City of Richmond Mayor s Anti-Poverty Commission Presentation to Mayor Dwight C. Jones Final Report and Recommendations Richmond, VA January 18, 2013
DEFINING AND MEASURING POVERTY Poverty is usually defined as an economic condition involving inadequate resources But poverty also can be considered as involving multiple, overlapping disadvantages that inhibit human development and freedom Crucial to remember we are talking about holistic human beings and actual communities of people, not pieces on a chess board
TWO KINDS OF ANTI-POVERTY POLICY Policy aimed at reducing poverty by increasing household incomes Policy aimed at making poverty less debilitating through steps that improve the quality-of-life and access to opportunities in low-income communities Intelligent and morally sane policy approach must employ both strategies
WHAT CITY GOVERNMENT CAN DO Overall city poverty rate strongly impacted by factors beyond the city s control, such as national economic trends and public policies established at the state and national level Out-migration of upwardly mobile city residents and in-migration of new low-income residents makes it difficult to reduce local poverty rate City government has limited resources/capacity Pathbreaking policy and institutional changes will often require collaboration with counties
CONSEQUENTLY. Coming up with a comprehensive anti-poverty strategy that can be initiated by local government and make a meaningful difference is a major challenge But other cities have undertaken such initiatives, both small and large, in all regions of the country Intelligent local policy can over time make a difference independent of national trends and position the city and region for future federal funds
HISTORICAL AND GEOGRAPHIC CONTEXT The current poverty rate in the City of Richmond is over twice that of the metro area as a whole, and several times higher than those found in the surrounding counties This is a result of multiple historical factors: legacy of slavery and Jim Crow, concentration of public housing in the city, destruction of working class neighborhoods by freeways, white flight, failure of metropolitan school integration in Richmond, manufacturing decline, mass incarceration And negative consequences of these factors that themselves become causes, such as high crime rates, geographic and social isolation of poor communities, strain on social fabric
WHO THE POOR ARE IN RICHMOND 25% of population classified as in poverty according to federal definition Nearly 50% of city population is poor, near-poor, or at risk of falling into poverty (defined as households with income less than 35,000) Nearly 40% of children in the city are poor Women, African-Americans, Hispanics more likely to be poor Educational attainment stronger predictor of poverty than race
PATHWAYS TO POVERTY IN RICHMOND THREE PRIMARY PATHWAYS TO POVERTY IN RICHMOND First, be unemployed or under-employed Second, be a child in a household where adults do not have full-time employment Third, be employed at low wages; this income may allow one to escape poverty, but the household will remain on the economic edge and at risk of falling back into poverty
WHO IS POOR IN RICHMOND, II Among adults (16 and over), 48% of the poverty population are persons not working; 45% are persons working part-time; 7% are working full-time Among adults (25 and over), 41% of the poverty population have less than a high school degree, 29% have high school diploma Among all persons, 31% of the poverty population are children
WHERE THE POOR ARE Poverty within the city has a clear geographic component 19% of the city s poor live in neighborhoods (tracts) that are at least 50% impoverished (leaving college student residential areas aside); 29% live in neighborhoods that are 35-50% impoverished Roughly speaking, about half the city s poor population are living in conditions commonly defined as concentrated poverty, and half are not Areas of concentrated poverty are found in and in proximity to public housing communities, and in other neighborhoods in the eastern half of the city
IMPLICATIONS FOR POLICY, I Anti-poverty policy in Richmond must confront the fundamental problem of inadequate remunerative employment. This problem has several dimensions: 1) Insufficient living wage employment opportunities 2) Inadequate access via transportation to regional opportunities that do exist 3) Skill mismatch between what employers want and skills of unemployed, under-employed, and poverty-wage workers 4) Lack of preparation for successful employment (basic workplace skills) among some City residents
QUANTIFYING EMPLOYMENT NEED IN RICHMOND About 3,700 adults age 25-64 with high school degree or less actively searching for work (unemployed) About 4,200 adults with high school degree or less who have dropped out of labor force but might return if jobs were available (estimate) About 5,150 youth age 16-24 actively searching for work (unemployed) Estimated 1200 youth 16-24 who are disconnected (not in school, not working or looking for work)
QUANTIFYING EMPLOYMENT NEED IN RICHMOND, II About 10,000 and as many as 15,000 residents who are unemployed and likely to struggle to find steady full-time work Similar number of residents who are underemployed Particularly severe problem of youth unemployment Overlapping problems of low educational attainment; zero, limited or intermittent work experience; low skills Key to poverty problem is increasing employment among these groups
EMPLOYMENT-RELATED POLICY RECOMMENDATIONS Four-pronged strategy for increasing full-time employment 1) Bolster workforce training that generates practical results 2) Tie economic development strategy to anti-poverty priorities 3) Expand access to existing entry-level jobs in region through expanded public transit 4) Long-term improvements in school system outcomes, especially preparation for work
WORKFORCE TRAINING Goal is to expand job training/workforce preparation activities that link participants with jobs, working directly with employers. The Richmond Workforce Pipeline, established in 2010, has had success in linking participants with employment opportunities and providing the necessary training and skills to succeed. In fiscal 2012, worked with 70 businesses and 270 participants, of whom 56% obtained employment Room to scale up this initiative in coming years
TARGETED ECONOMIC DEVELOPMENT Job Creation committee identified these sectors as priorities for recruitment and development, because of ability to provide accessible jobs: logistics; advanced manufacturing, health services; call centers. Committee also recommends prioritizing re-development of the Port/Commerce Road Corridor; could potentially be a major source of new jobs City can use its land and resources in targeted way to leverage development in key sectors, especially at Port site Will create spin-off jobs through multiplier effect, many of which will be entry-level.
EXPANDED TRANSIT ACCESS TO REGIONAL JOBS The Richmond region ranks 92 nd out of the 100 largest metropolitan areas in overall accessibility via transit Bus coverage in the city is strong but most two-way regular service ends at or near county lines City of Richmond is 70 th out of 100 in proportion of regional jobs city residents can access by transit Just 29% of suburban jobs in Richmond are transitcovered; these are accessible to just 8% of the regional population via transit within 90 minutes Problem because many of those jobs are entry-level; 18% of Richmond households have no car
CREATE REGIONAL RAPID TRANSIT SYSTEM In conjunction with the Richmond Regional Planning District Commission, the Transportation Committee developed a proposal create a rapid regional transit system along major regional corridors: Jeff Davis Highway/Rte. 1 (north and south), Midlothian Turnpike/Rte. 60 (east and west), Hull St./Rte.360 (northwest and southeast), Broad Street/Rte. 250 (West). Estimated this will make newly transit accessible 128,000 jobs, most of which will be relatively low-skilled Bus Rapid Transit service appealing to middle class commuters and shoppers Also would produce broad regional benefits
CLEVELAND BRT SYSTEM
IMPROVING EDUCATION & WORKFORCE DEVELOPMENT Continued and enhanced investment in early childhood initiatives (critical to preparation for school and overall cognitive development) Kalamazoo Promise-style scholarship program for RPS graduates, to kick-start improvements in RPS secondary schools and build culture of academic success Stronger vocational training within schools, linked to regional employers, to create employment pipelines Outreach, basic literacy support, and other support for disconnected /unemployed youth
QUALITY-OF-LIFE POLICY RECOMMENDATIONS Redress and improve conditions of life in neighborhoods of concentrated poverty Develop a truly comprehensive housing plan encompassing public and private sector Redevelopment of existing public housing communities should be pursued with commitment to no displacement, resident participation, and linking redevelopment explicitly to expanded economic opportunity Improvements in conditions in RRHA communities that are not being re-developed key to building trust Shopper Shuttle offered by City is example of concrete step improving quality-of-life and reducing isolation
SUMMARY OF TOP-TIER POLICY RECOMMENDATIONS Investing in workforce development targeted towards low-skilled and long-term unemployed and underemployed residents, while integrating workforce development with economic development strategies. Recruiting or developing one or more major employers capable of creating hundreds of jobs accessible to underemployed Richmond residents. Creating a regional rapid transit system, so as to make thousands more jobs accessible to metropolitan Richmond residents by effective public transportation and better link the regional economy together. Developing an effective educational pipeline that prepares Richmond Public Schools graduates for either college or the work force. Achieving the redevelopment of much of the city s public housing stock without involuntarily displacing residents, with the aim of improving the physical and social environment of public housing residents
SECOND-TIER POLICY RECOMMENDATIONS These recommendations are, with one prominent exception, generally lower-impact and would produce incremental improvements. Often however they might be implemented more quickly, at lower cost, and with lower political difficulty. Three categories: Action Steps, Planning and Administrative, Advocacy
ACTION STEPS Implement a Bank On program Targeted disconnected youth initiative Promote financial literacy and use of VIDA matched savings program Invest in community navigators to help citizens negotiate services Proactively seek alternatives to incarceration Living wage ordinance covering employees and contractors Support community efforts to strengthen families and promote healthy parenthood
PLANNING AND ADMINISTRATIVE STEPS Create one-stop business service center Create one-stop accessible employment service center for unemployed Comprehensive housing plan (as noted above) Ongoing partnership with employers and training providers to address skills gap Proactive partnership and consultation by city government with neighborhood and community groups working on poverty and its symptoms
ADVOCACY STEPS (GENERAL ASSEMBLY) Full implementation of Affordable Care Act in Virginia, including Medicaid expansion; estimated coverage expansion to over 23,000 City residents Statewide measures to reduce impact of felon label on exoffenders and facilitate re-entry Revise eligibility rules in Virginia to expand access to unemployment insurance and SNAP Make state EITC refundable; increase in TANF benefit size Reform statewide Local Composite Index so Richmond schools receive funding at level commensurate with city s poverty level
IMPLEMENTATION AND ACCOUNTABILITY Develop strategic action plan, including specific budgetary requests, to begin implementation of all five Top Tier recommendations as well as feasible Second Tier recommendations by February 15 Create one or more staff persons, including one senior staffer, devoted specifically to monitoring and coordinating anti-poverty agenda Clearer communication across branches of City Hall and city government concerning poverty-related policies Disseminate this report to elected and public officials in the region and Commonwealth Create permanent, independent citizen commission reflecting a cross-section of the community to monitor and evaluate progress of this agenda and provide research, advice and consultation to City Council and the mayoral administration
Mayor Dwight C. Jones Anti-Poverty Commission Office of Deputy Chief Administrative Officer City Hall Richmond, VA 23219 Tel: (804) 646-5823 www.richmondgov.com http://www.richmondgov.com/content/commissionantipoverty/index.aspx 34