INDIANAPOLIS – A report comparing Indiana's potential for economic growth to other states shows worrisome signs amid progress.

Reduced taxes and relaxed regulations are boosting the state's reputation as being business friendly, according to the report card released by the Indiana Chamber of Commerce on Thursday.

But Indiana still has a poorly educated workforce that smokes and eats too much, the group found.

The report card scored the state in 59 areas, from student test scores to Internet access.

“Keeping score is essential to evaluating the state’s advancement,” said Chamber President Kevin Brinegar, who called on policymakers to do more to boost prosperity across the state.

Among the report's good news: A post-recession return of manufacturing jobs has lessened the number of Hoosiers living in poverty compared to other states.

Among the bad: Venture capital invested in Indiana is shrinking, and the portion of adults launching new businesses has plummeted since the chamber's last report card two years ago, putting Indiana in the bottom five states in an index that measures entrepreneurship.

Also, nearly one-third of adults are obese, making Indiana fatter than 41 other states.

Smoking rates – a concern for employers who worry about healthcare costs – are still high, with almost 22 percent of the population lighting up.

But that pulls the state, for the first time, out of the bottom 10 states with the highest smoking rates.

Brinegar sees that as a small victory, following the passage of statewide smoking ban three years ago.

“It means we’re making some progress,” he said.

There’s also progress on closing the gap on test scores between affluent and at-risk students in the early grades. Indiana now ranks tenth in narrowing the gap on reading scores, though the gap appears to be widening in math scores.

Also troublesome is a lack of progress on boosting education levels among adults. Indiana ranks 45th for the percent of its population over 25 with an associate's degree or higher.

Only 30 percent of Indiana residents have a college degree. Colorado leads the nation with 46 percent.

Brinegar said those low numbers are worrisome given attempts to attract higher wage jobs that require more schooling.

“This helps us sharpen our focus on what we need to do,” he said.

The report will be presented to lawmakers and distributed at a series of regional forums this summer.

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