POWER-PACKED DATA FOR GRANTMAKERS HELPING HOOSIERS ACHIEVE FINANCIAL - - PowerPoint PPT Presentation

POWER-PACKED DATA FOR GRANTMAKERS HELPING HOOSIERS ACHIEVE FINANCIAL SECURITY

September 20, 2017

➢ WELCOME ➢ INDIANA AND THE PROSPERITY NOW SCORECARD ➢ MODERATED DISCUSSION AND Q/A

AGENDA

ANDREW BLACK, SENIOR COMMUNITY INVESTMENT OFFICER COMMUNITY FOUNDATION OF CENTRAL INDIANA LEBARON SIMS, SENIOR RESEARCH MANAGER PROSPERITY NOW SOLANA RICE, DIRECTOR OF STATE AND LOCAL ADVOCACY PROSPERITY NOW ASSETFUNDERS.ORG JOBI CATES, MIDWEST PROGRAM OFFICER ASSET FUNDERS NETWORK

➢ CONTEXT FOR INDIANA FUNDERS

OUR SPEAKERS

ASSETFUNDERS.ORG ANDREW BLACK JOBI CATES SOLANA RICE LEBARON SIMS

About Asset Funders Network

Asset building is how individuals, families, and communities gather the resources that will move them towards economic well-being, for now and for years to come. Asset building makes prosperity achievable. That’s why funders across sectors are investing in asset-building strategies for greater impact in low and middle income communities. Assets—or resources—range from savings accounts and business ownership to education and health. Owning a car or a home, college savings and retirement accounts, job skills and social networks: these are all assets too. Life without them is challenging and unpredictable. Life with these assets stabilizes families, increases agency, and strengthens communities. AFN explores and promotes the best ways to build assets, and in this way, build wealth. We seek to dismantle systemic barriers people face when trying to find economic security. We confront inequity based on race and

• gender. That’s what it means to be an asset builder, and why we strive to find and share the best solutions out

there with each other.

Prosperity Now Scorecard: Powerful Data to Fuel Community Change

as of September 20, 2017

The Prosperity Now mission is to ensure everyone in our country has a clear path to financial stability, wealth and prosperity.

Our Approach

2000 2005 2010 2015

201 2

CFED begins publishing the Scorecard annually

200 5

CFED launches the Assets & Opportunity Scorecard CFED Publishes the State Asset Development Report Card

200 2 2017

Prosperity Now launches the Prosperity Now Scorecard with local & state data

2010

CFED published first in-depth Local Profiles

201 4

CFED launches Local Data Center

The Scorecard is a comprehensive resource featuring data on family financial health and policy recommendations to help put all U.S. households on a path to prosperity. Data at the national, state, metro, county & city level in 5 issue areas

The economy shows signs of gaining momentum, but only for a lucky few… …large numbers of American families are left behind and barely scraping by.

Findings of the 2017 Scorecard

Economic Progress

5.1% 4.6% 4.6% 5.8% 9.3% 9.6% 8.9% 8.1% 7.4% 6.5% 5.4% 4.9% 13.1% 12.7% 12.3% 12.6% 13.4% 14.0% 14.6% 14.7% 14.7% 14.5% 13.8%

2006 2008 2010 2012 2014 2016

UNEMPLOYMENT INCOME POVERTY

Economic Progress, But for Whom?

UNEMPLOYMENT IS MORE THAN

2X HIGHER

FOR BLACK WORKERS THAN WHITE WORKERS

26.2% 24.8% 22.2% 21.8% 13.1% 10.4%

NATIVE AMERICAN BLACK LATINO HOUSEHOLDS OF COLOR ASIAN WHITE

INCOME POVERTY BY RACE & ETHNICITY

Jobs Don’t Cover Cost of Living

Income Volatility

Few Have Savings Cushion

$6,150 FOR A FAMILY OF FOUR IN 2017

LIQUID ASSET POVERTY BY RACE & ETHNICITY

Little Savings to Smooth Volatility

HH of COLOR

MEDIAN NET WORTH BY RACE & ETHNICITY

Flat Homeownership Rate

65.4%

Disparities in Homeownership

HOMEOWNERSHIP BY RACE & ETHNICITY

Do the Data Reflect the Same Story Here?

SOURCE: 2017 Prosperity Now Scorecard

Do the Data Reflect the Same Story Here?

SOURCE: 2017 Prosperity Now Scorecard

• History of policies that have disadvantaged people of color.
• Increasing population of people of color and declining wealth

will have impacts on our national economy.

• Taking on the largest disparities will advance prosperity for all.

Why Look at Race?

Earnings Are Not Sufficient for Many

SOURCES: State Data: 2015 American Community Survey. Washington, DC: U.S. Department of Commerce, Census Bureau, 2016. Local Data: 2011-2015 American Community Survey. Washington, DC: U.S. Department of Commerce, Census Bureau, 2016.

South Bend: Indiana:

Savings is Sparse

SOURCES: State Data: Survey of Income and Program Participation, 2014 Panel, Wave 1. Washington, DC: U.S. Department of Commerce, Census Bureau, 2017. Data calculated by Marin Economic Consulting. Local Data: Survey of Income and Program Participation, 2014 Panel, Wave 1. Washington, DC: U.S. Department of Commerce, Census Bureau, 2017. Data calculated by Marin Economic Consulting. 2011-2015 American Community Survey. Washington, DC: U.S. Department of Commerce, Census Bureau, 2016.

Indianapolis: Indiana:

Wealth is Hampered

SOURCES: State Data: Survey of Income and Program Participation, 2014 Panel, Wave 1. Washington, DC: U.S. Department of Commerce, Census Bureau, 2017. Data calculated by Marin Economic Consulting. Local Data: Survey of Income and Program Participation, 2014 Panel, Wave 1. Washington, DC: U.S. Department of Commerce, Census Bureau, 2017. Data calculated by Marin Economic Consulting. 2011-2015 American Community Survey. Washington, DC: U.S. Department of Commerce, Census Bureau, 2016.

Allen County: Indiana:

Homeownership is Uneven

SOURCES: State Data: 2015 American Community Survey. Washington, DC: U.S. Department of Commerce, Census Bureau, 2016. Local Data: 2011-2015 American Community Survey. Washington, DC: U.S. Department of Commerce, Census Bureau, 2016.

Randolph County: Indiana:

Enormous Disparities in Business Value

SOURCE: Survey of Business Owners. Washington, DC: U.S. Department of Commerce, Census Bureau, 2015.

• St. Joseph

County: Indiana:

Many Depend on Alternative Financial Services

SOURCES: State Data: 2015 FDIC National Survey of Unbanked and Underbanked Households. Washington, DC: Federal Deposit Insurance Corporation, 2016. Local Data: 2015 FDIC National Survey of Unbanked and Underbanked Households. Washington, DC: Federal Deposit Insurance Corporation, 2016. Data calculated by Marin Economic Consulting. 2011-2015 American Community Survey. Washington, DC: U.S. Department of Commerce, Census Bureau, 2016.

Lake County, Unbanked Rate: Lake County, Underbanked Rate:

Outcome Rankings for IN by Issue Areas

29th 34th 29th 25th 30th

Indiana Policy Recommendations

Only 10 out

• f 51 policies

adopted

• State EITC &

VITA Support

• Eliminate Asset Tests for

Public Benefit Programs

• Lower fees for

unemployment benefits loaded onto pre-paid cards

• More support for first-time

homebuyers

13 out of 53 policies adopted

• Understand the financial security of households in your community or

region

• See racial disparities in outcomes for key measures
• Compare your community to other cities, regions or states
• Start conversations with partners and stakeholders about financial

challenges and potential solutions

• Help partners working in different silos see how their work connects to

each other and collaborate

With the Data, You Can…

In-Depth, Custom Local Profiles

✓Use the data to fuel your existing work and visit scorecard.prosperitynow.org for more data & policies ✓Advocate for state policy changes and join the Prosperity Now Community for updates ✓Advocate to protect and defend federal programs, policies and regulations. Join one of

• ur federal campaigns and Advocacy Center

Take Action!

Prosperity Now Community Champions

• $720 million in assets with more than

$60 million invested in the community across all funds annually.

• ‘Family Success’, one of three targeted

community initiatives, has invested in deep-rooted and systematic issues facing low-resourced families in central

• Indiana. These include gaps in assets and

income, low educational attainment, etc.

• Founding member of AFN Indiana

Chapter.

• Currently undergoing strategic planning

process with themes of opportunity and access serving as a major focal point.

• July 2013 ‘In Climbing Income Ladder, Location

Matters’ published in NYT

• Geography plays a major role in the ability of

lower-income children in the bottom 20% income bracket to upwardly mobilize to the top 20% income bracket.

• Indianapolis metro’s outcomes were alarming,

with only 4.8% of lower-income children progressing to the top 20%.

• This ranked 4th worst of the 50 largest metro

areas in the country.

• Wayne County (5.4%), Muncie (5.6%), & South

Bend (5.8%) also had comparatively low mobility rates.

• Indiana cities that fared better were Evansville

(9.7%), Lafayette (9.3%), Bloomington (8.3%), and Ft. Wayne (6.6%), however, were still below the median.

The study that caught our attention

• Two basic focus areas, Absolute

Mobility and Relevant Mobility.

• Assessments conducted through de-

identified IRS tax records, census data, and CPS data across birth cohorts that span from the 1940’s to 1980’s. Most data sets are organized by commuting zone.

• Reports include broad work on

national trends in absolute income mobility, the effects of neighborhoods, childhood environments, and gender gaps on mobility.

• Most of this work is new (2014 or more

recent) and evolving.

Raj Chetty & the Equality of Opportunity Project

Improving economic opportunities for children using big data to identify new pathways to upward mobility.

• Absolute mobility for children born in

the 1940’s was 90%. For children born in the 1980’s, it is now 50%.

• Largest declines have been in the middle

class.

• Absolute mobility has fallen in all 50

states, however the industrial Midwest has a disproportionately sharp decline.

• Two trends responsible: GDP growth rate

and the unequal distribution of economic growth.

• Inequality has created the sharpest

decline in American absolute mobility.

The fading American dream?

Mobility is widely disparate across geographic regions

• Indiana ranks in the bottom ten of all U.S.

States in the decline of absolute mobility since the 1940’s.

• In only one of Indiana’s 11 commuting

zones did low-income children have more than a 10% chance of escaping poverty.

• Of the 17 regions (741 regions nationally)

in Indiana, only five – including cities such as Vincennes, Greensburg, Madison, Wabash and Lafayette – are above the national median.

• Four Hoosier regions – including cities

such as South Bend, Muncie, Richmond and Indianapolis – rank in the bottom fourth in the country. In fact, among the nation’s 50 largest metropolitan areas, children raised in the Indianapolis region have the fourth worst likelihood of improving economically.

In Indiana…

Important indicators that influence economic mobility

• OEP estimates that there is a causal

effect of each county in the U.S. on children’s outcomes in adulthood.

• Better counties are those with less

concentrated poverty, less income inequality, better schools, a larger share

• f two-parent families, and lower crime

rates.

• Growing up in a better county from birth

increases a child’s income by 10%, and in some cases much more than that.

• In essence, geography does not merely

separate rich from poor but also plays a large role in determining which poor children can rise out of poverty.

Perhaps, above all else, place.

• Better areas disproportionately produce better outcomes for poor families.
• Boys outcomes vary more than girls in worse areas, and boys have especially negative
• utcomes in highly segregated areas. Boys also work less than girls in distressed areas.
• 1/5 of the black/white income gap can be explained by differences in counties where

black and white children grow up.

• Areas that have better outcomes generally have higher housing prices, however, when

affordable housing options are available good outcomes are generated.

• The longer a child spends in a worse area, the greater the challenge of upward

mobility.

Place, continued…

• Marion County rates as 'very bad' for income mobility for children in poor families.

It is better than only about 5% of counties nationally. This is actually one

• f the worst in the US - ranking 128th out of 2,478 counties.
• Location matters. Surrounding counties offer much greater chance at upward

mobility, with Hendricks County offering the best.

• Every year matters. For every year that a poor child spends in Hendricks County

(versus Marion County), they add $180 to annual household income at age 26. This,

• n average, adds up to about $3,150 or 12% more in average income.
• While growing up in Marion County significantly and negatively impacts poor kids,

it negatively impacts middle income and rich kids as well (albeit much less so, and the economic costs to those groups are disproportionate - losing $3,150 to a poor individual means a lot more than losing $1,340 to one in the top %1.)

For instance, in Indianapolis

What a childhood in Marion Co. does to future income

• St. Joseph County is average (1,138th out
• f 2,478 counties) for income mobility,

ranking in the 46th percentile for income mobility for poor children.

• If you live in the South Bend area, it is

better to be in Marshall County than LaPorte or Elkhart Counties. The younger a child moves to Marshall County, the better they will do on

• average. Every year a poor child spends

in Marshall Co. adds $100 to annual household income. A difference of about $2,000 or 8 % of annual income as an adult.

In the South Bend area…

• Conditions are much different.

LaGrange Co. is extremely good for income mobility. If a poor child were to grow up here, they would make,

• n average, $6,600, or 25% MORE

than a child in an average place.

• It is one of the best counties in the

US, ranking 2,440th out of 2,478 (better than 98%). It ranks better for poor children than it does for rich

• nes.

In nearby LaGrange County…

• Number of two-parent households*.
• Lower levels of income inequality.
• Lower rates of segregation by race and

income, access to middle class neighborhoods.

• Access to early childhood education &

quality K-12 education.

• Opportunities for civic engagement,

including membership in community and religious groups.

• Lower Violent Crime.
• Additionally – effects of place are

sharper for boys than for girls and for lower-income children than for rich.

Important factors observed in upward mobility…

• Homeownership & Housing: direct lending

programs to first-time homebuyers; Sec. 8 protections against discrimination; manufactured home policies; foreclosure protection for tenants, etc.

• Education: CSAs, financial ed. in schools,

full-day Kindergarten, universal Pre-K, supplemental Head Start grants.

• Financial Assets & Income: Child Care Tax

Credit policies, property tax relief/circuit breaker, effective tax rate for bottom 20% of earners lower than top 1% of earners.

Prosperity now Policies

• Less income inequality and

segregation by income and race

• Access to early childhood programs

and high-quality K-12 education

• Larger share of two-parent

households

• Increased civic engagement.
• Decreased crime.

EOP common Findings for Communities w/ Greater Economic Mobility

Pursuing progress toward greater mobility

Given EOP’s findings, six potential areas for investment in economic mobility may be: 1. Create Place-Based Strategies to improve access to opportunity. 2. Improve access to high-quality early childhood education. 3. Improve access to high-quality K-12 education. 4. Invest in family stabilization efforts that contribute to maintaining nuclear families. 5. Establish viable affordable housing options beyond low-income neighborhoods and concurrently seek to revitalize low-income neighborhoods. 6. Build capacity for continues learning and improvement of social service programs and providers.

How should philanthropy invest in improving conditions related to economic mobility?

• Investing in family stabilization efforts in Phoenix, Jax, & Dayton through increased investments

in marital health resources and promoting initiatives that increase family attendance in worship

• services. The Philanthropy Roundtable.
• Creating an ‘Opportunity Task Force’ to develop ‘Opportunity System’ strategies with focus on

early childhood education, college and career readiness, and family and child stability. Foundation for the Carolina.

• Conducting localized ‘Opportunity Gap’ reports analyzing opportunity gap for low-income,

rural, and children of color in Oregon within the areas of family, community, early childhood education, K-12 education, postsecondary education and workforce development. The Oregon Community Foundation.

• Committing all philanthropic resources and influence to addressing Inequality (with priority

areas in inclusive economies, youth opportunity and learning, equitable development, gender, racial, and ethnic justice, and civic engagement. The Ford Foundation.

• Expanded emphasis on racial equity and racial healing, with overarching priority of alleviating

the root causes of systematic inequalities. WK Kellogg Foundation.

What others are doing…

PANEL DISCUSSION AND YOUR QUESTIONS

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JOIN INDIANA AFN

• WWW.ASSETFUNDERS.ORG
• JOBI@ASSETFUNDERS.ORG

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Upcoming Meetings: October 4th, 2017 November 8, 2017

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APPENDIX

• Citations from Andrew Black
• Prosperity Now Contact Info & Community
• Prosperity Now Background Slides

• In Climbing Income Ladder, Location Matters. Leonhardt, New York Times. [LINK]
• The Equality of Opportunity Project, Chetty et. al [LINK]
• The Best & Worst Places to Grow Up : How Your Area Compares [LINK]. Aisch, Buth,

Bloch, Cox, & Quely. New York Times. Source: Chetty & Nathaniel Hendren’s “The Impacts of Neighborhoods on Intergenerational Mobility”.

• An Atlas of Upward Mobility Shows Paths Out of Povery. Leonhardt, Cox, Cain Miller

[LINK]

• Economic Mobility : Measuring the American Dream [LINK].
• Indiana Lagging in Economic Mobility? Indiana Youth Institute/Inside Indiana business.

[LINK]

• More Challenges to Economic Mobility in Indiana. Derek Thomas, Indiana Institute for

Working Families. [LINK]

• Demographic Trends & Economic Well-Being. Pew Research Center. [LINK]

Works Cited by Andrew Black

The Prosperity Now Community

facilitates learning creates connections & inspires action Stay informed & sign up today at prosperitynow.org/join. to create and improve programs and policies that foster

• pportunity for all.

Prosperity Now Federal Campaigns!

Homeownership is key to building wealth. Together, we will advocate for products and policies that provide more affordable homes to more people. HOMEOWNERSHIP Consumer protections create fairer, more transparent financial

• markets. Together, we

will ensure consumers keep the safeguards they deserve. CONSUMER PROTECTIONS Safety net programs help protect vulnerable individuals and families from falling deep into

• poverty. Together, we

will protect programs like SNAP, IDAs and more to help those in need when they need it most. SAFETY NET The vast majority of tax incentives go to those at the top, not to those who need it

• most. Together, we will

turn our upside-down tax code right-side up. TURN IT RIGHT

• SIDE UP

Visit any of the Campaigns above at https://prosperitynow.org/get-involved to learn more and join.

Sign up to stay informed about the latest developments and

• pportunities to take action by joining one of our four federal

policy campaigns.

Stay in Touch with Prosperity Now

Solana Rice, Director of State & Local Policy

srice@prosepritynow.org @solanarice

Lebaron Sims, Senior Research Manager

lsims@prosepritynow.org @lebaronsims

Households with Adv. Degrees have

30x

the Net Worth Of Households w/o High School Diplomas

MEDIAN NET WORTH BY EDUCATIONAL ATTAINMENT

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