Confronting Suburban Poverty Challenges and Directions for the Austin Region

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1 Confronting Suburban Poverty Challenges and Directions for the Austin Region Elizabeth Kneebone Brookings Institution

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3 1 The geography of poverty and opportunity has changed 2 Current policies are not aligned to this new geography 3 We need a new agenda for metropolitan opportunity

4 1 The geography of poverty and opportunity has changed

5 Today, more of the nation s poor live in suburbs than in cities 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000, Poor Individuals in Suburbs Poor Individuals in Cities Number in poverty, central cities versus suburbs, Source: Brookings analysis of U.S. Census Bureau data

6 Between 2000 and 2012, Austin s suburban poor population grew by 162 percent 140, , ,000 80,000 60,000 40,000 20, Poor Individuals in Suburbs Poor Individuals in Cities Number in poverty, central cities versus suburbs, Source: Brookings analysis of U.S. Census Bureau data

7 Poverty has spread beyond older, inner-ring suburbs

8 Austin s urban and suburban poor are similar in many ways Share of urban poor Share of suburban poor 49% 43% 43% 46% 30% 35% 38% 33% 12% 15% Under 18 Deep poverty Disabled Did not work last year HS dropout Source: Brookings Institution analysis of ACS data

9 Several factors drive suburban poverty in the Austin region Population Change Immigration Housing Job Location Regional Economy

10 Overall population has grown much faster in the suburbs 57% 18% City Suburbs Percent Change in Population, Austin Region, 2000 to 2010 Source: Brookings Institution analysis of ACS and Decennial Census data

11 Immigration is contributing to growth in suburban poverty 18% 13% Source: Brookings Institution analysis of ACS and Decennial Census data Foreign-born Share of Suburban Poor, Austin region 2000 to 2010

12 Affordable housing is spreading to Austin s suburbs 2,695 1, Housing Vouchers in Suburbs, Austin region Source: Brookings Institution analysis of HUD Picture of Subsidized Housing data

13 Most subprime lending and foreclosures were suburban 67% 81% Subprime Loans Loans in Foreclosure or Lost Share of Loans in Suburbs, Austin Region Source: Chris Shildt, Naomi Cytron, Elizabeth Kneebone and Carolina Reid, The Subprime Crisis in Suburbia: Exploring the Links between Foreclosures and Suburban Poverty

14 Jobs are locating further from the urban core 37% 29% Source: Elizabeth Kneebone, Job Sprawl Stalls: The Great Recession and Metropolitan Employment Location Share of Austin Region Jobs Located 10 to 35 Miles from Downtown

15 The economic downturn left many unemployed in the suburbs 34,998 17,048 Source: Brookings Institution analysis of Bureau of Labor Statistics LAUS data Dec Dec Number of Suburban Unemployed, Austin Region

16 Suburban poverty brings added challenges Transit Access Strained Local Services Limited Philanthropic Resources Change in School Populations

17 Suburban commuters have less access to transit 98% 49% City Suburbs Share of Low-Income Neighborhoods with Transit Stop Nearby, Austin Region Source: Tomer, Kneebone, Puentes, and Berube, Missed Opportunity (Brookings, 2011)

18 Suburban commuters with transit can t reach as many jobs 48% 12% City Suburbs Source: Tomer, Kneebone, Puentes, and Berube, Missed Opportunity (Brookings, 2011) Share of Austin Region Jobs Accessible to Low-income Neighborhoods within 90 Minutes via Transit

19 Suburban non-profit providers are stretched thin City Suburbs Number of Providers with Revenue in 2011* Source: National Center for Charitable Statistics. *Using criteria for nonprofit providers used in Alllard and Roth, Strained Suburbs: The Social Service Challenges of Rising Suburban Poverty, (2010)

20 Suburban non-profit providers are stretched thin $1,664 $1,108 City Suburbs Average Revenue Per Poor Person, 2011* Source: National Center for Charitable Statistics. *Using criteria for nonprofit providers used in Alllard and Roth, Strained Suburbs: The Social Service Challenges of Rising Suburban Poverty, (2010)

21 Schools are seeing low-income populations multiply 56% 25% City Suburbs Source: Brookings analysis of GreatSchools data Percent Change in Number of Students Enrolled in Free and Reduced Price Lunch, Austin Region, to

22 Low-income suburban students attend schools with lower proficiency scores 62% 43% Middle- or highincome student Low-income student Average School-Wide Proficiency Ranking Statewide, Austin Suburban Students,

23 2 Current policies are not aligned to this new geography

24 The legacy system of place-based anti-poverty programs does not map easily onto the suburban landscape $82 billion 81 federal programs 10 agencies

25 Suburbs face additional challenges Lack of Capacity Extensive Fragmentation Inflexible, Unreliable Funding

26 3 We need a new agenda for metropolitan opportunity

27 Yet innovators across the country are finding creative ways to navigate this system

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29 Achieve Scale Neighborhood Centers Inc. Has an annual budget of more than $275 million, 70 different sites, and a staff of over 1,000 Coordinates resources from 35 federal programs, state, local, and private sources to provide a seamless continuum of services Collaborates with other area providers Improve systems and networks Promote high-performance organizations Support smart consolidation

30 Collaborate and integrate Chicago Southland Housing and Community Development Collaborative Represents 23 municipalities Continues to be supported by regional institutions and local funders Breaks down policy silos Identify and reduce barriers Reward collaborative approaches Catalyze regional capacity

31 Fund strategically Commit to enterprise-level funding Denver Transit Oriented Development (TOD) Fund Partnership between Urban Land Conservancy, Enterprise Community Partners, and City/County of Denver Makes capital available to purchase sites along current and future rails and bus corridors Promote tools that leverage public & private resources Develop consistent, comparable data sources

32 Creating a Metropolitan Opportunity Challenge could help bring these solutions to scale in regions across the country Federal Place-Based Anti-Poverty Programs $82 Billion; 81 Programs; 10 Agencies Re-purpose 5% : $4 billion

33 You can read more about the Metropolitan Opportunity Challenge and the contents of the book on our new website

34 The website provides a host of helpful resources: Profiles of the top 100 metros Case studies of innovators Tips for taking action Video Infographic

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