Chicago PowerPoint

Elizabeth Kneebone and Alan Berube Brookings Institution

Confronting Suburban PovertyChallenges and Directions for the Chicago Region

1The geography of poverty and opportunity has changed

Current policies are not aligned to this new geography2

3We need a new agenda for metropolitan opportunity

The geography of poverty and opportunity has changed1

Today, more of the nation’s poor live in suburbs than in cities

Number in poverty, central cities versus suburbs, 1970-2012. Source: Brookings analysis of U.S. Census Bureau data

1970 1980 1990 2000 2012

5,000,000

10,000,000

15,000,000

20,000,000

Poor Individuals in Suburbs Poor Individuals in Cities

In the Chicago region, the share of poor residents in the suburbs climbed to 52 percent in 2012

Number in poverty, central cities versus suburbs, 1970-2012. Source: Brookings analysis of U.S. Census Bureau data

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

1970 1980 1990 2000 2012

Poor Individuals in Suburbs Poor Individuals in Cities

One-third of the region’s poor live outside Cook County

60%17%

24%

2000

Chicago

Rest of Cook

Rest of metro

48%

20%

32%

2007-11

Poverty has spread beyond older, inner-ring suburbs

Poverty has spread beyond older, inner-ring suburbs

Chicago’s urban and suburban poor are similar in many ways

Source: Brookings Institution analysis of ACS data

Foreign born White non-Hispanic Under 18 Female HH with kids Deep poverty HS dropout

19%16%

35%

50%

44%

34%

22%

38%37%

44% 44%

26%

Share of urban poorShare of suburban poor

Several factors drive suburban poverty in the Chicago region

Population Change Immigration Housing

Job Location Regional Economy

-4.5%

8.3%

Cities

Suburbs

Percent Change in Population,Chicago Region,

2000 to 2010

Overall population has grown much faster in the suburbs

Source: Brookings Institution analysis of ACS and Decennial Census data

Immigration is contributing to growth in suburban poverty

Contribution to Growth in Suburban Poor Population,

2000 to 2009

Foreign-born population

Native-born population

19%

81%

Source: Robert Suro, Jill Wilson, and Audrey Singer “Immigration and Poverty in America's Suburbs”

2000 2008

99,211

160,188

Housing Voucher Recipients in Suburbs

Affordable housing is spreading to Chicago’s suburbs

Source: Brookings Institution analysis of HUD “Picture of Subsidized Housing” data

Most subprime lending and foreclosures were suburban

Subprim

e Loan

s

Loan

s in Fo

reclosu

re or L

ost

68% 70%

Share of 2004-08 Loans in Suburbs, Chicago Region

Source: Chris Shildt, Naomi Cytron, Elizabeth Kneebone and Carolina Reid, “The Subprime Crisis in Suburbia: Exploring the Links between Foreclosures and Suburban Poverty”

2000 2010

68% 67%

Share of Chicago Region JobsLocated 10 to 35 Miles

from Downtown

Jobs sprawl is high in the Chicago region

Source: Elizabeth Kneebone, “Job Sprawl Stalls: The Great Recession and Metropolitan Employment Location”

Number of Suburban Unemployed,

Chicago Region

The economic downturn left many unemployed in the suburbs

Dec. 2007 Dec. 2010

168,798

287,032

Source: Brookings Institution analysis of Bureau of Labor Statistics LAUS data

Suburban poverty brings added challenges

Transit Access Strained Local Services

Limited Philanthropic Resources Change in School Populations

City Suburbs

100%

91%

Share of Low-Income Neighborhoods with Transit Stop

Nearby, Chicago Region

Suburban commuters have less access to transit

Source: Tomer, Kneebone, Puentes, and Berube, “Missed Opportunity” (Brookings, 2011)

Suburban commuters with transit can’t reach as many jobs

City Suburbs

38%

13%

Share of Chicago Region Jobs Accessible to Low-income Neighborhoods within 90

Minutes via TransitSource: Tomer, Kneebone, Puentes, and Berube, “Missed Opportunity” (Brookings, 2011)

Number of Registered Nonprofit Social Service Organizations per Poor

Individual, 2007

Chicago Rest of Cook Rest of IL metro

0.86

1.04

1.42

Source: Alllard and Roth, “Strained Suburbs: The Social Service Challenges of Rising Suburban Poverty,” (2010)

Nonprofits are present in Chicago’s suburbs

Nonprofit Human Services Revenue per Poor Individual, 2007

Chicago Rest of Cook Rest of IL metro

$938

$617

$506

Source: Alllard and Roth, “Strained Suburbs: The Social Service Challenges of Rising Suburban Poverty,” (2010)

But suburban nonprofits are considerably smaller

Human Services, Housing, and Workforce Training Grant Dollars per

Poor Person, Chicago Metro Area, 2007

City Suburbs

$68

$2

Philanthropic support for suburban organizations is limited

Source: Reckhow and Weir, “Building a Stronger Regional Safety Net” (Brookings, 2012)

Percent Change in Number of Students Enrolled in Free and

Reduced Price Lunch, Chicago Region,2005-06 to 2009-10

Schools are seeing low-income populations multiply

City Suburbs

5%

27%

Source: Brookings analysis of GreatSchools data

Average School-Wide Proficiency Ranking Statewide, Chicago Suburban Students, 2009-10

Low-income suburban students attend schools with below-average test scores

Middle- or h

igh-in

come s

tudent

Low-in

come s

tudent

59%

39%

Poverty is not distributing evenly across Chicago’s suburbs

Below Average Poverty Rate Growth Above Average Poverty Rate Growth

Above Average

Poor Population

Growth

BelowAverage

Poor Population

Growth

Carol Stream Berwyn

Beecher Harvey

Current policies are not aligned to this new geography2

Substance Abuse Treatment

Block Grant; Social Services

Block Grant; Substance

Abuse Prevention Block

Grant; Community Mental

Health Services Block Grant

(MHSBG); Access to

Recovery (ATR)

Social Services

The legacy system of place-based anti-poverty programs does not map easily onto the suburban landscape

Child and Adult Care Food

Program; The Emergency

Food Assistance Program

(TEFAP); Summer Food

Service Program; Commodity

Supplemental Food Program;

WIC Farmers’ Market

Nutrition Program (FMNP)

Food Assistance

Job TrainingJob Corps; WIA Dislocated Worker

Employment and Training Activities;

WIA Youth Appropriation; WIA Adult

Program; WIA Dislocated Worker

National Emergency Grants;

YouthBuild; Learn and Serve America:

School and Community Based

Programs; Supported Employment

State Grants; Work Opportunity Tax

Credit; Child Care and Development

Block Grant

Education

Title I — Improving The Academic Achievement Of The

Disadvantaged; Head Start and Early Head Start; Improving

Teacher Quality State Grants; Adult Basic and Literacy Education

State Grants; TRIO: Upward Bound; Gaining Early Awareness and

Readiness for Undergraduate Programs (GEAR UP); Teacher

Incentive Fund; TRIO: Student Support Services; College Access

Challenge Grant Program; Mathematics and Science Partnerships;

TRIO:Talent Search; Race to the Top -- Early Learning Challenge;

TRIO: Educational Opportunity Centers; TRIO: Upward Bound

Math Science; Parental Information and Resource Centers;

Advanced Placement Program (Advanced Placement Test Fee;

Advanced Placement Incentive Program Grants); School

Leadership Program; Innovative Approaches to Literacy; Assets

for Independence (AFI); IRS Volunteer Income Tax Assistance

(VITA); 21st Century Community Learning Centers; Child Care

Access Means Parents in School Program; Advanced Placement

Incentive Program Grants; Qualified zone academy bonds (QZAB);

Charter Schools Program

HealthConsolidated Health Centers

(Community Health Centers, Migrant

Health Centers, Health Care for the

Homeless, Public Housing Primary

Care, and School Based Health

Centers); Affordable Care Act (ACA)

Grants for Capital Development in

Health Centers; Title V Maternal and

Child Health Services Block Grant

Program; Maternal, Infant, and Early

Childhood Home Visiting Program

Economic Development

New Markets Tax Credit ; Renewal

Community Tax Incentives; Community

Development Financial Institutions Program;

ARRA- Investments for Public Works and

Economic Development Facilities; Recovery

Zone Bonds; ARRA- Economic Adjustment

Assistance; Economic Development: Support

for Planning Organizations; Community

Economic Development; Technical Assistance;

Bank Enterprise Award; Economic

Development: Technical Assistance;

Community Services Block Grant; Community

Services Block Grant: Discretionary Awards

Housing

Emergency Food and Shelter

Program; Tenant-based Rental

Assistance; Sustainable

Communities Regional

Planning Grant Program;

Housing Choice Voucher

(HCV) Family Self-Sufficiency;

Housing Counseling

Assistance

$82 billion81 federal programs

10 agencies

Suburbs face additional challenges

Lack of Capacity

Inflexible, Unreliable Funding

Extensive Fragmentation

Chicago’s south suburbs encountered these challenges during the housing crisis

Cook County

Chicago’s south suburbs encountered these challenges during the housing crisis

Cook County

19 communities submitted a joint NSP application

Chicago’s south suburbs encountered these challenges during the housing crisis

Cook County

11 municipalities received individual awards

3We need a new agenda for metropolitan opportunity

Yet innovators across the country are finding creative ways to navigate this system

HealthConsolidated Health Centers

(Community Health Centers, Migrant

Health Centers, Health Care for the

Homeless, Public Housing Primary

Care, and School Based Health

Centers); Affordable Care Act (ACA)

Grants for Capital Development in

Health Centers; Title V Maternal and

Child Health Services Block Grant

Program; Maternal, Infant, and Early

Childhood Home Visiting Program

Food Assistance

Child and Adult Care Food

Program; The Emergency Food

Assistance Program (TEFAP);

Summer Food Service

Program; Commodity

Supplemental Food Program;

WIC Farmers’ Market Nutrition

Program (FMNP)

Housing

Emergency Food and Shelter

Program; Tenant-based Rental

Assistance; Sustainable

Communities Regional

Planning Grant Program;

Housing Choice Voucher

(HCV) Family Self-Sufficiency;

Housing Counseling

Assistance

Job Training

Job Corps; WIA Dislocated Worker

Employment and Training Activities;

WIA Youth Appropriation; WIA Adult

Program; WIA Dislocated Worker

National Emergency Grants;

YouthBuild; Learn and Serve America:

School and Community Based

Programs; Supported Employment

State Grants; Work Opportunity Tax

Credit; Child Care and Development

Block Grant

Title I — Improving The Academic Achievement Of The

Disadvantaged; Head Start and Early Head Start; Improving

Teacher Quality State Grants; Adult Basic and Literacy Education

State Grants; TRIO: Upward Bound; Gaining Early Awareness and

Readiness for Undergraduate Programs (GEAR UP); Teacher

Incentive Fund; TRIO: Student Support Services; College Access

Challenge Grant Program; Mathematics and Science Partnerships;

TRIO:Talent Search; Race to the Top -- Early Learning Challenge;

TRIO: Educational Opportunity Centers; TRIO: Upward Bound

Math Science; Parental Information and Resource Centers;

Advanced Placement Program (Advanced Placement Test Fee;

Advanced Placement Incentive Program Grants); School

Leadership Program; Innovative Approaches to Literacy; Assets

for Independence (AFI); IRS Volunteer Income Tax Assistance

(VITA); 21st Century Community Learning Centers; Child Care

Access Means Parents in School Program; Advanced Placement

Incentive Program Grants; Qualified zone academy bonds (QZAB);

Charter Schools Program

Education

Economic Development

New Markets Tax Credit ; Renewal

Community Tax Incentives; Community

Development Financial Institutions Program;

ARRA- Investments for Public Works and

Economic Development Facilities; Recovery

Zone Bonds; ARRA- Economic Adjustment

Assistance; Economic Development: Support

for Planning Organizations; Community

Economic Development; Technical Assistance;

Bank Enterprise Award; Economic

Development: Technical Assistance;

Community Services Block Grant; Community

Services Block Grant: Discretionary Awards

Social Services

Substance Abuse Treatment

Block Grant; Social Services

Block Grant; Substance

Abuse Prevention Block

Grant; Community Mental

Health Services Block Grant

(MHSBG); Access to Recovery

(ATR)

Achieve ScaleIFF• Grew from a $2.7 million loan fund to a

65-person organization with assets totaling $240 million and a loan portfolio of $187 million

• Serves five states in Midwest: Illinois, Indiana, Iowa, Missouri, and Wisconsin

• Able to play the role of researcher, lender, consultant, and/or developer depending on the needs of the community

Support smart consolidation

Improve systems and networks

Promote high-performance organizations

Collaborate and IntegrateChicago Southland Housing and Community Development Collaborative• Represents 23 municipalities• Continues to be supported by regional

institutions and local funders• Breaks down policy silos

Identify and reduce barriers

Catalyze regional capacity

Reward collaborative approaches

Fund strategicallyMortgage Resolution Fund

• Uses a market-based, enterprise-level approach

• Leverages existing nonprofit expertise and private sector resources

• Focuses on measurable outcomes

Commit to enterprise-level funding

Promote tools that leverage public & private resources

Develop consistent, comparable data sources

Creating a Metropolitan Opportunity Challenge could help bring these solutions to scale in regions across the country

Federal Place-Based Anti-Poverty Programs

$82 Billion; 81 Programs; 10 Agencies

Re-purpose 5% : $4 billion

www.ConfrontingSuburbanPoverty.org

You can read more about the Metropolitan Opportunity Challenge and the contents of the book on our new website

The website provides a host of helpful resources:

Profiles of the top 100 metros Case studies of innovators

Tips for taking action Video

Infographic

Questions

• What are the major challenges you perceive to grantmaking in the suburbs?

• Who are the “quarterbacks” in this region? What barriers do they face to scale?

• Are there regional (or sub-regional) tables at which funders come together to collaborate?

• How can philanthropy and government (federal, state, county, municipal) help each other to confront suburban poverty in the region?

• What further research/advocacy is needed to help move these ideas forward?

[email protected]@brookings.edu