Broadband and Rural Poverty

Kenyon C. KiesEconomic Development Specialist &Rural Poverty LiaisonKenyon.kies@wisconsin.gov

THE WISCONSIN DEPARTMENT OF CHILDREN AND FAMILIES

The Department of Children and Families is a cabinet-level state agency headed by Secretary Eloise Anderson with

approximately 800 employees and an annual budget of $1.285 billion. Its primary responsibilities include:

• Childcare• Child Support• Child Welfare• Strengthening families through “Welfare to Work” programs including:

Wisconsin Works (W-2) Transform Milwaukee Jobs Transitional Jobs Trial Employment Match (TEMP) The Milwaukee Response Initiative &

others

Over the years there have been many attempts to deal with the serious problem of poverty. The Walker administration has implemented a number of innovative programs including changes in unemployment insurance practices, food stamp eligibility, job training programs and provided economic development loans and credits targeting hard hit areas. These efforts have all assisted in fighting poverty. When Governor Walker took office in 2010, the state’s unemployment rate was 9.2%. As of November, 2016, it had dropped to 4.1 %. However, not all parts of the state have participated equally in this renewal.

DEALING WITH POVERTY IN PREDOMINANTLY RURAL WISCONSIN COUNTIES

THE CHILDREN & FAMILIES RURAL POVERTY PROJECT

Two years ago, the Wisconsin Department of Children and Families (DCF), initiated a project designed to identify and deal with rural poverty in the state. An obvious question was: Why was it in the interests of DCF to embark on this project when there were so many other workforce and economic development organizations throughout the state that might seem more obvious choices?

There were two simple reasons: First, it is the mission of the department to promote the economic and social well-being of Wisconsin’s children and families. Clearly, “poverty” is the antithesis of “well-being.” To the extent that ways can be found to reduce rural poverty, the mission of the department will have been partially successful.

Second, as the evidence will attest, poverty in many of the state’s rural areas continues to be a serious concern, leading to the inevitable conclusion that previous programs and policies were not working as they should have been, and there was a need to identify and remove barriers to development and job creation.

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THE DEPARTMENT CHOSE EIGHTEEN OF THE STATE’S MOST RURAL/ HIGHEST

POVERTY COUNTIES TO STUDY

RURAL IS DEFINEDBY CENSUS AS AREAS HAVING CLUSTERS OF 2500 RESIDENTS OR FEWER..

HOW DO RURAL POOR DIFFER FROM URBAN POOR?

• THEY ARE LESS VISIBLE BECAUSE THEY ARE NOT SPATIALLY CLUSTERED• THEY TEND TO BE OLDER – A HIGHER PERCENTAGE ARE RETIRED• THEY ARE MORE LIKELY TO BE MARRIED• THEY ARE MORE LIKELY TO OWN A HOME• THEY ARE MORE LIKELY TO OWN A VEHICLE (BUT NOT NECESSARILY A GOOD ONE)• THEY TEND TO HAVE LESS EDUCATION (A HIGHER PERCENTAGE OF H.S. DROPOUTS)• THERE IS LESS GENERATIONAL POVERTY• SUICIDE RATES ARE HIGHER• THE MAJORITY ARE EMPLOYED• THEY HOLD LESS DESIRABLE JOBS AND ARE LESS LIKELY TO HAVE FRINGE BENEFITS• THEY TEND TO LIVE IN AREAS WITH ONE DOMINANT EMPLOYER• THERE IS A HIGHER PERCENTAGE OF SEASONAL EMPLOYMENT• THEY HAVE HIGHER HOUSING COSTS AS A PERCENTAGE OF INCOME• THEY TEND TO BE LESS HEALTHY• THEY RECEIVE A HIGHER PERCENTAGE OF “TRANSFER PAYMENTS”• THERE IS A HIGH LIKELYHOOD THEY WILL NOT HAVE ACCESS TO ADEQUATE BROADBAND• WHERE BROADBAND IS AVAILABLE, THEY ARE LESS LIKELY TO TAKE ADVANTAGE OF IT

WHY IS THE INADEQUATE AVAILABILITY OR USE OF BROADBAND A PROBLEM FOR THE POOR IN RURAL

AREAS?

• Without it, it is difficult to maintain, expand or attract economic development & create jobs

• Broadband has become essential for:Finding EmploymentAccess to medical and other health related recordsFiling taxes online The payment of bills Banking without having to visit the banksAccess to newsMaintaining social relationships with friends and familyAccomplishing other activities that might be difficult

because of transportation issues, including weather

WHAT DOES BROADBAND AVAILABILITY LOOK LIKE THROUGHOUT THE STATE?

The darkest brown areas have speeds slower than 3.5 Mbps.

The lighter brown areas havespeeds slower than 5 Mbps.

The light blue areas have speeds equal to or higher than5 Mbps.

The federal definition of high-speed broadband is 25 Mbpsor higher.

WISCONSIN PUBLIC SERVICE COMMISSION