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Structural Change:
Confronting Race and Class



 THE KIRWAN INSTITUTE FOR THE STUDY OF
      RACE AND ETHNICITY & ISAIAH

    OHIO ORGANIZING COLLABORATIVE
          WEEKLONG TRAINING

              TOLEDO, OH
             JULY 19, 2010
Presentation Overview

 Introduction and Opportunity Stories
 The Geography of Opportunity
 The Disparate Impacts of the Recession
 Race, Equity, and Organizing: the ISAIAH & Kirwan
  experience
 Small group exercise and reporting back
About Kirwan

 Multidisciplinary applied
  research institute, founded
  2003
 john powell, Executive Director
     Our mission is to expand
      opportunity for all, especially for
      our most marginalized communities
     Opportunity Communities Program
         Opening pathways to opportunity for
          marginalized communities through
          investments in people, places and
          supporting linkages
         Opportunity Mapping, Regional
          Equity, Neighborhood Revitalization,
          Opportunity Based Housing
About Our Work

 Emphasis on how systems work to produce
  inequity
     How do multiple issues interact to either depress or
      uplift certain populations or communities?
     What can we do to “strategically intervene” and improve
      outcomes for marginalized communities

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

   Focus on how various populations are situated in our
    complex social, economic, civic, political systems
The Geography of Opportunity
Opportunity Matters….
 “Opportunity” is a situation or condition that places individuals in a
  position to be more likely to succeed or excel.
 Opportunity structures are critical to opening pathways to success:
    High-quality education

    Healthy and safe environment

    Stable housing

    Sustainable employment

    Political empowerment

    Outlets for wealth-building

    Positive social networks
Neighborhoods & Community Matters…

     Neighborhoods are critical to
      understanding access to
      opportunity
         Does your community provide
          pathways to opportunity and
          success?
             Safe environment, good schools,
              positive peers and role models,
              employment
         Or does your community present you
          with barriers to opportunity and
          success
             Unsafe environment, failing schools,
              poor peers and role models, no
              employment
Systems of Disadvantage:
           Neighborhoods & Access to Opportunity
 Five decades of research
  indicate that your
  environment has a profound
  impact on your access to
  opportunity and likelihood of
  success

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




                                                   8
Our opportunity context matters




Some people ride the      Others have to run up the
“Up” escalator to reach   “Down” escalator to get
opportunity               there
Why do some people have access to the “good
         life” while others do not?




       It’s more than a matter of choice….
Historic Government Role
                            11

 A series of federal policies have contributed to the
 disparities we see today
  School Policy
  Suburbanization & Homeownership

  Urban Renewal

  Public Housing

  Transportation
Policies Enforcing Inequity:
                Historical Government Role

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

  –Excerpt from the 1947
  FHA underwriting manual


                                               12
The Rise of Suburbia:
  But not accessible to everyone




         In the suburb-shaping years (1930-1960),
less than one-percent of all African Americans were able to
                    obtain a mortgage.
FHA Highway Construction in
         Cincinnati –
Demolishing much of the African
     American West Side           14
Structural Causes and Racialized Outcomes

 Structural disadvantage produces racialized
 outcomes
      People of color are far more likely to live in opportunity
       deprived neighborhoods and communities

               Poverty Rate: White and African American
                        Neighborhoods in 2000

         25%                                24% 24%
                                                       20%
         20%
         15%
         10%        8%   8%     9%
          5%
          0%
               Avg White Neighborhood    Avg AA Neighborhood

               Cincinnati MSA   Cleveland MSA   Columbus MSA
Opportunity
Indicators

•Education

•Economic & Mobility

•Housing &
Neighborhood

•Public Health

•Public Safety &
Criminal Justice
In Ohio,
Nearly 3 out of 4
Black Ohioans
were living in the
State’s lowest
opportunity
neighborhoods in
2000….
…compared to
1 in 2 Latinos
and 1 in 4
Asians and
Whites.
Racial Segregation & Educational
            Isolation
Economic Segregation and Racial Segregation in Public Schools: Southwest Ohio
 High Poverty Schools (Red and Yellow) are Concentrated in African American
                       Neighborhoods (Areas in Gray)




                                     20
Ohio Schools: Segregation by Race & Class


                Average School Poverty Rate
          for the Average Student by Race in 2000
                                       African
                    White Non          American
  Metropolitan Area Hispanic Students Students
  Akron                          25.7%              66.1%
  Cincinnati                     27.0%              69.4%
  Cleveland                      25.3%              74.3%
  Columbus                       23.7%              61.1%
  Dayton                         26.8%              74.7%
  Toledo                         29.5%              77.8%
Overview: Summing it Up


 “I believe the State is staring at
  the crossroads: one path has
  opportunities with
  advancement…and the other is
  more of the status quo, where
  folks are falling behind.”
 (quote from State of Black Ohio interview
   participant)
The Disparate Impacts of the
        Recession
Uneven Impacts Across Various Dimensions

30.0   Underemployment Rate by Race July 2007 to Nov
                            2009
        (Calculated by the Economic Policy Institute)
                                                         An uneven recession
25.0
                                                         with many disparate
                                                         impacts
20.0                                                      Race, Age, Gender,
                                                           Geography,
15.0                                                       Educational
                                                           Attainment,
10.0
                                                           Occupation

 5.0




                Black    Latino   White    Total
An Uneven Recession…

                               Unemployment Rate by Race
                                (January 09 to January 10)
18.0                                          16.5
16.0
14.0                               12.8                                     12.6
12.0
                                                                 9.9                             9.7
10.0                  8.7
                                                                                   7.7
 8.0    7.0

 6.0
              White                   Black                            Latino            Total
                                              Jan-09    Jan-10



                               Percent Change in Unemployment, by Race:
                                     (January 2009 to January 2010)
40.0%                                                                   38.4%
                                                                                         33.9%
35.0%                                     32.2%
30.0%

25.0%          22.3%
20.0%

15.0%

10.0%
               White                      Black                        Latino            Total
An Uneven
‘Recovery’….
In June 2010, private
sector employment
grew by 83,000 jobs…

From June 2009-June
2010:

White unemployment
decreased by 1.7%

Black unemployment
increased by 4.4%

Latino unemployment
increased by 3%
Ohio’s Challenges

 Unemployment
 Foreclosures and Vacant property
 Budget Crisis
Growing Unemployment
                                                    28


                          Unemployment Rate in Ohio, 1990 - 2007 (%)
             18.0%

             16.0%
                                                     16.3%
                        15.3%                                      15.5%      15.2%
             14.0%

             12.0%
Percentage




             10.0%                    11.2%


              8.0%

              6.0%

              4.0%

              2.0%

              0.0%
                        1990           2000          2005              2006   2007
             White      5.7%           4.2%          6.4%              6.1%   6.3%
             Black      15.3%         11.2%          16.3%         15.5%      15.2%
             Asian      5.1%           3.7%          5.2%              3.7%   4.6%
             Hispanic                  7.9%          9.1%              9.9%   9.7%
Ohio: 3rd highest black unemployment rate


   Top Five States with the Highest Unemployment Rates by Race (Ranked by 2009 3rd Quarter Unemployment)
                          Projected                          Projected                          Projected                            Projected
             3rd Quarter                        3rd Quarter                        3rd Quarter                          3rd Quarter
Total                    1st Quarter Black                  1st Quarter White                  1st Quarter Latino                   1st Quarter
                2009                               2009                               2009                                 2009
                            2010                               2010                               2010                                 2010

Michigan                             Michigan                           Michigan                           Nevada
                 15.2%       15.7%                  23.9%       24.8%                   13.7%      14.2%                    20.1%        19.0%
                                   South                               Rhode
Nevada                                                                                                     California
                 13.0%       12.3% Carolina         20.4%       22.7% Island            11.2%      11.7%                    15.6%        16.9%
 Rhode
                                     Ohio                               Oregon                             Florida
Island           12.8%       13.4%                  19.5%       22.0%                   11.0%      12.4%                    13.1%        14.3%
                                                                                                          New
California                           Illinois                           Kentucky
                 12.1%       13.1%                  18.6%       20.2%                   10.6%      11.2% Jersey             12.0%        12.6%

Oregon                               Alabama                            Nevada                             Arizona
                 11.8%       13.3%                  18.0%       18.8%                   10.6%      10.0%                    11.6%        13.1%
Source: Derived from data tables and analysis conducted by the Economic Policy Institute. Available on the EPI website at: www.epi.org
Will Growing Poverty Lead to a Recession
                        Generation?

                                     Top Ten States for Child Poverty (By Race) in 2008
                 Child Poverty                 Child Poverty                      Child Poverty                   Child Poverty
Black                2008      Native American     2008      Latino                   2008      White                 2008
Mississippi                48% New Mexico                  37% Kentucky                     41% West Virginia                22%
Arkansas                   47% Arizona                     35% Arkansas                     39% Kentucky                     20%
Kentucky                   44% California                  24% Tennessee                    39% Montana                      18%
Louisiana                  43% Oklahoma                    24% Alabama                      36% Arkansas                     17%
Oklahoma                   43% Alaska                      23% Pennsylvania                 36% Oklahoma                     17%
Wisconsin                  42% Nevada                       9% Rhode Island                 36% Tennessee                    16%
Michigan                   41% Data unavailable for other States Massachusetts              35% Mississippi                  15%
Ohio                       41%                                  Oregon                      35% Indiana                      14%
Indiana                    40%                                  North Carolina              34% Maine                        14%
Alabama                    38%                                  Oklahoma                    34% Missouri                     14%
Source: U.S. Census Bureau Data (American Community Survey), Analyzed by the Annie E. Casey Foundation Kids Count Database
Unemployment
 Remains High

Highest Rate:
Clinton County

16.7%

Lowest Rate:
Delaware County

7.2%

National Rate: 9.7%

Ohio’s Rate: 10.7%
Ohio
 Unemployment
 Using the U6
 measure of
 unemployment—
 which includes
 underemployment
 and those who have
 dropped out of the
 workforce-- Ohio’s
 unemployment rate

 climbs above 17%


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


   From Redlining…




                     …to Reverse Redlining
Disparities
Cost us All
….
Lost Home Equity
from nearby
foreclosures,
2009-2012
US: $1.9 trillion
Ohio: $17.2 billion
Almost 4 million
Ohio homes are
experiencing a
foreclosure-related
decline…
“Race or Risk” ?


                                          …what about fair credit




Source: United for a Fair Economy
Ohio has a long history of foreclosure
                       problems…
Rising
foreclosures
Almost ten-fold from
1995
Changing
causes of
foreclosures?
From a subprime
problem…

Foreclosures
increased by 155%
between 1994 and
2001 despite
strong economic
growth in Ohio….
Foreclosures
                                                                                 contd.
                                                                                 …to an
                                                                                 unemployment
                                                                                 problem?
                                                                                 •Morgan has an
                                                                                 unemployment
                                                                                 rate of 13.8%, 6th
                                                                                 highest in Ohio
                                                                                 •6 out of these 10
                                                                                 counties had
                                                                                 unemployment
                                                                                 rates greater than
                                                                                 Ohio’s average in
                                                                                 May 2010…
Table from “Home Insecurity”, David Rothstein, Policy Matters Ohio, March 2010
http://www.policymattersohio.org/pdf/HomeInsecurity2010.pdf
Budget Crisis
•2012-2013
budget deficit
could be as large
as $8 billion
•In 2009, tax
collections
declined by 12%,
an historic high




      http://www.cleveland.com/open/index.ssf/2010/07/other_states_in_much_worse
      _fis.html
ISAIAH and Kirwan

RACE, EQUITY AND ORGANIZING
      DORAN SCHRANTZ
           ISAIAH
Small Group Exercise

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

    Q1: How did opportunities decline in the Rust Belt?

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


 Each person will vote for their “top two” items from
  each list
 Each group will report back to the larger group
www.KirwanInstitute.org

                          www.race-talk.org

                          KirwanInstitute
                          on:

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2010 07 19_mvoc_ooc_ki_isaiah_toledo_2

  • 1. Structural Change: Confronting Race and Class THE KIRWAN INSTITUTE FOR THE STUDY OF RACE AND ETHNICITY & ISAIAH OHIO ORGANIZING COLLABORATIVE WEEKLONG TRAINING TOLEDO, OH JULY 19, 2010
  • 2. Presentation Overview  Introduction and Opportunity Stories  The Geography of Opportunity  The Disparate Impacts of the Recession  Race, Equity, and Organizing: the ISAIAH & Kirwan experience  Small group exercise and reporting back
  • 3. About Kirwan  Multidisciplinary applied research institute, founded 2003  john powell, Executive Director  Our mission is to expand opportunity for all, especially for our most marginalized communities  Opportunity Communities Program  Opening pathways to opportunity for marginalized communities through investments in people, places and supporting linkages  Opportunity Mapping, Regional Equity, Neighborhood Revitalization, Opportunity Based Housing
  • 4. About Our Work  Emphasis on how systems work to produce inequity  How do multiple issues interact to either depress or uplift certain populations or communities?  What can we do to “strategically intervene” and improve outcomes for marginalized communities  Emphasis on intersections in our work  Geography, race, class, gender  Focus on how various populations are situated in our complex social, economic, civic, political systems
  • 5. The Geography of Opportunity
  • 6. Opportunity Matters….  “Opportunity” is a situation or condition that places individuals in a position to be more likely to succeed or excel.  Opportunity structures are critical to opening pathways to success:  High-quality education  Healthy and safe environment  Stable housing  Sustainable employment  Political empowerment  Outlets for wealth-building  Positive social networks
  • 7. Neighborhoods & Community Matters…  Neighborhoods are critical to understanding access to opportunity  Does your community provide pathways to opportunity and success?  Safe environment, good schools, positive peers and role models, employment  Or does your community present you with barriers to opportunity and success  Unsafe environment, failing schools, poor peers and role models, no employment
  • 8. Systems of Disadvantage: Neighborhoods & Access to Opportunity  Five decades of research indicate that your environment has a profound impact on your access to opportunity and likelihood of success  High poverty areas with poor employment, underperforming schools, distressed housing and public health/safety risks depress life outcomes  A system of disadvantage  Many manifestations  Urban, rural, suburban 8
  • 9. Our opportunity context matters Some people ride the Others have to run up the “Up” escalator to reach “Down” escalator to get opportunity there
  • 10. Why do some people have access to the “good life” while others do not? It’s more than a matter of choice….
  • 11. Historic Government Role 11  A series of federal policies have contributed to the disparities we see today  School Policy  Suburbanization & Homeownership  Urban Renewal  Public Housing  Transportation
  • 12. Policies Enforcing Inequity: Historical Government Role “If a neighborhood is to retain stability, it is necessary that properties shall continue to be occupied by the same social and racial classes. A change in social or racial occupancy generally contributes to instability and a decline in values.” –Excerpt from the 1947 FHA underwriting manual 12
  • 13. The Rise of Suburbia: But not accessible to everyone In the suburb-shaping years (1930-1960), less than one-percent of all African Americans were able to obtain a mortgage.
  • 14. FHA Highway Construction in Cincinnati – Demolishing much of the African American West Side 14
  • 15. Structural Causes and Racialized Outcomes  Structural disadvantage produces racialized outcomes  People of color are far more likely to live in opportunity deprived neighborhoods and communities Poverty Rate: White and African American Neighborhoods in 2000 25% 24% 24% 20% 20% 15% 10% 8% 8% 9% 5% 0% Avg White Neighborhood Avg AA Neighborhood Cincinnati MSA Cleveland MSA Columbus MSA
  • 16. Opportunity Indicators •Education •Economic & Mobility •Housing & Neighborhood •Public Health •Public Safety & Criminal Justice
  • 17. In Ohio, Nearly 3 out of 4 Black Ohioans were living in the State’s lowest opportunity neighborhoods in 2000….
  • 18. …compared to 1 in 2 Latinos and 1 in 4 Asians and Whites.
  • 19. Racial Segregation & Educational Isolation
  • 20. Economic Segregation and Racial Segregation in Public Schools: Southwest Ohio High Poverty Schools (Red and Yellow) are Concentrated in African American Neighborhoods (Areas in Gray) 20
  • 21. Ohio Schools: Segregation by Race & Class Average School Poverty Rate for the Average Student by Race in 2000 African White Non American Metropolitan Area Hispanic Students Students Akron 25.7% 66.1% Cincinnati 27.0% 69.4% Cleveland 25.3% 74.3% Columbus 23.7% 61.1% Dayton 26.8% 74.7% Toledo 29.5% 77.8%
  • 22. Overview: Summing it Up  “I believe the State is staring at the crossroads: one path has opportunities with advancement…and the other is more of the status quo, where folks are falling behind.” (quote from State of Black Ohio interview participant)
  • 23. The Disparate Impacts of the Recession
  • 24. Uneven Impacts Across Various Dimensions 30.0 Underemployment Rate by Race July 2007 to Nov 2009 (Calculated by the Economic Policy Institute)  An uneven recession 25.0 with many disparate impacts 20.0  Race, Age, Gender, Geography, 15.0 Educational Attainment, 10.0 Occupation 5.0 Black Latino White Total
  • 25. An Uneven Recession… Unemployment Rate by Race (January 09 to January 10) 18.0 16.5 16.0 14.0 12.8 12.6 12.0 9.9 9.7 10.0 8.7 7.7 8.0 7.0 6.0 White Black Latino Total Jan-09 Jan-10 Percent Change in Unemployment, by Race: (January 2009 to January 2010) 40.0% 38.4% 33.9% 35.0% 32.2% 30.0% 25.0% 22.3% 20.0% 15.0% 10.0% White Black Latino Total
  • 26. An Uneven ‘Recovery’…. In June 2010, private sector employment grew by 83,000 jobs… From June 2009-June 2010: White unemployment decreased by 1.7% Black unemployment increased by 4.4% Latino unemployment increased by 3%
  • 27. Ohio’s Challenges  Unemployment  Foreclosures and Vacant property  Budget Crisis
  • 28. Growing Unemployment 28 Unemployment Rate in Ohio, 1990 - 2007 (%) 18.0% 16.0% 16.3% 15.3% 15.5% 15.2% 14.0% 12.0% Percentage 10.0% 11.2% 8.0% 6.0% 4.0% 2.0% 0.0% 1990 2000 2005 2006 2007 White 5.7% 4.2% 6.4% 6.1% 6.3% Black 15.3% 11.2% 16.3% 15.5% 15.2% Asian 5.1% 3.7% 5.2% 3.7% 4.6% Hispanic 7.9% 9.1% 9.9% 9.7%
  • 29. Ohio: 3rd highest black unemployment rate Top Five States with the Highest Unemployment Rates by Race (Ranked by 2009 3rd Quarter Unemployment) Projected Projected Projected Projected 3rd Quarter 3rd Quarter 3rd Quarter 3rd Quarter Total 1st Quarter Black 1st Quarter White 1st Quarter Latino 1st Quarter 2009 2009 2009 2009 2010 2010 2010 2010 Michigan Michigan Michigan Nevada 15.2% 15.7% 23.9% 24.8% 13.7% 14.2% 20.1% 19.0% South Rhode Nevada California 13.0% 12.3% Carolina 20.4% 22.7% Island 11.2% 11.7% 15.6% 16.9% Rhode Ohio Oregon Florida Island 12.8% 13.4% 19.5% 22.0% 11.0% 12.4% 13.1% 14.3% New California Illinois Kentucky 12.1% 13.1% 18.6% 20.2% 10.6% 11.2% Jersey 12.0% 12.6% Oregon Alabama Nevada Arizona 11.8% 13.3% 18.0% 18.8% 10.6% 10.0% 11.6% 13.1% Source: Derived from data tables and analysis conducted by the Economic Policy Institute. Available on the EPI website at: www.epi.org
  • 30. Will Growing Poverty Lead to a Recession Generation? Top Ten States for Child Poverty (By Race) in 2008 Child Poverty Child Poverty Child Poverty Child Poverty Black 2008 Native American 2008 Latino 2008 White 2008 Mississippi 48% New Mexico 37% Kentucky 41% West Virginia 22% Arkansas 47% Arizona 35% Arkansas 39% Kentucky 20% Kentucky 44% California 24% Tennessee 39% Montana 18% Louisiana 43% Oklahoma 24% Alabama 36% Arkansas 17% Oklahoma 43% Alaska 23% Pennsylvania 36% Oklahoma 17% Wisconsin 42% Nevada 9% Rhode Island 36% Tennessee 16% Michigan 41% Data unavailable for other States Massachusetts 35% Mississippi 15% Ohio 41% Oregon 35% Indiana 14% Indiana 40% North Carolina 34% Maine 14% Alabama 38% Oklahoma 34% Missouri 14% Source: U.S. Census Bureau Data (American Community Survey), Analyzed by the Annie E. Casey Foundation Kids Count Database
  • 31. Unemployment Remains High Highest Rate: Clinton County 16.7% Lowest Rate: Delaware County 7.2% National Rate: 9.7% Ohio’s Rate: 10.7%
  • 32. Ohio Unemployment Using the U6 measure of unemployment— which includes underemployment and those who have dropped out of the workforce-- Ohio’s unemployment rate climbs above 17% Source: Monthly Report on Ohio’s Economy and State Finances, May 2010 http://obm.ohio.gov/
  • 33. Foreclosure Crisis From Redlining… …to Reverse Redlining
  • 34. Disparities Cost us All …. Lost Home Equity from nearby foreclosures, 2009-2012 US: $1.9 trillion Ohio: $17.2 billion Almost 4 million Ohio homes are experiencing a foreclosure-related decline…
  • 35. “Race or Risk” ? …what about fair credit Source: United for a Fair Economy
  • 36. Ohio has a long history of foreclosure problems… Rising foreclosures Almost ten-fold from 1995
  • 37. Changing causes of foreclosures? From a subprime problem… Foreclosures increased by 155% between 1994 and 2001 despite strong economic growth in Ohio….
  • 38. Foreclosures contd. …to an unemployment problem? •Morgan has an unemployment rate of 13.8%, 6th highest in Ohio •6 out of these 10 counties had unemployment rates greater than Ohio’s average in May 2010… Table from “Home Insecurity”, David Rothstein, Policy Matters Ohio, March 2010 http://www.policymattersohio.org/pdf/HomeInsecurity2010.pdf
  • 39. Budget Crisis •2012-2013 budget deficit could be as large as $8 billion •In 2009, tax collections declined by 12%, an historic high http://www.cleveland.com/open/index.ssf/2010/07/other_states_in_much_worse _fis.html
  • 40. ISAIAH and Kirwan RACE, EQUITY AND ORGANIZING DORAN SCHRANTZ ISAIAH
  • 41. Small Group Exercise  Each group will generate a list for each of the following questions:  Q1: How did opportunities decline in the Rust Belt?  Q2: How could we open up opportunity for all in the Rust Belt? What are the key items in a new Rust Belt agenda?  Each person will vote for their “top two” items from each list  Each group will report back to the larger group
  • 42. www.KirwanInstitute.org www.race-talk.org KirwanInstitute on: