Structural Change: Confronting Race and Class

T H E K I R W A N I N S T I T U T E F O R T H E S T U D Y O F R A C E A N D E T H N I C I T Y & I S A I A H

O H I O O R G A N I Z I N G C O L L A B O R A T I V E W E E K L O N G T R A I N I N G

T O L E D O , O H

J U L Y 1 9 , 2 0 1 0

Structural Change:Confronting Race and Class

Presentation Overview

Introduction and Opportunity Stories

The Geography of Opportunity

The Disparate Impacts of the Recession

Race, Equity, and Organizing: the ISAIAH & Kirwan experience

Small group exercise and reporting back

About Kirwan

Multidisciplinary applied research institute, founded 2003

john powell, Executive Director Our mission is to expand

opportunity for all, especially for our most marginalized communities

Opportunity Communities Program Opening pathways to opportunity for

marginalized communities through investments in people, places and supporting linkages

Opportunity Mapping, Regional Equity, Neighborhood Revitalization, Opportunity Based Housing

About Our Work

Emphasis on how systems work to produce inequity How do multiple issues interact to either depress or

uplift certain populations or communities?

What can we do to “strategically intervene” and improve outcomes for marginalized communities

Emphasis on intersections in our work Geography, race, class, gender

Focus on how various populations are situated in our complex social, economic, civic, political systems

The Geography of Opportunity

Opportunity Matters….

“Opportunity” is a situation or condition that places individuals in a position to be more likely to succeed or excel.

Opportunity structures are critical to opening pathways to success:

High-quality education

Healthy and safe environment

Stable housing

Sustainable employment

Political empowerment

Outlets for wealth-building

Positive social networks

Neighborhoods & Community Matters…

Neighborhoods are critical to understanding access to opportunity Does your community provide

pathways to opportunity and success? Safe environment, good schools,

positive peers and role models, employment

Or does your community present you with barriers to opportunity and success Unsafe environment, failing schools,

poor peers and role models, no employment

8

Systems of Disadvantage: Neighborhoods & Access to Opportunity

Five decades of research indicate that your environment has a profound impact on your access to opportunity and likelihood of success

High poverty areas with poor employment, underperforming schools, distressed housing and public health/safety risks depress life outcomes A system of disadvantage Many manifestations

Urban, rural, suburban

Some people ride the “Up” escalator to reach opportunity

Others have to run up the “Down” escalator to get there

Our opportunity context matters

Why do some people have access to the “good life” while others do not?

It’s more than a matter of choice….

Historic Government Role

A series of federal policies have contributed to the disparities we see today School Policy

Suburbanization & Homeownership

Urban Renewal

Public Housing

Transportation

11

Policies Enforcing Inequity:Historical Government Role

“If a neighborhood is to retain stability, it is necessary that properties shall continue to be occupied by the same social and racial classes. A change in social or racial occupancy generally contributes to instability and a decline in values.”

–Excerpt from the 1947 FHA underwriting manual

12

The Rise of Suburbia:But not accessible to everyone

In the suburb-shaping years (1930-1960), less than one-percent of all African Americans were able to

obtain a mortgage.

FHA Highway Construction in Cincinnati –

Demolishing much of the African American West Side 14

Structural Causes and Racialized Outcomes

Structural disadvantage produces racialized outcomes

People of color are far more likely to live in opportunity deprived neighborhoods and communities

8% 8% 9%

24% 24%20%

0%5%

10%15%

20%

25%

Avg White Neighborhood Avg AA Neighborhood

Poverty Rate: White and African American Neighborhoods in 2000

Cincinnati MSA Cleveland MSA Columbus MSA

Opportunity Indicators

•Education

•Economic & Mobility

•Housing & Neighborhood

•Public Health

•Public Safety & Criminal Justice

Presenter

Presentation Notes

For example, the Education indicator was calculated by using data including graduation rate, teacher qualification, test scores, expenditure per pupil, distance from library, discipline rate, adult educational attainment, and many more

In Ohio,

Nearly 3 out of 4

Black Ohioans

were living in the

State’s lowest

opportunity

neighborhoods in

2000….

…compared to

1 in 2 Latinos

and 1 in 4

Asians and

Whites.

Racial Segregation & Educational Isolation

Economic Segregation and Racial Segregation in Public Schools: Southwest Ohio

High Poverty Schools (Red and Yellow) are Concentrated in African American Neighborhoods (Areas in Gray)

20

Metropolitan AreaWhite Non Hispanic Students

AfricanAmericanStudents

Akron 25.7% 66.1%Cincinnati 27.0% 69.4%Cleveland 25.3% 74.3%Columbus 23.7% 61.1%Dayton 26.8% 74.7%Toledo 29.5% 77.8%

Average School Poverty Rate for the Average Student by Race in 2000

Ohio Schools: Segregation by Race & Class

Overview: Summing it Up

“I believe the State is staring at the crossroads: one path has opportunities with advancement…and the other is more of the status quo, where folks are falling behind.” (quote from State of Black Ohio interview

participant)

The Disparate Impacts of the Recession

Uneven Impacts Across Various Dimensions

An uneven recession with many disparate impactsRace, Age, Gender,

Geography, Educational Attainment, Occupation

5.0

10.0

15.0

20.0

25.0

30.0 Underemployment Rate by Race July 2007 to Nov 2009

(Calculated by the Economic Policy Institute)

Black Latino White Total

Presenter

Presentation Notes

National trends: Everyone has been hurt by this recession, but certain groups have been hit harder than others. Here, we see that fully one-quarter of Latinos are underemployed as of Nov 2oo9, and Blacks are approaching that as well; and it was still trending upward, as all other groups were trending down.

An Uneven Recession…

7.0

12.8

9.9

7.78.7

16.5

12.6

9.7

6.0

8.0

10.0

12.0

14.0

16.0

18.0

White Black Latino Total

Unemployment Rate by Race (January 09 to January 10)

Jan-09 Jan-10

22.3%

32.2%

38.4%

33.9%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

White Black Latino Total

Percent Change in Unemployment, by Race: (January 2009 to January 2010)

Presenter

Presentation Notes

Again showing the disparate impact of the recession nationally. We see Black unemployment was double that of white unemployment in Jan 10. Latinos had the highest growth in unemployment btwn Jan 09-10

An Uneven ‘Recovery’….

In June 2010, private sector employment grew by 83,000 jobs…

From June 2009-June 2010:

White unemployment decreased by 1.7%

Black unemployment increased by 4.4%

Latino unemployment increased by 3%

Presenter

Presentation Notes

And we can see that despite modest job growth, unemployment continues to grow for certain groups. Black by 4.4%, Latino by 3%, and decreased for whites. Black unemployment continues to remain about double that of whites.

Ohio’s Challenges

Unemployment

Foreclosures and Vacant property

Budget Crisis

Presenter

Presentation Notes

Now to focus in on some of Ohio’s trends

Growing Unemployment28

1990 2000 2005 2006 2007

White 5.7% 4.2% 6.4% 6.1% 6.3%

Black 15.3% 11.2% 16.3% 15.5% 15.2%

Asian 5.1% 3.7% 5.2% 3.7% 4.6%

Hispanic 7.9% 9.1% 9.9% 9.7%

15.3%

11.2%

16.3%15.5% 15.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Perc

enta

ge

Unemployment Rate in Ohio, 1990 - 2007 (%)

Presenter

Presentation Notes

In Ohio before the recession hit full force, we can see that Black unemployment was almost 2.5 times that of white

Ohio: 3rd highest black unemployment rate

Total3rd Quarter

2009

Projected 1st Quarter

2010Black

3rd Quarter 2009


2010White

3rd Quarter 2009


2010Latino

3rd Quarter 2009


2010

Michigan 15.2% 15.7%



Nevada 20.1% 19.0%

Nevada 13.0% 12.3%

South Carolina 20.4% 22.7%

Rhode Island 11.2% 11.7%

California 15.6% 16.9%

Rhode Island 12.8% 13.4%

Ohio 19.5% 22.0%

Oregon 11.0% 12.4%

Florida 13.1% 14.3%

California 12.1% 13.1%

Illinois 18.6% 20.2%

Kentucky 10.6% 11.2%

New Jersey 12.0% 12.6%

Oregon 11.8% 13.3%

Alabama 18.0% 18.8%

Nevada 10.6% 10.0%

Arizona 11.6% 13.1%

Source: Derived from data tables and analysis conducted by the Economic Policy Institute. Available on the EPI website at: www.epi.org

Top Five States with the Highest Unemployment Rates by Race (Ranked by 2009 3rd Quarter Unemployment)

Presenter

Presentation Notes

By 3rd quarter 2009, OH had the third highest unemployment rate in the nation

Will Growing Poverty Lead to a Recession Generation?

Black

Child Poverty 2008 Native American

Child Poverty 2008 Latino

Child Poverty 2008 White

Child Poverty 2008

Mississippi 48% New Mexico 37% Kentucky 41% West Virginia 22%Arkansas 47% Arizona 35% Arkansas 39% Kentucky 20%Kentucky 44% California 24% Tennessee 39% Montana 18%Louisiana 43% Oklahoma 24% Alabama 36% Arkansas 17%Oklahoma 43% Alaska 23% Pennsylvania 36% Oklahoma 17%Wisconsin 42% Nevada 9% Rhode Island 36% Tennessee 16%Michigan 41% Data unavailable for other States Massachusetts 35% Mississippi 15%Ohio 41% Oregon 35% Indiana 14%Indiana 40% North Carolina 34% Maine 14%Alabama 38% Oklahoma 34% Missouri 14%Source: U.S. Census Bureau Data (American Community Survey), Analyzed by the Annie E. Casey Foundation Kids Count Database

Top Ten States for Child Poverty (By Race) in 2008

Presenter

Presentation Notes

A big concern right now is the impact on children. The drag of long term unemployment and such high unemployment rates are sure to be followed by substantial increases in poverty. Already, OH had the 8th highest Black child poverty rate in 2008, at 41%. Nationally, estimates project that in 2010 and beyond, Black children will reach a poverty rate of 52.3%--an astonishing figure.

Unemployment Remains High

Highest Rate:

Clinton County

16.7%

Lowest Rate:

Delaware County

7.2%

National Rate: 9.7%

Ohio’s Rate: 10.7%

Presenter

Presentation Notes

And the picture remains grim. OH average remains above the national average, and certain counties are especially suffering in this recession. Several of the top ten counties are in Appalachia—Morgan, Highland, Meigs, Monroe, Noble—all above 13% unemployment.

Ohio Unemployment

Using the U6

measure of

unemployment—

which includes

underemployment

and those who have

dropped out of the

workforce-- Ohio’s

unemployment rate

climbs above 17%

Source: Monthly Report on Ohio’s Economy and State Finances, May 2010 http://obm.ohio.gov/

Presenter

Presentation Notes

And that is just the unemployment rate, which doesn’t fully capture the degree of hardship. The U6 is a more comprehensive measure, and for OH, it stands above 17%

http://obm.ohio.gov/�

Foreclosure Crisis

…to Reverse Redlining

From Redlining…

Presenter

Presentation Notes

http://upload.wikimedia.org/wikipedia/en/9/97/Holc_redlining_map.jpeg�

Disparities Cost us All ….Lost Home Equity from nearby foreclosures, 2009-2012

US: $1.9 trillion

Ohio: $17.2 billion

Almost 4 million Ohio homes are experiencing a foreclosure-related decline…

Presenter

Presentation Notes

Subprime crisis initially harmed our urban, disinvested communities of color before spreading to suburban and exurban markets and higher-income white communities, eventually affecting the entire global housing and credit system

“Race or Risk” ?

Source: United for a Fair Economy

…what about fair credit

Presenter

Presentation Notes

If we look at who got high cost loans, upper income Blacks were twice as likely to get high cost refi loans, and more than three times as likely to get high cost home purchase loans. So was it risk, or race? And what does this tell us about unfettered private markets?

Rising foreclosures

Almost ten-fold from 1995

Ohio has a long history of foreclosure problems…

Changing causes of foreclosures?

From a subprime problem…

Foreclosures

increased by 155%

between 1994 and

2001 despite

strong economic

growth in Ohio….

Presenter

Presentation Notes

Foreclosures are not new to OH, but the problem has evolved from a subprime problem, evident by the increase in foreclosures even during a period of economic growth

Foreclosures contd.

…to an unemployment problem?

•Morgan has an unemployment rate of 13.8%, 6th

highest in Ohio

•6 out of these 10 counties had unemployment rates greater than Ohio’s average in May 2010…

Table from “Home Insecurity”, David Rothstein, Policy Matters Ohio, March 2010http://www.policymattersohio.org/pdf/HomeInsecurity2010.pdf

Presenter

Presentation Notes

To an unemployment problem.

http://www.policymattersohio.org/pdf/HomeInsecurity2010.pdf�

http://www.policymattersohio.org/pdf/HomeInsecurity2010.pdf�

Budget Crisis

•2012-2013 budget deficit could be as large as $8 billion

•In 2009, tax collections declined by 12%, an historic high

http://www.cleveland.com/open/index.ssf/2010/07/other_states_in_much_worse_fis.html

Presenter

Presentation Notes

Once the stimulus funding expires in 2011, state and local budgets are expected to fall off the cliff. ARRA provided $100 billion in funding to prevent the massive cuts to critical services that would have occurred otherwise. Ohio used $4 billion to help balance the budget this past fiscal year. Ohio is facing its own budget crisis—expecting a deficit as large as $8 billion in FY 2012-2013.

http://www.cleveland.com/open/index.ssf/2010/07/other_states_in_much_worse_fis.html�

http://www.cleveland.com/open/index.ssf/2010/07/other_states_in_much_worse_fis.html�

R A C E , E Q U I T Y A N D O R G A N I Z I N G

D O R A N S C H R A N T Z

I S A I A H

ISAIAH and Kirwan

Small Group Exercise

Each group will generate a list for each of the following questions:

Q1: How did opportunities decline in the Rust Belt?

Q2: How could we open up opportunity for all in the Rust Belt? What are the key items in a new Rust Belt agenda?

Each person will vote for their “top two” items from each list

Each group will report back to the larger group

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