Equitable Economic Equitable Economic Development: Examples From Development: Examples From

The FieldThe FieldSeptember 23September 23rdrd 2006 2006

Presentation for the National Resource Center for the Healing of RacismPresentation for the National Resource Center for the Healing of RacismCalhoun County Summit On The Healing of RacismCalhoun County Summit On The Healing of Racism

Denis Rhoden Jr.Denis Rhoden Jr.AssociateAssociate

Kirwan Institute for the Study of Race and EthnicityKirwan Institute for the Study of Race and EthnicityThe Ohio State UniversityThe Ohio State University

http://http://www.kirwaninstitute.orgwww.kirwaninstitute.org//rhoden.8@osu.edu rhoden.8@osu.edu

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Today’s PresentationToday’s Presentation►A Dynamic, Global Economic LandscapeA Dynamic, Global Economic Landscape►Equity and the Economic Development Equity and the Economic Development

ProcessProcess►Equitable Economic Development Equitable Economic Development

Initiatives Across the CountryInitiatives Across the Country►The Regional Significance of the Inner The Regional Significance of the Inner

CityCity►Calhoun County Collaborative Advantage Calhoun County Collaborative Advantage ► Pulling It all TogetherPulling It all Together

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The American Worker The American Worker ParadoxParadox

► American workers now produce American workers now produce over 30% more each hour they over 30% more each hour they work than ten years ago, yet the work than ten years ago, yet the wages of the typical American wages of the typical American worker—the one at the very worker—the one at the very middle of the income distributionmiddle of the income distribution—have risen less than 1% since —have risen less than 1% since 2000. 2000.

► The typical worker earns only 10% The typical worker earns only 10% more in real terms (adjusted for more in real terms (adjusted for inflation) than 25 years ago, even inflation) than 25 years ago, even though overall productivity has though overall productivity has risen much faster. risen much faster.

Source: Economist “Source: Economist “Inequality in America: The rich, the poor and the growing gap between them.” June 15th 2006.

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Our ChargeOur Charge

►Domestically the response to the global Domestically the response to the global interdependent economy has been interdependent economy has been episodic and reactive; reflecting a episodic and reactive; reflecting a failure to accept the changing failure to accept the changing competitive landscape.competitive landscape.

►Federal Reserve Chair, Ben Bernanke, Federal Reserve Chair, Ben Bernanke, recently urged local political leaders to recently urged local political leaders to seriously acknowledge the “costs of seriously acknowledge the “costs of globalization,” and “help their globalization,” and “help their constituents come to terms with them.”constituents come to terms with them.”

Source: Andrews L Edmund “Fed Chief Sees Faster Pace for Globalization” New York Times August 25, 2006Source: Andrews L Edmund “Fed Chief Sees Faster Pace for Globalization” New York Times August 25, 2006

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Reducing Volatility; Inclusion & Reducing Volatility; Inclusion & IntegrationIntegration

►We are challenged at every level, to be We are challenged at every level, to be more inclusive and integratedmore inclusive and integrated Bernanke’s comments encourage Bernanke’s comments encourage

policymakers to pursue strategies that meet policymakers to pursue strategies that meet two conditions:two conditions:►1. “The benefits of global economic integration 1. “The benefits of global economic integration

are sufficiently widely shared,” and are sufficiently widely shared,” and ►2. “Displaced workers get the necessary training 2. “Displaced workers get the necessary training

to take advantage of new opportunities.”to take advantage of new opportunities.”

Source: Andrews L Edmund “Fed Chief Sees Faster Pace for Globalization” New York Times Source: Andrews L Edmund “Fed Chief Sees Faster Pace for Globalization” New York Times August 25, 2006.August 25, 2006.

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A Unified ResponseA Unified Response► Action is being taken in regions throughout the Action is being taken in regions throughout the

country to implement policy that promotes country to implement policy that promotes collaboration to generate productive needed to collaboration to generate productive needed to adapt to changing conditions and global economic adapt to changing conditions and global economic hierarchieshierarchies

► Broadly, we need to define what the future Broadly, we need to define what the future should look like with our collective imaginationshould look like with our collective imagination A New Paradigm! : Targeted UniversalismA New Paradigm! : Targeted Universalism

► What is our alternative vision?What is our alternative vision? A model where we all grow togetherA model where we all grow together A model where we embrace collective solutionsA model where we embrace collective solutions This vision requires collective action and will require This vision requires collective action and will require

coalitions to be successfulcoalitions to be successful

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A Framework For DisparityA Framework For Disparity

Biased Structures

Disparate Outcomes

De JureNeutral

Structures

Disparate Outcomes

What is occurring here to replicate the outcomes today?

Historically Today

Biology

Individuals/Culture

Structures/Opportunity

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ECONOMIC DEVELOPMENT POLICY

Policy Mismatch?Policy Mismatch?

PROGRAMS / PROCESSES

REGULATION / LEGISLATION

CONDITIONS

Economic Development Is Not

Simply Incentives–It is Public Policy Aimed at Crafting Place Level

Advantage. Who Chooses What to

Invest in?

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The Web of OpportunityThe Web of Opportunity

►Opportunities in our society are Opportunities in our society are geographically dispersed or clustered geographically dispersed or clustered This distribution is the basis for our This distribution is the basis for our

understanding of a “good” or “bad” understanding of a “good” or “bad” neighborhood - - “high” and “low” opportunity neighborhood - - “high” and “low” opportunity communitiescommunities

► Your location within this “web of Your location within this “web of opportunity” plays a definitive role in life opportunity” plays a definitive role in life potential and outcomespotential and outcomes Individual characteristics still matter but the Individual characteristics still matter but the

environment plays a systematic role environment plays a systematic role ►Often impacting individual decision makingOften impacting individual decision making

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Opportunity Is Dynamic & Opportunity Is Dynamic & LayeredLayered

Housing

Childcare Employment

Education

Health

Transportation

Effective Participation

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Capturing Equitable Economic Capturing Equitable Economic DevelopmentDevelopment

►Equitable economic development is a Equitable economic development is a policy strategy focused on correcting policy strategy focused on correcting policy mismatch from the perspective policy mismatch from the perspective of distribution and access to of distribution and access to opportunity.opportunity. In particular establish regional the In particular establish regional the

economic and equity case for areas (e.g. economic and equity case for areas (e.g. neighborhoods, cities, counties) and groups neighborhoods, cities, counties) and groups (e.g. African American, rural) disconnected (e.g. African American, rural) disconnected from opportunity.from opportunity.

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Why Equitable Economic Why Equitable Economic Development?Development?

► Equitable outcomes in economic development Equitable outcomes in economic development are equally concerned with the ability to access are equally concerned with the ability to access and the presence of opportunities and the presence of opportunities Households, businesses and individuals are being Households, businesses and individuals are being

challenged to create local opportunities within a challenged to create local opportunities within a structure that does not that purposefully impacts the structure that does not that purposefully impacts the fluidity of assets and capital.fluidity of assets and capital.►Practices such as poaching in economic development Practices such as poaching in economic development

are the unintended consequence of mismatches in a are the unintended consequence of mismatches in a web of policy impacting the fitness and productivity of web of policy impacting the fitness and productivity of assets.assets.

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Our ResponseOur Response

►Geographic differences in the ability to Geographic differences in the ability to put assets to work because capital put assets to work because capital does not impact the same assets the does not impact the same assets the same way across space.same way across space.

Largely episodic and fragmentedLargely episodic and fragmented Easier access to creditEasier access to credit Tax IncentivesTax Incentives Many MoreMany More

►Where is the systematic broader policy Where is the systematic broader policy change to revive unproductive assets and change to revive unproductive assets and inspire enterprise and innovation?inspire enterprise and innovation?

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Policy Mismatches Prevail To DatePolicy Mismatches Prevail To Date

► Regions that are the most fragmented are Regions that are the most fragmented are more economically depressed. Why?more economically depressed. Why? No unified strategy for economic No unified strategy for economic

development (infighting over jobs and new development (infighting over jobs and new businesses)businesses)

A less qualified and educated work force A less qualified and educated work force due to educational disparities in the regiondue to educational disparities in the region

Entry level and low skill work force spatially Entry level and low skill work force spatially isolated from suburban job opportunitiesisolated from suburban job opportunities

More likely to exhibit sprawling growth that More likely to exhibit sprawling growth that wastes public resources on new roads, wastes public resources on new roads, sewers, schools in undeveloped areas, sewers, schools in undeveloped areas, while existing resources are left to while existing resources are left to deterioratedeteriorate

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Noted Concerns of Existing ParadigmNoted Concerns of Existing Paradigm

►Hyper Competitive Policy Structure:Hyper Competitive Policy Structure: ‘‘Zero-sum game’: A gain is offset by Zero-sum game’: A gain is offset by

another group’s lossanother group’s loss►Jobs traveling across taxable boundariesJobs traveling across taxable boundaries►Inefficient use of subsidy to meet concerns Inefficient use of subsidy to meet concerns

within a typically short political life-spanwithin a typically short political life-span

Very few incentive programs allow for Very few incentive programs allow for broader wealth redistribution to reduce broader wealth redistribution to reduce inequityinequity

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Narrow Focus Masks OpportunitiesNarrow Focus Masks Opportunities

► Static Policy Mechanisms and Underutilized Static Policy Mechanisms and Underutilized Integrated SolutionsIntegrated Solutions Policy reflects perspective. Many policies are Policy reflects perspective. Many policies are

narrowly defined (e.g. Eco. Dev’s Attraction, narrowly defined (e.g. Eco. Dev’s Attraction, Retention, Expansion). Few policy integrations to Retention, Expansion). Few policy integrations to address the factors impacting opportunity. address the factors impacting opportunity. ►The result is competency and competitive disparities The result is competency and competitive disparities

between residents captured by neighborhood between residents captured by neighborhood boundaries. boundaries.

Economic development professionals have limited Economic development professionals have limited tools to provide comprehensive incentivestools to provide comprehensive incentives►At worse forced to compete across jurisdictions At worse forced to compete across jurisdictions

(suburban, urban), at minimum inefficient or under (suburban, urban), at minimum inefficient or under leveraged use of public investment dollars.leveraged use of public investment dollars.

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Poor Spatial and Racial Distribution Poor Spatial and Racial Distribution Weakens Collaborative AdvantageWeakens Collaborative Advantage

► Not seriously addressing the geographic (and Not seriously addressing the geographic (and racial) outcomesracial) outcomes The most isolated geographies–inner city, rural and The most isolated geographies–inner city, rural and

first-ring suburbs face similar decline yet few policy first-ring suburbs face similar decline yet few policy solutions exist to reduce problems from common solutions exist to reduce problems from common sources, (e.g. land use management, infrastructure sources, (e.g. land use management, infrastructure investment, education). investment, education).

► Joblessness, poor education are among the Joblessness, poor education are among the factors resulting in economic and social factors resulting in economic and social isolation limit meaningful interactions and isolation limit meaningful interactions and sustain negative stereotypes across groups sustain negative stereotypes across groups and places.and places.

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► Sprawl and fragmentation harm all residents of a Sprawl and fragmentation harm all residents of a region: inner-city, suburbs & exurbsregion: inner-city, suburbs & exurbs

► Equity-based regionalism can positively impact a Equity-based regionalism can positively impact a region’s economic health region’s economic health Research suggests regions who utilize regional Research suggests regions who utilize regional

policies are economically (and socially) healthierpolicies are economically (and socially) healthier Outside of the West, there is only modest local action in

developing incentive-based affordable housing programs. Nearly two-thirds of the municipalities have incentive programs and half have dedicated funds established. No other region comes close to these figures

Source: Pendall et al (2006). Traditional to Reformed: A Review of the Land Use Regulations in the Nation’s 50 largest Metropolitan Areas. Brookings Institution

Regional Economic HealthRegional Economic Health

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Equitable Economic Equitable Economic DevelopmentDevelopment In Practice In Practice

Equitable Economic

Development Practice Areas

Industry-focused workforce

development

MBE/SBD development

Leveraging and distributing resources & investments

Neighborhood development

Stakeholders and Policymakers focused on these areas…

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Equitable and Productive Equitable and Productive PolicyPolicy

► Concern about fairness,Concern about fairness, BURA Predatory Loan ProgramBURA Predatory Loan Program

► encouraging productivity in the core, encouraging productivity in the core, andand Land Value Taxation (Pittsburgh and Harrisburg)Land Value Taxation (Pittsburgh and Harrisburg)

► Integration for equitable opportunity Integration for equitable opportunity distributiondistribution Multiple partners and policy infrastructure Multiple partners and policy infrastructure

connections integrating economic and workforce connections integrating economic and workforce development policy (i.e. WIRED)development policy (i.e. WIRED)

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Equitable Economic Development is Equitable Economic Development is Multi-Faceted and InterdependentMulti-Faceted and Interdependent

► Tax Based Sharing Plans Tax Based Sharing Plans (Twin Cities) (Twin Cities)

► Fair Share Housing Laws Fair Share Housing Laws (Montgomery County) (Montgomery County)

► Metropolitan-Wide School Districting Metropolitan-Wide School Districting (Charlotte-Mecklenburg) (Charlotte-Mecklenburg)

► Anti-Sprawl Initiatives Anti-Sprawl Initiatives (Portland) (Portland)

► Regional Public TransportationRegional Public Transportation (Indiana Interfaith Group)(Indiana Interfaith Group)

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Staking Claim: East BaltimoreStaking Claim: East Baltimore

► Scale varies; but the interventions are leading Scale varies; but the interventions are leading to more equitable results.to more equitable results. In Baltimore, neighborhood economic development In Baltimore, neighborhood economic development

resulted in an 80-acre, $800 million neighborhood resulted in an 80-acre, $800 million neighborhood redevelopment over an 8-10 year period redevelopment over an 8-10 year period ►1,200 Housing Units (new and rehabilitated, 1,200 Housing Units (new and rehabilitated,

homeownership and rental) homeownership and rental) ►new retail facilities; a set of supportive servicesnew retail facilities; a set of supportive services►and community building activitiesand community building activities►up to 6,000 new jobs will be created for skill levels ranging up to 6,000 new jobs will be created for skill levels ranging

from high school to those with advanced college degrees from high school to those with advanced college degrees

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Local InterventionsLocal Interventions

► Layers of Policy InfrastructureLayers of Policy Infrastructure City OrdinanceCity Ordinance Economic Inclusion PlanEconomic Inclusion Plan

► Cross-Sector Partners Cross-Sector Partners Anne E. CaseyAnne E. Casey Johns Hopkins Hospital (located in neighborhood)Johns Hopkins Hospital (located in neighborhood) Private DevelopersPrivate Developers PlannersPlanners Community Development CorporationCommunity Development Corporation

► ImplementationImplementation Local compliance & administration (East Baltimore Local compliance & administration (East Baltimore

Development Inc.)Development Inc.)

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Level of Greater ImpactLevel of Greater Impact

►Regional interventions aimed at Regional interventions aimed at increased productivity, equity-awareincreased productivity, equity-aware In the Northwest North Carolina corridor In the Northwest North Carolina corridor

(includes Greensboro and Winston Salem, (includes Greensboro and Winston Salem, NC regions).NC regions).►Conducted CEDS funded by Dept. of LaborConducted CEDS funded by Dept. of Labor

Brought together region’s eight counties to create a Brought together region’s eight counties to create a unified economic development strategyunified economic development strategy

Reconnected former manufacturing employees into Reconnected former manufacturing employees into the ‘design’ industry through educational the ‘design’ industry through educational interventions increasing worker preparedness for interventions increasing worker preparedness for employment in the fieldemployment in the field

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Regional InterventionsRegional Interventions

► CEDS planning process occurred county to CEDS planning process occurred county to county, local leaders in each county leveraged county, local leaders in each county leveraged resident awareness to pursue good ideas while resident awareness to pursue good ideas while they were fresh they were fresh Among the themes which emerged was to take Among the themes which emerged was to take

aggressive steps to reduce social disparity. Their aggressive steps to reduce social disparity. Their research revealed, as disparity decreases, the research revealed, as disparity decreases, the potential to attract new investment increased potential to attract new investment increased

► Receiving additional federal funding from DOL Receiving additional federal funding from DOL to pursue policies aimed at linking workforce to pursue policies aimed at linking workforce investment and economic developmentinvestment and economic development

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Business AcceleratorBusiness Accelerator

►The Cincinnati region is about 43 The Cincinnati region is about 43 percent African American, yet African percent African American, yet African American enterprises account for only American enterprises account for only two percent of the aggregate revenue two percent of the aggregate revenue The Minority Business Accelerator The Minority Business Accelerator

approach is to deliver more sizable and approach is to deliver more sizable and scalable MBE’s to the market place scalable MBE’s to the market place (supply-side)(supply-side) as well as create a more as well as create a more aggressive and robust corporate MBE aggressive and robust corporate MBE procurement environment procurement environment (demand-side(demand-side). ).

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MBA OutcomesMBA Outcomes

►Minority Business Accelerator provides an Minority Business Accelerator provides an example of a privately-led, regionally and example of a privately-led, regionally and racially aware economic development racially aware economic development intervention. intervention. MBA does maintain connections with academic MBA does maintain connections with academic

institutions; in particular the University of institutions; in particular the University of Cincinnati and University of North Kentucky Cincinnati and University of North Kentucky

The Cincinnati MBA generated $200 million dollars The Cincinnati MBA generated $200 million dollars in commitments from 15 companies regionally in commitments from 15 companies regionally located or headquartered in Cincinnati located or headquartered in Cincinnati

Responsibility of tracking and reporting remain a Responsibility of tracking and reporting remain a high priority to the MBA and its corporate partners. high priority to the MBA and its corporate partners. Reporting is completed through a confidential Reporting is completed through a confidential process, verified directly by partner CEOs process, verified directly by partner CEOs

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Community Benefit Community Benefit AgreementsAgreements

►Emerging economic inclusion tools for Emerging economic inclusion tools for property development by real estate property development by real estate developers and coalitions of developers and coalitions of community organizations community organizations

►CBAs have been effective against CBAs have been effective against limiting potential negative limiting potential negative externalities which can further externalities which can further destabilize neighborhoodsdestabilize neighborhoods

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CBA Create Value & CapacityCBA Create Value & Capacity► Past CBAs have been successful in negotiating the Past CBAs have been successful in negotiating the

following investments in residents and neighborhoods following investments in residents and neighborhoods a living wage requirement for workers employed in the a living wage requirement for workers employed in the

development;development; a “first source” hiring system, to target job opportunities in the a “first source” hiring system, to target job opportunities in the

development to residents of low income neighborhoods;development to residents of low income neighborhoods; space for a neighborhood-serving childcare center; space for a neighborhood-serving childcare center;

environmentally-beneficial changes in major airport operations; environmentally-beneficial changes in major airport operations; construction of parks and recreational facilities;construction of parks and recreational facilities; community input in selection of tenants of the development; community input in selection of tenants of the development;

and and construction of affordable housingconstruction of affordable housing

► CBAs are a market based, community oriented CBAs are a market based, community oriented development tool: they do development tool: they do not not require a legislative require a legislative process and provides the basis to develop legislation process and provides the basis to develop legislation that supports broad applications based on performancethat supports broad applications based on performance

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Stakeholders in ActionStakeholders in Action

► To recap, Equitable Economic Development To recap, Equitable Economic Development interventions utilize policies that address interventions utilize policies that address inequity in a variety of ways.inequity in a variety of ways. Private EquityPrivate Equity Land UseLand Use Worker PreparednessWorker Preparedness Institutional GrantsInstitutional Grants InfrastructureInfrastructure AdvocacyAdvocacy ComplianceCompliance Business AcceleratorsBusiness Accelerators

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Place and Life OutcomesPlace and Life Outcomes► Equitable Economic Development is broad, Equitable Economic Development is broad,

integrated and its interventions intend to integrated and its interventions intend to enhance and distribute prosperity and enhance and distribute prosperity and reduce barriers to capital for households reduce barriers to capital for households and businesses…and businesses… Housing location determines the quality of schools Housing location determines the quality of schools

children attend, the quality of public services, access children attend, the quality of public services, access to employment and transportation, health risks, to employment and transportation, health risks, access to health care and public safetyaccess to health care and public safety

Greater access to risk capital (dynamic policy Greater access to risk capital (dynamic policy infrastructure and an active network of deal and infrastructure and an active network of deal and policy makers) to reduce friction-barriers and policy makers) to reduce friction-barriers and increase productivity. increase productivity.

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America’s Inner City in America’s Inner City in ContextContext

► Between 1990-2000 grew to 21M residents Between 1990-2000 grew to 21M residents from 17M (or 24%)from 17M (or 24%) Poverty in the inner city declined to 31% from Poverty in the inner city declined to 31% from

35% during the same period. 35% during the same period. ►Much of the reduction can be attributed to the Much of the reduction can be attributed to the

movement of poverty outside of the inner city. movement of poverty outside of the inner city.

► Inner city economies in the 100 largest cities are a substantial portion of the U.S. economy 8% of U.S. private employment (9 million); 814,000 establishments

Source: ICIC “SOICE Teleconvening Source: ICIC “SOICE Teleconvening Presentation” February, 2005Presentation” February, 2005

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Regional Productivity & the Inner Regional Productivity & the Inner CityCity

► While some inner cities are doing well in terms of employment growth, 90 out of 100 are under-performing their MSAs. With a wide range of performance, on average inner cities generated 1% annual job growth (vs. 3.4% for the MSA – exclusive of IC.)

► Inner city/MSA income gap is 50% ($25K vs. $52K), wage gap is 0% (both at $38K).

► 77% of jobs in IC are not held by IC residents (42% are suburban ’commuters’ and 35% are from the rest of the city).

Source: ICIC “SOICE Teleconvening Presentation” February, Source: ICIC “SOICE Teleconvening Presentation” February, 20052005

Notes: Figures above are for the nation’s 100 largest inner Notes: Figures above are for the nation’s 100 largest inner citiescities

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Jobs & the Inner CityJobs & the Inner City► Inner cities gained jobs in the 1990s but lagged behind the

rest of the U.S.: Job growth in inner cities grew at an average annual growth rate of 0.8%

from 1995-2001, but this lagged behind the rest of the city and MSA (2.1% and 3.7% respectively); Sixty-one inner cities gained jobs between 1995-2001. Of these 21 grew faster than the rest of their cities. Six grew faster than the rest of their metropolitan areas, including Tulsa, San Jose, Boston, Winston-Salem, Charlotte, Augusta

The average salary of jobs located in the inner city is $38,500, compared to $41,000 in the rest of the city and $35,000 in the rest of the metropolitan area. But inner city residents do not hold the higher paying jobs—inner city residents are only half as likely to hold professional positions as rest of city and rest of metropolitan area residents: 22% of inner city residents are professionals, vs. 41% of rest of central city residents, and 37% of rest of metropolitan area residents;

In 2001, at the onset of the economic downturn, inner cities experienced a 0.2% decline in business employment. Employment in the rest of city and the rest of metropolitan area continued to grow at 2.4% and 0.3% respectively.

Source: ICIC, “State of Inner City Economies, 2004Source: ICIC, “State of Inner City Economies, 2004

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Inner City Competitiveness DriversInner City Competitiveness Drivers

Source: Initiative for a Competitive Inner City

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Collaborative Advantage in Calhoun Collaborative Advantage in Calhoun CountyCounty

► CConcerned with the creation of meaningful synergies between organizations resulting in networking, coordination, cooperation, and collaboration. Collaboration is “information exchange, altering activities,

sharing resources, and enhancing the capacity of another for mutual benefit and to achieve a common purpose.”

► What Calhoun County institutional assets can be leveraged to create collaborative advantage?

► What would you organize around to effectively use the newfound synergies?

Source: Diebold et al. (2000) “Building an Intervention: A Theoretical and Practical Infrastructure for Planning, Implementing, and Evaluating a Metropolitan-Wide School-To-Career Initiative” Journal Of Educational and Psychological Consultation Vol. 11 Issue 1 pp 159

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Metropolitan EconomyMetropolitan Economy

►Between 2000 and 2003, the Battle Between 2000 and 2003, the Battle Creek-Kalamazoo, MI metropolitan Creek-Kalamazoo, MI metropolitan area lost nearly 8700 jobs (an average area lost nearly 8700 jobs (an average of nearly 2900 per year).of nearly 2900 per year). 15% of the African American population 15% of the African American population

(nearly 6,000 people) left the region from (nearly 6,000 people) left the region from 2002 to 2004.2002 to 2004.

Source: U.S. Census Bureau, American Community Source: U.S. Census Bureau, American Community SurveySurvey

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Poverty: A Multi-racial Poverty: A Multi-racial challengechallenge

► Calhoun County poverty suffers the Calhoun County poverty suffers the same challenges found around the U.S. same challenges found around the U.S. (15,000 in poverty or 11% of the total (15,000 in poverty or 11% of the total population)population) African Americans are over represented; 2x African Americans are over represented; 2x

more likely to be in poverty than Whites more likely to be in poverty than Whites (23% versus 9%) (23% versus 9%)

However, there are substantially more However, there are substantially more Whites in poverty than any other group Whites in poverty than any other group (10,000 Whites compared to 3,000 Blacks)(10,000 Whites compared to 3,000 Blacks)

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Calhoun Collaborative Calhoun Collaborative AdvantageAdvantage

► Agency policy integration of Workforce and Economic Agency policy integration of Workforce and Economic Development (State to Local)Development (State to Local) State of Michigan Office of Labor and Economic GrowthState of Michigan Office of Labor and Economic Growth Barry / Branch / Calhoun County Workforce Development Barry / Branch / Calhoun County Workforce Development

BoardBoard Calhoun County Economic Development CouncilCalhoun County Economic Development Council Calhoun County Area Technical CenterCalhoun County Area Technical Center

► WIA Youth ProgramWIA Youth Program Calhoun County Intermediate School DistrictCalhoun County Intermediate School District

► Career PreparationCareer Preparation► Michigan Works! Workforce Development TeamMichigan Works! Workforce Development Team

Innovating Private Partners (Pharmacia & Upjohn Company, Innovating Private Partners (Pharmacia & Upjohn Company, Eaton Corporation, Stryker Corporation, Dana Corporation, Eaton Corporation, Stryker Corporation, Dana Corporation, Kellogg Company)Kellogg Company)

► Identify economic intersections to create policy goals Identify economic intersections to create policy goals and tools from the Calhoun perspective.and tools from the Calhoun perspective.

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Reviving Dead CapitalReviving Dead Capital

► Informal sources of risk capital are Informal sources of risk capital are critical for entrepreneurial and start-ups.critical for entrepreneurial and start-ups. What is informal risk capital?What is informal risk capital?

►In 2003, a major source of risk capital, In 2003, a major source of risk capital, household wealth represented over $325 Billion household wealth represented over $325 Billion dollars to households (about $9,084 for every dollars to households (about $9,084 for every owner-occupied home in the nation)owner-occupied home in the nation)

►By directly addressing how land use creates By directly addressing how land use creates wealth for some opportunities can be created for wealth for some opportunities can be created for all. all.

Source: Parisi, Michael and Hollenbeck, Scott. (2005) “Individual Income Tax Returns, 2003” Statistics of Income Bulletin. Fall 2005 Vol. 25 Issue 2

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Capital Formation is a Housing Capital Formation is a Housing IssueIssue

►Calhoun County account for 1/6 of 1 Calhoun County account for 1/6 of 1 percent of the federal mortgage percent of the federal mortgage credits (approx) $491M in 2003credits (approx) $491M in 2003

► Nearly eighty percent of the owner-occupied Nearly eighty percent of the owner-occupied units are White, with potential to access units are White, with potential to access approximately $322M.approximately $322M.

►In contrast, Black householders had about In contrast, Black householders had about $27M in potential funds that could be invested $27M in potential funds that could be invested in enterprise (12 times less than Whites) in enterprise (12 times less than Whites)

Exactly the difference in homeownership between Exactly the difference in homeownership between Blacks and Whites in Calhoun County.Blacks and Whites in Calhoun County.

Although the credit is not ‘cash,’ much like home Although the credit is not ‘cash,’ much like home value represents capital that can be put to work. value represents capital that can be put to work.

Source: DataPlace, U.S. Census Bureau, Parisi, Michael and Hollenbeck, Scott. (2005) “Individual Income Tax Returns, 2003” Statistics of Income Bulletin. Fall 2005 Vol. 25

Issue 2

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Regional Assets, Equity FocusRegional Assets, Equity Focus

► Isolation comes in many forms. Urban Calhoun is Isolation comes in many forms. Urban Calhoun is not being infused with private capital and not being infused with private capital and investment at the same rate as peripheral investment at the same rate as peripheral communities. communities.

► Evidence suggests however, the strongest regions Evidence suggests however, the strongest regions look to the core as a source of jobs, capital and look to the core as a source of jobs, capital and innovation. The lack of urban investment has a innovation. The lack of urban investment has a powerful and negative effect on the vitality of the powerful and negative effect on the vitality of the entire region.entire region. Private capital ability to reach under productive assets is Private capital ability to reach under productive assets is

imperative to creating strong regions and efficient markets imperative to creating strong regions and efficient markets ► Examples: Affordable owner-occupied housing, expansion of Examples: Affordable owner-occupied housing, expansion of

CEDC role, EBDI (integration among public and private CEDC role, EBDI (integration among public and private intermediaries)intermediaries)

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The Need to Think The Need to Think in Terms of Opportunityin Terms of Opportunity

► A disparity model is a less-than-sufficient framework for A disparity model is a less-than-sufficient framework for stimulating collaborative advantage and broader solutions to stimulating collaborative advantage and broader solutions to lift all groups out of weak economic conditionslift all groups out of weak economic conditions In the global market, it is less relevant for us as a nation to view In the global market, it is less relevant for us as a nation to view

the White experience as THE benchmark of prosperity, because the White experience as THE benchmark of prosperity, because we are all losing ground.we are all losing ground.

► ““Opportunity structures” are the resources and services that Opportunity structures” are the resources and services that contribute to stability and advancementcontribute to stability and advancement

► Fair access to opportunity structures is limited by segregation, Fair access to opportunity structures is limited by segregation, concentration of poverty, fragmentation, and sprawl in our concentration of poverty, fragmentation, and sprawl in our regions – for low-income households and families of colorregions – for low-income households and families of color

► Because opportunity structures exist as a “web” a multi-Because opportunity structures exist as a “web” a multi-faceted, equity-grounded approach is neededfaceted, equity-grounded approach is needed

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Linked FateLinked Fate

►Why should those living in inner-ring, Why should those living in inner-ring, outer-ring suburbs, and exurbs care outer-ring suburbs, and exurbs care about inner-city disparities?about inner-city disparities? A region and all its residents share a linked A region and all its residents share a linked

fate fate This issue is particularly important today This issue is particularly important today

►To thrive, regions must be competitive in To thrive, regions must be competitive in the global economythe global economy

►Regions cannot compete with Regions cannot compete with wasteful and redundant services, wasteful and redundant services, and fragmented governments and fragmented governments

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