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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