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Stephen Goldsmith


Stephen Goldsmith (born December 12, 1946) is an attorney, , and professor of urban policy who served as mayor of from 1992 to 2000. During his tenure, Goldsmith implemented aggressive of city services, reduced , held the line on taxes, and fostered public-private partnerships, earning recognition as one of the nation's most innovative municipal leaders and Public Official of the Year from Governing magazine in 1995. These reforms contributed to being ranked among the best-managed cities by Financial World and positioned the city as a model for entrepreneurial .
Goldsmith began his political career with an upset victory as Marion County prosecutor in 1978 before ascending to the mayoralty, where he continued downtown revitalization efforts initiated by predecessors. After leaving office, he advised the administration on efficiency initiatives, served as for operations in from 2010 to 2011 under —focusing on data-driven management and cost-cutting—and later became the Professor of Urban Policy at , directing programs on data-smart city solutions. His career has emphasized empirical performance metrics over regulatory expansion, though critics have attributed some fiscal gains to increased debt rather than pure innovation.

Early Life and Education

Family and Upbringing

Stephen Goldsmith was born on December 12, 1946, in , , to Joseph F. Goldsmith and Marjorie Ann Holmes. He had one sibling, a sister named Julie Goldsmith. Goldsmith grew up in , where his parents divorced in 1973. His mother, Marjorie Ann Holmes Goldsmith, died on November 1, 2015, at age 92 from . He attended in , graduating in 1964.

Academic Background and Early Accomplishments

Goldsmith earned an A.B. degree from in 1968. He received an honorary Doctor of Laws from the same institution in 1993. Goldsmith subsequently attended the , where he served as Associate Editor of the University of Michigan Law Review and graduated with a J.D. degree with honors in 1971. Among his early accomplishments, Goldsmith attained the rank of as a youth, later receiving the from the .

Marion County Prosecutor Tenure

Stephen Goldsmith entered by winning as Marion County Prosecutor in November 1978, defeating Democratic incumbent Judge Andrew Jacobs Sr. in a narrow upset victory. He took office on January 1, 1979, and was reelected in 1982, serving a total of twelve years until 1990. During this period, Goldsmith, a , focused on enhancing prosecutorial efficiency amid rising urban crime rates in , the . A key achievement of Goldsmith's tenure was the modernization of the county's infrastructure through advanced . His office implemented an integrated data system linking , courts, prosecution, and , which was reported as the most sophisticated of its kind in the United States at the time. Marion County became the first jurisdiction nationwide to achieve full of criminal justice data, enabling faster case processing, better , and improved coordination among agencies. Goldsmith drew on into career criminals and selective incapacitation strategies to prioritize high-impact prosecutions, aiming to reduce through targeted enforcement rather than volume alone. Goldsmith's office handled notable cases, including the investigation of the 1978 , a quadruple that occurred shortly after his and drew national attention for its brutality and unsolved status. He also pursued legal actions to enforce state laws, such as challenges to decisions on prosecutorial authority, reflecting a commitment to streamlined judicial processes. These efforts established Goldsmith's reputation for innovative, data-driven governance, which he later applied in higher office, though his prosecutorial record drew limited contemporaneous criticism in available records. Goldsmith resigned in 1990 to pursue the mayoralty.

State and Local Political Campaigns

1988 Lieutenant Gubernatorial Election

In the primary for held on May 3, 1988, John Mutz emerged victorious, securing the nomination after incumbent Robert D. Orr reached term limits. Shortly thereafter, Mutz selected Stephen Goldsmith, then serving as Marion County Prosecutor since 1982, as his for , citing Goldsmith's prosecutorial experience and reputation for candor to bolster the ticket's appeal in urban areas like . The Mutz/Goldsmith campaign emphasized continuity with the administration's economic policies, while Goldsmith highlighted his record in combating crime and critiqued Democratic nominee as ideologically liberal despite moderating his image to attract moderate voters. In a debate with Democratic lieutenant gubernatorial candidate , Goldsmith accused Democrats of prioritizing special interests over broad agricultural concerns, positioning the Republican ticket as more attuned to rural economic needs. On November 8, , the general saw the Democratic ticket of Bayh and O'Bannon defeat Mutz and statewide, with the s garnering 1,002,207 votes (46.82%) to the Democrats' 1,138,574 (53.18%), a margin of 136,367 votes that ended two decades of continuous control of the governorship. The loss reflected a broader Democratic surge in amid national trends favoring Michael Dukakis's presidential bid, though Dan carried the state in the concurrent and presidential races. Despite the defeat, Goldsmith's elevated his profile, paving the way for his subsequent successful mayoral bid in .

1996 Gubernatorial Election

In the primary for the , held on May 7, 1996, Goldsmith secured the nomination with 55% of the vote, defeating Marion County Prosecutor Rex Early, who received 37%, and other minor candidates. As mayor since 1992, Goldsmith campaigned on his record of municipal reforms, including of public services and reduction initiatives, positioning himself as a pragmatic conservative capable of applying local successes statewide. Goldsmith selected George Witwer as his , emphasizing fiscal discipline and government efficiency in the general election against Democratic Frank O'Bannon, who had the advantage of incumbency in the executive branch and the open seat left by term-limited Democratic Governor . The campaign highlighted contrasts between Goldsmith's entrepreneurial governance model and O'Bannon's focus on funding and rural economic concerns, amid a national push following the congressional gains. Despite Goldsmith's strong urban base and endorsements from business leaders, polls indicated a tight in the traditionally Republican-leaning state. On November 5, 1996, O'Bannon defeated Goldsmith by a margin of approximately 100,000 votes.
CandidatePartyVotesPercentage
/ Joseph KernanDemocratic1,087,12851.52%
Stephen Goldsmith / George Witwer986,98246.78%
/ Mark NejezchlebaLibertarian36,5761.73%
Total votes: 2,110,686. Goldsmith conceded the following day, attributing the loss to Democratic turnout in rural areas and O'Bannon's appeal as a steady Democrat. The defeat ended Goldsmith's immediate statewide ambitions but solidified his reputation within circles for innovative policy approaches.

Mayoral Administration in Indianapolis

Governance Reforms and Innovations

During his tenure as mayor of from 1992 to 1999, Stephen Goldsmith implemented a series of reforms centered on managed competition, , and performance-based to enhance and reduce costs without raising taxes. These initiatives treated city services as marketable, pitting public employees against private bidders in over 80 competitions for contracts covering refuse collection, vehicle , and other operations, which yielded savings exceeding $400 million. was introduced to precisely measure service delivery expenses, enabling data-driven bids and fostering a culture of where underperformance risked . Privatization efforts extended to specific services, such as contracting sewer billing to the Water Company, which saved an estimated $1.8 million annually, and the nation's largest municipal airport privatization at the time. Overall, these measures reduced the non-public-safety workforce by 30%—eliminating around 4,000 positions—and cut operating costs by $125 million, allowing reinvestment into without new property taxes. The reforms accrued approximately $480 million in budget savings over eight years through straight-line projections from competitive sourcing. Goldsmith also pioneered early use of for , deploying systems to connect directly with 4,000 employees, bypassing hierarchical layers to accelerate and information flow. Regulatory reforms followed a 1991 business survey revealing excessive as a barrier to growth, leading to streamlined permitting and reduced compliance burdens that supported economic revitalization. Public-private partnerships transformed downtown areas, funding over $1 billion in infrastructure while holding taxes steady, though critics noted challenges like initial union resistance and prosecutorial scrutiny of contract processes. These innovations positioned as a model for entrepreneurial , with empirical gains including a drop in from 5.9% to 3.8% amid neighborhood-focused investments exceeding $500 million.

Economic and Fiscal Achievements

Upon taking office as mayor of in January 1992, Stephen Goldsmith inherited a municipal budget that was $20 million out of balance. He promptly balanced the budget through spending reductions and operational efficiencies, including annual cuts to the overall city budget throughout his tenure from 1992 to 1999. These measures reduced operating costs by approximately $125 million and shrank the non-public safety workforce by 30 percent, from 4,650 to 3,400 employees, even as the city's population grew by 50,000 residents. A core strategy involved and managed competition, where city departments bid against private firms for service contracts, yielding savings of over $400 million across more than 80 initiatives. These efficiencies enabled tax reductions, with property tax rates cut three to four times during his administration. Reinvested savings funded $800 million in improvements, including roads, bridges, sewers, sidewalks, and parks, without increasing or taxes beyond rate adjustments. Overall, these fiscal reforms transformed from structural deficit to sustained budgetary discipline, with projected savings reaching $480 million over eight years based on pre-privatization baselines. Critics noted that rising property assessments partially offset rate cuts, leading to higher nominal tax collections in some years, though per-capita fiscal burdens declined relative to service enhancements.

Public Safety and Criticisms

During his tenure as mayor of from 1992 to 1999, Goldsmith prioritized public reforms, drawing on his prior experience as Marion County . He expanded by deploying an additional 117 officers to street patrols in 1993, increasing the department's patrol strength by 20 percent. These efforts included reallocating savings from workforce reductions—non-public safety employees were cut by 30 percent, yielding about $125 million in operating cost reductions—to bolster resources, such as streets, sewers, and investments. Goldsmith also supported initiatives like the Indianapolis Violence Reduction Partnership, which aimed to address rising homicides through targeted interventions. Despite these measures, crime outcomes drew significant scrutiny. The city's rate nearly doubled, rising from 10.2 per 100,000 residents in 1990 to 20.1 in 1998, contrasting with national trends where many urban areas saw substantial declines. Overall crime rates in increased modestly during Goldsmith's terms, performing less favorably than comparable midsize cities amid the downturn in U.S. urban violence. Critics attributed the elevated violence to insufficient focus on underlying issues in neglected neighborhoods, with some arguing that Goldsmith's emphasis on downtown revitalization overlooked "not-so-trendy sections" of the city. His aggressive push for policing changes initially met resistance from the , as officers adapted slowly to community-oriented models under a hard-driving . While Goldsmith projected for eventual drops in murder rates based on prosecutorial precedents, the persistent rise fueled perceptions that structural reforms alone did not yield timely safety gains. Local observers noted that, despite fiscal efficiencies freeing funds for safety, the administration's metrics prioritized cost savings over measurable violence reductions in high-risk areas.

Privatization Initiatives and Controversies

Goldsmith's administration in Indianapolis (1992–2000) emphasized privatization as a core strategy to introduce competition, cut costs, and streamline operations, treating the city as a testing ground for such reforms. He pledged during his 1991 campaign to privatize up to 25 percent of municipal functions, excluding police and fire services, and established the Special Efficiency and Leadership Team (SELTIC) commission, which involved entrepreneurs and volunteers in identifying over 60 areas for potential savings through outsourcing and public-private partnerships. Over 80 services were opened to competitive bidding between city departments and private firms, leading to the outsourcing of about 60 operations, including wastewater treatment (contracted to United Water), refuse collection, vehicle towing, animal control, public golf courses, sewer billing, microfilming, disabled transit, and even the 2,200-job Naval Air Warfare Center. These initiatives generated substantial fiscal benefits, with immediate savings of $41 million from initial contracts and cumulative reductions estimated at $400–480 million over eight years, enabling $1.3 billion in and neighborhood investments while shrinking the workforce by about 35 percent and lowering the burden. Goldsmith applied a "Yellow Pages test" to evaluate s—if the provided them, the would competitively source or eliminate them—fostering a performance-based culture that prioritized results over traditional public . Privatization efforts drew significant opposition, particularly from unions and civil rights groups concerned about job losses and equity. The American Federation of State, County and Municipal Employees union resisted, fearing displacement of public workers, while Urban League and leaders protested that 28 percent of affected positions were held by minorities, potentially exacerbating employment disparities in a city with substantial and low-income populations. Contract irregularities sparked formal scrutiny, including Marion County prosecutor's office probes into alleged bidding law violations, state wage underpayments (such as "ghost patrolling" by contractors), and environmental regulation breaches in privatized operations; a 1997 grand jury examined claims of malfeasance involving Goldsmith and independent contractors, but no charges or prosecutions ensued. Critics like former mayor William Hudnut contended the reforms dismantled essential public services, and some attributed a surge in vendor political donations to the competitive contracting environment, though Goldsmith maintained that competition, not outright privatization, drove improvements without inherent corruption. Later analyses of specific deals, such as wastewater management, highlighted risks of long-term cost overruns or service quality issues under private operators, underscoring debates over privatization's sustainability versus short-term gains.

Federal and Municipal Advisory Roles

Domestic Policy Advisor under George W. Bush

Stephen Goldsmith served as chief domestic policy advisor to 's presidential campaign in 2000, where he shaped key elements of the candidate's platform on urban policy, , and government efficiency. Drawing from his experience as mayor of , Goldsmith advocated for "compassionate conservatism," emphasizing partnerships between government and private or faith-based organizations to address social issues rather than expanding federal bureaucracy. He influenced proposals for charter schools to enhance educational choice and initiatives to leverage technology for better service delivery and engagement. Following Bush's election, Goldsmith was appointed Special Advisor to the on faith-based and not-for-profit initiatives in early 2001, contributing to the establishment of the White House Office of Faith-Based and Community Initiatives on January 29, 2001. In this capacity, he promoted policies enabling religious and community groups to compete for federal social service grants, aiming to increase efficiency and effectiveness in areas like alleviation and neighborhood revitalization by tapping into local, voluntary efforts. Goldsmith also worked to integrate these initiatives with the Corporation for National and , facilitating collaboration between federal programs and nonprofit sectors. His advisory role extended to broader domestic reforms, including the use of digital tools to aggregate information and empower citizens, aligning with Bush's vision for modernized governance. Goldsmith's efforts underscored a causal approach prioritizing empirical outcomes from decentralized service delivery over centralized mandates, though implementation faced challenges from congressional resistance to altering grant allocation processes.

Deputy Mayor of New York City

In June 2010, Stephen Goldsmith was appointed Deputy Mayor for Operations by New York City Mayor , succeeding Edward Skyler in overseeing key operational agencies including the , , , and Office of Emergency Management. His role emphasized enhancing government efficiency through data-driven strategies and reducing bureaucratic hurdles, drawing on his prior experience as mayor of where he implemented similar reforms. Goldsmith spearheaded the NYC Simplicity initiative, launched to streamline regulations and processes for businesses, nonprofits, city employees, and residents, aiming to cut administrative complexity and foster . Under his oversight, the administration advanced shared services programs, including vehicle and sharing across agencies to lower costs and improve coordination. He also promoted tools for employee input on efficiencies and platforms to identify operational improvements. Goldsmith resigned on August 4, 2011, citing a desire to return to his position at , though the announcement followed a July 30, 2011, in Washington, D.C., on suspicion of simple assault stemming from a heated argument with his wife at their home. His wife had summoned police amid the dispute, reporting back pain but refusing medical treatment; Goldsmith was released after two days in custody, and prosecutors later declined to pursue charges, absolving him of wrongdoing. The administration faced criticism for not disclosing the at the time of resignation, with Goldsmith stating it was unrelated to his performance, while his wife described it as the overriding factor in his decision to step down.

Post-Elected Career

Private Sector Engagements

Following his tenure as mayor of , Goldsmith joined (ACS), a and firm, as Senior Vice President for Strategic Initiatives and , focusing on solutions for state and local governments. In this role, he advised on integration and efficiency improvements, drawing on his mayoral experience with and competition. Goldsmith also served as a partner at Knowledge Universe, an investment firm chaired by that targeted sectors, including internet-based learning platforms, day care services, and companies. His involvement there, spanning the mid-2000s, aligned with the firm's emphasis on innovative ventures amid growing demand for technology-driven alternatives to traditional public schooling. After resigning as of in August 2011, Goldsmith transitioned to McKenna Long & Aldridge, a -based international law firm, as a senior strategic adviser specializing in finance and public-private partnerships. This position enabled him to consult on financing models for urban projects, building on his prior advocacy for competitive government contracting. In recent years, Goldsmith has held a directorship at Monument Circle Acquisition Corp., a (SPAC) formed to pursue , particularly in sectors amenable to his government operations expertise. Appointed around 2021, this role involves board oversight of investment strategies in a blank-check entity aimed at public markets entry.

Academic and Intellectual Contributions

Goldsmith serves as the Professor of the Practice of Urban Policy at , a role that leverages his governmental experience to inform teaching and research on urban administration. In this capacity, he has emphasized practical applications of data analytics and in municipal operations, advocating for models that integrate private-sector efficiencies with public accountability. As director of Data-Smart City Solutions within Harvard's Bloomberg Center for Cities, Goldsmith has advanced initiatives promoting evidence-based urban policy, including the use of for service delivery and citizen platforms to enhance . This , established under his leadership, has produced case studies and tools for cities worldwide, focusing on scalable innovations like sensor-driven and algorithmic in budgeting. Previously, he directed the Innovations in American Government at Harvard, which evaluated and disseminated successful public-sector reforms, awarding grants to projects demonstrating measurable outcomes in efficiency and equity. His intellectual contributions center on "networked governance," a framework positing that traditional hierarchical bureaucracies must evolve into collaborative ecosystems involving governments, nonprofits, and businesses to address complex urban challenges. In Governing by Network: The New Shape of the Public Sector (2004, co-authored with ), Goldsmith argues that public managers must master relational skills over command-and-control tactics, citing empirical examples from Indianapolis's efforts as prototypes for broader adoption. This work, published by the , underscores causal links between inter-organizational partnerships and improved fiscal performance, supported by data on reduced costs and faster service times. Subsequent publications build on this foundation. The Responsive City: Engaging Communities Through Data-Smart Governance (2013, co-authored with Susan Crawford) details how portals and civic hacking can foster , with quantitative evidence from pilot programs showing up to 30% increases in public input on decisions. In A New City O/S: The Power of Open, Collaborative, and Distributed Governance (2017), Goldsmith proposes an "operating system" for cities emphasizing modular, tech-enabled platforms that decentralize authority while maintaining oversight, drawing on metrics from global implementations to claim reductions in administrative silos by 20-40%. These texts, grounded in first-hand experimentation, critique rigid statutory frameworks for impeding adaptability, prioritizing causal analyses of technology's role in outcomes over ideological prescriptions. Goldsmith's scholarship has influenced academic discourse on , with his models cited in peer-reviewed studies on and adopted by institutions like the for capacity-building in developing cities. Through these efforts, he has bridged empirical urban data with theoretical reforms, consistently verifying propositions against performance indicators rather than anecdotal successes.

Ongoing Advocacy for Data-Driven Governance

Goldsmith serves as the Derek Bok Professor of the Practice of Policy at , where he directs Data-Smart City Solutions, a initiative focused on leveraging data analytics, platforms, and emerging technologies to enhance efficiency and citizen engagement. Launched under the Center for Cities, the program collaborates with municipalities to implement data-driven strategies, such as for service delivery and performance metrics for accountability, drawing from Goldsmith's prior experiences in and . In this capacity, Goldsmith advocates for the integration of and generative AI tools into to foster evidence-based , emphasizing reduced through algorithmic while maintaining human oversight in complex urban challenges. He has highlighted the role of chief data officers in local governments, arguing that dedicated positions enable systematic and cross-departmental sharing, as evidenced by case studies in cities adopting enterprise-wide data platforms since the mid-2010s. Goldsmith hosts the Data-Smart City Pod , featuring discussions with practitioners on topics like applications in permitting processes and data , with episodes released as recently as 2025 addressing innovations such as StatGPT for statistical analysis in policy evaluation. Through these efforts, he promotes ongoing in data infrastructure, cautioning that without sustained updates and staff training, initial implementations risk obsolescence, as observed in early adopters of civic data tools. His advocacy underscores causal links between data utilization and measurable outcomes, such as cost savings and improved service responsiveness, countering bureaucratic inertia with empirical pilots.

Publications

Key Books and Writings

Goldsmith has authored or co-authored multiple books on urban policy, governance , and the application of to , drawing from his experiences in elected office and advisory roles. These works advocate for data analytics, public-private partnerships, and networked governance to enhance efficiency and citizen engagement in . Among his earliest publications is The Twenty-First Century City: Resurrecting Urban America (, 1997), which details practical reforms implemented during his mayoralty in , such as competitive contracting of public services and welfare-to-work initiatives that reduced and taxes while improving service delivery metrics like crime rates and infrastructure maintenance. In Governing by Network: The New Shape of the Public Sector ( Press, 2007, co-authored with ), Goldsmith examines the shift from hierarchical bureaucracies to collaborative networks involving , nonprofits, and private entities, using case studies to illustrate how such models achieve outcomes unattainable through traditional top-down approaches. The Power of Social Innovation: How Civic Entrepreneurs Ignite Community Networks for Good (Jossey-Bass, 2010) explores and entrepreneurial solutions to social challenges, arguing that empowering civic leaders and leveraging networks can supplant inefficient monopolies in areas like and public safety. The Responsive City: Engaging Communities Through Data-Smart Governance (Jossey-Bass, 2013, co-authored with Susan Crawford) promotes the use of and to foster interactive government-citizen relationships, with examples of and service optimization that prioritize measurable results over procedural inertia. More recent contributions include A New City O/S: The Power of Open, Collaborative, and Distributed Governance (Brookings Institution Press, 2020, co-authored with Neil Kleiman), which advocates for open-source platforms and distributed decision-making to address urban complexities through technology-enabled collaboration. Growing Fairly: How to Build Opportunity and Equity in Workforce Development (Brookings Institution Press, 2022, co-authored with Ashley E. Williams) analyzes data-driven workforce programs, critiquing one-size-fits-all federal approaches in favor of localized, performance-linked training tied to employer needs and economic outcomes. Goldsmith has also contributed articles to outlets like Governing magazine, where he discusses applied technology in , such as for .

Electoral History

[Electoral History - no content]

Legacy and Influence

Goldsmith's tenure as mayor of from 1992 to 1999 established a model for municipal efficiency through competitive public-private partnerships, conducting over eighty such competitions that yielded savings exceeding $400 million while enhancing . These reforms reduced , controlled taxes, and prioritized performance-based outcomes over traditional monopolies, demonstrating causal links between market incentives and improved governance without increasing fiscal burdens. His approach influenced broader discussions on reinventing , emphasizing empirical results like streamlined operations in and over ideological expansions of roles. In federal roles, including chief domestic policy advisor to the George W. Bush 2000 campaign and chair of the Corporation for National and Community Service, Goldsmith advocated integrating private sector practices into public administration, extending his Indianapolis successes to national scales. This legacy persists in his academic work at Harvard Kennedy School, where as Derek Bok Professor of Urban Policy, he founded Data-Smart City Solutions in 2012 to promote data analytics and technology in local governance, fostering collaborations that enable predictive policymaking in areas like economic mobility and transit. His emphasis on verifiable metrics over anecdotal reforms has trained subsequent urban leaders, countering institutional tendencies toward unchecked expansion by prioritizing causal evidence from pilot programs and cross-sector data sharing. The establishment of the Stephen Goldsmith Prize for Innovation in Local Government in 2025 by the Sagamore Institute underscores his enduring influence, with the inaugural award to Goshen, Indiana, for responsible AI implementation recognizing his pioneering blend of technology, competition, and accountability in addressing public challenges. Through publications and ongoing advocacy, Goldsmith has shaped a paradigm where governance success is measured by outcomes like cost savings and service improvements rather than inputs, influencing cities to adopt data-driven strategies amid fiscal constraints.

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