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Amy Glasmeier Penn State

Informing Grant Making: A Discussion of Poverty Concerns. Tri-State Teleconference on Poverty Trends Grantmakers Association of Ohio, Pennsylvania, West Virginia March 30, 2007. Amy Glasmeier Penn State . What We’ll Cover Today. Poverty in the three states

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Amy Glasmeier Penn State

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  1. Informing Grant Making: A Discussion of Poverty Concerns Tri-State Teleconference on Poverty Trends Grantmakers Association of Ohio, Pennsylvania, West Virginia March 30, 2007 Amy Glasmeier Penn State

  2. What We’ll Cover Today • Poverty in the three states • Drivers of change in America • How national trends play out in the OH-PA-WV reiogn, how to understand them, what they mean for grant making • Growth • Decline • Conclusions

  3. PARTI PICTURES OF POVERTY IN THE THREE STATES

  4. IN SUM… • At or near national norms for the states of PA and OH • West Virginia significantly different from the nation • Rural poverty is prominent in the three states • Urban poverty has familiar form: core decline suburbs sites of growth, but…

  5. Part II Drivers of change

  6. Drivers of Change • Globalization • Chronic underinvestment and its legacy • Migration in Two Directions THESE ARE DRIVERS OF AND RESULTING TRENDS IN URBAN AND RURAL AREAS

  7. Globalization: Is it New? • Traditional industries employ fewer workers • Technological change and trade • Low skill jobs become less common • Traditional mind sets hang on PERSISTENCE IS THE WATCH WORD: THE PROBLEM HAS NOT ABATED

  8. Globalization “Globalization is so massive … it’s hard to get our arms around it. No one has come to grips with the massive exodus of jobs.” -- Practitioner from the South We’re in a transition out of production ag as a source of jobs. Psychologically …we are reluctant to admit this, so our policies don’t keep up with reality.” --Practitioner from the Midwest

  9. Chronic Underinvestmentand its Legacy • High poverty • Low education • Low employment • Failure of government and civic sectors

  10. Chronic Underinvestmentand its Legacy In places where the needle has not moved the reason is civic culture. It’s about how a community works and how it thinks about power and inclusiveness … When people can vote with their feet they will choose inclusive places. -- Practitioner from the South

  11. Migration in Two Directions • Young people leaving The kids who leave are the kids with options—there’s been a massive out-migration of middle class kids. The middle class is the great thing about these communities. When that happens, the norms that everybody lives by fray at the edges. -- Community foundation president from the Midwest The big driver is the changing demography of the region, particularly young people moving out of rural areas and into urban places … this means there is a big loss of creativity and energy that young people bring… We must view our youth as a valuable resource. -- Practitioner from the Midwest

  12. Migration in Two Directions • New residents arriving If communities want to stabilize population, not all faces are going to be white. --Practitioner from the Midwest In rural areas with a 1-2 hour commute from the city, you have the overlay of urban influence … the increase in the price of real estate and housing in urban places overwhelms commodity price increases. --Practitioner from the Midwest The region is opening up for recreation and second homes … there is a split between new and old people, wealthy and poor people. --Practitioner from the Northwest

  13. THREE STATES EXPECTED TO EXPERIENCE LOW POPLATION GROWTH 1993-2020

  14. Part III: Four Examples of Grant Making Opportunities • Migration • Growth in Urban Embrace and Amenity Rich Areas • Plant Closures and Mass Layoffs • Persistent Poverty

  15. Grant Making in Growing Urban and Rural Areas • Many Americans live in places that are growing due to net in-migration • Why are they growing? • Restructuring of food processing industry • Growth in tourism sector • Landscape, quality of life, culture, and other amenities • Proximity to major urban areas, but satellites

  16. Growth in Hispanic and Immigrant Populations • What’s the issue? • “A profound social transformation” • Hispanic and immigrant growth offset decades of decline in many places • Nationwide, from 2000-2004, immigration accounted for: • 62% of rural migration gain • 31% of overall population growth

  17. Strategic Grant Making • Key regional trend: rapid population growth in relatively low wage economy • Issues related to: • Community building • Upgrading skill levels • Enterprise development and finance • Infrastructure, housing, public services

  18. Growth in Urban Embrace and Amenity Rich Areas • What’s the issue? • Shift in comparative advantage of rural areas from commodity production to amenities • Continued “de-concentration” outward from cities past suburbs into “exurbs” • Two thirds of “nonmetro” residents live in counties adjacent to “metro” areas!

  19. Strategic Grant Making • Key trend: rapid population growth in urban embrace and high amenity areas Issues related to • Community building • Capturing benefits of visitor industry for locals • Enterprise development and finance

  20. Grant Making in Rural Areas, but AlsoOld Industrial Suburbs Dependent on Labor Intensive Manufacturing • Communities dependent on labor intensive manufacturing in industries experiencing plant closures. • Why is decline occurring? • Technological change • Obsolescence • International trade

  21. Rapid and Unexpected Job Loss Due to Plant Closures • What’s the issue? • Short term job loss and economic dislocation require immediate collective community response • Long term need for retraining, new business development, modernization

  22. Strategic Grant Making Key Regional Trend: Displaced workers unprepared for non-factory work Issues related to: • Workforce with low levels of education • Poor job-seeking skills • Lack of child care • In some cases, lack of transportation • Lack of alternative employment opportunities • SHORT TERM 1-3 MONTHS: CDBG funds for planning and training • LONGER TERM 3 MONTHS OR MORE: Training, Transportation, Childcare

  23. Grant Making in Persistent Poverty Counties Persistent poverty counties: • Counties where 20% or more of the population has lived in poverty over the last 30 years(measured by the 1970, 1980, 1990, and 2000 decennial censuses) • There are 386 persistently poor counties in the U.S. The majority are in rural areas (340 of 386) • Most persistent poverty counties are found in the South (280). Only 60 nonmetro persistent poverty counties are in the Midwest and West

  24. Persistent Poverty • What’s the issue? • Institutional • Stunted development of civic leadership • Paternalistic culture that discouraged entrepreneurial development • Social • Low levels of educational attainment • Economic • Lack of economic diversity • Limited labor market participation by women • Environmental • Isolation • Poor infrastructure

  25. Strategic Grant Making Key Regional Trend: Population and economic decline • Issues related to: • Skills and human capital • Schools and alternative training opportunities • Leadership development • Entrepreneurial capacity • Enhance telecommunications infrastructure • Housing

  26. POLICIES AND PROGRAMS OF NOTE

  27. POLICIES • Earned income tax credit • Federal and state • Workforce incumbent versus new job development • CDBG constantly under fire level funding • ARC and EDA level to reduced funding • States taking the lead, but reality is little is being done beyond welfare reform and education reform

  28. PROGRAMS OF NOTE

  29. WORK FORCE AND WELFARE TO WORK • Community Access • Charleston West Virginia • Hard to employ persons on welfare • Excellent model of sheltered care • High success rate • Problematic vis a vis welfare reform because it highlights the problems of truly poor people • Out of sight out of mind—leave them behind

  30. Economic Development • State of Pennsylvania • Incumbent workers • New employees • Sector studies • Working in communities with a range of actors

  31. CHILDREN Big Ugly West Virginia

  32. Facts About Poverty • Ohio Extension service • Excellent analysis • Focus on policy and program implementation • PA and WV less well documented

  33. What’s Missing • Analysis of existing programs • Account of experimental efforts • Comparative regional perspective • Tools for supporting poverty programming • Network of practitioners and researchers sharing knowledge and working across borders

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