A Framework for State-Level Promise Zones

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A Framework for State-Level

Promise ZonesBy Tracey Ross and Melissa Boteach December 2014


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A Framework for State-LevelPromise Zones

By Tracey Ross and Melissa Boteach December 2014


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1 Introduction and summary

3 Why place matters: The case for investing in

high-poverty communities

10 State Promise Zones: Launching the initiative

20 Potential policies and funding streams to support state

Promise Zones

35 Conclusion

36 Appendix

38 About the authors

39 Endnotes

Contents


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1 Center for American Progress | A Framework for State-Level Promise Zones

Introduction and summary

As a former mayor of an urban Promise Zone community, I have a unique

appreciation for the talent, passion, and the vision that local leaders offer when

working to turn their communities around. Promise Zones are about giving folks

who have been underserved for far too long the opportunity to build stronger

neighborhoods and more prosperous lives.1Secretary of Housing and Urban

Development Julian Castro, September 19, 2014

Earlier his year, Presiden Barack Obama announced he launch o he PromiseZones iniiaive, an effor o srenghen he ederal governmens relaionship

wih local leaders and o increase access o he resources and experise necessary

o improve mobiliy and economic opporuniy or high-povery communiies.2

Te Promise Zones model suppors innovaive localiies as hey implemen

comprehensive, evidence-based sraegies o revialize high-povery communiies.

Bu here is no need or he model o be resriced o he ederal level, paricularly

since many saes are pursuing sraegies o address hese same goals. Raher han

waiing or a ederal Promise Zones designaion, sae leaders can ake he iniiaive

o adop his model o increase opporuniy or heir residens who live in high-

povery areas. Acion o his ype would be an unprecedened sep by sae officials

o join local and ederal leaders o drive cross-secor, evidence-based soluions o

figh povery.

Saes have a direc sake in ackling povery wherever i exiss wihin heir borders,

as he effecs o income inequaliy and child povery creae a drag on sae

economies.3Bu saes also have a srong sel-ineres in pursuing a complemenary

se o policies ha arge resources o high-povery communiies wihin heir borders.

Holding consan or income, i has been well documened ha people who live in

high-povery communiies are more likely o sruggle o mee basic needs han heircounerpars in more affluen areas.4Furhermore, he effecs o concenraed

povery on children increase he need or social services.5For example, living in

concenraed povery has been shown o geneically age children,6and living in

communiies exposed o violence impairs heir cogniive abiliy.7Tese acors


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increase he likelihood ha children will have poor healh and educaional

oucomes and ew employmen opporuniies in he uure, which limis heir

abiliy o conribue o heir saes economic growh and ax bases.8

Forunaely, saes have he ools a heir disposal o inves in high-povery

communiies and creae heir own Promise Zones effors. By pairing communiiescommited o houghul planning and evidence-based models wih he resources

needed o generae greaer economic opporuniy, saes can ensure ha available

resources are leveraged o have a greaer impac.

Overall, saes and localiies underake mos direc spending on public goods

and servicesincluding expendiures rom ederal undsand bear primary

responsibiliy or invesmens in educaion, social services, and inrasrucure.9

In addiion, saes adminiser a significan amoun o ederal discreionary

unding, giving sae leaders broad auhoriy over many perinen ederal unding

sreams. Furhermore, sae leaders are increasingly looking a how hey can helpamilies increase heir economic sel-sufficiency and provide opporuniies o

children who live in povery by invesing in everyhing rom early educaion o

energy efficiency in affordable housing.10

Tis repor serves as a ramework or sae leaders ineresed in esablishing sae

Promise Zones programs. Te ramework oulines how saes can incenivize

cross-secor eams o leaders in high-povery communiies o underake a

comprehensive planning process, ideniy key challenges on which o ocus,

develop concree oucomes o address hose challenges, and creae a shared plan

o mee hose goals. In addiion, his repor idenifies flexible sae and ederal

unding sreams ha saes can give Promise Zones, wih prioriy access available

hrough he use o bonus poins in exising grans. In shor, sae Promise Zones

are a recogniion o he imporan role ha sae leaders play in fighing povery

and creaing greaer economic opporuniy or high-povery communiies. By

adoping he Promise Zones model, sae leaders can complemen ederal effors

o keep amilies ou o povery by revializing high-povery communiies and

srenghening saes.


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Why place matters:

The case for investing in

high-poverty communities

For decades, ederal leaders invesed in he sabiliy o affluen communiies,

while giving localiies he auonomy o neglec and ignore he invesmen needs

o low-income communiies and communiies o color. Beginning in he 1930s,

or insance, banks acively excluded Arican American communiies rom receiving

home loans, a pracice commonly known as redlining.11During he 1950s and

1960s, he ederal governmens urban renewal effor gave local governmens and

privae developers ree rein o develop downowns and displace he mosly poor

residens o color, wih no clear policy or relocaion. A bes, residens weremoved o public housing locaed in already segregaed, poor neighborhoods wih

ew resources.12Far oo ofen, however, residens were simply uprooed wih no

relocaion plan in place and orced o find housing on heir own wihin hese

disressed communiies.13

Te siuaion was no beter ouside ciy ceners. Troughou rural America, alhough

early developmen effors have produced much-needed basic inrasrucure, ederal

rural developmen programs in he 20h cenury have largely been driven by

agriculural policy, no by he needs o specific communiies and heir economic

realiies.14Furhermore, hese agriculure programs have been slashed across he

board, paricularly during he 1980s.15And hen here are ribal communiies,

o which he ederal governmen has a legal responsibiliy o provide a variey o

basic services.16In realiy, ribes have aced severe and chronic underunding o

criical programs or generaions, including hose imporan o educaion, healh,

and public saey.

As a resul o pas ailures, underinvesed communiies can oday be ound across

he counrycommuniies ha suffer rom problems ranging rom inerior

housing and inrasrucure o poor healh oucomes, underperorming schools,and litle o no economic opporuniies.


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According o he 20082012 American Communiy Survey, or ACS, more han

12.4 million Americans live in severely disressed neighborhoods where he

povery rae is a leas 40 percen or higher.17Ta figure represens an 11 percen

increase compared wih he 20072011 ACS daa, and i is a 72 percen increase

in he populaion o high-povery neighborhoods since he 2000 Census.18Over

he same ime period, he U.S. populaion as a whole increased by only 9 percen,underscoring he ac ha he increases in people living in concenraed povery

vasly ousripped populaion growh. Over he pas decade, ongoing racial and

ehnic segregaion combined wih rising income inequaliy has conribued o an

increase in he number o people who live in concenraed povery.19Among he

our regions o he Unied Saes, he Norheas had he smalles increase in

concenraed povery, while he Souh had he highes increase.20

FIGURE 1

Percent of people in distressed U.S. Census tractsBy Census region

Source: Alemayehu Bishaw, Changes in Areas With Concentrated Poverty: 2000 to 2010 (U.S. Bureau of the Census, 2014), AppendixTable 1, available at https://www.census.gov/content/dam/Census/library/publications/2014/acs/acs-27.pdf.

Northeast

South

West

Midwest

2000

2012

3.3%

3.9%

2000

2012

1.8%

4.4%

2000

2012

2.9%

4.5%

2000

2012

2.5%

3.5%

According o a recen repor by Barbara Sard and Douglas Rice,21living in neigh-

borhoods o concenraed disadvanagedefined in erms o racial segregaion,raes o unemploymen, he share o single-paren amilies, and exposure o

neighborhood violencecan impair childrens cogniive developmen and school

perormance.22For example, rom 2008 o 2009, hal o ourh and eighh graders

atending high-povery schoolswhere 75 percen or more o sudens quali y or


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ree or reduced-price mealsailed he Naional Assessmen o Educaional

Progress reading es, compared wih he ewer han one in five, or 20 percen, o

ourh and eighh graders atending low-povery schoolswhere less han 25

percen o sudens qualiy or ree or reduced-price meals23who ailed he

reading es. Oher sudies find negaive associaions beween neighborhood

povery and adul employmen and earnings.24

Anoher series o sudies led by sociologis Parick Sharkey o New York

Universiy srongly sugges ha exposure o neighborhood violence, which is

more prevalen in areas o concenraed povery, has significan negaive effecs on

childrens cogniive abiliy.25One sudy ha ocused on neighborhood violence

ound ha preschool children were less able o conrol heir impulses, pay

atenion, or perorm well on preacademic ess wihin a week o a homicide

occurring near heir home.26

Residens o poor neighborhoods also end o experience healh problemsincluding depression, ashma, diabees, and hear diseasea higher-han-average

raes. In ac, even when income is held consan, amilies who live in areas o

concenraed povery are more likely o sruggle o mee basic needs, including ood

and housing, han heir counerpars who live in more affluen areas. Families in hese

areas ace ewer sressors, such as less exposure o crime and improved air qualiy.27

Tis is paricularly roubling when considering he racial equiy implicaions o

concenraed povery. Arican American, American Indian and Alaskan Naive,

and Laino children are six o nine imes more likely han whie children o live in

high-povery communiies. In ac, more han 16.4 percen o low-income Lainos

live in high-povery neighborhoods, while low-income Arican Americans are

more likely o live in high-povery neighborhoods han oher populaions, wih

23.6 percen o he Arican American populaion currenly living in such areas.28

In addiion, recen evidence suggess ha living in a high-povery neighborhood

undermines oucomes across generaions. According o research by Sharkey, he

average Arican American amily making $100,000 per year lives in a more

disadvanaged neighborhood han he average whie amily making $30,000 per

year. Tis reveals how pas social policies coninue o affec neighborhood choice.29

Sharkey explains ha he same, mosly Arican American amilies have lived in hemos disadvanaged neighborhoods over long periods o ime and over muliple

generaions, limiing access o beter opporuniies.30


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A recen body o research rom our Harvard Universiy and Universiy o

Caliornia, Berkeley, economissRaj Chety, Nahaniel Hendren, Parick Kline,

and Emmanuel Saezunderscores he naions mobiliy challenges. Teir research

reveals ha mobiliy varies subsanially across geographic regions and ha areas

wih greaer mobiliy end o display cerain characerisics, such as less segregaion,

less income inequaliy, beter schools, greaer social capial, and more sable amilies.31

In addiion, according o analysis by Cener or American Progress expers, areas

wih large middle-class populaions enjoy ar more economic mobiliy han areas

wih small middle-class populaions.32In oher words, he variaion in economic

mobiliy is no random bu is affeced by key characerisics o a communiy.

Research showsha income inequaliy and low social mobiliy place a downward

drag on naional prosperiy, underscoring how he srengh o our communiies is

inexricably ied o he success o our counry. I is eviden ha governmen leaders

have a role o play in undoing he effecs o pas policies ha conribued o hese

oucomes and mus proacively seek ou ways o generae greaer economicopporuniy in parnership wih communiies across he counry. Low-income

people who live in communiies o concenraed povery ace a greaer level o

disadvanage han heir counerpars in low-povery communiies. As a resul,

saes mus make a concered effor o address hese dispariies and o arge

invesmens oward hese communiies.


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Living in high-povery communiies creaes unique challenges or residens, which

require place-based sraegies ha complemen naional invesmens o cu povery.33

Place-based sraegies uilize policies and pracices ha consider how a communiy

everyhing rom inrasrucure o he social and economic opporuniies available

affecs he lives o is residens. Underperorming schools, rundown housing,

neighborhood violence, and poor healh are inerconneced challenges ha

perpeuae one anoher; hereore, place-based sraegies are designed o

simulaneously address hese issues. Te Promise Zones model is a comprehensive,

evidence-based sraegy o do jus ha.

FIGURE 2

People living in high poverty areas by state, 2010

Source: Alemayehu Bishaw, "Changes in Areas With Concentrated Poverty: 2000 to 2010" (U.S. Bureau of the Census, 2014), availabe at

http://www.census.gov/content/dam/Census/library/publications/2014/acs/acs-27.pdf.

5%14.9%

15%19.9%

20%29.9%

30%34.9%

35%50%

VT NH

MA

RICT

NJ

DE

MD

DC


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Promise Zones are not a substitute for additional federal and state investments

While this report talks about what states can do within the context of current funding, state

Promise Zones are not a substitute for additional federal and state investments and reforms

to help create jobs and strengthen the safety net more broadly.

States have a direct stake in tackling poverty among their residents because the effects of

income inequality and child poverty harm state economies.34For example, research shows

that income inequality reduces government revenues, which hinders the ability of state

governments to provide critical public goods and services such as education and infrastructure.35

In addition, high levels of income inequality are causally related to higher school dropout

rates, especially among low-income boys, and higher teen birth rates. Both of these things

limit the earnings of future taxpayers and undermine a states human capital.36To this end,

CAP has published several recommendations on state policies to cut poverty and grow astates middle class across the board.37These include:

Passing paid sick leave legislation

Raising the minimum wage

Protecting unemployment insurance

Centralizing funding for education to eliminate disparities

Easing transfers across postsecondary institutions

Reducing health care costs

Increasing the use of renewable energy to cut energy costs

Promise Zones are not enterprise zones

The Promise Zones name harkens back to the enterprise zone model started in the United

Kingdom and adopted in the United States, but it should not be mistaken for a new version

of these state and federal programs. Enterprise zones utilize tax benefits to attract businesses

and promote hiring within high-poverty communities in hopes of spurring economic

development but have ultimately produced mixed results. The Promise Zones application

process is much more rigorous than its federal predecessorsthe Empowerment Zone and

Enterprise Community programsand is focused on a wide range of interconnected issues

that affect low-income communities. In fact, the Obama administration took the enterprise

zone experience into account in designing Promise Zones.38Rather than just applying with a

Setting the record straight:What state Promise Zones are not


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proposal for economic development, Promise Zones applicants are required to outline the

outcomes they want to achieve, describe their capacity to do so and the roles of their partners,

demonstrate past successes, and commit to using data to drive outcomes. 39These are

communities that can reach a tipping point, said Cecilia Muoz, assistant to the president

and director of the White Houses Domestic Policy Council, in a New York Times interview.

Its about creating a policy thats greater than the sum of its parts.40While the Obama

administration is pursuing tax benefits as one component of the federal Promise Zonesinitiative, the effort is largely driven by implementing evidence-based strategies and directing

resources to those strategies. By contrast, tax benefits are the cornerstone of enterprise zone

and empowerment zone efforts. For more information on the Empowerment Zone and

Enterprise Community programs, see Appendix 1.

Promise Zones are not just a benefit for the selected zones

A state Promise Zones model advocates for targeting a set of resources to high-poverty

communities, which, in a world of limited resources, represents trade-offs in making these

investments in less-disadvantaged communities. However, targeting scarce resources to

some of the most disadvantaged communities with the potential to move the needle on

place-based interventions will enable these communities to leverage resources for greater

outcomes. This has the potential to have a larger impact beyond the borders of the zone. The

goal of the Promise Zones initiative is not only to transform the selected zones but also to

change how the state government works with local communities and to demonstrate effective

strategies that other communities can adapt. Furthermore, while many high-poverty

communities could benefit from a state Promise Zones designation, the application process

alone will incentivize communities to bring together their resources to set clear and shared

goals, which is critical for communities to do regardless of whether they are ultimately

selected for the initiative.

That being said, expanding the pot of federal and state resources would reduce the

trade-offs that pit the needs of communities against one another and would enable more

communities that are implementing innovative cross-sector models to benefit from the

infusion of resources. This could boost economic opportunity for residents more broadly.


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State Promise Zones:

Launching the initiative

Uilizing he Obama adminisraions model or Promise Zones, saes mus

incenivize cross-secor eams o leaders in high-povery areas o come ogeher o

develop plans or revializing heir communiies. A sae Promise Zones iniiaive

would require communiies o compee in a ransparen process and o demonsrae

he srengh and effeciveness o heir local commimen in order o be awarded a

sae Promise Zones designaion. In exchange, saes mus commi inensive suppor

o help local leaders implemen heir economic and communiy developmen

goals. Tey also mus provide zones wih preerred access o cerain sae undingand compeiive ederal unding sreams.

As envisioned, each designaed sae Promise Zone would be asked o ideniy a

se o oucomes i was pursuing o revialize is communiy, describe is sraegy

or supporing hose oucomes, and realign resources accordingly. Building off o

he Obama adminisraions Promise Zones iniiaive, sae Promise Zones should

ideniy clear oucomes o revialize communiies wih a ocus on:

Atracing privae invesmen o creae jobs and spur economic developmen

Improving he educaion-workorce pipeline

Creaing sae and healhy communiies

Repairing and preserving housing and inrasrucure

Given he inerdependen naure o hese issues, Promise Zones may begin heir

work wih a ocus on one or wo areas bu should have a long-erm vision or

making progress across each o he areas noed above.


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In the first round of the federal Promise Zones designation, communities have struggled to

engage state leaders, even though this was one of the criteria assessed under capacity and

local commitment.41However, states have important resources at their disposal, including

grants and the ability to address policy barriers. Promise Zones leaders must determine

specific ways in which states can facilitate their work and propose these actions to state

leaders. Below are examples of how these leaders can better engage the leaders in their

states when it comes to spending and policy.

Spending

States make a number of spending decisions, whether it is through their own budgets or by

making subgrants to municipalities. States can give priority access to federal Promise Zones

located in their boundaries and leverage resources in these communities.

Policy

States can also pass policies to complement the innovative work that local leaders are doing.

In Maryland, for example, the Baltimore Integration Partnership is working to revitalize

low-income communities and to connect low-income Baltimore residents to the regional

economy.42The Baltimore Integration Partnership worked closely with Maryland state and

local elected officialsproviding policy analysis and recommendations, as well as commu-

nity voiceto pursue and enact policies that benefit low-income people.43As a result, the

state of Maryland passed a number of laws to help advance the goals of such work,

including:

A law to remove barriers for qualified workers with criminal records44

A law that shortens the process by which adults can apply for and earn a drivers license

a key requirement for many jobs45

A state executive order to promote apprenticeship programs and encourage hiring in areas

with high unemployment46

Improving state and local leaders partnerships in thefederal Promise Zones initiative


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State Promise Zones eligibility

Firs, saes mus deermine he condiions ha demonsrae a communiy is

paricularly in need. Based on he ederal Promise Zones iniiaive, saes can

adop he ollowing crieria or local purposes and se he sandards o eligibiliy

or heir own Promise Zones iniiaives:

Demonstrated need.Saes can use he raes o overall povery, unemploymen,

vacancy, and/or crime o deermine he ype o communiies hey wish o serve.

Seting clear eligibiliy sandards will help ensure ha he neighborhoods wih

he greaes needand he poenial o successully advance he workare

being considered.

Specific geographic area.A he ederal level, Promise Zones mus encompass

one or more Census racs or porions o Census racs across a coniguous

geography. Saes can use a similar approach o capure areas beyond a givenneighborhood o have maximum impac in a high-povery area.

Designated population size.A he ederal level, he boundaries o urban

Promise Zones mus encompass a populaion o beween 10,000 and 200,000

residens.47For rural and ribal areas, he populaion mus be a maximum o

200,000 residens.48Similar guidelines employed by saes would ensure ha he

varying ypes o communiies argeed are helping a significan par o he

populaion.

Qualifying lead applicant.Te eniy submiting he sae Promise Zones

applicaion and coordinaing he effor should be one o he ollowing: a

governmen body, a nonprofi organizaion, a public housing agency, a local

educaion agency, a meropolian planning organizaion, or a communiy

college. Such eniies ypically have he capaciy and legiimacy o bring

ogeher leaders o advance comprehensive effors.

Support from local leadership.Local leaders, including he mayors or chie

execuives o local governmens represened in he Promise Zones, mus

demonsrae suppor or he effor. Having his buy-in will ensure ha resourcesand policies can beter serve he zones.


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At the federal level, Promise Zones applicants are evaluated on the strength of their initiative

the capacity of local leaders, commitments made by key actors, and morein order to

determine how the Promise Zones designation would accelerate the communitys existing

efforts. Rather than helping build a strategy from scratch, administrative officials want federal

resources to serve as a catalyst for speeding up and expanding compelling local strategies.

Similarly, state leaders should consider when state Promise Zones resources would best serve

local leaders. Initiatives of this scale require a great deal of planning, coordination, and time

and will not get off the ground, or even see results, overnight. According to the Bridgespan

Group, a nonprofit advisor and resource for mission-driven organizations, collaboratives

typically go through several life stagesfrom developing the idea to deciding the future of

the initiative. (see below)

State leaders should consider intervening when an initiative is beyond the initial stages of

idea development and when it is evident that stakeholders are truly committed to working

together in new ways. Providing a reliable stream of funding when work is underway would

then help leaders move beyond survival mode and allow them the ability to think deeply

about the direction of the work. As a result, state Promise Zones designations should be

awarded to communities working between the plan and the align & improve stages

where intervention can help sustain innovative work.

Estimated timeline

FIGURE 3

Collective impact guide

Community collaborative life stages

Source: The Bridgespan Group, "Needle-Moving Collective Impact Guide: Community Collaborative Life Stages," available at http://www.bridgespan.org/Publications-and-Tools/Revitalizing-Communities/Comm

Collaboratives/Guide-Community-Collaborative-Life-Stages.aspx#.VD7nO4vF87H (last accessed November 2014).

Develop the idea(36 months)

Plan(12 years)

Align & Improve(13 years)

Reflect & Adapt(ongoing)

Decide & Next St(46 years)

Build broad public

support

Define a vision and

develop actionable

plans for years ahead

while building capacity

and resources

Align community

resources, programs,

and advocacy toward

what works best, while

using data to

continuously improve

Constantly monitor

progress against goals

to understand how they

must adapt to changing

circumstances

Assess overall progre

and determine the

path forward


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Application criteria

Applicaions used or sae Promise Zones effors should provide a clear descrip-

ion o how he Promise Zones designaion would accelerae and srenghen a

communiys revializaion effors. Each communiy should ideniy he

ollowing:

A se o oucomes i will pursue o revialize is communiy

A sraegy or supporing hose oucomes

A descripion o how i will use daa o redirec resources oward wha works

Te Promise Zones model is based on he demonsraed success o collecive

impac, a sraegy or solving complex local problems hrough daa-driven,

oucomes-ocused, cross-secor parnerships. As a resul, saes should use hecondiions o successul collecive-impac iniiaives o guide how hey assess he

srengh o poenial zones.


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Collective impact is focused on community-wide outcomesfor example, improving the

educational system that serves all students in a community, rather than a single program that

helps a fraction of students. While individual programs are important for driving people-level

outcomes, collective impact takes on the task of transforming an entire system. Collective

impact is a strategy that acknowledges the relationships between organizations and the need

for progress toward shared objectives. In other words, the whole is greater than the sum of the

individual parts. However, this work is much easier said than done. It is a very different way of

working than most people or institutions are used to. Leaders at FSGa nonprofit consulting

firm that specializes in strategy, evaluation, and researchfound that successful collective-

impact initiatives typically display the following five conditions:49

One of the most cited examples of a successful collective-impact

initiative is the Strive Partnership in Cincinnati, Ohio. Launched in 2006,

the Strive Partnership is a community of cross-sector leaders focused on

improving academic success in the urban core of Greater Cincinnati.

More than 300 cross-sector representatives joined the partnership,

including school district superintendents, early childhood educators,

nonprofit practitioners, business leaders, community and corporate

funders, city officials, and university presidents.50The idea was not to

start a new program but instead to start a new process for transforming

the educational system. The leaders involved agreed on a common set of

goals, outcomes, and success indicators, including kindergarten

readiness, fourth-grade reading and math scores, graduation rates, and

college completion. The partnership is driven by five shared goals.

Specifically, the goals are that every child:

1. Is prepared for school

2. Is supported outside of school

3. Succeeds academically

4. Completes some form of postsecondary education or trainingEnters and advances in a

meaningful career51

During its first five years, the program saw a 9 percent increase in kindergarteners reading

scores, an 11 percent increase in high school graduation rates, and a 10 percent increase in

college enrollment.52The Strive Partnership is successful because stakeholders work to

catalyze and support collaborative action, promote a culture of continuous improvement,

and align resources to what works.

Ensuring success: Conditions of collective impact

FIGURE 4

Five conditions of collective impact

Source: John Kania and Mark Kramer, Collective Impact, Stanford Socia

Innovation Review9 (1) (2011), available at http://www.ssireview.org/

articles/entry/collective_impact.

Common

agenda

Bac

kb

one

support

organiz

ation

s

Continu

ousMu

tually

comm

unicat

ion re

infor

cin

g

activitie

s

Sh

measurem

ent

sy

stem

s


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Outcomes

Collecive impac requires paricipans o have a common agenda 53a shared

vision or change ha includes a common undersanding o he problem and a

join approach o solving i hrough agreed-upon acions. Tere is no silver-bulle

policy o address he many challenges ha high-povery communiies ace.Insead, hese communiies need a comprehensive se o sraegies ha equip

residens wih he skills hey need o prosper, as well as an environmen conducive

o heir success. Tis sor o work requires coninuous communicaion.54

Developing rus among nonprofis, corporaions, and governmen agencies is

challenging. I can ake several years o regular meeings; some poenial sae

designees may have his level o communicaion hrough pas coaliions.

Given he various ways a communiy can affec he lie oucomes o is residens,

sae Promise Zones applicans should ouline heir plan o simulaneously

improve he educaion-workorce pipeline, creae sae and healhy communiies,repair and preserve housing and inrasrucure, and atrac privae invesmen.

Proposals should describe he evidence ha suppors he work hey plan o

coninue or underake. As par o his sraegy, applicans should also ouline he

iming and sequencing o specific componens o he plan. In addiion, i is criical

ha sraegies ake ino accoun he ac ha neighborhoods operae wihin a

broader poliical and economic conex ha is regional in naure.

Strategy

A sae Promise Zones iniiaive should be designed o suppor innovaive work

ha communiies are already doing. Local leaders drive he direcion o he effor,

while he sae governmen serves as a caalys by providing criical resources,

aciliaing parnerships, and building capaciy. Tis dynamic can be seen hrough

he ederal Promise Zones iniiaive, where he San Anonio, exas, Promise Zone

is building upon ransporaion enhancemens already underway. As a resul o is

designaion, he local ransi auhoriy received a $15 million ransporaion

Invesmen Generaing Economic Recovery, or IGER, award rom he U.S.

Deparmen o ransporaion o develop he Wesside Mulimodal ransiCener, which will offer a variey o ransi opions o he communiy.55


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In order o capure he work underway, sae Promise Zones applicans should

provide a narraive ha describes he capaciy o he lead organizaion and how he

Promise Zones designaion would advance heir effors. Creaing and managing

collecive impac requires a supporing inrasrucure, as paricipaing organizaions

do no have he capaciy o ensure daa are shared or meeings are being scheduled.

Many coaliions ail because hey do no have he suppor o a dedicaed saff,making backbone suppor organizaionsorganizaions ha serve as he back-

bones o enire iniiaivesa criical elemen o an iniiaives success.56

In addiion, applicaions should include a narraive ha describes how paricipaing

sakeholders are organized, including he specific roles and responsibiliies o each

parner organizaion. Tis is paricularly imporan around he role o anchor

insiuions and privae-secor parners, which are ofen no deeply engaged in

hese sors o collaboraives. I is also imporan in describing how sae leaders

could engage wih local parners. Te narraive should ouline muually reinorc-

ing aciviies.57Having shared goals does no mean ha all paricipans areperorming he same acions. Iniiaives should ensure ha paricipaing organizaions

underake he aciviies a which hey excel, while supporing and coordinaing

work wih ohers.

Data

Wih a common agenda in place, sakeholders need o agree on a shared measure-

men sysem58o rack success. Collecing daa on key indicaors across paricipaing

organizaions ensures ha effors remain aligned and allows paricipans o

coninuously learn. Communiies mus manage, share, and use daa or evaluaion

and coninuous improvemen; his is criical or sraegies wih less supporing

evidence han ohers. Moreover, he muual managemen and sharing o daa is

paricularly helpul o ensure ha sakeholders are ocused on heir shared goals.

Trough he ederal Promise Zones iniiaive, or example, he Los Angeles Promise

Zone is racking 23 differen indicaors a he individual, amily, and household

levels or he zones core oucomes, which include hings such as improved academic

oucomes and wraparound services.59Daa include inormaion on grades;

atendance; services provided o sudens by organizaions; and backgroundinormaion on amilies, such as educaion and healh.


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According o Dixon Slingerland, execuive direcor o he Youh Policy Insiue in

Los Angeles, or he firs ime, he school disric is sharing suden-level daa

wih our daa sysem, so we can rack individual kids. Our daa sysem is o high

enough qualiy ha heyre comorable doing ha wihou violaing privacy.

Mos imporanly, he superinenden made he commimen. Youve go o have

he leadership, bu youve also go o have he daa sysem o do i. Slingerlandsaid his daa will help he ciy and is parners ensure hey are on rack o reach

heir goals and course correc when necessary.60

Benefits

Saes should award heir chosen Promise Zones designees he resources o help

implemen heir sraegies and atrac addiional financial suppor and capaciy.

Such benefis could include:

Planning grants.While he ederal Promise Zones iniiaive does no come wih

an iniial gran award, a small iniial planning gran could urher caalyze effors

or each sae Promise Zone. During CAPs inerviews wih he firs five Promise

Zones rom he ederal iniiaive, leaders rom each sie expressed he need or

an iniial, modes planning gran o help build capaciy and enhance heir

ongoing effors. Saes could call on heir agencies o ideniy discreionary or

compeiive unding sreams where, under curren sauory parameers, a small

percenage o unding could be se aside or heir Promise Zones designees.

Priority access to funding. Sae Promise Zones should be awarded addiional

poins or sae unding, as well as compeiive ederal unding sreams over

which saes have discreion. Examples are deailed in he secions below.

AmeriCorps volunteers. Each ederal Promise Zone is suppored by

AmeriCorps members who assis in he implemenaion o he zones plan o

creae economic growh and opporuniy or all. Tese AmeriCorps members

play a key role in providing he mission-driven human capial o help zones

achieve heir goals. Approximaely wo-hirds o AmeriCorps gran unding in

each sae goes o governor-appoined sae commissions.61

Saes should engageheir governor-appoined sae service commissions, which are responsible or

managing AmeriCorps sae and naional ormula unds rom he Corporaion

or Naional and Communiy Service. Tese sae service commissions can play

an imporan role by providing unding and engaging local communiies in he

work o designaed sae Promise Zones.


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Dedicated staff.Where possible, saes should consider dedicaing saff as

poins o conac o he specific zones o help hem navigae sae resources and

provide added capaciy.

For urher reerence, he ederal governmens applicaion maerials can be ound

on he Deparmen o Housing and Urban Developmens websie underPromise Zones.62

Given the great interest in federal place-based initiatives, other

organizations are demonstrating that there is an appetite for

adopting such efforts at the state level. Prior to the creation of

Promise Zones, the Obama administration established a number ofplace-based initiatives, including Promise Neighborhoods. Launched

in 2010 by the U.S. Department of Education, the Promise Neighbor-

hoods program was designed to move beyond a singular focus on

low-performing schools to recognize the role that an entire commu-

nity plays in a childs education.63Modeled after the much-heralded

Harlem Childrens Zone in New York City, the Promise Neighborhoods

program models a cradle-to-career continuum of health, social, and

educational services by partnering with community-based organiza-

tions and gauges outcomes by utilizing common metrics of success.

The Promise Neighborhoods Institute at PolicyLink, or PNI, whichprovides resources and guidance to Promise Neighborhoods,

recognized that this model could be spread to states across the

country. For instance, PNI was an early supporter of the California

Promise Neighborhoods Initiative legislation. The bill passed the

California State Assembly but needs to be introduced in the new

session. This past summer, PNI introduced model legislation to

used at the state and local levels to secure support for cradle-to

career efforts.64The Cradle to Career Act secures funding for inn

tive, results-based, and comprehensive solutions that connectchildren and youth to a high-quality education and key health

social services that prepare them to succeed in college and in t

careers. The legislation:

Establishes a continuum of solutions for all children living in

distressed neighborhoods

Incentivizes a disciplined execution of solutions

Includes a matching requirement to encourage public/privat

partnerships and lay the groundwork for sustainability

Encourages use of data and evaluation65

Currently, several communities are preparing efforts to get the

to Career Act introduced in their states.66

The Promise Neighborhoods Institutes cradle-to-career model legislation


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Potential policies and funding

streams to support state

Promise Zones

In order o incenivize leaders in high-povery communiies o commi o a

rigorous process o advance heir work, saes mus provide inensive suppor and

prioriy access o cerain sae unding and compeiive ederal unding sreams.

Given he ac ha saes underake mos direc spending on public goods and

services and have broad auhoriy over numerous ederal unding sreams, sae

leaders are already equipped o esablish heir own Promise Zones iniiaives.

According o he Cener on Budge and Policy Prioriies, he vasmajoriy o sae dollars go oward unding educaion and healh

care. In ac, saes are one o he main unders o public elemen-

ary and secondary schools, wih local governmens being he

oher primary under. On average, one-ourh o sae spending, or

abou $270 billion, goes o public educaion.67In erms o healh,

saes und healh insurance or low-income amilies hrough

Medicaid and he Childrens Healh Insurance Program, or CHIP,

as well as healh benefis or public employees and care or people

wih menal illness and developmenal disabiliies. In a ypical

monh, hese programs provide healh coverage or coverage or

long-erm care o roughly 63 million low-income children, parens,

elderly people, and people wih disabiliies.68While hal o sae

unds go oward educaion and healh, saes also und a wide

variey o oher services, including ransporaion, correcions,

pension, assisance o low-income amilies, economic develop-

men, environmenal projecs, sae police, parks and recreaion,

housing, and aid o local governmens.

FIGURE 5

Percentage of state spending,

fiscal year 2012

Note: Calculations do not include federal funds spent by states. "All otspending" category includes care for residents with disabilities, pensiohealth benefits for public employees, economic development, enviro

projects, state police, parks and recreation, and general aid to localgovernments. Numbers do not sum up to 100 percent due to roundi

Source: Center on Budget and Policy Priorities, "Policy Basics: Where DState Tax Dollars Go?" (2014), available at http://www.cbpp.org/files/

policybasics-statetaxdollars.pdf.

K-12 education: 25

Medicaid: 16%

Higher education:

Transportation: 5%

Corrections: 5%

Public assistance:

All other spending


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In addiion, saes have broad flexibiliy when adminisering many ederal grans,

prioriizing unding o specific projecs, populaions, or regions. For example,

saes se he guidelines or child care subsidies and make decisions on how o

allocae unding sreams ha do no serve all eligible people or eniies, such as

he Social Services Block Gran and he Communiy Developmen Block Gran,

or CDBG. Creaing sae Promise Zones programs could give zone designeesprioriy access o a porion o unding across hese ederal grans and allow local

leaders o more easily leverage sae and local unding sreams. In addiion, as sae

fiscal condiions coninue o improve, saes can consider increasing available

resources o hese programs, keeping in mind ha argeing resources in hese

areas will have he added benefi o advancing and susaining innovaive work

rom which oher communiies in he sae can learn.

As saed earlier, given he inerdependen naure o hese issues, zones may begin

heir work by ocusing on one or wo issue areas bu should have a vision or

progress across all criical issue areas. Te secion below oulines he challengesha high-povery communiies ace, sraegies ha sae leaders can employ in

shaping heir Promise Zones iniiaives in he key issue areas, available ederal

unding sreams, and bes pracices rom local leaders.

Attracting private investment, creating jobs

As discussed earlier, high-povery communiies have suffered rom decades o

underinvesmen. Exacerbaing he neglec, reducions in ederal and sae unds

are making i increasingly difficul or local governmens o inves in economic

developmen. Privae invesmen is criical o addressing he economic, housing,

inrasrucure, and ransporaion needs oulined in his repor. While increasing

opporuniies wihin he zones hemselves is imporan, i is criical o ensure ha

Promise Zones residens have greaer access o, and are prepared or, employmen

opporuniies wihin he broader region. (see workorce recommendaions in he

Educaion-workorce pipeline secion and ransporaion recommendaions in

he Housing and inrasrucure secion, boh below) Sill, invesmen wihin he

zones is criical, bu even when privae capial is available, many ciies do no have

he capaciy o atrac and deploy hese resources.69

I is criical ha sae PromiseZones iniiaives promp applicans o assess heir abiliy o atrac and deploy capial.


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Potential state actions

Require Promise Zones applicants to map out their community investment

infrastructure. Successully atracing and deploying privae capial requires

collaboraion among many acors, beyond banks and communiy developmen

financial insiuions. According o Living Ciies, a philanhropic collaboraiveha works o ransorm low-income communiies, successul communiy

invesmen requires collaboraion among many groups, including communiy-

based organizaions, financial insiuions, developers, he local business

communiy, he public secor, and anchor insiuions such as universiies and

hospials.70Sae Promise Zones designees mus convene hese poenial parners

around specific opporuniies and develop ongoing relaionships o build capaciy

or communiy invesmen. Securing and leveraging privae invesmen will help

advance he goals o a sae Promise Zone, as well as ensure he longeviy o he

effor.71As a resul, saes should require sae Promise Zones o map ou heir

local communiy invesmen ecosysem, ouline curren privae-secor parner-ships, and discuss how hey plan o build capaciy o guide invesmen oward

greaer social oucomes. Criical quesions o address include:72

Which acors seward invesmens rom beginning o end, which ake he lead,

and wha happens when hings go wrong? How are grans, raining, daa, and coordinaion used o boos he effecive-

ness o communiy invesmen? How are economic developmen, social equiy, and susainabiliy goals

inegraed ino deals and programs?

In Detroit, Michigan, the Woodward Corridor Initiative, or WCI, is

focused on stabilizing neighborhoods, increasing investment, and

attracting new residents to one of the city s main thoroughfares.

However, WCI faced challenges deploying private capital for public

purposes. As a result, initiative leaders turned to a national financial

intermediary, Capital Impact, for assistance. Capital Impact brought

its expertise, balance sheet, and relationships with national funders

to the local partnership, allowing the partnership to build up its

capacity for working with private capital in a difficult environm

The initiative also incorporated a creative strategy to raise capi

working with the citys anchor institutions, including the Henry

Medical Center and Wayne State University.74The anchor institu

offered employees home loans and renter allowances to move

community, promoting a mixed-income neighborhood.75

Best practices in attracting private investment


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Education-workforce pipeline

Childhood povery is associaed wih a hos o negaive oucomes, including lower

educaional atainmen, lower job earnings laer in lie, and higher healh and

criminal jusice cossall o which cos he American economy more han $500

billion per year.76

Wih he child povery rae a 19.9 percen, many schools acehe challenge o eaching sudens burdened wih unme needs ha pose obsacles

o learning. Furhermore, only one-hird o U.S. eighh graders are proficien in

mah and reading,77and high school sudens are no graduaing wih he skills

hey need o pursue higher educaion or jobs, wih only one-quarer perorming

proficienly or beter in mah and jus 40 percen perorming proficienly or beter

in reading.78A 2009 repor by McKinsey & Company on he gaps in primary and

secondary school achievemen argued ha he Unied Saes is experiencing he

economic equivalen o a permanen naional recession.79I is criical or commu-

niies o improve he cradle-o-career pipeline in order o ensure ha children

have greaer access o economic opporuniies laer in lie.


Ensure state Promise Zones applicants align their education and workforce

development systems. During he sae Promise Zones applicaion process,

saes should require poenial designees o describe heir plan o ensure ha all

young people have access o a qualiy educaion and resources o prepare hem

or college and careers. Te narraive should ideniy specific barriers o over-

come and oucomes hey seek o achieve, such as increased enrollmen in pre-K

programs, improved classroom eaching, raining parnerships ha lead o

degrees or cerificaions, or career navigaion services, o name a ew.80Such a

sraegy would allow saes o uilize Workorce Innovaion and Opporuniy

Ac, or WIOA, unding as par o he iniiaive. (see below)

Target smaller educational funding streams to Promise Zones. In order o

address educaional dispariies, saes mus ocus on allocaing unds based on

needs. However, where here are smaller dedicaed pos o unding, such as or

afer-school programs, saes should give prioriy access o Promise Zones, givenhe ac ha his unding will have o be argeed anyway. (see he secion on

compeiive ederal unding sources below)


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Outline expectations for how state colleges and universities should participate

in the Promise Zones initiative. For pre-K-12 educaion, communiies should

develop plans wih local educaion agencies and leverage he resources o local

colleges. In addiion, saes should assess he srengh o parnerships beween

iniiaive leaders and colleges and universiies. Tis can include speciying

cerain agreemens hrough a leter or memorandum o undersanding and/orindicaing wha kind o resources hese insiuions will devoe o he effor.

Support workforce development efforts that align with employer needs and

increase access to jobs. In erms o workorce developmen, privae-secor

leaders, workorce invesmen boards, raining providers, and communiy

colleges provide a number o key resources o he workorce developmen

sysem. Communiies should ouline how hese roles and resources will be

uilized o implemen new workorce sraegies ha increase access o jobs, such

as placemen services, he developmen o sof skillsapplied skills such as

eamwork, decision making, and communicaion81or communiy-levelsuppor o help residens keep jobs. Furhermore, much o he financing o

public schools and workorce developmen services comes rom boh he sae

and local levels. In prioriizing suppor or sae Promise Zones, poenial

designees should illusrae how hey plan o leverage sae and local resources as

par o heir plans.

Establish subsidized jobs in Promise Zones to help families and the economy.

As our colleagues a he Cener on Budge and Policy Prioriies and he Cener

or Law and Social Policy have underscored,82saes can use exising unds under

he emporary Assisance or Needy Families, or ANF, program o creae

subsidized employmen opporuniies or low-income and disadvanaged workers.

One o he resources ha saes can offer o designaed Promise Zones wihin

heir borders is ederal and sae ANF dollars ha can be used o creae subsidized

jobs programs in hese communiies ha parner wih privae and nonprofi

employers o creae job opporuniies in high-unemploymen neighborhoods.

Create city-state resource hubs to help screen residents for benefits eligibility

and connect them with the benefits they qualify for but are not receiving. For

example, six new BenePhilly Ceners have opened across Philadelphia,Pennsylvania, o screen low-income residens or ederal, sae, and local benefis

and services or which hey are eligible and o assis hem wih he applicaion

process. Saes can give preerence o Promise Zones ineresed in adoping his

model as par o heir plans.


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Create financial empowerment centers to help residents build personal assets.

According o a Federal Reserve survey conduced las year, only 48 percen o

Americans would be able o cover an unexpeced expense o $400 wihou

borrowing money or selling somehing.83In response o he growing need o

help amilies build heir asses, here has been an increase in financial empower-

men ceners, where residens can work one on one wih coaches o developplans or paying down deb, opening a bank accoun, and saving or he uure.

Te firs o hese ceners opened in New York wih a gran in 2008, and he

ceners are now a publicly unded par o ciy governmen conraced hrough

local nonprofis, having served more han 10,000 cliens.84Similar o he

resource hubs, saes can give preerence o Promise Zones ineresed in creaing

financial empowermen ceners as par o heir plans.

Available federal resources

The 21st Century Community Learning Center, or 21st CCLC, grans suppor he

creaion o communiy learning ceners ha provide afer-school academic

enrichmen opporuniies, paricularly or sudens who atend high-povery

and low-perorming schools.85Sae educaional agencies, or SEAs, which

receive unds rom his program hrough ormula grans, manage saewide

compeiions o award grans o local educaional agencies or nonprofis.86

Saes can give prioriy access o heir sae Promise Zones o pursue innovaive

educaional programming. By providing a seady and reliable sream o unding,

communiies can es innovaive ways o suppor childrens learning wihou

having o ollow a prescripive model.87For example, an evaluaion o Enhanced

Academic Insrucion in Afer-School Programs in 21s CCLC-unded ceners

a wo-year mah and reading program ha arges children in second hrough

fifh grade who perorm below grade levelalso examined oucomes relaed o

academic perormance. Te mah curriculum in paricular suppored an approach

o learning beyond radiional educaional mehods, which was shown o have

posiive impacs on youhs mah es scores.88

School Improvement Grants, or SIGs,are grans awarded o SEAs ha in urn

make compeiive subgrans o local educaional agencies commited o raisinghe achievemen o sudens in heir lowes-perorming schools.89For example,

in Balimore Ciy Public Schools, SIG unds helped pay or addiional school saff

members who provide argeed inervenions or a-risk sudens in SIG schools. 90

In addiion, Balimore Ciy schools have used unds or enrichmen aciviies o


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build greaer connecions beween sudens and he school communiy, which

can help miigae discipline problems.91Saes ineresed in esablishing Promise

Zones can similarly give prioriy access o hese unds in order o help serve he

paricular needs o high-povery schools.

WIOA,which recenly passed, also provides new opporuniies or saes andlocaliies o capialize on ederal resources or workorce developmen aciviies.

Saes ineresed in designaing Promise Zones wihin heir borders should

consider how he new resources and guidelines under he law could be bes

leveraged o suppor pahways o living-wage jobs or residens o high-povery

communiies. For example, under WIOA, saes are requesed o sraegically

align heir workorce developmen programs92and o submi a our-year sraegy

or aligning he core educaion and raining programs o mee he needs o

employers so ha here are jobs on he oher side o raining programs.

Imporanly, WIOA also encourages workorce developmen programs o be

coordinaed wih regional economic developmen sraegies, urging saes oideniy regions or ocus.

Tis guidance should spur saes o align heir our-year sraegy plans wih

effors o atrac capial and jobs o disressed communiies, as well as o address

ransporaion barriers ha residens o poor neighborhoods may ace in

connecing o regional labor-marke opporuniies. WIOA also offers flexibiliy

or saes and localiies o use unding oward effecive sraegies such as regisered

appreniceships, ransiional jobs, and on-he-job raining, and i requires sae

and local Workorce Invesmen Boards, or WIBs, o align heir workorce

programs. In addiion, new provisions under WIOA suppor saewide youh

aciviies around financial lieracy, including suppor in creaing budges,

creaing savings plans, and undersanding credi repors and financial producs.


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States play a critical role in administering federally funded work and income supports, and

the policy choices they adopt have a real effect on the ability of low-income families to

access needed services and supports. In addition, states can play a critical role in helping

low-income families save for the future. The following strategies would help enhance the

work of state Promise Zones and would benefit struggling families and spur economic

opportunity across a given state.

Streamline access to critical work and income supports and reduce states

administrative costs by building upon lessons learned from demonstrations

such as the Work Support Strategies initiative.Under this project, six states are

implementing new methods to better coordinate access to work and income supports,

which is a win for low-income families, the state budget, and the state economy. Early

results from this collaboration between leading foundations, policy thinkers, and state

governments are promising in both red and blue states. For example, South Carolina

implemented Express Lane Eligibility, which enabled the state to recertify children for

health coverage based on their eligibility for other programs, even if methods for deter-

mining eligibility differed slightly from those generally used by Medicaid and CHIP.93This

policy change not only enabled tens of thousands of low-income South Carolinian children

to keep their health care coverage, but it also saved the state more than $1 million in

administrative costs, as fewer children coming on and off health insurance meant the state

had to process fewer applications.94The state now has a Medicaid state plan amendment

wherein it can use records from the Supplemental Nutrition Assistance Program, or

SNAPformerly known as food stampsand TANF to identify children who are eligibile

for Medicaid and enroll them in health coverage.

Enact or expand a state Earned Income Tax Credit, or EITC, and improvetax-time outreach in state Promise Zones areas. A total of 26 states currently have

state EITCs, which build off the successful federal program that lifted approximately 6.5

million people out of poverty in 2012. States that have not yet enacted a state EITC should

consider adopting one, and states that have already enacted a state-level EITC should

considering expanding it. In all cases, states can invest resources in Promise Zones areas to

expand outreach efforts to encourage families to file a tax return. They should also invest in

free tax-preparation help, increasing the share of low-wage working families who benefit

from this successful policy.95

Income supports


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Safe and healthy communities

Research shows ha a persons ZIP code has more o do wih lie expecancy han

geneics.96In ac, children in poor amilies are abou seven imes more likely o be

in poor or air healh han children in middle-income amilies.97Oher findings

indicae ha lower-income children experience higher raes o ashma, hearcondiions, hearing problems, digesive disorders, and elevaed levels o lead in he

blood.98As a resul, i is criical o address he social deerminans o healh, such as

higher levels o polluion, exposure o violence, and living in so-called ood desers.


Require localities to develop a plan for conducting a community health needs

assessment, or CHNA. Given he ac ha issues relaed o healh and saey span

various sae and local agenciesrom housing auhoriies o environmenalagencies o police deparmenshis is an area where saes should expec

communiies o develop comprehensive plans ha address hese inerlocking

issues and leverage available unding sreams. Nonprofi hospials are already

required o conduc a CHNA. As a resul, localiies should describe how hey

plan o coordinae wih heir local hospials, which could include submiting a

memorandum o undersanding or describing how he resuls o he hospials

CHNAs will be used. For example, in 2011, Samord Hospial in Connecicu

and he Samord Deparmen o Healh and Social Services collaboraed o

conduc a CHNA hrough inensive sudies and inerviews.99Tis collaboraive

process resuled in our communiy healh prioriy areas: healh and wellness;

chronic disease; menal healh and subsance abuse, also known as behavioral

healh; and access o services.100

Require localities to prioritize resilience measures in their community develop-

ment efforts. Te Federal Emergency Managemen Agency, or FEMA, will soon

release new guidance or Sae Hazard Miigaion Plans ha calls upon saes o

consider he impacs o climae change in heir planning effors.101Climae-

ueled exreme weaher is par o he new normal, cosing saes millions o

dollars in disaser recovery every year and disproporionaely huring low-income communiies.102As a resul, saes should include requiremens or

Promise Zones o build resilience ino heir communiy developmen sraegies

and inrasrucure plans ha align wih sae prioriies.


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Support efforts that deter crime.Addressing crime is a highly localized issue

ha varies beween communiies across he counry. However, saes can

suppor sraegies ha ocus on deerring crime, such as using daa o ideniy

and monior so-called ho spos and improving communicaion beween law

enorcemen and communiies. In addiion, successul prisoner re-enry should

be hough o as a public saey issue and an employmen issue, no jus acorrecions issue.

Enact reforms around the use of criminal records.A criminal record can be a

lielong barrier o economic securiy and mobiliy, having adverse effecs on

amilies, communiies, and he economy as a whole. A recen CAP repor iled

One Srike and Youre Ou: How We Can Eliminae Barriers o Economic

Securiy and Mobiliy or People wih Criminal Records oulines a number o

policies o ensure Americans wih criminal records have opporuniies or a

decen lie, while reducing recidivism and ulimaely srenghening communi-

ies. For insance, saes can enac policies o bar landlords rom discriminaingagains enans because o heir criminal records; pass senencing reorms o

reduce incarceraion raes while saving axpayer dollars and enhancing public

saey; and pass legislaion o proec job applicans, including ban he box

effors ha delay background checks unil afer job seekers are being considered

or posiions. Such policies will enhance he public saey measures ha Promise

Zones designees enac, while helping individuals and amilies saewide.


Affordable Care Act. Nonprofi hospials are required o provide benefis o he

communiies hey serve in order o keep heir ax-exemp saus. Naionwide,

abou 2,900 hospials, or 60 percen, are nonprofi. Te financial benefi o being

ax exemp is esimaed o be worh $12.6 billion annually.103Hisorically, many

o hospials communiy-benefi aciviies have been relaed o chariy care. Te

new requiremens in he Affordable Care Ac go beyond improving healh o

include greaer accounabiliy or hospials, more effecive use o resources, and

building communiy capaciy and engagemen o address healh issues.104As

par o his effor, nonprofi hospials mus coninue o conduc a CHNA aleas every hree years. Tey also mus develop a sraegy o mee hose needs.

Communiy benefis ha qualiy nonprofi hospials or ederal ax exempion

include:


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Free and discouned care o uninsured and low-income paiens Paymen shoralls or services provided o Medicaid paiensAciviies o improve healh in he communiy he hospial serves Programs o increase access o care, such as subsidized healh services Medical research

Educaing healh proessionals105

Hospials and local leaders should use his renewed commimen o providing

communiy benefis as an opporuniy o ully explore he range o social

deerminans o healh and he rue needs o heir communiies.106

In addiion, he Deparmen o Healh and Human Services announced $60

million in Navigaor gran awards o 90 organizaions in saes wih ederally

aciliaed and sae parnership markeplaces.107Tese grans are mean o

suppor organizaions in doing oureach aciviies in he second year o enroll-

men o ensure ha more people gain access o affordable healh care.According o a recen survey, organizaions providing assisance in boh

sae-based and ederally aciliaed insurance markeplaces were responsible or

helping an esimaed 10.6 million consumers apply or coverage in markeplace

plans, Medicaid, or CHIP during he firs open enrollmen period o he

Affordable Care Ac.108Poenial Promise Zones applicans should work wih

organizaions ha have received Navigaor unds o ensure hey are working on

comprehensive plans geared oward improving healh oucomes or residens.

The Edward Byrne Memorial Justice Assistance Grant, or JAG, Programis he

leading source o ederal jusice unding o sae and local jurisdicions o

suppor a range o program areas, including law enorcemen; cour proceed-

ings; prevenion and educaion; correcions; drug reamen and enorcemen;

planning, evaluaion, and echnology improvemen; and crime vicim and

winess iniiaives.109For example, Illinois prisons are over capaciy, wih he

majoriy o prisoners arresed or nonviolen drug or propery crimes.110As a

resul, in 2009, he Adul Redeploy Illinois program was esablished wih Byrne

JAG unds as a way o reduce recidivism and save he sae money by promoing

local alernaives o incarceraion. In exchange or unding and echnical

assisance, localiies agree o reduce he number o people sen o sae prisonsby 25 percen or more.111Wihin is firs wo years, he program divered 987

offenders and saved he sae an esimaed $16.9 million.112Paricipaing

counies develop a sraegic plan ha idenifies he argeed offender populaion

and gaps in services and sancions.113


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Housing and infrastructure

One o he bigges challenges many amilies ace is finding and securing affordable

housing, or housing or low- o moderae-income households in which occupans

pay no more han 30 percen o heir income. Currenly, here is a shorage o

more han 5 million housing unis or exremely low-income reners.119Te

challenge o finding housing ha mees he basic needs o amilies is exacerbaed

by he ac ha much o he naions affordable housing sock is no linked o he

ransporaion opions necessary o access employmen opporuniies and criical

services. o make maters worse, housing and ransporaion coss have increased

aser han incomes over he pas decade, while low-income neighborhoods ofen

have less reliable and underinvesed public ransporaion.120In addiion o

ransporaion, he naions inrasrucureincluding sewer, waer, and elecric

sysemsis in disrepair. I is esimaed ha $262 billion per year in spending over

he nex 10 years is needed o fix he naions inrasrucure.121I is no surprising,

hen, ha he American Sociey o Civil Engineers gave U.S. inrasrucure a D+or 2013.122A srong inrasrucure is criical o suppor peoples everyday lives, as

well as o connec communiies wih opporuniies.

The Joint Center for Political and Economic Studies national Place

Matters initiative has yielded some local best practices for developing

plans to address disparities in health. Given the significant health

inequities that exist in Alameda County, California, by race, ethnicity,

and income, County Supervisor Keith Carsons office and the Alameda

County Public Health Department launched Alameda County Place

Matters, an initiative that addresses community conditions through

local policy change.114Place Matters actively partners with local

organizations and community leaders to identify current issues and

policy interventions focused on income, education, housing, criminal

justice, land use, and transportation policy areas.115Place Matters

studies the links between these various policy issues and health

concerns and responds to community requests for policy analysis.116

For example, fear of landlord retaliation, displacement, and dep

tion forces many low-income people of color to remain in unsa

housing conditions where they are exposed to hazards such as

lead, and rodents. Alameda Countys Place Matters Housing Wo

group partnered with government and community organizatio

advance the widespread adoption of a proactive approach to r

inspection, including improving the citys code-enforcement

practices.117Work is also underway to incorporate a health focu

a variety of policies and practices, including land-use planning

completing a health impact assessment on education funding

models, and conducting a health impact assessment on fundin

local public transportation.118

Best practice: Community health


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Consider policies to enable and promote the rehabilitation of affordable

housing.Affordable housing is increasingly scarce, and building i is an uphill

batle. For every new affordable aparmen creaed, wo are los due o deeriora-

ion, abandonmen, or conversion o more expensive housing.123

However,rehabiliaing an exising affordable aparmen can cos one-hird less han

building a new one.124As a resul, saes should require localiies o develop

plans or preserving publicly ownedor privaely subsidizedaffordable

housing. However, while local building codes govern new consrucion, many

saes do no have codes or rehabiliaion. Wihou specific and consisen

guidance, he rehabiliaion o older properies ofen mus conorm o he same

sandards as new consrucion, sandards ha do no accommodae he specific

needs and challenges o updaing older homes. Saes should ensure ha heir

building codes no only allow or bu also encourage he rehabiliaion o older

homes.125

Review and update regulatory policies to reduce barriers for development.

Saes and localiies can reduce coss or developers and keep rens affordable by

addressing oudaed regulaory barriers, such as single-use zoning, low-densiy

limis, and parking requiremens on propery near ransi. Mos local zoning

regulaions limi or prohibi higher-densiy developmen, and when such

developmens are allowed, hey are ofen segregaed rom oher housing ypes

and schools. As a resul, saes should give preerence during he applicaion

process o localiies ha work o overcome regulaory barriers o mee curren

housing needs.126Sae or local unding can also be used as direc ren subsidies,

atached o a porion o unis in new developmens or awarded o enans.

Protect households from displacement.While affordable renal housing is

criical, a number o low-income residens in high-povery communiies own

heir own homes. As a resul, i is imporan ha as Promise Zones develop hey

include plans o help proec hese households rom increasing propery axes.

Some communiies have urned o so-called circui-breaker programs, which,

like he elecrical devices ha shu off power o preven circuis rom overload-

ing, preven propery axes rom overloading a amilys budge by shutingoff propery axes once hey exceed a cerain share o he amilys income.127

Tese programs give direc propery ax relie o low-income homeowners who

are longime residens. Saes could consider implemening hese programs

saewide bu should consider Promise Zones applicans ha have similar plans


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o comba displacemen.

Support greater access to transportation throughout the Promise Zones

initiative. Saes should require heir Promise Zones applicans o ouline how

planners and ransporaion officials will address inrasrucure challenges while

ensuring ha low-income populaions benefi rom hose plans. Qualiy oservice is criical or localiies o connec residens o opporuniy, such as he

saey o sysems, mainenance, he modernizaion o imeables o reflec

nonradiional work schedules, and more. For rural areas, his means filling gaps

in he sysem, which could include piloing car-sharing programs. Unorunaely,

sae ransporaion agencies overwhelmingly ocus on saewide highway

neworks, leaving aside regional mobiliy. o address his shorcoming, saes

should empower meropolian and rural ransporaion planning organizaions

wih addiional mode-neural unding and projec-selecion auhoriy.

Ensure a greater connection between transportation and housing development.Saes should require heir Promise Zones applicans o provide deailed plans

o coordinae he ofen-disparae aciviies and invesmens o housing and

ransporaion agencies. Saes can also require regional housing, ransporaion,

and planning organizaions o inegrae and synchronize heir planning cycles o

ensure ha limied resources reinorce housing and mobiliy goals raher han

counerac one anoher. Inegraed planning will no happen overnigh, as many

regional auhoriies have limied saffing. As a resul, deparmens o ranspora-

ion should be prepared o provide guidance and echnical assisance o rans-

poraion effors incorporaed ino he iniiaive.128


The Low-Income Housing Tax Credit, or LIHTC. Since is creaion in 1986, he

LIHC has leveraged more han $100 billion in privae invesmen capial

hrough a dollar-or-dollar reducion in a developers ax liabiliy, providing

criical financing or he developmen o more han 2.5 million affordable renal

homes.129Te program annually suppors 95,000 jobs and finances approxi-

maely 90 percen o all affordable renal housing.130

Moreover, i is viewed as acriical resource o ransorm communiies suffering rom bligh.131Because

saes have he auhoriy o esablish crieria or he ax credis, sae leaders

should work wih he sae housing agencies o give preerence hrough he

ederal LIHC program o privae developers ha build affordable housing in


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he zone. Prioriizing developmens in Promise Zones is consisen wih ederal

policies ha encourage saes o prioriize allocaion o LIHC developmens in

concered communiy revializaion areas.132

The CDBGis a flexible program ha provides communiies wih resources o

address a wide range o unique communiy developmen needs, rom housing ogreen inrasrucure upgrades. Each CDBG-unded aciviy mus mee a leas

one o he programs hree naional objecives: (1) benefi low- and moderae-

income people; (2) aid in he prevenion or eliminaion o slums or bligh; and

(3) address an urgen need ha poses a serious hrea o he healh or welare o

a communiy or which no oher unding is available.133Saes ha paricipae in

he CDBG program award grans o general local governmens o carry ou

developmen aciviies. Saes are responsible or ormulaing communiy

developmen objecives, deciding how o disribue unds among communiies

in nonenilemen areas, and ensuring ha recipien communiies comply wih

applicable sae and ederal laws and requiremens. Beween 2005 and 2013,CDBG unding suppored improvemens o public aciliies ha benefied more

han 33.7 million people.134For example, in Someron, Arizona, CDBG unds

allocaed hrough he sae allowed he ciy o purchase and insall solar panels

o provide energy o is waer-reamen plan as par o a sraegy o reduce

energy coss. So ar, he ciy has saved an average o $20,000 per year while

curbing energy use.135

Currently, there is a shortage of more than 5 million affordable

housing units for low-income families across the country. Further-

more, only one in four families that qualify for federal housing

assistance currently receives it,136and nearly two-thirds of extremely

low-income renters spend 50 percent or more of their monthly

incomes on housing.137Housing affordability is exacerbated by

regulatory constraints on expanding the housing supply, including

limitations of land, lengthy and complicated approval processes, and

low-density zoning.138

In Montgomery County, Maryland, mandatory inclusionary zoning

programs have required developers to set aside a percentage of

affordable housing units in market-rate developments for the l

years. The countys Moderately Priced Dwelling Unit, or MPDU,

program requires new developments with 20 or more housing

to be made up of 12.5 percent to 15 percent MPDUs to ensure

developers are creating affordable housing.139Households mus

between $30,000 and $81,500 per year to rent an MPDU.140Un

sale have 30-year affordability terms that can be renewed if the

sold to a new household within the price-control period.141Wh

productivity is limited, the program is nationally recognized asthe most successful inclusionary zone ordinances, producing a

average of 368 MPDUs per year and more than 13,000 units ov

life of the program9,300 for sale and 4,000 rental units.142

Best practice: Incentivizing affordable housing


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Conclusion

Te ederal Promise Zones model capializes on years o research and experimen-

aion in undersanding how o revialize low-income urban, rural, and ribal

communiies. However, he goal o he iniiaive is no only o ransorm he

seleced zones bu also o demonsrae new ways leaders can work wih local

communiies. Sae leaders have a vesed ineres in ackling concenraed povery

wihin heir borders, and he Promise Zones model provides a naural ramework

or doing so.

Forunaely, saes are already equipped o esablish sae Promise Zones. Saes

and localiies underake mos o he direc spending on public goods and services

and bear primary responsibiliy or invesmens in educaion, social services, and

inrasrucure.143In addiion, saes adminiser a significan amoun o ederal

discreionary unding, wih sae leaders having broad auhoriy over compeiive

ederal unding sreams. Sae leaders can give sae Promise Zones designees

prioriy access o hese unds, allowing hem o deploy hese resources more

sraegically. By adoping his model, sae leaders can complemen he work o

ederal povery programs and ensure resources are leveraged o be greaer han he

sum o heir pars, boosing economic mobiliy and opporuniy in ways ha no

only benefi amilies bu saes as well.


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Appendix

Examining the Enterprise Zone model

Since he 1960s, he communiy developmen secor has made a grea impac by

leveraging billions o dollars in privae capial o build millions o affordable

housing unis and o oser place-based work across he counry. Over he years,

he place-based policy ha has atraced he mos atenion rom researchers is

Enerprise Zonesgeographical areas designaed by ederal or local governmen

officials o give financial incenives, such as ax benefis, o businesses ha locaein or hire workers wihin he zone.144Originaing in Grea Briain in he 1970s, he

Enerprise Zone idea spread hroughou he Unied Saes during he 1990s. A

he ederal level, he Empowermen Zone, or EZ, and Enerprise Communiy, or

EC, iniiaives were creaed in 1993 o reduce unemploymen and o generae

economic growh hrough he designaion o ederal ax incenives and gran

awards o disressed communiies.145

Local, ribal, and sae governmens ineresed in paricipaing in Enerprise Zone

programs were required o presen comprehensive plans or promoing economic

developmen.146Localiies seleced o paricipae in he programs would hen lead

projecs ha promoed economic developmen in heir disressed communiies.

Urban Empowermen Zones received $100 million grans and rural Empowermen

Zones received $40 million grans.147Localiies no seleced or his program could

qualiy or he Enerprise Communiies iniiaive, which had less-generous hiring

credis and grans o around $3 million.148Overall, ederal expendiures via hiring

credis and block grans or he firs six years o he programs were esimaed a

abou $142 per zone residen each year.149

However, sudies are divided on wheher he Empowermen Zone programs weresuccessul. According o research rom he Universiy o Michigan and Yale

Universiy, Empowermen Zones creaed significan benefis in job growh and

wages.150Research ou o Ken Sae Universiy, meanwhile, suggess ha any gains

only benefied higher-income households.151Ye anoher sudy ou o he Universiy


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o Caliornia, Berkeley, ha compared rejeced and uure applicans o he

Empowermen Zone program wih acual designees ound ha he Empowermen

Zone designaion subsanially increased employmen in zone neighborhoods and

generaed wage increases or local workers.152Te sory, complee wih mixed

resuls,

Documents

A Framework for State-Level Promise Zones