Hoosiers grow richer in 2002

Indiana fared better than the nation in personal income growth last year, but nevertheless dropped one spot in the national rankings for personal income.\nIncome rose 2.6 percent in Indiana in 2002, compared with 1.7 percent for the nation, according to U.S. Bureau of Economic Analysis figures released Wednesday.\nIn Indiana, per-capita income rose from $27,522 in 2001 to $28,240 last year, but the state's ranking in personal income fell from 31st to 32nd. The nation averaged $30,941 in 2002.\nMost of Indiana's 2002 gains came from earnings in construction and service jobs.\nPersonal income includes earnings, rental income, dividends, personal interest and transfer payments.\nBall State University economist Pat Barkey said Indiana's income growth outpaced the nation's last year primarily because California and other states with big economies suffered.\n"It's a bad year to try to assess whether long-term trends are changing," Barkey said.\nAn analysis released last year by the Indiana Fiscal Policy Institute found Indiana's ranking in per-capita income has fallen steadily since 1965, when the state was 17th in the country.\nThe report from the nonpartisan research organization also found Indiana's income fell from 99.99 percent of the national average in 1965 to 91.1 percent in 2000.