Working Families Breakfast Session
Mayors Gathered In Madison for an Early Morning Focus Group on Improving the Lives of Working Families
July 1, 2002
Conference President Boston Mayor Thomas M. Menino opened this focus group by saying that the economic boom of the 90's left 1/5 of this country's children behind. Menino announced the continued alliance with the Annie E. Casey Foundation to address the question "How can mayors close the economic gap and leave no children behind."
Douglas Nelson, President of the Annie E. Casey Foundation, indicated that Casey was anxious to collaborate with mayors on addressing this problem. Mr. Nelson opened his remarks by describing many of the tragic outcomes (low birth weight, drug involvement, incarceration, etc.) that befall children in this country. He noted that about half of the children faced with these outcomes come from approximately 800 neighborhoods across the country. Most of these neighborhoods are located in inner-city communities in American cities.
Nelson stated that some of the most important predictors of these outcomes are that these children are the sons and daughters of people out of the economic mainstream. To solve this problem, according to Mr. Nelson, mayors, foundations and others have to find ways to connect families with economic opportunities, strengthen social networks, improve childcare and create affordable housing. To this end, he laid out five points that he believes will contribute significantly to helping cities achieve goals.
An aggressive approach that bridges jobseekers in low-income neighborhoods to metropolitan employers who need quality help. The Casey Foundation has worked hard in the cities of Milwaukee and Seattle to start programs that connect job placement, job training, community support institutions in low-income neighborhoods, and key quality employers. This effort has resulted in formerly unemployed people finding and keeping work.
The use of policies and programs that reward work. This would include policies that allow former welfare recipients to still receive for a short period of time cash assistance, child support services and health care benefits. Also, this approach involves increased outreach by mayors and others to inform working families about the federal and state earned-income tax credit. With this outreach effort, some working families already have seen an addition of $2,000 to $3,000 in yearly income.
New efforts to help low-income families build assets and save money. There are efforts by 13 states and the United Way to match savings of working families to promote home and car ownership. These programs offer working families the opportunity to open Individual Development Accounts (IDAs). These IDAs are often the first savings account that working families have.
The Promotion by cities and states to lower the cost of goods and services. This means creating laws to fight predatory lending practices, placing major retail outlets in low-income areas, and placing banks in low-income areas to replace check-cashing businesses. Also, this promotion involves creating affordable housing in order to prevent working-families from paying a greater percentage of income than other families for housing. Baltimore, MD and Washington, DC are two cities with vigorous efforts to bring major retailers into their inner cities and to stop predatory lending in their communities.
Improving family oriented public service in low-income neighborhoods. Some of these services would include improving public schools, expanding childcare services and improving after school programs.
Mr. Nelson ended his remarks by stating that the best way to improve the outcomes of children in low-income neighborhoods is to improve the economic standing of working families.
Mayors immediately responded to Mr. Nelson remarks. Mayor Menino asked, "What can cities do to connect and coordinate their programs with Casey Foundation's efforts." Indianapolis Mayor Bart Peterson indicated that his city began a pilot outreach program to inform working families about the earned income tax credit. He stated that their research shows that families were due almost $25 million that was uncollected.
Cleveland Mayor Jane Campbell talked about Cleveland's saving program called "Cleveland Saves" that promotes IDAs for working families. Other mayors discussed the need to encourage more use of the Federal Section 8 homeownership program, increase skill training for working families and the need to address diversity issues created by new Americans coming to this country.
In response to Mayor Menino's remarks, Mr. Nelson said he was delighted to work with Conference of Mayors staff to better frame this issue and to develop recommendations to help cities and foundations to connect these very important programs. Preliminary recommendations will be made available at the Mayors Leadership Summit in Boston this summer.
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