Race & Economic Segregation Milwaukee 4 County Region

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

Agenda 1. Welcome & Introductions : 2. Overview of the evening and the first of three Icebreaker exercises 3. Presentation on the structural causes of segregation in SE Wisconsin 4. Q & A 5. Next meeting 6. Three take-aways from today s discussion

About One Community Promote a Fact Based History of Racial & Economic Discrimination Foster Urban -Suburban Dialogues Meet with Targeted Elected Officials Building a Faith- Based Constituency to Promote Structural Change in Racial & Economic Segregation 2018 Grow the Urban & Suburban Faith-Based Constituency Foster Meetings & Communication with Key Elected Officials 2019 Advocate for Structural Change in the State Budget

Relationships & Hope Session 1: Create a shared understanding of racial & economic segregation for some, a difficult journey Session 2: A Deeper Dialogue Building Relationships & Understanding Session 3: How do we move forward?

Relationship Building Exercise #1 Reflect on a time when you have experienced or have witnessed discrimination in your life (Please pair up in twos or threes with someone you don t know to share your answer) After 10 minutes report out

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

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

Racial Segregation

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

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

Most Segregated in the Nation Source: The Persistence of Segregation in the Metropolis: New Findings from the 2010 Census https://s4.ad.brown.edu/projects/diversity/data/ Report/report2.pdf

Economic Segregation

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

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 www.imua-grace.com

www.imua-grace.com

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

Income Mobility By age 26, a poor child growing up in MKE will earn $3,210 Less than a person growing up in an average household in the USA Milwaukee Among the worst counties in the Nation to grow up poor. Source: Best and Worst Places to Grow Up NY Times May 4, 2015 A child growing up in a poor household in Ozaukee County would earn $3,670 More A child growing up in a poor household in Washington County would earn $2,140 More A child growing up in a poor household in Waukesha County would earn $3,310 More

Income Mobility Source: Best and Worst Places to Grow Up NY Times May 4, 2015

Income Mobility Source: Best and Worst Places to Grow Up NY Times May 4, 2015

Structural Causes of Segregation

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

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

Racially Restricted Covenants

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."

National Housing Policies Just 2% of ALL FHA Loans went to Households of Color between 1934-1968 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

Other National Policies 65% of African Americans were denied access to 1930s New Deal programs such as Social Security, Government Grants, Elderly Assistance and Unemployment The G.I. Bill Home Loan Guarantees were Off Limits to African Americans due to discrimination by banks and community deed restrictions Sources: History & Policy: When Affirmative Action was White - Summary by Ira Katznelson, November 2005 Ohio State University Origins: Current Events in Historical Perspective, September 2006 Labor Laws of the New Deal/Fair Deal left out Agriculture and Domestic workers leaving many African Americans outside of new labor law, such as minimum wage & working hours

Effect of National Policies While Minorities were being Redlined & Denied Resources White Americans were gaining wealth and security with government benefits

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

Relationship Building Exercise #2 Why have we seen such little substantive change in racial and economic segregation in the region? (Please pair up in twos or threes with someone you don t know to share your answer) After 10 minutes report out

African American Migration for Jobs

Wisconsin African American Population Growth African American Population Growth in Wisconsin by Selected Decade Decade 1910 < 3,000 1930 10,000 1940 12,200 1960 74,500 Source: Wisconsin Historical Society - Post-war African American Migration African American Population 600% Increase between 1940 to 1960

90% of All African Americans in Wisconsin lived in Milwaukee, Racine, Kenosha, Beloit and Madison between 1940-1960 Drawn to Manufacturing Jobs newly available during WWII and after Good Paying Manufacturing Jobs brought many to middle income status and home ownership Cultural and structural discrimination limited where middle class African Americans could purchase homes Source: Wisconsin Historical Society - Post-war African American Migration

Collapse of Manufacturing Jobs

Collapse of Manufacturing Jobs Metro Milwaukee Industrial Jobs 1963-2009 140,000 120,000 100,000 80,000 60,000 40,000 20,000-119,284 118,600 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 26,342 1963 1967 1977 1982 1987 1997 2002 2009 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

Collapse of Manufacturing Wages Midwest Source: Center for American Progress -The Midwestern Great Recession of 2001 and the Destruction of Good Jobs, June 2017 https://www.americanprogress.org/issues/economy/reports/2017/06/07/429492/midwestern-great-recession-2001-destruction-good-jobs/

Collapse of Manufacturing Jobs Metro Milwaukee Employment Trends Males Age 25-54 - % 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% 1970 1980 1990 2000 2007 2011 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

Suburban Job Growth

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

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

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

Regional Labor Pool

Commuting Flow MKE Area Source: Marquette University Lubar Center MAP Project 10/24/17

Commuting and Job Access Source: WI Dept of Workforce Development, Dan Barroilhet, Projections Economist dan.barroilhet@dwd.wisconsin.gov (608) 267-7314

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

A Worker Shortage

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

Regional Population Comparison Source: Marquette University Lubar Center MAP Project 10/24/17

Economic Impact of Segregation

Discrimination Suppresses Regional Economic Growth Segregation Limits Access to Workers Depresses New Business Growth Source: Brookings Institution, Opportunity for Growth, Sept 2017

MKE Region Lags Peers in Business Growth Source: Public Policy Forum, Cultivating Innovation, Sept 2017

Eliminate Barriers to Build an Inclusive Economy Dynamism Promote small business growth & employment Skill Access Promote individual education, training & access to well paying work Remove barriers isolating individuals in particular communities from economic opportunity Source: Brookings Institution, Opportunity for Growth, Sept 2017

Relationship Building Exercise #3 What will move the hearts & minds of elected officials and inspire them to become champions of change on these issues? (Please pair up in twos or threes with someone you don t know to share your answer) After 10 minutes report out

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

Chicago & Milwaukee Segregation Of The 100 Most Populous Regions Milwaukee Ranked: Both Ranked in Top 5 1 st Black-White Segregation 2nd Latino-White Segregation 35th Economic Segregation

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

Lost Lives Chicago s Homicide Rate Would Drop 30%

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

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

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

National Groups Policy Suggestions

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 transportation) 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

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

Our Solutions To Be Determined By Our Continued Dialogue

What is the Response from the Faith Community?

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.

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. 1159 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)

Next Meeting Date: December 9th Time: 10:00 AM - Noon Place: St. Francis of Assisi

Three Take-Aways From Today s Discussion For More Information Contact: Mike Soika Consultant with the Interfaith Conference of Greater Milwaukee Email: mikes@interfaithconference.org Cell Phone: 414.520.0912 Interfaith Conference of Greater Milwaukee 5409 W. Vliet Street Milwaukee, WI 53208 414.276.9050