No doubt, Gov. Mitch Daniels' administration will trumpet the fact that Indiana was the ninth-fastest-growing state in the first quarter of this year. That's right; personal income in the Hoosier state grew at an annual rate of 5.1 percent while the nation advanced by 4.6 percent.

But, as noted by the U.S. Bureau of Economic Analysis, which generates these data, Indiana was among the faster growing states because of dramatic increases in the prices of corn and soybeans. State government deserves no credit for the explosion of commodity prices.

Of course, Jill Long-Thompson and the Democrats will search through the same data to find negative truths and use them to accuse the Daniels administration of grave neglect of the Indiana economy.

However, it is foolish to believe that any governor, any administration has much influence on the state's economy. The state government can do little to keep our auto manufacturers and their suppliers competitive. At best a state government's policies can be effective in the long-term and in limited areas.

These areas include, first, education. What is required is emphasis on imagination, initiative, ideas, ideals and inspiration. This is possible if students can read effectively and have a fundamental knowledge of history. We should be less concerned about ISTEP scores, graduation rates, and college attendance. We should enhance the capabilities of students to be independent citizens whenever they leave school.

Second, the state can promote modernization and efficiency by maintaining superior infrastructure. Major Moves, a highway reconstruction program made possible by leasing the Indiana Toll Road, was truly a major move. It put funds to work that can bring Indiana's highways into the latter part of the 20th century. The opposition of a few vocal citizens to this innovative step is based either on a misunderstanding of reality or partisan stubbornness.

But we cannot rest. Our cities must reclaim their environmentally damaged land and restore or replace unused structures. If Indiana is to be competitive, it cannot attract or retain entrepreneurs with antiquated, shabby communities.

Third, local governments must be liberated from the serfdom imposed by the megalomania of the General Assembly. As long as 150 legislators dictate how localities function, as long as an anti-urban philosophy retards progressive government, Indiana has little hope of prospering.

In this decade, 77 percent of Indiana's population growth has occurred within our cities and towns. But much of that is sub-urbanization. Nine of our 10 most populous cities together lost 30,300 citizens while Fishers, Noblesville, Plainfield, Westfield, St. John, Brownsburg, Greenwood, Carmel, Zionsville and Crown Point grew like cankers.

These three areas of concern are appropriate challenges for the gubernatorial candidates. But do the political parties and the major office seekers from Argos, Bedford, and English understand that our urban needs are our state's priorities?

Opinions expressed solely are those of the writer. Morton Marcus is an economist, author and speaker formerly at the Kelley School of Business, Indiana University. He can be reached at mortonjmarcus@yahoo.com.