Prior to Kernan-Shepard, Indianapolis and Marion County implemented Unigov under Mayor Richard Lugar in the late 1960s, consolidating city and county services to create a more efficient administrative structure. Though not a full consolidation, Unigov improved regional planning and economic development while preserving local identity. This foundational work should be revisited and expanded to meet the expectations of 21st-century taxpayers. 

Click here to read the full article written by Sebastian Smelko and published in Area Development.