Equitable Development: Challenges and Opportunities for Southwestern Pennsylvania

1. Equitable Development: Challenges and Opportunities for Southwestern Pennsylvania Keynote address for Sustainable Pittsburgh December 15, 2006 john a. powell Williams Chair in Civil Rights & Civil Liberties, Moritz College of Law Executive Director, Kirwan Institute for the Study of Race and Ethnicity The Ohio State University http://www.kirwaninstitute.org/

2. Overview of Today’s Discussion • Southwestern Pennsylvania: Inequality • Scale, Causes and Impacts • How can we produce a more equitable, sustainable and vibrant region? • Equitable regional development (reasonable regionalism) • Policies and best practices for change • Housing • Education • Economic Development

3. Inequalities: Scale of the Challenge According to University of Pittsburgh's 2004 Black-White Benchmarks study: • Pittsburgh stands as one of the most disadvantaged for African Americans of 70 cities nationwide in terms of home ownership, median household income and poverty rates. • 7th highest rate of poverty in 2000: 34.1 percent of blacks were poor, compared to 14.3 percent of whites. • Ranked 50th among 70 U.S. cities for black homeownership “No one wins in a nation with such great disparities. They threaten our competitiveness and standard of living, and they represent a reversal of the gains made by the sacrifice of previous generations. It is in everyone's interest to empower themselves and their neighbors, and to keep this nation a global powerhouse.” – Marc Morial Source: Morial, Marc H. “African Americans are still falling behind. Economic empowerment is the most important civil rights movement of the 21st century.” Pittsburgh Post-Gazette. October 25, 2006.

4. Conditions for African Americans: Scale of the Challenge • The Kirwan Institute has created an index of conditions for the African American community comparing regions across the nation • Our index indicates that out of the 21 regions with the largest central city African American populations, Pittsburgh ranks 16th (the 5th worst performance out of 21 regions)

5. Inequalities: Education • Less than half of students (47%) in the Pittsburgh city school district are graduating on time (39% of African American students and 56% of White students graduated on time according to the cumulative promotion index by Christopher Swanson). The statewide average for this figure is 77% for Pennsylvania. • Pittsburgh Public Schools have experienced a 5.5% enrollment drop in past 12-months and lost nearly a quarter of its students since 1998. (Dropping from 39,603 in 1998 to 29,445 in 2006). The 8th annual enrollment drop for the district.

6. Inequalities: Housing • According to a 2003 University of Pittsburgh study, Alleghany County has a shortage of 15,000 housing units affordable to people with the lowest incomes • 38% of those surveyed said the lack of affordable housing is a "big" or "very big" problem in the state • Pittsburgh Housing Authority is facing cuts in federal funds of around $8 million from its $130 million budget. • PHA provides homes or housing vouchers to 1 in 10 city residents Sources: DaParma, Ron. “Survey finds shortage of affordable housing.” Pittsburgh Tribune-Review. December 3, 2006. Lord, Rich. “Housing Authority scraping for funds.” Pittsburgh Post-Gazette. October 27, 2006. Lord, Rich. “Residents decry housing agency cuts.” Pittsburgh Post-Gazette. September 23, 2006.

7. Inequalities: Sprawl & Disinvestment • Sprawl is inefficient development with little or no population growth. This is the dominant trend in many regions, especially the Midwest • Sprawl represents a flight of opportunity and investment away from existing communities, producing disinvestment and decline in many urban communities of color

8. Housing growth is concentrated in the suburbs while urban communities have high vacancy rates in 2005

9. Racial Inequalities = Regional Inequalities • Subsidized housing policies, sprawl, exclusionary housing and inner city disinvestment converge to produce continued racial segregation in our society • Often this racial segregation coexists with segregation into high poverty neighborhoods and separation from many of the opportunities in our metropolitan regions • Producing a racial isolation in neighborhoods that are lacking the essential opportunities to advance in our society (fueling racial disparities)

10. Racial Segregation and Regional Inequities are Linked

11. Regional disparities in wealth in the region also correlate with race and regional inequity

12. What Drives Inequality in the Region? • What drives racial and social inequality? • Isolation from opportunity or key opportunity structures (high quality education, sustainable employment, safe neighborhoods) which foster social and economic stability or advancement • This opportunity isolation is correlated with the region’s racial segregation and is impacted by many factors • Sprawl which moves opportunity (jobs, investment, people) away from existing areas • Unfair and exclusionary housing policies which isolate disadvantaged populations or concentrate poverty • Macro economic changes (e.g. loss of the manufacturing sector) which have destabilized employment opportunity for lower skill workers

13. The Cumulative Impacts of Racial and Opportunity Segregation Segregation impacts a number of life-opportunities Impacts on Health School Segregation Impacts on Educational Achievement Exposure to crime; arrest Transportation limitations and other inequitable public services Job segregation Neighborhood Segregation Racial stigma, other psychological impacts Impacts on community power and individual assets Adapted from figure by Barbara Reskin at: http://faculty.washington.edu/reskin/

14. The Impact: An Unsustainable Region • The result of inequity is an unhealthy, inefficient and unsustainable region, characterized by • Poor labor force preparation • Sprawl and environmental damage • Poor economic conditions • All residents and communities within metropolitan areas share a linked fate, and problems affecting one community will eventually prove detrimental to the entire region • This interrelationship requires collective solutions

15. The Pittsburgh Region: Challenges • Lagging the nation in job creation and growth of regional exports • Between 2000 and 2004 the Pittsburgh metropolitan area has gained only 5,300 jobs, an almost invisible growth rate of 0.5% • Flight of young professionals from the region • Unable to attract immigrants • Severe economic problems: job losses and declining and aging population “Communities can benefit if they work together to bring jobs into the county rather than compete with each other for these jobs.” Source: “Unweaving a Tangled Web. Local Trends and Regional Challenges in Allegheny County.” RAND. Research Brief: Infrastructure, Safety, and Environment. www.rand.org

16. Inequality Harms Everyone • Segregation drives education disparities, depressing the educational ability of many people in the region • Segregation keeps much of the African American labor force isolated from economic opportunity, creating workforce shortages for employers • Fragmentation creates redundancy in government services and creates inter-regional economic competition, when the region should be acting as one unit to draw people and jobs from around the world

17. What is the Remedy to this Challenge? • Regional Equity • “Regional equity” means simply a balanced investment in people and neighborhoods throughout the metropolitan region • “Reasonable regionalism” • Equitable regional policy to grow and expand opportunity for all • This approach is not just focused on those directly impacted by inequality, but seeks to create growth and prosperity for everyone—thus creating a stronger, more economically vibrant region that has invested in the development of its most important asset, its people

18. Equity Driven Regionalism • What principles should guide equitable regional policy? • Reducing disparities in resources and opportunities among communities • Affirmatively connecting residents to opportunity and targeting the growth of opportunities in neglected neighborhoods • Managing growth and sprawl to eliminate wasteful growth which further isolates people from new opportunities in the region

19. Moving Toward Equity and Sustainability: Best Policies and Practices for Change • In the past two years the Kirwan Institute has conducted a national study to identify some of the best practices to produce regional equity • Despite the many equity challenges facing the nation, many regions are organizing to address inequality and many promising policies have shown promise in creating more sustainable regions

20. Best Policies and Practices for Change: Housing • Inclusionary and Opportunity Based Housing Strategies (examples) • Montgomery County, MD: Suburban Montgomery County has the longest running inclusionary zoning policy in the nation, producing over 11,000 units in a 20 year period • 100’s of communities have adopted inclusionary ordinances in recent decades

21. Best Policies and Practices for Change: Housing • Inclusionary and Opportunity Based Housing Strategies (examples) • Baltimore, MD: As a result of fair housing litigation (Thompson v. HUD), advocates in the Baltimore region have proposed that HUD develop nearly 7,000 affordable housing opportunities in high opportunity communities for public housing residents who volunteer to relocate Thompson Movers: Moving to Opportunity in Baltimore

22. PennsylvaniaAttitudes on Affordable Housing • Many residents surveyed agreed they would be comfortable if more affordable housing was created in their communities.* *For families in the $20,000 - $40,000 income bracket. Source: “Pennsylvanians’ Attitudes on Home Affordability.” Survey conducted on behalf of: The Housing Alliance of Pennsylvania and Homes for Working Families. November 29, 2006.

23. Best Policies and Practices for Change: Education (Economic Integration) • District magnet/charter schools • Create high-quality magnet schools with academic, economic thresholds • Wake County Raleigh, NC • No more than 40% low income • No more than 25% performing below grade level on state reading test • Results • Black students: 40% to 80% grade level on standardized tests • Hispanic students: 79% to 91%

24. Best Policies and Practices for Change: Education (Economic Integration) • Suburban schools: designated vouchers/choice plan • Provide academic support, transportation • Connect to regional housing policies • Minneapolis Choice is Yours • Urban students are given priority placement in suburban or magnet schools of their choice • Participants outperformed their peers, with scores in reading and mathematics that were respectively 23 and 25 percentile points higher

25. Best Policies and Practices for Change: Economic Development and Fiscal Policy • Aggressive, comprehensive and regional land bank programs to address vacant property problems • Labor force development and minority business development through MBE incubators • Strategic investment using public dollars in urban neighborhoods (using public pension fund investments to stimulate development) • Revenue sharing strategies • This is already done at a small scale with the Allegheny County Asset District, consider expansion to the Minneapolis regional property tax base sharing strategy

26. Further strategies for promoting equity and regional growth • Looking for the “turning point” • Supporting key community assets and anchor institutions • Support an economically diverse community • Support revitalization not gentrification • Coalition building

27. Looking for the Turning Point • The Turning Point • Instead of focusing on the tipping point, we need to better define what neighborhoods require to reach the turning point • What convergence of positive actions will accelerate the neighborhood’s revitalization? • Pushing development beyond the turning point thresholdrequires an intervention strategy to positively transform the neighborhood’s physical, social, economic, and political environment

28. Supporting Key Community Assets and Anchor Institutions • Support and strengthen neighborhood anchor institutions within existing urban areas • Anchor institutions are significant community or regional institutions that serve a specific community or regional need and become magnets for other opportunities • Examples: Medical centers, universities, commercial districts, cultural centers • Areas near these institutions become dense clusters of opportunity; conversely, losing these institutions can destabilize multiple opportunity structures

29. Coalition Building • To pursue regional solutions, it is critical that racially diverse, regional coalitions are formed • Regional solutions have been most successful & stable when coalitions comprised of multiple entities are formed • Oregon (Coalition for a Livable Future: 60+ businesses and organizations) • Chicago (MAC, Metropolis 2020) • Consider community-based organizations, social justice groups, local governments, the business community, CDC’s, philanthropic institutions and large urban institutions

30. Think about the Macro-Region • Globalization is reshaping conditions throughout the rust belt’s traditional urban areas • Reshaping society and the economy • There is no organized national response to this transition • Rust belt regions need to start thinking about working together to create a national response to this macro-regional problem • Start talking to other regions, lobbying the federal government • How do we make rust belt regions economically healthy, globally competitive, sustainable and more equitable?

31. Promising Trends in Pittsburgh • Significant progress has been made in the Pittsburgh region in thinking about regional policy and other equitable policies • Inclusion of equity and diversity in the Alleghany County planning process • Discussion over regional strategies and consolidation • City/County Advisory Committee to Enhance Efficiency and Effectiveness of County and City Government • Although consolidation is not the best solution for addressing regional equity (unless is addresses housing and schools) • Programs to encourage housing development and home ownership in the City

32. Regional Cooperation and Growth • Regional efforts must be fair – advocate for equitable investments in all people, in all communities • Combat segregation, isolation, disconnection from opportunity • Regionalism does not require regional government (municipal consolidation) but requires regional foresight and cooperation • What is the “opportunity cost” of doing nothing? Continued sprawl, disinvestment, economic and educational disparities – all of which make the region unattractive to knowledge workers and companies

33. Conclusion: A Call for Cooperation • Why do we need cooperation between the region’s communities to address concentrations of poverty and disparity? • Linked fates – the region’s disparities harm everyone, producing harms that endanger not only those directly impacted but limiting the future of everyone • Through collective imagination, we need to define what the future should look like • What is our alternative vision? • A model where we all grow together • A model where we embrace collective solutions • This vision requires collective action and will require coalitions to be successful

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