Equity and Regionalism: The Impact of Government Restructuring on Communities of Color in Pittsburgh

1. Equity and Regionalism: The Impact of Government Restructuring on Communities of Color in Pittsburgh john a. powell Williams Chair in Civil Rights & Civil Liberties, Moritz College of Law Director, Kirwan Institute of Race and Ethnicity The Ohio State University http://www.kirwaninstitute.org/

2. 2 Introduction What is happening in Pittsburgh? An undercapitalized city within a region suffering from severe regional problems (sprawl, fragmentation, inequity, economic distress) A push for sustainability in the Pittsburgh region Sustainability is based on the principle of balancing social equity, economic growth and environmental health to improve the health of the entire region and quality of life for everyone Consolidation proposal as a first step toward a more regional approach Will consolidation address equity and what considerations are needed to assure equity is addressed?

3. 3 Overview of today�s presentation What issues are impacting equity in Pittsburgh? What is regionalism (and consolidation)? What will consolidation address? What needs to be addressed? Advancing the agenda�what to do next?

4. 4 What issues are driving inequity and impacting regional health in Pittsburgh?  Economic transition Sprawl and disinvestment Opportunity segregation Fiscal inequity Educational inequity All of these factors work together to create cumulative barriers to Pittsburgh�s communities of color and drive the racial inequity of the region

5. 5 The Challenge for Pittsburgh and other Midwestern Cities  Pittsburgh is not Alone: The challenges faced by Pittsburgh are not entirely unique Geography: What Pittsburgh is facing is part of a larger phenomena impacting the �rust belt� and other Midwestern states Population loss: aging population, �brain drain� of the young and educated, central city population loss Economic transition and job loss Regional fragmentation Tremendous segregation Sprawl and urban decline Extensive inequity

6. 6 �Urban Hardship� in the Rust Belt Despite the challenges shared by the rust belt, urban hardship (based on poverty, economic health, investment and population change) varies significantly by region and several rust belt cities are performing well����..why?

7. 7 Economic Transition in Pittsburgh Although employment increased in the Pittsburgh region during the 1990�s the more recent economic downturn has reversed this trend This decline in job gains may also reverse the decline in out-migration from the region in the 1990�s

8. 8 Sprawl The Pittsburgh region is experiencing marginal population growth but is rapidly sprawling outwards Housing overproduction The region built 4 new housing units for every new household added in the 1990�s Excessive land consumption The region consumed 8.5 acres of undeveloped land for every new household between 1982 and 1997

9. 9 Growth and Sprawl Although the region�s developed land has grown significantly in the past 60 years, population growth has been stagnant

10. 10 Central City Disinvestment Like many central cities, the City of Pittsburgh and some older suburbs have lost population and investment while suburban communities grew throughout the past half-century City of Pittsburgh The City of Pittsburgh has lost half of its population since 1940 This dramatic population loss has fueled the fiscal crisis facing the city Older Suburbs Population and investment loss has not been limited to the City and now is impacting older suburbs (who have fewer resources to address the problem) 55 Allegheny County municipalities (42% of the total local government units) have experienced declines in the taxable value of property since 1980

11. 11 Growing Fiscal Distress and Disinvestment Fiscal distress and disinvestment in Allegheny County is not isolated to Pittsburgh and is spreading to other communities There are six officially distressed (Act 47) communities in Allegheny County Current trends of property value decline and rising public service costs could expand this number

12. 12 Job Sprawl Job opportunities are also moving to the region�s periphery In the 1990�s the City of Pittsburgh added 16,000 jobs while the suburbs added 81,000 In 1994 over 35% of the region�s jobs were found within 5 miles of the Pittsburgh Central Business District (CBD), by 2001 only 33% of the region�s job opportunities were found this close to the CBD Since 2001, Allegheny County has experienced the greatest job losses in the region (over 24,000 jobs lost) The rest of the region gained a net total of 1,192 jobs during this time period, with 1,800 new jobs in suburban Butler County (some suburban counties lost jobs during this time)

13. 13 Racial Segregation Although residential segregation has decreased in recent decades, the Pittsburgh region remains severely segregated 67% of the region�s African American households would have to relocate to fully integrate the region�s housing stock Nationally, Pittsburgh was the 73rd most segregated region in 1989 and the 43rd most segregated in 2000

14. 14 Residential Segregation: A closed housing market (due to cost) for African Americans enforces residential segregation in the region

15. 15 Residential segregation is a proxy for segregation from opportunity such as�.. Jobs, well performing schools, services, child care and stable neighborhoods As seen in this example recent job opportunities are not growing in the African American communities This physical separation is a tremendous impediment to the 39% of African Americans with no automobile

16. 16 Fiscal Inequity The spatial patterns of population loss and disinvestment in the region produce vast inequities in tax value This fuels inequity in public services, public education and taxation rates for the region�s poorest communities and most communities of color

17. 17 Fiscal Inequity Fiscal inequity is growing between communities and becoming more racialized as older suburbs with growing minority populations become more distressed In Allegheny County the richest 25 communities are 5.5 times wealthier in tax base than the poorest 25 communities, in 1980 this disparity was 2.2 African Americans are paying tax rates that are on average 43% higher than Whites in Allegheny County

18. 18 Educational Inequity The residential segregation (and fragmentation) in Pittsburgh impacts school segregation The region�s schools remain economically and racially segregated The average African American student attends a school that has a poverty rate of 65%, for White students this figure is 28% 73% of the region�s African American students would have to change schools in order to desegregate the region�s elementary schools

19. 19 Educational Inequity The limited resources and economic segregation found in the region�s core school districts depresses student academic competency

20. 20 What is the solution? Regionalism Regionalism or regional strategies are the most effective solutions to addressing the issues impacting Pittsburgh and other major regions Racial and social inequity Urban/exurban sprawl Jurisdictional fragmentation Central city disinvestment Fiscal distress

21. 21 What is regionalism? Regionalism: a structural approach that emphasizes the region as the primary geographic unit determining the distribution of opportunity and resources Consequently the region is the best geographic entity to base some level of decision-making Can work to enforce inequity or improve equity, depending on the focus of regionalism What is the focus? Economic efficiency, fiscal efficiency, infrastructure efficiency, environmental quality, racial & social equity These goals can work in concert or in conflict When goals are aligned to combat inequity, regionalism can be powerfully effective in addressing racial disparities

22. 22 Why focus on the region?

23. 23 What is regionalism addressing? Fragmentation and Localism Fragmentation: The fracturing of a region into multiple autonomous local jurisdictions of local government Localism is synonymous with �fragmentation� Many autonomous local governments directing policy based on an insular perspective Fragmentation and localism results in decision making that is good at the local level but detrimental to the region Decision making is on the local level Opportunities are allocated on a regional level, beyond local control Economic opportunity, labor force, housing opportunity, educational opportunity This creates less than optimal decisions for the region

24. 24

25. 25 How does fragmentation & localism hurt the region? Fragmentation and localism have worked on a structural level to maintain and reinforce racial and social inequity, encourage sprawl and central city abandonment Political fragmentation and localism exasperate the flow of resources to the urban periphery as communities compete over commercial investment and high income population (the favored quarter) Fragmentation allows communities to sort what people and business they wish to attract (strengthen economic and social isolation and segregation)

26. 26 Fragmentation makes the region less economically competitive by restraining the labor market and discouraging a unified regional economic development strategy Fragmentation creates substantial redundancy in government services, creating fiscal inefficiencies for the entire region (and ultimately impacting the region�s taxpayers) This factor (and depressed tax base) contributes to the tax disparity for African Americans in Allegheny County African Americans on average pay property tax rates 43% higher than Whites How does fragmentation & localism hurt the region?

27. 27 Fragmentation in Pittsburgh By multiple measures, Pittsburgh is one of the most fragmented regions in the nation The Pittsburgh MSA has over 418 local governments or 17.7 local governments for every 100,000 residents in 2002 The region ranks #1 nationally based on this measure With 130 municipalities, Allegheny County has more local governments per capita than any county in the nation Fragmentation is not limited to just municipal government but includes schools, water/sewer providers and dozens of special service districts

28. 28 Consolidation and other regional strategies: There are multiple regional strategies to address fragmentation, sprawl, inequity and fiscal distress (consolidation is only one approach) Regional Governance Annexation Mergers & Consolidation Regional Functions Tax base (revenue) sharing Opening the regional housing market Regional land use control Regional Infrastructure Infrastructure related growth management

29. 29 What is consolidation? Consolidation is a form of regionalism Consolidation involves either a merger of county and city government (including unincorporated land) or a merger of multiple incorporated areas to produce a larger government which is more representative of the region No clear model of consolidation exists The methods utilized vary significantly by community

30. 30 What is being discussed for Pittsburgh? Preliminary discussion around consolidation between the City of Pittsburgh and the County Government Discussion motivated by the City of Pittsburgh�s fiscal crisis Discussion still ongoing Creates an opportunity to address equity issues Need to be proactive to impact the agenda

31. 31 What would consolidation (as being discussed) look like? Could result in combining services provided by the county/city and other strategies to promote fiscal efficiency The other 129 municipalities in the region are not being included at this point in the discussion Possibly could produce a more cohesive �voice� for economic development and spending federal funds Legitimate concerns regarding suburban interests overtaking the public agenda �Consolidation Light� Due to the lack of unincorporated land in the County (as found in other regions), consolidation would not increase population or the tax base What is being discussed for Pittsburgh?

32. 32 Other examples of consolidation, what has been learned? Consolidation has occurred in many regions and in both the United States and Canada Indianapolis, Louisville, Jacksonville, Nashville, Toronto, Ottawa and more� In general, consolidation has helped in improving efficiency and fiscal health in many regions within the U.S. and in Canada This is a generalization based on the majority of research, some research contradicts these findings The discrepancy is due to the difference in types of consolidation and varying local economic conditions

33. 33 Economic development Research has found consolidation in Indianapolis to produce more efficient use of economic development subsidies to encourage growth Efficiency in government service Canadian consolidations have reduced disparities in public services between communities U.S. consolidation studies have found conflicting evidence regarding service efficiencies from consolidation Generally cost savings do occur but sometimes are off-set by the transitional cost of consolidating governments Consolidation and Positive Outcomes

34. 34 Consolidation and Positive Outcomes Reducing regional political conflict Consolidation in many regions has been found to reduce conflict over annexation and local competition over business investment Fiscal savings to tax payers Canadian consolidations (Ottawa, Toronto) have produced tax rate reductions for residents Tax rate reductions also occurred in Nashville and Lexington following consolidation

35. 35 Consolidation and Negative Outcomes Generally, consolidation has not helped in addressing equity issues such as schools, housing and tax disparity Indianapolis Unigov Schools originally not addressed in consolidation, fragmented tax districts also maintained, political disenfranchisement of African American community, the current mayor is seeking to expand the power of the Unigov due to recent fiscal crisis Consolidation also diluted the Democratic voting block within the city

36. 36 Minority representation In most regions, consolidation has resulted in a reduction in the concentration of African American voters (and in some cases elected political representation) Louisville Recent research has found suburban political interests (and development) to be dominating the political agenda at the expense of African American central city neighborhoods

37. 37 Have other places improved regional equity without consolidation? Minneapolis-St. Paul The twin cities region remains highly fragmented (the 2nd most fragmented region per capita nationally) but equity has been improved through regionalized tax base sharing Additional initiatives to equalize school funding have also improved equity Portland Portland�s regional planning authority has extensive power to manage growth (increasing inner city investment) and coordinate land use (providing more open housing markets) Both of these factors have improved equity in the Portland region

38. 38 Have other places improved regional equity without consolidation? Pre-consolidation Louisville Prior to the consolidation in Louisville, the city and county developed an agreement to share occupational tax revenues and jointly manage land use planning and development During the this time period, investment increased significantly in Louisville and indicators of disparity were improved Source: �Suburbs without a city: Power and City-County Consolidation� Savitch & Vogel (2004) Columbus Columbus has been proactive in utilizing it�s annexation powers (with water and sewer service as a bargaining chip) to expand the city�s tax base and population As a result, the city�s population base has expanded to include almost half of the region�s population (46%), in contrast Cleveland and Cincinnati have lost population and currently only contain approximately � of their regional population base

39. 39 Lessons learned: what issues would the proposed consolidation address? Positive Outcomes Fiscal health & government efficiency Potential to reduce redundancy in government services, efficiencies of scale Reduce cost of government services Relieve city�s fiscal distress Creating a more powerful �regional actor� More potential for a unified voice in attracting economic development and competing for investment More unified strategy for use of federal funds and targeting public resources

40. 40 Most equity issues Opening the housing market The housing market would remain as segregated and closed as it is now (the county already runs the subsidized housing program and consolidation would do nothing to impact zoning control) Reducing tax disparity Consolidation alone would not foster any additional tax revenue sharing for the County or region Reducing educational disparity The racial and economic segregation found in the County�s 45 school districts would remain Sprawl and disinvestment Managing regional growth Consolidation would not have any impact on the regional sprawl moving opportunity and resources to the region�s periphery Lessons learned: what issues would the proposed consolidation not address?

41. 41 It is crucial to address the issues impacting equity Equity issues will matter most to the region�s communities of color and are crucial to addressing the key problems plaguing the region ��.if regionalism isn�t dealing with land use, fiscal disparities, housing and education then regionalism isn�t dealing with the issues that count� Rusk, David (2003). ��Little Boxes� � Limited Horizons: A Study of Fragmented Local Governance in Pennsylvania: Its Scope, Consequences, and Reforms.� There may be significant resistance of communities of color to adopting a regional approach or policies, especially consolidation proposals Why? Regionalism without an explicit racial equity component can cause communities of color and low-income communities to be further marginalized in its pursuit through power dilution

42. 42 It is crucial to address the issues impacting equity Ignoring issues of equity has hindered initiatives in similar regions In both Buffalo and Cleveland significant central city resistance has mounted to municipal consolidation and service consolidation proposals that don�t address equity Buffalo Example "If we want to talk about regionalism, let's talk about regionalizing education� Buffalo City Council member Antoine Thompson on his adamant resistance to plans for consolidation in Buffalo Cleveland Example �If regionalism is to work in Northeast Ohio, Cleveland�s suburbs must help the city deal with unemployment, homelessness and a cash-strapped school system���we�re wasting our time if we don�t deal with the substantive things� Cleveland City Council president Frank Jackson on his concerns about consolidating public services in Cleveland

43. 43 What should the agenda concerning consolidation address? Consolidation can be a positive force for the city�s fiscal health, government efficiency, economic development But equity issues must be addressed, especially if consolidation is to be supported by the city�s communities of color Requires a multi-dimensional approach Consolidation combined with other regional solutions to address equity Also must include measures to assure African American power dilution does not occur (federated regionalism) Must address the �true region� Growth and opportunity has stretched beyond Allegheny County, must look to solutions that spread beyond the County�s borders

44. 44 Creating a regional agenda that works with consolidation to address equity Advocate for consolidation of school districts and/or funding equalization initiatives Push for �open� housing markets Adopting an opportunity based affordable housing model for the region and reduce exclusionary zoning barriers Advocate for more tax revenue sharing Find ways to reduce the disparity between communities Advocate for more �regional� growth control Utilize the city�s control over key infrastructure (sewer) to leverage for more growth control

45. 45 Support existing regional structures than could function to promote equity Work with the existing regional structures in Pittsburgh to promote equity issues Southwestern Regional Commission Regional Metropolitan Planning Organization with responsibility for allocating $33 billion in federal and state funds over the next three decades for transportation and economic development Needs reform to assure better regional representation Allegheny Regional Asset District Example of tax revenue sharing (1% sales tax) for issues of common concern and local tax relief $75 million generated for supporting arts, recreational and cultural facilities, $75 million generated for local governments Occupational Privilege Tax Another form of limited tax revenue sharing, income tax paid by employees who come from other communities

46. 46 Assure power dilution does not occur for communities of color Work to assure that consolidation does not result in power dilution for communities of color Federated Regionalism Approach Voting and representative strategies to assert minority rights Cumulative voting, decision-making bodies which allocate seats to assure minority representation Neighborhood control over allocation of resources Require a supermajority to approve regional actions

47. 47 Build coalition of support from multiple stakeholders in the region Coalitions are critical if regional initiatives and consolidation are going to gain popular support Consider building support among key stakeholders The business community The private sector can have a significant role in regionalism initiatives Distressed older suburban communities Faith-based organizations

48. 48 Must look beyond Allegheny County for true regionalism True regionalism must work with the entire region Regional growth is moving beyond Allegheny County This growth will hinder the County�s power in impacting the region�s growth patterns and resources in the future

49. 49 Must look beyond Allegheny County for true regionalism Work to expand the consolidation to Allegheny County�s other 129 municipalities Work to change state laws that are road blocks to future regional cooperation Explore opportunities for regional initiatives for the entire region Build upon the success of initiatives in Allegheny to approach the other regional entities Empower the SPC (regional MPO) to advocate for true regional decision making in controlling growth Leverage infrastructure (sewers, roads, transit) to assist in managing growth and opening housing markets

50. 50 Concluding Thoughts Consolidation will provide fiscal benefits but is not going to improve equity for communities of color or manage regional growth and revitalize the central city Must be proactive at this critical time, work to influence the agenda before plans are finalized Must devise other strategies to work alongside consolidation to address the crucial issues impacting equity in the Pittsburgh region Land use, housing, fiscal resources, education Must assure that consolidation does not disenfranchise the region�s communities of color Federated regionalism

51. 51 For more information and a copy of today's presentation please visit us on-line at: http://www.kirwaninstitute.org/