Locked Out or Lifted Up? The Dynamics of Regional Development Funding in New York

April M. Roggio, Mariana Torres Koutsopoulos, Jason Evans, Seunghwa Kim, In Hae Noh and Luis Felipe Luna Reyes ()
Additional contact information
April M. Roggio: Center for Policy Research, University at Albany, State University of New York, Albany, NY 12222, USA
Mariana Torres Koutsopoulos: Center for Environment, Community, and Equity, American University, Washington, DC 20016, USA
Jason Evans: College of Food Innovation and Technology, Johnson and Wales University, Providence, RI 02903, USA
Seunghwa Kim: Rockefeller College of Public Affairs and Policy, University at Albany, State University of New York, Albany, NY 12222, USA
In Hae Noh: Rockefeller College of Public Affairs and Policy, University at Albany, State University of New York, Albany, NY 12222, USA
Luis Felipe Luna Reyes: Rockefeller College of Public Affairs and Policy, University at Albany, State University of New York, Albany, NY 12222, USA

Sustainability, 2025, vol. 17, issue 21, 1-20

Abstract: New York State’s Regional Economic Development Councils (REDCs) were created to support sustainable, equitable, community-driven growth by distributing state funding across diverse regions. While allocations are geographically widespread, our research suggests that structural features of the REDC model may unintentionally reinforce disparities in local capacity and limit long-term impact, particularly in rural and under-resourced communities. This paper asks: To what extent does the REDC model reinforce or reduce disparities in economic development funding? Using qualitative system dynamics, specifically causal loop diagramming, and drawing on public data of RECD funding, interviews with municipal leaders, and public administration theory we examine systemic patterns that shape which municipalities repeatedly secure funding, and which remain excluded, identifying reinforcing and balancing processes that explain such systemic patterns. Key feedback structures include: the Capacity-Investment Loop, where high-capacity communities grow increasingly competitive over time; the Need-Funding Mismatch Loop, where administrative burdens block access for distressed communities; and the Collaboration Loop, which shows how competition can disincentivize shared regional strategies. These loops highlight how program structure—not just intent—shapes outcomes. Our findings suggest that, while the REDC model is intended to promote fairness and efficiency, it risks reproducing the disparities it seeks to address. Adjustments that strengthen regional collaboration, support capacity-building, and align funding with community need may help advance more inclusive and sustainable economic development.

Keywords: collaborative governance; economic development; economic development councils; administrative burden; causal loop diagrams; entrepreneurial ecosystems (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/17/21/9507/pdf (application/pdf)
https://www.mdpi.com/2071-1050/17/21/9507/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:17:y:2025:i:21:p:9507-:d:1779662

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().