Race & Economic Segregation Milwaukee 4 County Region

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1 Race & Economic Segregation Milwaukee 4 County Region Presented by The Interfaith Conference of Greater Milwaukee and The Center for Learning Communities

2 Racial & Economic Segregation Washington County Waukesha County City of Milwaukee Milwaukee County

3 Racial & Economic Segregation Washington CountyAmong the Most Segregated Waukesha County Regions in the Nation City of Milwaukee Milwaukee County

4 Racial Segregation

5 Racial Segregation in the Region 85% + White 85%+ Black 85%+ Hispanic Source: Salon.com 10 Most Segregated Urban Areas in America

6 Racial Segregation in the Region Source: SEWRPC 2035 Regional Housing Plan

7 Percent of Minority Population Source: SEWRPC 2035 Regional Housing Plan

8 Most Segregated in the Nation Source: The Persistence of Segregation in the Metropolis: New Findings from the 2010 Census Report/report2.pdf

9 Economic Segregation

10 Just The Numbers Region Population: 1.57 Million Region Low Income: 246,000 Region % Low Income: 15.6%

11 Population Breakdown: 1.57 Million 38% of Region s Population

12 % of Region Low Income Population 72% of Region s Low Income Population Source: US Census

13 4 County Region Economic Segregation % of Region Total Population % of Region Low Income Population City of Milwaukee MKE County (Less City) Washington County Ozaukee County Region Population: 1.57 Million Region Low Income: 246,000 Region % Low Income: 15.6% Waukesha County

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15 Median Household Income Earning $50,00 to $60,000/yr. Source: SEWRPC 2035 Regional Housing Plan

16 Economic Segregation in the Nation Source: City of Milwaukee Budget Office: Budget Hearing Presentation, August 16, 2016

17 Economic Segregation in the Nation Source: Institute for Policy Studies report: The Ever-Growing Gap, August 8, 2016

18 Economic Segregation in the Nation Source: Institute for Policy Studies report: The Ever-Growing Gap, August 8, 2016

19 Structural Causes of Segregation

20 Structural Causes of Segregation Racially Restrictive Deed Covenants Local & National Real Estate Housing Policies Black Migration to MKE Manufacturing Jobs Collapse of Manufacturing Jobs in Milwaukee Growth of Jobs in Suburban Communities

21 Racially Restricted Deed Covenants By the 1940 s at least sixteen of the eighteen Milwaukee County suburbs were using racially restrictive covenants to exclude black families from residential areas. (No such covenants found for Oak Creek or River Hills) Many of these covenants were still in effect in the late 1960s to mid 1970s Source: Metropolitan Integration Research Center - Racially Restrictive Covenants: The Making of All-White Suburbs in Milwaukee County

22 Racially Restricted Covenants

23 National Housing Policies In 1933, the Federal Housing Administration began a program to increase and segregate America's housing stock. These programs were tantamount to a "state-sponsored system of segregation." FHA would not insure mortgages anywhere African Americans lived or lived nearby. This was the start of the term Redlining Source: A 'Forgotten History' Of How The U.S. Government Segregated America NPR Interview of Richard Rothstein on Fresh Air May 3, 2017 The FHA Underwriting Manual Stated incompatible racial groups should not be permitted to live in the same communities."

24 National Housing Policies Just 2% of ALL FHA Loans went to Households of Color between Source: The Institute for Policy Studies Report: The Ever-Growing Gap Aug 2016 While Minorities were being Redlined The FHA was subsidizing mass production of subdivisions for Whites

25 Restricted Zoning Large Land & Lot Size Requirements Inhibit Development of Affordable Housing Another Way to Restrict Racial/Economic Integration Source: SEWRPC 2035 Regional Housing Plan

26 African American Migration for Jobs

27 Wisconsin African American Population Growth African American Population Growth in Wisconsin by Selected Decade Decade 1910 < 3, , , ,500 Source: Wisconsin Historical Society - Post-war African American Migration African American Population 46% Unemployed during the Depression compared to 13% White Unemployment 600% Increase between 1940 to 1960

28 90% of All African Americans in Wisconsin lived in Milwaukee, Racine, Kenosha, Beloit and Madison between Drawn to Manufacturing Jobs newly available during WWII and after Good Paying Manufacturing Jobs brought many to middle income status and home ownership Culrural and structural discrimination limited where middle class African Americans could purchase homes Source: Wisconsin Historical Society - Post-war African American Migration

29 Collapse of Manufacturing Jobs

30 Collapse of Manufacturing Jobs Metro Milwaukee Industrial Jobs , , ,000 80,000 60,000 40,000 20, , ,600 91,400 77,900 78,210 71,386 62,500 62,200 63,900 63,025 56,051 51,400 46,467 35,400 57,000 34,957 24,858 50,500 51,100 27,253 43,100 40,466 32,654 26, City MKE Sub MKE WOW Source: Perspectives on the Current State Of the Milwaukee Economy Report prepared for Wisconsin Voices by Marc V. Levine University of Wisconsin-Milwaukee Center for Economic Development July 2013

31 Further Collapse of Manufacturing Jobs Source: Center for American Progress -The Midwestern Great Recession of 2001 and the Destruction of Good Jobs, June

32 Service Jobs No Substitute Source: Center for American Progress -The Midwestern Great Recession of 2001 and the Destruction of Good Jobs, June

33 Wage Growth Worst in the US Source: Center for American Progress -The Midwestern Great Recession of 2001 and the Destruction of Good Jobs, June /06/07/429492/midwestern-great-recession destruction-good-jobs/

34 Collapse of Manufacturing Wages Midwest Source: Center for American Progress -The Midwestern Great Recession of 2001 and the Destruction of Good Jobs, June

35 Collapse of Manufacturing Jobs Metro Milwaukee Employment Trends Males Age % Employed 94.5% 90.2% 84.8% 92.3% 90.4% 92.1% 74.9% 75.1% 64.9% 89.7% 89.6% 84.3% 70.6% 61.1% 56.8% 53.6% 85.7% 81.1% Black White Hispanic Linear (Black) Source: Perspectives on the Current State Of the Milwaukee Economy Report prepared for Wisconsin Voices by Marc V. Levine University of Wisconsin-Milwaukee Center for Economic Development July 2013

36 Suburban Job Growth

37 Collapse of Manufacturing Jobs 200% Metro Milwaukee Industrial Jobs Percent Change % 154% 100% 50% 0% -50% City MKE Sub MKE WOW -53% -77% -100% Source: Perspectives on the Current State Of the Milwaukee Economy Report prepared for Wisconsin Voices by Marc V. Levine University of Wisconsin-Milwaukee Center for Economic Development July 2013

38 Collapse of Manufacturing Jobs Source: Perspectives on the Current State Of the Milwaukee Economy Report prepared for Wisconsin Voices by Marc V. Levine University of Wisconsin-Milwaukee Center for Economic Development July 2013

39 Collapse of Manufacturing Jobs Source: Perspectives on the Current State Of the Milwaukee Economy Report prepared for Wisconsin Voices by Marc V. Levine University of Wisconsin-Milwaukee Center for Economic Development July 2013

40 Job Housing Imbalance Communities with Jobs Available but Limited Affordable Housing to Support the Workers No Housing Imbalance Source: SEWRPC 2035 Regional Housing Plan

41 Regional Labor Pool

42 Commuting and Job Access Source: WI Dept of Workforce Development, Dan Barroilhet, Projections Economist (608)

43 MKE Jobs Support WOW Counties Washington County $1.6 Billion Ozaukee County $1.58 Billion Waukesha County $1.28 Billion Milwaukee County - $6.94 Billion Source: US Dept of Commerce, Bureau of Economic Analysis Personal Income & Employment 2015, Table CA04

44 A Worker Shortage

45 Working Age Adults 2010 & 2040 Region Working Age Adults Washington 9% Waukesha 25% Ozaukee 5% Milwaukee 61% By 2040 MKE Gains 10,745 Workers WOW Loses 2,000 Workers Region Working Age Adults Waukesha 24% Washington 9% Milwaukee 62% Source: WI Taxpayer Alliance County Workforce Shifts Ozaukee 5%

46 Regional Shifts in Aging Population Region Adults Age 65 and Older Percent Increase in Older Adults % 113% Waukesha 28% Washington 9% Ozaukee 7% Milwaukee 56% 100% 80% 60% 40% 20% 0% 62% MKE WOW MKE WOW WOW Counties Proportion of Older Adult Population 44% in % in 2040 Region Adults Age 65 and Older Waukesha 33% Milwaukee 49% Source: WI Taxpayer Alliance County Workforce Shifts Washington 11% Ozaukee 7%

47 Economic Impact of Segregation

48 Source: Metropolitan Planning Council & the Urban Institute, March 2017

49 Chicago & Milwaukee Segregation Of The 100 Most Populous Regions Milwaukee Ranked: Both Ranked in Top 10 1 st Black-White Segregation 2nd Latino-White Segregation 35th Economic Segregation

50 Lost Income $ 8 Billion Amount Chicago s GDP would rise 2.5 Times Greater Than Average Annual Growth

51 Lost Lives Chicago s Homicide Rate Would Drop 30%

52 Lost Lives Milwaukee Had 141 Homicides in 2016 A 30% Decrease would save 42 Lives Source: Milw. Journal Sentinel

53 Lost Potential $1,078,446 Lifetime Earning Gap Between a person with a High School Diploma and a Four-Year College Degree $90 Billion Chicago Region Loss in Lifetime Earning Resulting From the Education Gap

54 Lost Opportunity 24% Estimated GDP Growth of America s 150 Largest Metro Region Economies by Closing the Racial Income Gap Source: Policy Link The Equity Solution, October 2014

55 The Cost of Segregation If Regional Segregation Mirrored The National Median What Would We Gain in Increased Income Saved Lives New Opportunities

56 National Groups Policy Suggestions

57 Some Suggestions to Address Regional Segregation Six Pillars to Address the New Urban Crisis Reform Zoning, Building Code & Tax Policies Invest in Infrastructure (such as rapid transit) to Spur Density and Limit Sprawl Build More Affordable Housing Across the Region Turn Low-Wage Service Jobs Into Family-Supporting Jobs Tackle Poverty by Investing in People & Places Empower Communities to Strengthen Their Own Local Economy Source: The New Urban Crisis by Richard Florida

58 Some Suggestions to Address Regional Segregation Source: The Brookings Institute Presentation Inclusive Economies in a Disruptive Age by Amy Liu

59 What is the Response from the Faith Community?

60 From a Faith Perspective Preferential Option for the Poor Christian, Jew, Muslim, Quaker, Sikh, and most other religions all teach a preferential option for the poor as a basic tenet of faith.

61 From a Faith Perspective From the Hebrew Bible Learn to do right. See that justice is done help those who are oppressed, give orphans their rights, and defend widows. (Isaiah 1:17) From the New Testament None of you should be looking out for your own interests, but for the interests of others. (1 Corinthians 10:24) From Sikh Holy Scriptures The poor and the rich are both brothers (neighbors). This is the Lord s immutable design. Sri Guru Granth Sahib, p From the Quran O YOU who have attained to faith! Be ever steadfast in upholding equity, bearing witness to the truth for the sake of God, even though it be against your own selves or your parents and kinsfolk. Whether the person concerned be rich or poor, God's claim takes precedence over [the claims of] either of them. Do not, then, follow your own desires, lest you swerve from justice: for if you distort [the truth], behold, God is indeed aware of all that you do! (Surah An-Nisa 4:135)

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63 For More Information Contact: Mike Soika Consultant with the Interfaith Conference of Greater Milwaukee Cell Phone: Interfaith Conference of Greater Milwaukee 5409 W. Vliet Street Milwaukee, WI

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