While Pennsylvania has suffered less than the nation in thisdownturn, according to the report, the area has still lost some48,000 jobs over the last 12 months. Pennsylvania's unemploymentrate has risen from 4% to 5.4% since its low point in March2000.

One of the report's key recommendations to revitalize cities,inner suburbs, and towns is to adopt "smart-growth policies."Specifically, the report calls for strengthening regional planning,implementing regional tax-based sharing, using state infrastructureand transportation dollars to combat urban and inner suburbandecay. The report also callsfor more state funding for education tohelp stem the flight of population from overtaxed communities withcash-poor schools.

"Across the board," says KRC Policy Analyst and report authorDavid Bradley, "we need to reverse the `dumb growth' state policiesthat now accelerate the downward spiral of Pennsylvania cities,towns, and inner suburbs."