The State Role in Revitalizing America’s Older Industrial Cities

The Brookings Institution Metropolitan Policy Program

Restoring Prosperity The State Role in Revitalizing America’s Older Industrial Cities

T HE B ROOKINGS I NSTITUTION M ETROPOLITAN P OLICY P ROGRAM © 2007 Acknowledgements

The Brookings Institution Metropolitan Policy Program is grateful Johnson (William Penn Foundation); John Weiler (F.B. Heron to the many people who have supported this project with their Foundation); and Hal Wolman (GWIPP). Jeremy Nowak (The expertise, insight, and resources. Reinvestment Fund), Diane Bell-McKoy (Associated Black First and foremost, we would like to thank the Surdna Charities), and Sharmain Matlock-Turner (Greater Philadelphia Foundation for their generous support of this effort. We particu- Urban Affairs Coalition) also provided very helpful advice early on larly want to acknowledge the tireless contributions of Kim in the development of the project and report. Burnett, whose knowledge and enthusiasm have helped this proj- We also want to thank Professor Anne Power and her team at ect grow from a single report to a major organizing and research the London School of Economics (LSE) for stimulating our think- effort. We also want to express our gratitude to the F.B. Heron ing about the revival of industrial cities. This project has benefited Foundation and the William Penn Foundation for providing addi- tremendously from the trans-Atlantic exchange of innovations tional funding for this report, as well as the Fannie Mae and ideas our partnership has fostered. We also thank the HM Foundation, the Ford Foundation, the George Gund Foundation, Treasury and the Office of the Deputy Prime Minister for support- the Heinz Endowments, the John D. and Catherine T. MacArthur ing our participation in the European City Reformers Group Foundation, the Charles Stewart Mott Foundation, and the meeting at the LSE in September 2006.

2 Rockefeller Foundation for their general support of our work. Finally, we want to note that the Metro Program is lucky to be The Metro Program also wishes to show its appreciation to part of a fabulous team of people and organizations that are work- Hal Wolman, Kimberly Furdell, Nancy Augustine, and Pamela ing to build an initiative focused on the revitalization of America’s Blumenthal of The George Washington Institute of Public Policy older industrial cities. This includes, at the national level, Don (GWIPP), and Ned Hill of Cleveland State University, for develop- Chen and Smart Growth America; Radhika Fox and PolicyLink; ing the methodology used to identify the 65 older industrial cities Matt Kane and the Northeast-Midwest Institute; Alan Mallach and discussed in the report, as well as for collecting and analyzing the National Housing Institute; Ben Starrett, Ann Fowler Wallace, much of the data cited throughout. Their work is a vital part of and the Funders' Network for Smart Growth and Livable this project. We thank, too, David Eichenthal (Community Communities; and Paul Brophy (Brophy and Reilly, LLC), as well Research Council); Julie Wagner (Brookings Institution as, at the state level, Lavea Brachman, Gene Krebs, and Greater Nonresident Senior Fellow); Jillian Barrick Jones, Rachel Barkley, Ohio; George Hawkins and New Jersey Future; Diane Sterner and and Scott Quehl (PFM); and Travis James and Jon Hockenyos the Housing and Community Development Network of New Jersey; (TXP) for their valuable contributions. and Janet Milkman, Todd Vonderheid, Julie Lalo, and Renew PA. Numerous other people offered important guidance and advice These groups, and a growing number of other organizations, have that helped improve the report as it progressed. First, we are been essential in building support within target states for the grateful to the many people who attended multi-day meetings in agenda presented here, and will be key to the project’s success in

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM INSTITUTION METROPOLITAN THE BROOKINGS ACKNOWLEDGEMENTS Washington, D.C. and Philadelphia to discuss the draft report, the years to come. including the nonprofit, foundation, government, and business leaders and practitioners from older industrial cities who shared their wisdom and experience from working in these communities. About the Author Their input was critical to the development of the final product, Jennifer S. Vey, a senior research associate with the Brookings particularly the policy recommendations. We also want to single Institution Metropolitan Policy Program, is the principal author of out those who provided written comments on the draft, including this report. Alec Friedhoff, David Warren, and intern Albena Paul Brophy (Brophy and Reilly, LLC); Cris Doby (C.S. Mott Assenova provided invaluable research assistance to the project. Foundation); William Ginsberg (Community Foundation of Greater Alan Berube, David Jackson, and Mark Muro each offered impor- New Haven); John Hanger (PennFuture); Eric Hoddersen tant suggestions and contributions throughout the final stages of (Neighborhood Progress, Inc.); Paul Levy (Center City District of the report, and Matthew Fellowes, Chris Leinberger, Robert Philadelphia); Alan Mallach (National Housing Institute); Janet Puentes, and Howard Wial provided helpful advice along the way. Milkman (10,000 Friends of Pennsylvania); Joseph Schilling Bruce Katz, in particular, was a critical partner in the development (Virginia Tech); Gerry Wang, Shawn McCaney, and Andrew of this project and the ideas discussed in the report. ■ Contents

Executive Summary 4

I. Introduction 8

II. Older Industrial Cities in the U.S. 10

III.The Origins and Challenges CONTENTS

of Older Industrial Cities 20 3

IV. Seizing the Moment 34

V. A State Agenda for Revitalizing America’s

Older Industrial Cities 44

VI. Organizing for Success 64

VII. Conclusion 68

Appendix 69

Endnotes 77 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES IN REVITALIZING ROLE PROSPERITY:RESTORING THE STATE Executive Summary

he evidence is clear. On the whole, America’s central cities are coming back. Employment is up, populations are growing, and many urban real estate markets are hotter than ever, with increasing numbers of young people, empty-nesters, and others T choosing city life over the suburbs. Unfortunately, not all cities are fully participating of leaders, where great architecture and parks 4 in this renaissance. An examination of the perform- became public goods, and where glistening down- ance of 302 U.S. cities on eight indicators of eco- towns grew up within blocks of walkable, tree-lined nomic health and residential well-being reveals that neighborhoods where the middle-class swelled and 65 are lagging behind their peers. Most of these thrived. They were, in short, physical testaments to cities—and their larger regions—are older industrial the innovation and spirit that shaped the nation and communities that are still struggling to make a suc- its citizens. cessful transition from an economy based on routine And so they can be again. This report provides a manufacturing to one based on more knowledge- framework for understanding how to restore prosper- oriented activities. Some others are simply dominated ity in America’s struggling cities, particularly those in by the low-wage employment sectors that today char- the Northeast and Midwest. Targeted at state and acterize much of the American economy. But the out- local government, business, and civic leaders comes are largely the same: While many of these Restoring Prosperity: The State Role in cities have strong pockets of real estate appreciation Revitalizing America’s Older Industrial Cities and revitalization, on the whole they remain beset by describes the challenges facing these communities,

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM INSTITUTION METROPOLITAN THE BROOKINGS EXECUTIVE SUMMARY slow (or no) employment and business growth, low the unprecedented opportunity that exists to leverage incomes, high unemployment, diminishing tax bases, their many assets, and a policy agenda to advance and concentrated poverty—remnants of five decades their renewal. of globalization and technological change, and the The report underscores three central messages: dramatic shift of the country’s population away from the urban core. ●1 Given their assets, the moment is ripe for the These cities weren’t always in such a tenuous posi- revival of older industrial urban economies. Older tion. To the contrary, they were once the economic, industrial cities possess a unique set of characteris- political, and cultural hubs of their respective tics and resources that, if fully leveraged, could be regions, and the engines of the nation’s economic converted into vital competitive assets. These include growth. They were vibrant communities where new distinctive physical features—including waterfronts, ideas and industries were conceived and cultivated, walkable urban grids, public transit, and historic where world-class universities educated generations architecture; important economic attributes—such as dense employment centers, universities and medical facilities (often referred to as “eds and meds”), and, for some cities, proximity to more economically robust metropolitan areas; and rich social and cultural ameni- ties—like public art, theater, sports, and museums. Moreover, older industrial cities are still important cen- ters of regional identity, inspiring a sense of pride and place, which, while needed to thrive. It has helped spark a resurgence often abstract, can be the first seed from which to in many downtowns and inner-city neighborhoods, nurture the momentum for change. even in cities that continue to struggle with broad After decades of painful economic restructuring, economic malaise. And it demonstrates the potential the time is now for these cities to seize upon new for all cities to reverse the vicious cycle of decline of trends and attitudes that have begun to revalue their the past several decades and realize a brighter eco- 5 special qualities. Major demographic shifts—robust nomic future. immigration, an aging population, and changing fam- ily structures—are altering the size, makeup, and ●2 States have an essential role to play in the locational choices of the nation’s households, to the revitalization of older industrial cities, but they benefit of the cities that offer the opportunities and need a new urban agenda for change. The revital- amenities these groups seek. Economic trends—glob- ization of older industrial cities necessarily starts with alization, the demand for educated workers, the local leaders, who must develop and articulate their increasing role of universities—are providing cities own vision for success, and the means by which to with an unprecedented chance to capitalize upon realize it. But they can’t go it alone. In order for their economic advantages and regain their competi- cities to reach their true economic potential, their tive edge. And forward-thinking political leaders and states must engage—on multiple fronts. States estab- constituencies—businesses, local and state elected lish the rules under which local governments must officials, major foundations, and key environmental operate, deciding the form of taxes and fees that and community organizations—are speaking more municipalities can impose on residents and busi- eloquently and more often about market-based urban nesses, as well as the structure of local governance. development, reflecting these groups’ growing aware- States help design the physical skeleton of metropoli- ness of the nexus between city revitalization and tan areas, by helping determine how and where major competitive, sustainable metropolitan growth. capital and infrastructure projects get built. States The impact of these forces is already apparent. The help shape the quality of regional economic growth, 1990s brought a sea change in how urban areas are through their substantial investments in K–12 educa- viewed—as places in which to invest, conduct busi- tion, higher education, and economic development. AMERICA’S OLDER INDUSTRIAL CITIES IN REVITALIZING ROLE PROSPERITY:RESTORING THE STATE EXECUTIVE SUMMARY ness, live, and visit. This has resulted in the turn- Finally, states create the opportunity structure for around of many cities—from Chicago to low- and middle-income residents, by administering Chattanooga—such that they are once again innova- myriad federal- and state-funded social programs that tive, competitive, high-quality communities where impact families’ ability to improve their incomes and their residents have the choices and opportunities build wealth. All told, cities are in large part creatures of states, therefore state actions—and inactions— have an enormous effect on their overall well- being. Unfortunately, over the past half century state policies and practices have generally not been favorable to urban areas. At best, these com- munities have been treated with benign neglect, with state programs and investments focused pre- dominately on managing urban decline, as opposed to and support expanded transit links and cross- stimulating economic recovery. At worst, state poli- regional cooperation to enhance the economic cies and investments have actually worked against connectivity between metropolitan areas. cities, facilitating the migration of people and jobs • Transform the Physical Landscape. Third, (and the tax base they provide) to the metropolitan states need to recognize and leverage the physical fringe, while reinforcing the deterioration of the core. assets of cities that are uniquely aligned with the Ultimately, states have the potential to help restore preferences of the changing economy, and then prosperity in the nation’s older industrial cities—if target their investments and amend outmoded they make revitalizing urban economies the central policies so as to help spur urban redevelopment. element of urban policy. This requires that states States should focus their resources on upgrading 6 focus their investments, overhaul outdated and coun- crumbling infrastructure in cities and older areas; terproductive policies, and experiment with innova- provide support for major projects—such as tive strategies that leverage these communities’ waterfront redevelopment or improving large pub- assets. And it requires, above all, that state policies, lic parks—that have the potential to catalyze rein- practices, and investment strategies reflect a holistic vestment in the core; and implement laws and “urban agenda” that cuts across what are typically policies that encourage, rather than inhibit, the separate and siloed policy areas. Such an agenda management and marketability of vacant and should have five primary objectives: underutilized urban properties. • Fix the Basics. First and foremost, states need to • Grow the Middle Class. Fourth, states need to ensure that older industrial cities are safe, fiscally improve the economic condition of low-income healthy communities where children are provided older industrial city residents. This requires that the same opportunities as their suburban counter- states invest in state-of-the-art vocational training parts. This means implementing policies and pro- systems that give residents the skills they need to grams that help lower prison recidivism rates and compete; give low-wage workers ready access to

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM INSTITUTION METROPOLITAN THE BROOKINGS EXECUTIVE SUMMARY reduce crime; improve neighborhood schools and the work benefits they deserve to make work pay; the instruction that takes place within them; and and help low-income families to build wealth and create a competitive cost climate for families and assets through programs and legislation that businesses. reduce the costs of being poor. • Build on Economic Strengths. Second, states • Create Neighborhoods of Choice. Finally, states need to do their part to help older industrial cities need to ensure that cities have strong, healthy understand and cultivate their unique economic neighborhoods that are attractive to families with attributes so as to foster a “high road” economy. a range of incomes. This requires that state hous- To this end, states should help cities reinvigorate ing subsidies be flexible enough to be used to their downtowns; invest in industries—eds and build a mix of unit types at varying prices through- meds, culture and entertainment, advanced man- out metropolitan areas; that they appropriate ufacturing, small businesses, and others—that resources to help localities leverage the market play to cities’ and metropolitan areas’ strengths; potential of under-served urban neighborhoods; and that they enact historic preservation, building on, state budgets—evidence, to be sure, of money code reform, and other programs that help main- well spent. tain and stabilize homes and communities. Moving a real reform agenda for older industrial ●3 The overall benefits of city revitalization—for cities will naturally be an organic process that will families, for suburbs, for the environment, and demand the patience, flexibility, and commitment of ultimately for states—are potentially enormous. many and diverse actors working within and across Not only do states have the power to positively affect political boundaries. Most importantly, it demands urban economies, but they also have a strong ration- that cities, regions, and states organize themselves ale to do so. With over 16 million people and nearly for success: 8.6 million jobs, older industrial cities remain a •At the local level, city leaders, with support from vital—if undervalued—part of our economy. These their states, must make the competent, clean, cities contain billions of dollars of sunk and ongoing transparent, and technologically savvy administra- state investments in urban infrastructure such as tion of government operations and services their roads, transit, sewer and water systems, and public highest priority, with the goal of creating a facilities. State funding for urban school systems, healthy and receptive climate for business growth community colleges and public universities constitute and retention. At the same time, they must also a large and growing portion of state budgets. And work to build strong coalitions of innovative states invest substantially—year in, year out—in the thinkers, actors, and stakeholders to develop and 7 low- and moderate-income families who live in cities, implement a competitive, long-term strategy for through a myriad of social programs. Yet most state revitalization. governments have paid little attention as to how •At the metropolitan level, cities and suburbs need much, and to what end, they are spending on cities to work together to bolster opportunities in, and and their residents, and how they could be getting the marketability of, their regions as a whole. more bang for their buck. States should promote such collaboration by pro- The above agenda offers a new approach to state viding resources to first-suburb coalitions, urban policy that, in the end, will substantially regional workforce alliances, and metropolitan increase the return on state investments, in manifold planning organizations working across local ways. Restoring prosperity in older industrial cities boundary lines, and by enabling the consolidation will lead to a reduction in unemployment and of governmental functions that are clearly poverty, a rise in incomes and wealth, and an regional in scope. improved quality of life for urban families. Restoring •At the state level, urban leaders must band prosperity in older industrial cities will increase the together across cities and regions to advance a jobs, amenities, and housing choices available to state reform agenda like the one presented here. suburban residents, enhance the regional market for State leaders, for their part, need not only to business location, raise both urban and suburban engage in specific policy reforms, but also to look property values, and improve the overall competitive- for ways to reorganize their programmatic initia- ness of metropolitan areas. And restoring prosperity tives and agencies so they can be more effective in older industrial cities will increase their attractive- for the families and communities they are ness as places in which to live and work, leading to designed to serve. AMERICA’S OLDER INDUSTRIAL CITIES IN REVITALIZING ROLE PROSPERITY:RESTORING THE STATE EXECUTIVE SUMMARY a more efficient use of land, a decrease in energy For the first time in many decades, there is reason consumption, a reduction in harmful emissions, and to be truly optimistic about the future of America’s more sustainable regional growth. Ultimately, this all older industrial cities. Advancing beyond hope, how- adds up to stronger, healthier, more productive cities ever, requires a vision of the possible—and the will to and regions that are a boon to, rather than a drain achieve it. ■ I. Introduction

alk around Baltimore, Maryland and you are likely to see the black and yellow “I love city life” bumper sticker pasted on cars and inside store windows. In a Rust Belt city in a largely suburban nation, this mes- sage—for all its simplicity—makes a bold statement.

WIn four words, it sums up why many city dwellers ization now being enjoyed by so many other urban 8 have chosen a lifestyle that, for over a half century, areas around the nation. Americans have broadly disavowed. While the slogan But as the bumper sticker suggests, these cities are surely means different things to different people, about much more than their economic woes. embedded in it is a clear sense of pride in not only a With over 16 million people and nearly 8.6 mil- particular community, but in having chosen a road lion jobs, older industrial cities remain a vital—if less traveled. It pays tribute to the undervalued—part of the economy, distinctive attributes and diverse particularly in states where they amenities that define urban living. are heavily concentrated, such as And in some small way, it might Ohio and Pennsylvania. They also even portend a shift in how we as a have a range of other physical, nation view places we had essentially left for dead. economic, and cultural attributes that, if fully lever- This report is about Baltimore. It’s also about aged, can serve as a platform for their renewal. In Buffalo and Bridgeport, Scranton and Saginaw, fact, major demographic and economic trends are Providence and Pittsburgh, and 58 other “older presenting these cities with their best chance for a industrial cities” that share a similar set of economic comeback in decades, with changing household THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM INSTITUTION METROPOLITAN THE BROOKINGS I. INTRODUCTION challenges. Typically labeled as “distressed,” “declin- structures, globalization, and technological advances ing,” or “weak,” for the past several decades the per- causing a revaluation of the density and diversity vasive image of these cities has been one of empty that sets urban areas apart from newer suburban downtowns, deteriorating neighborhoods, and strug- communities. gling families. Still grappling to overcome the painful Older industrial cities are already experiencing legacy of severe industrial decline some of the benefits of these changes: Many of and population loss—forces that their downtowns are seeing a new influx of private have had a particularly severe investment, as are some of their neighborhoods, impact on much of the with new residents, new buildings, and new firms Northeast and Midwest—these providing new life to city streets, and new revenues cities simply haven’t seen the for city bank accounts. But in the face of wide- widespread economic revital- spread economic malaise, these pockets of recovery lyatdi asta ev iis bestinterests—at ally actedinwaysthatserve cities’ income families. Yet, for allthis,stateshaven’t gener- the opportunitiesavailable for low-andmiddle- in part,ofregionaleconomic growth,andhelpshape ties andschooldistricts,thelocationquality, of governance,thefiscalplayingfieldformunicipali- amount ofinvestmenttheydeterminethegeography dents—through anarrayofpoliciesandenormous states haveahugeinfluenceoncitiesandtheirresi- carry thatstrategyout.Thoughoftenoverlooked, can andshouldbeapowerfulallyinhelpingcities tion, andastrategybywhichtoachieveit.Butstates developing theirownvisionforlong-termrevitaliza- Cities, tobesure,mustnecessarilytaketheleadin decline, butatstimulatingtheireconomicrevival. economic aimed notatmanagingthesecities’ to designandimplementanewurbanagenda,one range offor-profit andnonprofitstakeholders—need government leaders—workinginpartnershipwitha fully capitalizeonthepositivetrendsnowathand, take thesameoldtack.Ifolderindustrialcitiesareto to trulyturnthesecitiesaround. need tohappenmore,andmoreextensively, inorder aren’t enough.Goodthingsarehappening—butthey Public policyiscrucialtothisprocess—butitcan’t so brazen. ties wherealovefor“citylife” nolongerseemsquite are againinnovative,vibrant, high-qualitycommuni- ultimately ensurethat America’s older industrialcities themselves tomovesuchanagendaforward—and ernment, business,andcivicleadersshouldorganize Finally, itlaysouthowlocal,regional,andstategov- and describeswhyanyoneshouldcarethattheydo. part agendaforhowstatescanhelpcitiesgetthere, is ripeforrevitalizingurbaneconomies,offersafive- condition. Itthenmakesacaseforwhythemoment graphic, andpolicy“drivers”behindtheircurrent cities anddiscussingsomeoftheeconomic,demo- report beginsbyidentifyinganddescribingthese the marketinnation’s olderindustrialcities.The behind anasset-orientedagendaforreinvigorating and legislativeleaders,aswelllocalconstituencies, remain competitiveintheneweconomy. in statesthatarethemselvesstrivingandstrugglingto to allthosewholive,work,dobusiness,andpaytaxes nomic regionsofwhichtheyarepart,andultimately, ple thatcallthesecommunitieshome,thewidereco- a tremendousopportunitycosttothemillionsofpeo- The purposeofthisreportistomobilizegovernors That hastochange. ■

RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES9 I. INTRODUCTION II. Older Industrial Cities in the U.S.

o what do we mean by the term “older industrial cities”? How do we employ the definition? And to which cities

10 S does this moniker apply? The term “older industrial cities” in this report • Had a population of at least 150,000, regardless describes a particular set of communities that over of whether or not they were the largest city in a the past several decades have experienced the steady metropolitan area. loss of businesses and jobs, and whose role in the These cities were then assessed according to their economy, and the economic stability of their resi- performance on eight economic indicators, dents, has diminished as a result. But divided into two distinct groups. One while even casual observers of the group of indicators measures cities’ eco- urban landscape might be able to nomic growth during the 1990s based on rattle off a list of places that meet growth in employment, growth in this description, developing a com- annual payroll, and growth in establish- prehensive inventory of these cities ments.2 The second group measures THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM INSTITUTION METROPOLITAN THE BROOKINGS II.THE U.S. OLDER INDUSTRIAL CITIES IN requires more than a bit of educated the economic well-being of city resi- guesswork. Rather, it demands a rigor- dents in 2000 based on per capita income, ous empirical analysis of how a large median household income, poverty rate, unemploy- cross-section of cities fares on indicators of economic ment rate, and labor force participation rate. The two health and vitality. sets of indicators were used to create two indices of To this end, we began with a dataset of 302 economic health: City Economic Condition, and Census-defined principal U.S. cities that met at least Residential Economic Well-Being. We then ranked one of the following criteria in either 1990 or 2000:1 the 302 cities based on their scores on each index • Had at least 50,000 people and were the largest (See the Appendix).3 city in a metropolitan area; Based on those rankings, the cities were divided • Were at least 50 percent of the population of the into thirds, with the top third of cities considered largest city in a metropolitan area; or “strong” on that index, the middle third “moderate,” Indentification of the 65 older industrial cities is based on eight indicators of economic health and residential well-being

Definition Source City Economic Condition Indicators Change in Employment Change in the number of jobs by place U.S. Department of Housing and of work, 1990–2000 Urban Development, State of the Cities Data Systems, Census Data 1990 and 2000 Change in Annual Payroll Change in annual wages of the county U.S. Census Bureau, containing the majority of city residents, County Business 1990–2000* Patterns 1990 and 2000 Change in Establishments Change in the number of establishments in the central county (see above), 1990–2000 Residential Economic Well-Being Indicators Median Household Income Median income of city households, 2000 U.S. Department of Housing and Urban Development,

State of the Cities Data Systems, 11 Census 2000 Unemployment Rate Employed residents as a percent of residents in the labor force, 2000 Poverty Rate Percent of residents with household incomes below the poverty line, 2000 Labor Force Participation Rate Percent of working-age residents in the labor force, 2000 Per Capita Income Total income per city resident, 2000 U.S. Census of Population and Housing 2000

*If city population was more or less evenly split between two counties, both were included. The five counties that are contiguous with the New York City boroughs were combined. and the bottom third “weak.” This allowed us to cre- p. 14) that are still struggling to boost their ate a series of typologies by grouping the cities economies and increase opportunity for the over according to the nine possible combinations of strong, 16 million people that call these places home.4 These moderate, and weak economic health as measured by cities come in all shapes and sizes: Almost half (32) the two indices. Those 65 cities considered weak on had less than 100,000 residents in 2000, over a both the City Economic Condition index and the quarter (18) had populations between 100,000 Residential Economic Well-Being index were desig- and 250,000, and 10 had populations between a nated as “weak.” At the other end of the spectrum quarter of a million and a half million. Only five RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES IN REVITALIZING ROLE PROSPERITY:RESTORING THE STATE II.THE U.S. OLDER INDUSTRIAL CITIES IN were 57 “strong” cities that scored in the highest third of these cities had more than 500,000 residents, on each index. The remaining 180 cities fell into one with Philadelphia (1,517,550) and Los Angeles of seven other strong-moderate-weak combinations. (3,694,820) the only members of the group with The focus here is on that bottom fifth of the over 1 million.5 dataset—the 65 “older industrial cities” (see box on 12 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM II. OLDER INDUSTRIAL CITIES IN THE U.S. ao,G 97,255 95,658 Source: Analysis byHalWolman, KimberlyFurdell,andPamela Blumenthal,TheGeorgeWashington University Macon, GA 93,768 91,938 90,943 Albany, NY New Bedford,MA 85,403 Fall River, MA 81,860 Odessa, TX 82,026 Trenton, NJ 81,207 Youngstown, OH 80,806 Decatur, IL 243,771 Reading, PA 77,423 77,145 76,939 Canton, OH Stockton,CA 219,773 Santa Maria,CA 76,415 242,820 67,430 Kalamazoo, MI Birmingham, AL Rochester, NY Albany, GA 197,790 200,145 65,358 Scranton, PA 63,893 185,401 484,674 Muncie, IN Richmond,VA Shreveport,LA SanBernardino,CA 184,256 Population Springfield, OH 362,470 NewOrleans,LA 61,799 61,821 60,651 166,179 173,618 Merced, CA 461,522 478,403 427,652 Jackson,MS Schenectady, NY 951,270 LongBeach,CA 3,694,820 596,974 Providence,RI Miami,FL Saginaw, MI 59,614 Cleveland,OH 1,517,550 City 147,306 Dayton,OH Los Angeles, CA 124,943 Philadelphia, PA 152,082 57,755 Utica, NY Population 651,154 Milwaukee,WI Fresno, CA 348,189 56,348 Detroit,MI 334,563 Terre Haute,IN 273,546 139,529 Springfield,MA Syracuse,NY 331,285 Baltimore, MD Port Arthur, TX St.Louis,MO Pittsburgh,PA 55,893 55,085 292,648 Flint,MI Lancaster, Bridgeport,CT PA 123,626 Cincinnati,OH 121,578 City Newark,NJ Rocky Mount,NC 49,523 113,866 51,475 Population 103,717 NewHaven,CT Pine Bluff, AR Buffalo,NY Hartford,CT 49,346 Beaumont,TX Huntington,WV 106,632 48,950 Altoona, PA 48,411 Erie,PA Mansfield, OH Allentown,PA City Harrisburg, PA 46,832 47,380 Population Danville, VA Binghamton, NY Warren, OH City Under 100,000 100,000 to 249,000 250,000 to 499,000 Over 500,00 Over 250,000to499,000 100,000to249,000 Under 100,000 Over three-quar Over ters ofolderindustrialcitieshave lessthan250,000r esidents Older industrial cities are heavily concentrated in the Northeast and Midwest

Utica Schenectady Rochester Springfield Syracuse Saginaw Albany Fall River Buffalo Binghamton Flint Providence New Bedford Milwaukee Hartford Detroit Erie Scranton New Haven Kalamazoo Bridgeport Cleveland Warren Allentown Newark Youngstown Reading Trenton Mansfield Altoona Philadelphia Canton Harrisburg Lancaster Pittsburgh Stockton Muncie Springfield Baltimore Decatur Terre Merced Haute Dayton Cincinnati Fresno St. Huntington Richmond Louis

Santa Danville Rocky Maria Mount

Los San Angeles Bernardino

Long Beach Pine Bluff Birmingham Macon

Shreveport Jackson Odessa Albany Population New Beaumont Orleans 1 Million or More Port Arthur

500,000 to 999,999

250,000 to 499,999 Miami

100,000 to 249,999

Under 100,000 13 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES II. OLDER INDUSTRIAL CITIES IN THE U.S. 14 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM II. OLDER INDUSTRIAL CITIES IN THE U.S. other counties. compared tonearly 5percent inthe this period, increased by lessthan1percent during meanwhile, number ofestablishments inolderindustrialcounties, nearly 4percent intheotherdatasetcounties.The while it grew declined by approximately 1percent, annual payroll inthe65olderindustrialcore counties Patterns datareveal thatfrom 2000to2004real CountyBusiness continued tolagthat oftheirpeers. has meanwhile, ments inthesecities’core counties, The growth ofwagesandinthenumber ofestablish- an increase ofalmost3percentage pointssince 2000. older industrialcitieswasnearly 26percent in2005, theaverage poverty ratefor 49ofthe65 example, for able American Community Survey (ACS) data, trends toavail- have remained consistent.According identify the65olderindustrialcitiesindicatesthat look atseveral oftheindividualmeasures usedto a However, reflect changefrom 1990through 2000). are basedonyear 2000datawhilechangeindicators indexes are from 1990and2000(conditionindicators thedatautilizedtocreate thetwo Assuch, 2000. Data for someindicatorsare notavailable beyond W Why “older industrialcities?” rprino t iisdsgae s“ek (nineofthe10in ofitscitiesdesignatedas proportion “weak” cent ofthe302citiesindataset. despitethefactthatcities inthesestatesmake uponly 29per- states, Over two-thirds (44)arelocatedinjust14 “Rust Belt” and Midwest: intheNortheast concentrated citiesaredisproportionately “weak” these andCalifornia, scattered throughouttheSoutheast,Texas, that unifythem. both setsofindicators. fallsomewhereinthemiddleof65on Stillothers levels. poverty incomeand atthebottombasedontheirresidents’ rank while others for example, onemployment andestablishment growth, “weaker” Somearerelatively tion reveals thattheyarenotamonolithic bunch: The mostobvious ofthesecommonalities is geographic.While arethefeatures however, thantheirdifferences, More important iiso ag feooi esrs acloserexamina- ofeconomicmeasures, cities onarange hile asagroupthese65citiesarelaggingbehindotherU.S. 6 Pennsylvania hasthehighest these 65citieswas78percent oftheaveragefor same. In2000,theaverage percapitaincomein of residentialeconomicwell-being looksmuchthe other cities. 45 percentand18percent,respectively, amongthe lishments growbyjustover1percent,comparedto increase byonly14percentandthenumberofestab- Older industrialcitiessawtheirrealaveragepayroll 18 percentintheremainingcitiesdataset. of theirjobs,whileemploymentactuallygrewby 1990 to2000.Onaverage,thesecitieslost8percent ized byslow—ornegative—economicgrowthfrom in thetwoindexes. trial citiesdoworsethantheirpeersonallindicators were the“weakest”economically, the65olderindus- method usedtodeterminewhichofthe302cities ures ofeconomichealth. As indicatedbythevery anything abouthowtheyperformonindividualmeas- collective groupingofindicators,theydon’t tellus While indexscoresallowcitiestoberankedona older industrialcities? What aretheeconomiccharacteristicsof will therefore bethemoniker usedinthis report. a fitting (ifnotperfectly inclusive) namefor thisgroupof65—and is Itisfor thisreasonthat cities” “older industrial economic present. economicpasthas hadaprofound impactontheir these cities’ and West. citieslocatedintheSouth by additional several moreover, “weak” isshared, heritage industrial was justunderat19.5percent).This Pittsburgh PA arestatecapitals; (Albany andHarrisburg Pittsburgh, and PA; Harrisburg, NY; Albany, all but threeofthese44cities: of cityresidentsemployed wasatleast20percentin inmanufacturing theshare In1970, dominatedby heavy manufacturing: nomic history Locatedin theyshareaneco- America’s however. “Rust Belt,” map, of 11). followed by New Yorkdataset), (seven ofeight)andOhio(eight le nutilcte’performanceonmeasures Older industrialcities’ Taken together, thesetof65citieswascharacter- As described insomedetailthefollowing sectionofthisreport, As described ofthesecitiesisn’tjustaboutdotsona clustering The geographic 7 8 9 measures thechangein growthrateofemploy- of indicators.TheCityEconomic Performance Index one decadetothenext,we againlookedattwosets another intermsoftheireconomic performancefrom others fallingsomewhereinthemiddle. cities, manyshowingdisappointingdeclines,andstill showing sharpimprovementsrelativetootherU.S. past fewdecadeshasnotbeenstatic,withsomecities The performanceofolderindustrialcitiesoverthe performed overtime? How haveolderindustrialcities pared toanaverageofjust15percentintheothers. rate inolderindustrialcitieswas23percent,com- pation intheothercities. And theaveragepoverty unemployment and65.5percentlaborforcepartici- 59 percent,comparedtoanaverage6.5percent 10 percentandalaborforceparticipationrateof trial citieshadanaverageunemploymentrateof cities ($29,138comparedto$38,510).Olderindus- income was76percentoftheaverageforother in 2000,andtheiraveragemedianhousehold other 237cities($16,019comparedto$20,424) To assesshowthe302citiescomparedwithone 15.2% 6.5% 65.5% $20,424 23.0% $38,510 18.0%* 45.1%* 18.0% 10.0% 58.8% $16,019 $29,138 1.4% 14.0% -8.3% Source: Analysis byHalWolman, KimberlyFurdell,andPamela Blumenthal,TheGeorge Washington University *Doesn’t includeCarsonCity, NV(datanotavailable) Labor Force Participation Rate Poverty Rate Unemployment Rate Per CapitaIncome Median HouseholdIncome Residential Economic W Change inEstablishments Change in Annual Payroll Change inEmployment (1990to City EconomicConditionIndex le nutilcte r agn te ..citiesonseveral indicators otherU.S. lagging Older industrialcitiesare ell-Being Index ell-Being Index (2000) 00 le nutilCte Other237Cities OlderIndustrialCities 2000) of economichealthandw of “strongperformers.” and Shreveport,inLouisiana, alsofitintothisgroup better offthantheywerea decade ago.NewOrleans all cities,theseresidentsare,onaverage,relatively Saginaw, and Youngstown isstillamongtheworstof the well-beingofresidentsCleveland,Detroit, older industrialcities.Italsodemonstratesthatwhile all, amongtheleasteconomicallydistressedof Mansfield, OhioandTerre Haute,Indianaare,over- performance mayhelpexplainwhyCantonand based ontheirgainsacrossdecades.Thisrobust ing theywereinthetopthirdofallsamplecities strong improvementonbothsetsofindicators,mean- ate, andweakgroupings. ranked oneachindexanddividedintostrong,moder- tion ratefrom1990to2000. As above,citieswere rate, unemploymentandlaborforceparticipa- capita income,medianhouseholdpoverty Being Performance indexreflectschangeinper from 1990to2000.TheResidentialEconomicWell- lishments overtheperiodfrom1980to1990,that ment, ofannualpayroll,andthenumberestab- Unfortunately, afarlargernumberofolderindus- Of the65olderindustrialcities,nineactuallysaw ell-being 15 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES II. OLDER INDUSTRIAL CITIES IN THE U.S. 16 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM II. OLDER INDUSTRIAL CITIES IN THE U.S. cities over thepastfew decadeshasnot ..cte,many showing disappointing cities, U.S. sharp improvementssharp relative to other ensai,withsomecitiesshowing been static, The performance ofolderindustrial The performance declines, and still others falling andstillothers declines, somewhere inthemiddle. Merced, CA* Macon, GA* CA* Los Angeles, Long Beach,CA* Lancaster, PA* Hartford, CT* Fresno, CA* Fall River, MA Decatur, IL Bridgeport, CT* Birmingham, AL Allentown, PA Albany, NY* Pamela Blumenthal,TheGeorgeWashington University Source: Analysis byHalWolman, KimberlyFurdell,and Well-Being Performance index. Economic Performance indexandtheResidentialEconomic *Indicates thosecitiesthatwereweakonboththeCity Trenton, NJ* Syracuse, NY* Stockton, CA* Schenectady, NY Santa Maria,CA* San Bernardino,CA* Rocky Mount,NC* Rochester, NY* Richmond, VA* Odessa, TX New Haven,CT* New Bedford,MA Miami, FL* but didnotmeetthecriteriain1990 Twenty-six citieswere economically weak est citiesin2000, among the65 2000). Springfield, MA—were“weak” inboth1990and of theirpeers(Theothertwo—Binghamton, NYand and residentialwell-beingthat slippedbehindthat of aperformanceonmeasureseconomiccondition 1990, butwereonthelistof65in2000asaresult among theweakestcitiesin and Hartford—werenoteven 21 cities—includingSyracuse ance” cities.Infact,19ofthese in theother“weakperform- percent. from 27.5percenttonearly31 while itspovertyratejumped by 15percentduringthe1990s, hold income,moreover, dropped 4 percentduringthe1990s.Itsrealmedianhouse- cent from1980to1990,andthendecreasebyalmost CT sawitsnumberofestablishmentsgrowby33per- declined bynearly11percent.Likewise,Hartford, cent in2000,andrealmedianhouseholdincome poverty raterosefrom23percentin1990to27per- 1990 whilenotgrowingatallfromto2000.Its substantially, increasingby29percentfrom1980to 1990s. Thecity’s realpayrollgrowthalsoweakened ing the1980s,butanalmost7percent rienced a36percent decade tothenext. indices, theireconomiesdeterioratingfromone cities areconsideredweakonbothperformance period inquestion: Almost one-third(21)ofthe65 trial citiesfaredworsethantheirpeersoverthe The storywasmuchthesame 10 Syracuse, NY, forexample,expe- increase in establishmentsdur- and their surrounding jurisdictions. and theirsurrounding them thatseparate boundaries adhere tothearbitrary don’t areprovided—markets andservices are levied, taxes places wherepoliciesarecreatedandimplemented, While citiesarevitalentitiesinandofthemselves—as loss in the “weak,” “moderate,”and“strong” groupsbasedon metrosinto regions. Bydividingthesample cities’ tionship betweencitiesand theirsurrounding metropolitanareasdemonstratestherela- ple cities’ they live—followthegeographyofemployment. least forthosewhohavetheabilitytochoosewhere between cityandsuburb. And housingmarkets—at large partbycommutersheds—withnodistinction with metropolitanareas—themselvesdeterminedin labor marketareas,forexample,arecloselyaligned economic region.TheU.S.BureauofLaborStatistics jurisdictions. Citiesaresimplysub-unitsofthelarger boundaries thatseparatethemfromtheirsurrounding provided—markets don’t adheretothearbitrary and implemented,taxesarelevied,services themselves—as placeswherepoliciesarecreated —construct. Whilecitiesarevitalentitiesinandof The “city,” ofcourse,isapolitical—notaneconomic industrial citiestotheirregions? What istherelationshipofolder A lookattheeconomicconditionof302sam- 17 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES II. OLDER INDUSTRIAL CITIES IN THE U.S. 18 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM II. OLDER INDUSTRIAL CITIES IN THE U.S. The vast majority of older industrial cities are The vastmajorityofolderindustrialcitiesare Source: Analysis byHal Wolman, Kimberly Furdell, and Pamela Blumenthal, TheGeorgeWashington University Youngstown-Warren-Boardman, OH-PA Youngstown-Warren-Boardman, OH-PA Utica-Rome, NY Youngstown, OH Trenton-Ewing, NJ Warren, OH Utica, NY Terre Haute, IN Syracuse,NY Trenton, NJ Terre Haute,IN St.Louis,MO-IL Syracuse, NY Springfield, OH St. Louis,MO Springfield,MA Springfield, OH Shreveport-BossierCity, LA Springfield, MA Scranton-Wilkes-Barre, PA Shreveport, LA Saginaw-Saginaw Township North,MI Albany-Schenectady-Troy,Scranton, PA NY Schenectady, NY Saginaw, MI Rochester, Rocky Mount,NC NY Reading,PA Rocky Mount,NC Rochester, NY Providence-NewBedford-Fall River, RI-MA Reading, PA Beaumont-Port Arthur,TX Providence, RI Pittsburgh,PA Stockton,CA Port Arthur,TX PineBluff, AR Odessa,TX Pittsburgh, PA Stockton,CA Philadelphia-Camden-Wilmington,Pine Bluff, PA-NJ-DE-MDAR Philadelphia,PA Odessa, TX NewOrleans-Metairie-Kenner, LA New York-Northern NJ-LongIsland,NY-NJ-PA Muncie,IN New Orleans,LA Providence-NewBedford-Fall River, RI-MA New Bedford,MA Milwaukee-Waukesha-West Newark,NJ Allis, WI Merced,CA NewHaven-Milford,CT Muncie, IN NewHaven,CT Milwaukee, WI Mansfield,OH Merced, CA CA Beach-Santa Ana, LosAngeles-Long Mansfield, OH Macon,GA Los Angeles-Long Beach-Santa Ana, CA CA Los Angeles, Miami-Fort Lauderdale-MiamiBeach,FL Huntington-Ashland,WV-KY-OH Flint,MI Long Beach,CA SantaBarbara-SantaMaria-Goleta,CA Harrisburg-Carlisle,PA Lancaster, PA Macon,GA Huntington, WV Jackson,MS SantaMaria,CA Detroit-Warren-Livonia, MI Erie,PA Miami,FL Harrisburg, PA Lancaster, PA Providence-NewBedford-Fall River, RI-MA Kalamazoo-Portage,MI Flint, MI Jackson,MS Decatur, IL Detroit,MI Allentown-Bethlehem-Easton,PA-NJ MI Kalamazoo, Fall River, MA Fresno, CA Hartford-West Hartford-EastHartford,CT Dayton,OH Erie, PA Allentown,PA Decatur, IL Hartford,CT Cleveland-Elyria-Mentor, Fresno, CA OH Canton-Massillon,OH Dayton, OH Buffalo-NiagaraFalls, NY Cincinnati-Middletown,OH-KY-IN Cleveland, OH Canton, OH Cincinnati,OH Birmingham-Hoover, AL Buffalo, NY Binghamton,NY Birmingham, AL Beaumont-Port Arthur, TX Binghamton, NY Baltimore-Towson, MD Altoona,PA Beaumont, TX Albany-Schenectady-Troy, NY Baltimore, MD Albany, GA Altoona, PA Albany, NY Albany, GA City ekCt,ekMAWa iy ModerateMSA Weak City, Weak MSA City,Weak MSA/PMSA located ineconomicall City y strugglingmetr MSA/PMSA opolitan areas Weak City, Strong MSA City MSA/PMSA their rank on a MSA Economic Condition index— Bridgeport, CT Bridgeport-Stamford-Norwalk, CT which in this case included the change in MSA-level Richmond, VA Richmond, VA employment, wages, and gross metropolitan product San Bernardino, CA Riverside-San Bernardino-Ontario, CA from 1990 to 2000, and the gross metropolitan prod- uct per job in 2000—the strong link between the economic health of cities and that of their metropol- itan areas becomes evident. Only three older indus- trial cities were in MSAs that had strong scores on the MSA Economic Condition index: Bridgeport, CT; Richmond, VA; and San Bernardino, CA. Fifteen were in MSAs with moderate index scores, while the vast majority—46 cities—were in MSAs with weak MSA Economic Condition index scores.11 Conversely, of the 57 “strong” cities, 42 were located in strong metropolitan areas. Thirteen of these cities were located in moderate regions, and only two— Huntsville, AL and Bismarck, ND—were located in weak regions. As these numbers show, economic decline and 19 decay in nearly three-quarters of the country’s weak- est cities is not confined within their borders. To put this in sharper perspective, this means that, as of 2000, almost 2.3 million residents of Massachusetts, over 4.2 million residents of New York, and nearly 4.3 million residents of Pennsylvania and Ohio (comprising 36 percent, 22 percent, 35 percent, and 38 percent of their state populations, respectively) were living in economically anemic regions—a fact that should surely alarm state leaders concerned about their long-term competitiveness. At the same time, though, this city-MSA analysis also suggests a potential bright spot for the smaller number of cities in comparatively healthy regions, as they may be able to capitalize on positive economic growth trends. In any case, the relationship between metros and the cities within them is very real—if perhaps not fully understood—and thus demands the attention of all who have a stake in their mutual prosperity. ■ RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES IN REVITALIZING ROLE PROSPERITY:RESTORING THE STATE II.THE U.S. OLDER INDUSTRIAL CITIES IN 20 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM III. THE ORIGINS AND CHALENGES OF OLDER INDUSTRIAL CITIES them inaself-reinforcingcycle ofdecline,including: forces—and choices—that together havetrapped interrelated economic,demographic,andpolitical nomic realitiescanlargelybeexplainedbyaseriesof of thenation’s citiestoadaptnew eco- seeming inabilityofthemostdistressed at worst,downrightprecarious.The cities hasbecomeuncertainatbestand digm inwhichtheroleofmanycentral have createdaneweconomicpara- tion andrapidtechnologicalchange O Cities Industrial Challenges ofOlder III. function in the economy were understood and unquestioned. function intheeconomy were understood andunhealthfulenvironmental conditionsamongthem—theirrelevanceand poverty, extreme strife, racial not withouttheirtroubles—corruption, Whilecertainly ity. • But overthepastfivedecades,globaliza- knowledge-based onethathas leftmanyolder the shiftfromamanufacturing economytoa The Origins and The Origins ein,andthefont ofthenation’s growth andprosper- regions, hubsoftheirrespective andcultural political, economic, were the ofbusiness andcommerce.They ing centers communities were oncethriv- nomic circumstances.These cities weren’t alwayslder industrial insuchtroubled eco- cities tovaryingdegreesand inmyriadways.Butasa To besure,thesetrendshaveaffecteddifferent • businesses andresidents. undermining theirabilityto attractandretain that havelargelystackedthedeckagainstcities, 60-plus yearsoffederal,state,andlocalpolicies industrial citiesstillgrapplingtofind their economicniche; • tunities; education andemploymentoppor- urban core,spatially“cutoff”from poor andminoritiesisolatedinthe decentralization thathasleftthe extreme economicandresidential to countriesabroad.Thisphysical redistributionof urbs, fromtheNorthto South,andfromtheU.S. movement ofmanufacturing firmsfromcitiestosub- maintain shopemerged,enabling theinexorable ways. First,other—cheaper—placestosetupand built. Thesetrendsweremanifestedintwomajor upon which America’s greatindustrialtownswere diminish theimportanceofspatialattributes logical advancesandgeopoliticalshifts,beganto changes intheglobaleconomy, coupledwithtechno- nomic activity. and flourishasthenewcentersofcountry’s eco- larly thoseintheNortheastandMidwest—togrow local andnationalneeds,allowingcities—particu- clear competitiveadvantagesforproducinggoods portation networks,andproximitytomarketsbecame this period,accesstorawmaterials,densetrans- agricultural toamanufacturingeconomy. During industrial revolutiontransformed America froman From themid-19thcenturyuntilmid-20th, to findtheireconomicniche older industrialcitiesstruggling Deindustrialization hasleft is kindertothesecommunitiesthanthelast. into whatstepscanensurethatthenexthalfcentury struggling citiesgottothispoint,andprovideinsight group theyhelpexplainhow America’s economically By themiddlepartof20thcentury, however, the list. the cent), andNewBedford,MA(43.2percent)topping Warren, OH(46.7percent),Flint,MI(43.8per- located inwhatistoday’s RustBelt—withcitieslike shares ofresidentsemployedinthesectorwere All 20oftheolderindustrialcitieswithhighest 17 percentintheother237citiesanalysis. employed inmanufacturingthen,comparedtojust 27 percentofolderindustrialcityresidentswere heavily reliantonthesector:Onaverage,nearly even by1970mostofthesecommunitieswerestill WWII. Thepaceofchangewasslow, however, and older industrialcitiesbeganintheyearsfollowing a verynewcompetitivelandscape. powerhouses, leavingthemstillstrugglingtoadapt economies ofwhatwereoncethenation’s industrial Together, this“doublewhammy”rockedthe overallemploymentneeds. a reductionincompanies’ automation thatsparkedincreasesinproductivityand manufacturing waslatercoupledwithadvancesin dataset citieswhowereemployed inthesector 2 percent,whilethenumber ofresidentstheother with jobsinmanufacturing fellbyanaverageof to 1980,thenumberofolder industrialcityresidents cities inthenation’s industrialheartland. From 1970 cities andtheotherdatasettoconverge. tive sharesofmanufacturingjobsinolderindustrial industrial growthanddeclinewouldcausetherespec- The firstsignsofindustrialdeclinein America’s The 1970sdealtaswifteconomicblowtomany But overthenextthreedecades,patternof 12 21 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES III. THE ORIGINS AND CHALLENGES OF OLDER INDUSTRIAL CITIES 22 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM III. THE ORIGINS AND CHALENGES OF OLDER INDUSTRIAL CITIES employed inmanufacturing haddroppedsharplyto 2000, theproportionofolder industrialcityresidents all shareofresidentsemployed inthesector. By manufacturing eachdaydeclined, sotoodidtheover- number ofolderindustrialcityresidentsworkingin in thesectorswellednearly104percent. number ofresidentsintheothercitieswhoheldjobs fell byanaverageofnearly33percent,whilethe industrial cityresidentsemployedinmanufacturing another 6percentthefollowingdecade. grow, risingbyover10percentinthe1980s,and cities whowereworkinginthesectorcontinuedto the averagenumberofresidentsotherdataset another 20percentduringthe1990s.Meanwhile, decreased byover23percent,beforedropping industrial cityresidentsemployedinmanufacturing From 1980to1990,theaveragenumberofolder other citiessawdecreases. during thedecade;conversely, only47ofthe237 the SouthandWest—saw increasesinmanufacturing industrial cities—allbutthreeofwhicharelocatedin lost almost40percent.Only17ofthe65older its manufacturingjobsoverthedecade,andDetroit Dayton, OH,forexample,lostalmost46percentof cipitous declinesinmanycommunities,however: jumped bynearly53percent.Thesetrendsmaskpre- All told,from1970to2000thenumberofolder Still, formanycities,theworstwasyettocome. Source: U.S.DepartmentofHousingandUrbanDevelopment,StatetheCitiesDataSystems Older industrial cities shed manufacturing jobsoverOlder industrialcitiesshedmanufacturing the 100% 120% -40% -20% 20% 40% 60% 80% 0% 1970–1980 13 1980–1990 14 15 And asthe 1990–2000 cent. had dippedjustafewpercentagepointsto12per- the other237citieswhowereworkinginsuchjobs just over15percent,whiletheshareofresidentsin very longperiodoftime. power employmentcreation innewindustriesfora employment destructionin oldindustriescanover- neurialism andnewbusinesscreation,that established industriescanactuallythwartentrepre- Midwest demonstratesthatadominanceofolder research onindustriallife-cyclesintheNortheastand slow growingordecliningolderindustries.”Booth’s growth inolderregionsofthecountrysaddledwith essary precursortoarecoveryintherateofeconomic formation that,asDouglasE.Boothnotes,“isanec- communities simplyhaven’t seenthenewbusiness high-paying jobsinother, rapidgrowthsectors.These large numbersofwell-payingindustrialjobslostwith alization thatcontinuetohampertheirrecovery. Rather, itisthelong-termlegacycostsofdeindustri- pooreconomiccondition,however. industrial cities’ facturing isn’t inandofitselfthereasonforolder losses andslowincomegrowth.Thedeclineofmanu- concentrated—evidenced bytheiroverallemployment has seriouslydamagedthecitieswhereitwasonce Today’s moresuccessfulcitiesare byandlarge The firstofthesecostsisthefailuretoreplace Clearly, theswiftdeteriorationofmanufacturing atsvrldcds whileothercitiesgained past several decades, 16 1970–2000 17 Other 237Cities Older IndustrialCities Higher EducationPolicy, in2004theaveragetotal According toarecentreport bytheInstitutefor lowerincomelevels: ing toolderindustrialcities’ Lagging educationallevels are surelyalsocontribut- in employmentgrowthoverthenext10years. was associatedwitha0.41percentagepointincrease city populationwithatleastsomecollegein1990 percentage pointincreaseintheof Analysis ofthe302citiesrevealedthatevenaone abilitytogrow newjobs: ing thesecommunities’ tion amongolderindustrialcityresidentsishamper- specialists. field, and65percentofcomputermathematics ple, asdidatleastthree-quartersofthoseinthelegal logical scientistshadacollegeeducation,forexam- degree. In2005,over95percentofmedicalandbio- most highpayingoccupationsdemandahigher good jobs.Today thatisnolongerthecase,asjobsin was allthatneededtoattainthevastmajorityof vestige fromatimewhenhighschooleducation other 237cities.Thesenumbersrepresentalingering lor’s degree,comparedtonearly27percentinthe percent ofolderindustrialcityresidentshadabache- ates inthesecitiesisrising,2000,lessthan17 manufacturing: Whilethenumberofcollegegradu- historicalrelianceonheavy of olderindustrialcities’ advertising. (FIRE) firms;andproducerservicessuchaslaw headquarters; finance,insurance,andrealestate tries, becomingspecializedlocationsforcorporate tial andgrowingnumberofadvancedservicesindus- many healthycities,theyarealsohometoasubstan- ufacturing isstillimportanttotheeconomiesof ment overthecourseofnextdecade.Whileman- in 1990wasfactpositivelyrelatedtocityemploy- sample citiesrevealedthatacity’s economicdiversity Indeed, analysisofthe302 to onethatismorediverse. manufacturing-based economy navigate thetransitionfroma those thatwerebetterableto turing inthefirstplace,or heavily dominatedbymanufac- those thatwereeithernotso Lower educationallevelsareasecondlegacycost 19 18 Not surprisingly, then,thelackofeduca- trialization thatcontinue tohampertheirrecovery.trialization legacycostsofdeindus- itisthelong-term Rather, tion. pooreconomiccondi- cities’ reason for olderindustrial isn’tinandofitselfthe The declineofmanufacturing than thosewithabachelor’s degree. high schooldiplomawas$25,053,over$23,000less personal incomeofworkersnationwidewithonlya 60 ofthecountry’s largestcities. alone—roughly thesameamountoflandoccupiedby 5 millionacresofabandonedindustrialsitesincities the country, andsomeestimates show thatthereare there areasmany425,000brownfieldsthroughout Accounting Office(GAO),however, estimatesthat nomic impactmaybe.TheU.S.Government percentage areruralorurban,whattheirtotaleco- knows forsurehowmanybrownfieldsthereare,what waterfrontsandurbancores.Noone trial cities’ bers ofcontaminatedparcelsthatscarolderindus- environmental legacy, manifestedinthelargenum- crowded andunhealthy. mony, itscitieswereatoncebusyandvibrant, In theheydayofRustBelt’s manufacturinghege- a viciouscycleofdecline creating development patterns, by unbalanceddemographic and change hasbeenexacerbated The impactofeconomic assets onwhichtheirfuturegrowthdepends. shorelines andhistoricneighborhoods—thevery values, discouraginginvestment,anddevaluingcities’ has arippleeffectonproximatesites,suppressing financial constraintstoredevelopment.This,inturn, tinue tobestigmatizedbysignificantregulatoryand deterioration thesesitesarecaughtin,astheycon- through anyolderindustrialcityrevealsthetrapof Finally, deindustrialization hasleftatremendous As regionalcentersofboth employmentandpopu- 21 In anycase,aride 20 23 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES III. THE ORIGINS AND CHALLENGES OF OLDER INDUSTRIAL CITIES lation, they had dense, glistening downtowns, and city neighborhoods—led to rising levels of what was stable neighborhoods where people raised their chil- already entrenched urban black-white segregation, dren, and minded their grandchildren, on the same particularly in the large industrial areas of the streets where they grew up. Northeast and Midwest.25 The race riots of the late But for many, living conditions were grim. 1960s occurred just as segregation in American met- Overcrowded, noisy, and polluted by factories, this ros was approaching its zenith, providing stark evi- less-than-idyllic quality of life spurred the first major dence of just how wide the racial divide had exodus from the core and the concomitant creation become.26 of the nation’s first modern suburbs. This move out- Decades of middle-class flight and a declining industrial base had, by 1970, In the years following WWII, the “pull” of plentiful new left many American cities not suburban homes was coupled with a racially motivated “push” only hyper-segregated, but increasingly poor, and fiscally of white-middle class families from the increasingly black urban strapped. Meanwhile, the com- core such that by the 1950s, the median suburban population paratively high-income suburbs were providing better services at growth rate exceeded the city rate by 30 percentage points. a lower cost to their residents. The implications of these city- 24 ward—predominantly by the wealthy—began as early suburb disparities were underscored by William Frey as the late 19th century, enabled first by rail, then by in a 1979 American Sociological Review article. In streetcar, and within a few decades, accelerated sub- examining city-suburban migration patterns from stantially by the increasingly ubiquitous automobile.22 1965 to 1970, Frey found that, while racial factors While in the early part of the 20th century city popu- still played a role in the increasing movement of lation growth still outpaced that of the suburbs, by whites out of cities, this trend was now primarily a the 1920s, the median difference between the two result of various dimensions of central city decline, fell to nearly zero; by the 1930s, suburban growth including city-suburb fiscal disparities, particularly rates exceeded city rates by approximately 7 percent.23 relative tax levels, and the suburbanization of employ- Over the next several decades, new highways and ment. He noted: cheap mortgages lured millions more upper- and mid- dle-class Americans to the ever-expanding urban “City residents…are being asked to pay higher fringe. Even as the decline in central-city manufac- taxes…than are their contemporaries in the suburbs. turing was making some cities quieter, cleaner, and In return, they are not likely to receive proportion-

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM INSTITUTION METROPOLITAN THE BROOKINGS III.AND CHALENGES OF OLDER INDUSTRIAL CITIES THE ORIGINS generally more pleasant places to live, the diaspora ally better services and, in fact, can be virtually continued, fueled now by a heightened need for assured of lower quality schools and higher rates housing, and growing discrimination against the of crime…It is likely, therefore, that the increased “Great Migration” of black workers moving into these out-of-pocket costs and deteriorating environmental cities from the rural south. In the years following conditions associated with residence in financially WWII, the “pull” of plentiful new suburban homes plagued cities will provide additional impetus for was coupled with a racially motivated “push” of suburbanward movement.”27 white-middle class families from the increasingly black urban core such that by the 1950s, the And so began the vicious cycle of city population median suburban population growth rate exceeded loss and urban decline, a downward spiral that was the city rate by 30 percentage points.24 Such growth perpetuated over the course of the 1970s and 1980s. patterns—both a cause and effect of large numbers To the extent that popular culture reflects, and in of black in-migrants moving into formerly all-white turn influences reality, these were truly dark days for poverty ratesinolderindustrial citiesskyrocketed, dataset grewabooming53 percent.Meanwhile, fact that,onthewhole, other237citiesinthe cities by2000—sawsubstantial declines,despitethe (-7.3 percent)—whichweren’t amongthe65weakest cent), Boston(-10.4percent),andNew York Even oldernortherncitieslikeChicago(-17.2per- IN—was locatedoutsideoftheWest andSouth. whose populationsgrewduringthisperiod—Muncie, in fact,onlyoneofthe16olderindustrialcities in theNortheastandMidwestwerehithardest; approximately athirdoftheirtotalpopulation.Cities and Detroit(-32.0percent)eachbleeding,onnet, Louis (-36.2percent),Cleveland(-32.7 of 2percenttheirresidents,withcitieslikeSt. the 65olderindustrialcommunitieslostanaverage period, whilepovertyclimbed.From 1970to1990, struggling communities—plummetedduringthis with optionswouldchoosetospendtime. and scary, andgenerallynotplacesinwhichpeople and crack,makingcitiesseemdesolate,rundown, 1980s bydepictionsoftheravages AIDS, crime, soup kitchensinthe1970swerefollowed images oflongunemploymentlinesandcrowded the nation’s cities.Inmovies,newspapers,andonTV, Source: Analysis byHalWolman, KimberlyFurdell,andPamela Blumenthal,TheGeorge Washington University *1990 to2000;allothernumbersarefor2000 City populations—particularlyinthenation’s most Social W City udrrt e 000pplto 14 0.64 31.3% 55.7% 26.6% $122,390 6.0% 18.1% 17.3% 45.1% 1.49 49.3% $80,617 16.7% 9.9% 2.6% 26.9% Murder rateper10,000population Percent singleparentfamilies Percent ofresidentswithcollegedegree Percent ofresidentswithoutahighschooldegree Homeownership rate Median homevalue Residential vacancyrate Change inpopulation* Vitality Indicators ell-Being Indicators Older industrial cities are behindtheirpeerson Older industrialcitiesare and socialw le nutilCte Other237Cities Older IndustrialCities ell-being cent and13percentnationally. respectively, intheotherdatasetcities,and12per- 1990, comparedto14percentand16percent, reaching 18percentin1980and22by ued tostruggleattractand retainresidents.These populations writlarge,older industrialcitiescontin- the 1990scontributedto riseof American city pate intheresurgence. over thedecade. previous—saw areversalofdemographicfortunes cent)—poster childrenforurbandecayinyears New York (up9.4percent)andChicago4per- 34.3 percent),forexample,continuedtoboom;even cities like Austin (up41percent)andPhoenix the suburbs.From 1990to2000,thepopulationof empty-nesters, andotherschoosingcitylifeover soar, withincreasingnumbersofyoungpeople, Urban realestatemarkets,moreover, startedto urbanites thenewfacesof American sitcom. became themedia’s newdarling,withhip,young rates werefalling,populationsincreased,andcities crack epidemichadstartedtorecede,overallcrime for manyU.S.cities,andthetidebegantoturn.The While bothdomesticandforeign migrationduring Unfortunately, olderindustrialcitiesdidnotpartici- By theearly1990s,worstappearedtobeover a number of measures ofcityvitality ofmeasures a number 29 28 25 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES III. THE ORIGINS AND CHALLENGES OF OLDER INDUSTRIAL CITIES 26 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM III. THE ORIGINS AND CHALENGES OF OLDER INDUSTRIAL CITIES cent); Philadelphia(-27.4percent); Providence cent); Detroit(-31.1percent); Newark(-28.9per- Rochester, NY(-34.8percent); Milwaukee(-33per- tive stateswereolderindustrial cities—including reading andmathtestscoresthatoftheirrespec- centage pointgapbetweentheir7thand8thgrade 10 largeurbanschooldistrictswiththewidestper- located inthesecommunities.In2004,sevenofthe some oftheworstperformingschoolsare,infact, tainly notuniquetothenation’s mostdistressedcities, tion theyneedtocompeteforqualityjobs.Whilecer- poor andminorityresidentsaren’t gettingtheeduca- opportunities thanthoseinotherregions. in fact,morephysicallyisolatedfromemployment metropolitan areasintheNortheastandMidwestare, demonstrated, forexample,thatblacksresidingin good schools.ResearchbyRaphaelandStollhas with limitedaccesstoemploymentopportunitiesand families leftbehindindeterioratingneighborhoods cities. just 42percentofblackslivingintheotherdataset be evenlydistributedwithinthecity, comparedto these citieswouldhaveneededtomoveinorder gated: In2000,nearly54percentofblackslivingin munities. Olderindustrialcitieswerealsomoresegre- 12 percentofthepoorlivinginother237com- poverty rateexceeded40percent,comparedtojust poorwerelivinginneighborhoodswherethe cities’ trated inthecore.By2000,nearlyaquarterofthese decreased, theirneediestresidentsremainedconcen- from 37percentto36percent. metro residentslivingintheother237citiesfell just 26percentin2000whiletheproportionof industrial citiesfellfrom28percentin1990to proportion ofmetropolitanresidentslivinginolder decentralization occurringintheirregions:The declined morerapidly, demonstratingthesubstantial substantially lowerthanthatoftheothercities— time, theirshareofmetropolitanpopulation—already the datasetgrewbyarobust18percent. At thesame dents from1990to2000,whiletheothercitiesin cities lost,onaverage,nearly3percentoftheirresi- In thefirstplace,theyhaveaterribleeffecton The economicimpactofthesepatternsistwofold. As thepopulationof65olderindustrialcities 31 30 32 Further, older industrialcommunities. while noneofthosewiththesmallestgapswerein (-25 percent);andNewOrleans(-24.5percent)— the other237cities. complete highschool,comparedtojust17percentin 27 percentofolderindustrialcityresidentsdidn’t and Miami-Dade(45.3percent). Cleveland (43.8percent);Los Angeles (44.2percent); Baltimore (38.5percent);Milwaukee(43.1 were inolderindustrialcities:Detroit(21.7percent); large urbandistrictswiththelowestgraduationrates to buildingandsustainingastrongeconomy. their effortstogrowandattractthefirmssoessential ability tocultivateaskilledworkforce,andfrustrate tantly, however, suchconditionsunderminecities’ wrote aboutinthelate1970s. cal healthandamplifyingthecity-suburbangapsFrey overallfis- greater socialservices,undercuttingcities’ higher crimerates,andaconcomitantdemandfor concentrations ofpovertymeanalowertaxbase, cycle ofeconomicisolation.Mostobviously, high economicprosperityandperpetuatethe trial cities’ ration ofolderestablished areas. forcing theconcentrationof povertyandthedeterio- toward anexpandingmetropolitan fringe,whilerein- of peopleandjobs(andthe taxbasetheyprovide) unwittingly, sometimesnot—facilitatedthemigration federal, state,andlocalgovernmentshave—often outmoded and/orcumbersomelawsandregulations, social programs,andeducation,aswellthrough investments ininfrastructure,economicdevelopment, ways exacerbatedtheproblem.Throughtheirhuge and practice—atalllevels—haveovertimeinmany primary forcesbehindurbandecline,publicpolicy preferences ofindividualsandfamilieshavebeenthe While bothbroadeconomictrendsandthelocational compounding theirtroubles been unfavorable tocities, and practiceshave generally andlocalpolicies state, Federal, Second, thesedisparitiesundermineolderindus- 35 33 36 Further, sixofthe10 Perhaps moreimpor- 34 All told,in2000, ments. Thisroleisplayedoutinanumberofways: continues todevolvemorepowersstategovern- expanded inrecentyearsasthefederalgovernment the formandfunctionoflocalities,arolethathas States, particularly, haveasignificantroleinshaping The RoleofStatePolicy • • • poor jurisdictionsislevel. extent towhichtheplayingfieldbetweenrichand or specifictaxsharingeffortsdeterminethe on residentsandbusinessesthroughgeneral the formoftaxesthatmunicipalitiescanimpose municipalities andschooldistricts. States establishthefiscalplayingfieldfor words ofDavidRusk,“littlebox”or“bigbox.” through annexation—whethertheyare,inthe local governmentsarefixedorsubjecttochange nance andthendecidewhethertheboundariesof ernance. In thefirstplace, employ eminentdomain. and dictatethegroundrules forwhentheycan cities canforecloseontaxdelinquent properties, building construction,establish howandwhen They alsodeterminethecodesandstandardsof projects getbuiltthroughoutametropolitanarea. other capitalimprovements,influencingwhere ment, physicalinfrastructure,publicparks,and invest significantresourcesineconomicdevelop- ner, regionaldevelopmenttakesplace. States helpdeterminewhere,andinwhatman- They decidethestructureoflocalgover- states setthegeographyofgov- They decide They 37 occurs. residents. Belowarejustafewexamplesofhowthis newer communitiesattheexpenseofcitiesandtheir actually workedagainstthem,encouraginggrowthin health. At worst,statepoliciesandinvestmentshave on restoringandsustainingtheireconomicfiscal ments focusedmoreonmanagingtheirdeclinethan with benignneglect,stateprogramsandinvest- ization. At best,thesecommunitieshavebeentreated not beenorientedtowardmarketcreationandrevital- cies andpracticestowardcitiesolderareashave For allthis,overthepastseveraldecadesstatepoli- • • to improvetheirincomesandbuildwealth. ability grants andprogramsthatimpactfamilies’ care, housing,andmyriadothersocialwelfare federal andstateworkforcedevelopment,health- and middle-incomeresidents. States createtheopportunitystructureforlow- ment attraction. job isagoodjob”methodofbusinessandemploy- producer services,orinsteaddefaulttoan“any as healthcare,corporateresearch,andadvanced the developmentofhigher-wage industriessuch nomic development,theycandecidetonurture higher education,workforceprograms,andeco- nomic growth. States helpshapethequalityofregionaleco- Through theirinvestmentsin They administer 27 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES III. THE ORIGINS AND CHALLENGES OF OLDER INDUSTRIAL CITIES 28 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM III. THE ORIGINS AND CHALENGES OF OLDER INDUSTRIAL CITIES generating development. the sametimeforcethemtocompeteforrevenue- largely duplicativeservicestotheirresidents,andat interrelated communitiestoprovidetheirownsetof municipal boundariesrequirewhatareotherwise ernments) anenormousnumberofartificial eral governments),andNew York (1,602generalgov- (2,338 generalgovernments),Michigan(1,858gen- Pennsylvania (2,633generalgovernments),Ohio control. Throughoutolderindustrialstatessuchas inefficient, andoverlappinglabyrinthofgovernmental often highlyfragmented,resultinginacomplicated, out theNortheastandMidwest,thesesystemsare and specialpurposegovernments.Instatesthrough- well asthenumberandboundariesofschooldistricts of localjurisdictionsthatliewithintheirborders,as be made. services areprovided,andlandusedecisionsoughtto ties ofhoweconomiestodayareorganized,goodsand largely outofsynchwiththerealitiesandpracticali- books sinceastate’s earlydays,thesestructuresare tures underwhichtheymustoperate.Oftenonthe laws thatestablishthegovernanceandfiscalstruc- Cities andothermunicipalitiesarecreationsofstate State GovernanceandFiscal Policies can imposeonresidentsand businesses,including States decidetheformoftaxes thatmunicipalities municipalities andschooldistricts mustoperate. that establishthefiscalstructures underwhich incentive toactuallylocatethere. and benefitsthecityhastooffer, givingthemlittle receive betterservices,andenjoyalltheamenities locate withinafewmilesofthecore,payfewertaxes, that usuallyloseout:Businessesandresidentscan First, stategovernmentsdeterminetheorganization These problemsaremadeworsebystatepolicies While all state governments distribute someoftheir While allstategovernments distribute resources tolocalgovernments tohelppay for local uh“pedn ftewat”isfarlessfrequent such “spreading ofthewealth” public services—particularly public education— public services—particularly when itcomestofinancing basicservices. 38 And itisthecentralcities financing basicservices. of thewealth”isfarlessfrequentwhenitcomesto ices—particularly publiceducation—such“spreading to localgovernmentshelppayforpublicserv- state governmentsdistributesomeoftheirresources aren’t pickinguptheslacktocompensate:Whileall with asmallerrelativetaxbase.States,meanwhile, properties, andshrinkingemploymentleavethem cities, whichhavehighlevelsofpoverty, highcrime place aparticularlyseverestrainonolderindustrial of transportationchallenges isdaunting,withcrum- significant impactonregional development.Theset velopment policiesandinvestments. losing endofstatetransportation,housing,andrede- Older industrialcitieshavealsooftenbeenonthe State InfrastructureandDevelopmentPolicy that’s nearlyimpossibleforthemto overcome. ing residentsandbusinesses—astressfulconundrum quality serviceswithoutoverburdeningtheirtax-pay- to providegoodschools,adequateinfrastructure,and distressed citiesbecomemiredinaconstantstruggle city servicesandfacilitieswithoutpayingthecosts. revenues withwealthiercommunitieswhomayuse raising options,and/orfromagreaterabilitytoshare might benefitfrommoreflexibilityintheirrevenue- appropriate foralllocalities,however, manyofwhich imposed taxsystemsareoftennotuniversally ularly salientissueinhighlyfragmentedstates.State- efforts cantakeplacebetweenjurisdictions—apartic- mine ifandhowgeneralorspecifictax-sharing schools arefinanced.Theyalso,significantly, deter- and determinethestate-localformulaforhow property taxes,salesincomeandfees, Together, thesegovernanceandfiscalstructures To beginwith,statetransportationpolicieshavea large numbersoftax-exempt rates, depressedhomevalues, incomes, highunemployment the sametimethatlow newer suburbanjurisdictionsat cost burdensthatfarexceed ties, andawholehostofother employee compensationliabili- rates, aginginfrastructure,large 40 The upshotisthatfiscally 39 job growthcenters.Recent researchbyColumbia distance betweenlow-income residentsandsuburban urban core,concentratingpoverty andwideningthe ing policiesthatclusteraffordable housinginthe or demonstratedneed. evenly amongtheircountiesregardlessofsize some statesdistributingaportionoftheirfunds for distributinggastaxrevenuesisoftenskewed,with from stateandcountyresources.Second,theformula unincorporated outerareasarebuiltandmaintained pay forimprovementswithmunicipaltaxes,while in moststatescitiesandoldersuburbanareasmust investment needs.Thisoccursfortworeasons.First, despite thefactthattheygenerallyhavegreater tax receiptsthantheyreceiveinstateallocations, inner suburbsareoftenforcedtocontributemorein way fundsarethenadministeredsuchthatcitiesand for masstransit.To makemattersworse,thesehigh- nance—therefore excludingtheuseofthesefunds roadway development,administration,andmainte- or statutorylawsthatdedicateallgastaxreceiptsto gas taxes.Thirtystatesmaintaineitherconstitutional shortchanged. these dollars,olderurbancommunitiesoftenget maintain it. And whenitcomestothedistributionof state transportationfundsneededtoupgradeand authority overthevastmajorityoffederaland state DepartmentsofTransportation stillretain bridges, andabout90percentofitstransitsystems— lion ofits4millionroadmiles,overhalf the nation’s transportationnetwork—including3mil- ernments own,andhaveresponsibilityfor, mostof ing metropolitancompetitiveness. Yet whilelocalgov- commute times,andincreasedcongestionthreaten- bling infrastructure,deterioratingairquality, long were less. though theirhighwayneedsandautomobileuse highways thanurban(andsuburban)counties,even more fundingtoexpand,maintain,andrehabilitate 1998, thestate’s ruralcountiesreceived significantly of expendituresinOhiofoundthat,from1980to cities—demonstrates thisanti-urbanbias. A study spending inOhio—homeofeightolderindustrial A similarlytiltedpatterncanbeseeninstatehous- Take asjustoneexamplethedistributionofstate 43 41 42 Research ontransportation neighborhoods. concentrated inalreadydisadvantagedmetropolitan extent towhichlow-incomehousingcontinuesbe over thecourseofdecade,theystillreflect suburban communities.Whilethesegapsdecreased incomes, andlowerhomevaluesthanthosebuiltin meanwhile, hadhigherpoverty, lowermedian neighborhoods whereLIHTCunitswereconstructed, of thosebuiltinboththeSouthandWest. Theurban located incentralcities,comparedtojust54percent and 61percentofthosebuiltintheMidwest,were 68 percentofLIHTCunitsbuiltintheNortheast, This practicewasmoreacuteintheRustBelt:Nearly housing taxcredits(LIHTC)toinner-city projects. the majorityoftheirfederally-allocatedlowincome during the1990s,statehousingagenciesdistributed University’s LanceFreeman, forexample,showsthat, undeveloped, theirrehabilitation andreusestifledby wise market-readyolderstructures oftenremain 237 citiesinthedataset($122,390)). Evenother- $80,617, two-thirdsthatof theaverageofother age olderindustrialcity, forexample,wasonly markets. (Themedian2000homevalueoftheaver- depressedrealestate cause andeffectofthesecities’ rounding neighborhoodsforyears,becomingbotha ties canremaindilapidatedblightsontheirsur- tax delinquent—inmanycasesabandoned—proper- often socomplexandcumbersomethatchronically quate resourcesfortheirredevelopment. complexity involvedinremediation,fewprovideade- magnitude oftheprobleminmanyregionsand brownfields orothervacantproperties,and,giventhe by whichtocontinuallytracktheirtotalnumberof clean upprograms,forexample,notonehasasystem While nearlyallstateshavevoluntarybrownfields nated and/orunderutilizedpropertiesbackintoplay. undermining theirabilitytopromptlyputcontami- return oftheprivaterealestatemarketincities, age—or attheveryleasthaven’t encouraged—the uate declineanddisinvestmentinoldercommunities. development patterns,andhaveoftenservedtoperpet- programs haveasubstantialeffectonmetropolitan At thesametime,statetaxforeclosurelawsare First, ahostoflawsandregulationsacttodiscour- Various otherstatelawsandeconomicdevelopment 44 29 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES III. THE ORIGINS AND CHALLENGES OF OLDER INDUSTRIAL CITIES 30 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM III. THE ORIGINS AND CHALENGES OF OLDER INDUSTRIAL CITIES than existing,structures. outmoded buildingcodesdesignedfornew, rather tions thatalreadyhaveacompetitiveedge. investments canfurtherenhancetheallureofloca- told, thesefigureshelpdemonstratehowunfocused or threetimesmoreofeverykindsubsidy. above-average taxbasesweregrantedsometimestwo fast-growing,middleclass placeswith the states’ percent ofjobtrainingmatchingfunds.Bycontrast, its, 8percentofroadimprovementdollars,and15 the studyreceivedjust6percentofbusinesstaxcred- fourth ofitsdislocatedworkers,thecentralcitiesin cent ofthestate’s working-agepopulationandone- while shortchangingcorecommunities.With 18per- ter jobcreationandretentioninmoreaffluentareas, 2004 revealsthattheyhavelargelybeenusedtofos- granted bythestateofMichiganbetween2001and company-specific economicdevelopmentincentives nities. For example,arecentanalysisofalmost 4,000 greater levelsasprojectsinmoreestablishedcommu- suburban greenfieldprojectsatthesameoreven worse bystateinvestmentpracticesthatsubsidize promise ofheftyreturns. for infillandrehabilitationareunmitigatedbythe suburban markets—hostileregulatoryenvironments where—unlike thenation’s morethrivingurbanand ticularly vexingchallengeforolderindustrialcities, within states,theseregulatorybarrierscreateapar- The impactoftheselawsandregulationsismade to retain more manufacturing firms if their workforce iftheirworkforce firms to retainmoremanufacturing Perhaps many RustBeltstateswould have beenable a etrpeae oaatt,andhelpcreate, was betterpreparedtoadaptto, 45 While uniformlyapplied more highly skilled industrial jobs. more highly skilledindustrial 46 All promised jobs,createpredominantly low-wagejobs, money isgoingtobusinesses thateitherfailtocreate grants, etc.—toprivatecorporations. Yet muchofthis interest loansandguarantees, infrastructureaid, year insubsidies—intheformoftaxcredits,low municipalities provideapproximately$50billiona Jobs First(GJF),forexample,revealsthatstatesand these jobsinthefirstplace.RecentanalysisbyGood economic developmenteffortsthataren’t producing to accessqualityjobsisfurtherfrustratedbystate help create,morehighlyskilledindustrialjobs. their workforcewasbetterpreparedtoadaptto,and have beenabletoretainmoremanufacturingfirmsif nomic growth.Perhaps manyRustBeltstateswould over thelongterm,hasalsolikelyinfluencedeco- ployed workerstogainandretaingoodjobs,but, not onlylimitedtheabilityoflow-incomeandunem- strated orexpectedregionaljobgrowth. term advancementincareerswherethereisdemon- job training,ratherthanonretentionandlong- being ineffectualinmeetingthebasicneedsofboth many states—havecomeunderheavycriticismfor and parochial,thesesystems—whileimprovingin typify theproblem.Traditionally highlyfragmented lies togetahead. have actuallythwarted—theabilityofstrugglingfami- and policieshaveeithernotdoneenoughtohelp—or munities. Meanwhile,ahostofotherstateprograms moderate-income residentsleftbehindinthesecom- bearing ontheopportunitiesavailabletolow-and ued declinehas,ofcourse,alsohadconsiderable contin- contributiontoolderindustrialcities’ States’ Income Families Workforce andOtherPolicies Affecting Low- The inabilityoflow-andmoderate-incomeworkers State-administered workforcedevelopmentsystems job placementandgeneralized have tendedtofocusonbasic improvement. As aresult,they ongoing programdesignand educational institutionsin job ofengagingbusinessesand for example,havedoneapoor employment trainingsystems, workers andemployers.Most 47 This has far betterservedtheirinterests. be utilizingtheirresources and policiesinwaysthat the plightoflow-incomeurban residents,theycould states can’t bearalltheresponsibility, certainly, for keep moreofwhattheyearn. those whoaregettingpaidlowwagesatleastgetto ameliorate regressivetaxsystems,andensurethat Credit (EITC)programs,arelativelysimplewayto California, stilldon’t havestateEarnedIncome Tax including Connecticut,Ohio,Pennsylvania, and the top1percent—topay. earnings intaxesastheyaskedthewealthy—those nearly double,respectively, asgreatashareoftheir scale—to payalmosttwo-and-one-halftimesand dents—those inthebottom20percentofincome Michigan, whichin2002askedtheirpoorestresi- most regressivetaxsystemsarePennsylvania and wealthier residents. Among thetop10stateswith from middle-andlow-incomefamiliesthan whole actuallytakeamuchgreatershareofincome ple, findsthatstateandlocaltaxsystemsonthe Institute onTaxation andEconomicPolicy, forexam- work payforlow-incomeearners.Researchbythe ers ofvaryingskilllevels. and higher-wage employmentopportunitiesforwork- be usedtosupporthighroadeconomicdevelopment outlying suburbancommunities—moneythatcould and/or (asnotedabove)createmostoftheirjobsin The listcouldgoon,butthepointismade.While Most states,finally, arenotdoingenoughtomake 48 49 Meanwhile, 31states, 50 maintain theiragingroadsandtransitsystems. munities withouttheresourcesneededtobuildand growth, andhascontinuedtoleavemanyoldercom- transportation spendinghasfacilitatedoutward tion oftheinterstatehighwaysystem,federal opment. For example,beginningwiththeconstruc- the clearfederalpolicybiastowardssuburbandevel- these policieshaveworkedagainsturbanareas. city residents.Belowarejustafewexamplesofhow on thelifeopportunitiesoflow-andmoderate-income care, andhousing,meanwhile,haveaprofoundeffect cation, jobtraining,wages,financialservices,health shape ofmetropolitangrowth.Federal policiesonedu- influence onthevitalityofcityeconomiesand trade, transportation,andimmigrationhaveahuge tionship iscomplex.Majorfederalpoliciesontax, too, affectsurbanareas,innumerousways.Thisrela- well-being ofcitiesandtheirresidents,federalpolicy, While statepolicyhasaconsiderableimpactonthe Federal Policy tend nottobespatiallyneutral. growth onthefringe. public transportationsystems, whilefacilitating abilitytogrowand sustain adequate inhibits cities’ approval. Suchanunevenplayingfieldclearly a complexandconvolutedprocessforproject ways, issubjecttointensecompetition,andrequires transit fundingislowerandlesssecurethanforhigh- According toresearchbyBeimbornandPuentes, Transportation andhousingpoliciesdemonstrate Federal housing and homeownershippoliciesalso 52 51 31 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES III. THE ORIGINS AND CHALLENGES OF OLDER INDUSTRIAL CITIES The deductibility under state and federal income taxes for mortgage interest and prop- erty taxes is a prime example. While agnostic on their face—homeowners, after all, live in all types of jurisdictions—in practice these tax breaks disproportionately benefit subur- banites. The very structure of the incentive significantly benefits wealthier filers, most of whom are obviously not living in the nation’s distressed cities—in fact, in 2003 over 83 percent of the benefits of the deduc- tion went to homeowners with incomes above $40,000 a year.53 Homeownership rates, moreover, are generally low in cities— less than 50 percent of older industrial city residents are homeowners, for example, compared to nearly 70 percent nationwide— and renters receive no benefit. For these 32 reasons, a 1997 study by Gyourko and Voith estimated that as much as three-fourths of the benefits of the mortgage interest and property tax deductions accrue to suburban property owners.54 While homeownership policies funnel wealth to the suburbs, affordable housing policies governmental programs had as dramatic of an impact concentrate poverty in the cities. on cities as urban renewal. Created to remove slums From the 1970s until the mid-1990s, federal public and blight and “modernize” older areas through mass housing policies almost exclusively catered to the demolition, eminent domain, and new construction, nation’s poorest residents, giving them first priority renewal projects did help rejuvenate some city neigh- over those with higher incomes; they also segregated borhoods. But they also dealt a major blow to many residents by race.55 As a result, publicly owned and/or urban—often predominantly black—communities, subsidized housing projects became—and in many removing or destroying thousands of vibrant, if run

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM INSTITUTION METROPOLITAN THE BROOKINGS III.AND CHALENGES OF OLDER INDUSTRIAL CITIES THE ORIGINS areas continue to be—repositories for poor and down, homes and businesses and replacing them with minority residents. At the same time, subsidized high-rises and highways. And while more recent pro- housing itself has been largely concentrated in poor grams—e.g. Urban Empowerment Zones—have not urban communities. While the HOPE VI program necessarily had an adverse impact on urban neighbor- has since made great strides in creating mixed- hoods, it’s not apparent that they’ve helped spur income housing communities, a 1998 study showed widespread market rejuvenation, either. In the mean- that in the late 1990s more than half of public hous- time, federal laws governing brownfields, for ing residents lived in high-poverty neighborhoods, instance, have actually helped thwart redevelopment and only 7.5 percent lived in low-poverty neighbor- in many cities, making the procedural and legal steps hoods (where fewer than 10 percent of residents are of testing, acquiring, cleaning, and redeveloping con- poor).56 taminated sites so complicated, time consuming, and Urban “redevelopment” programs, meanwhile, have expensive that they scare potential investors away. been a very mixed blessing. Looking back, few direct In short, the federal government has been com- plicit in helping to create and sustain the economic trative procedures that make the process of land condition of older industrial cities—and thus needs reclamation and real estate development in many to consider its own agenda for helping to spur their urban areas time consuming and expensive. Poor and recovery. unpredictable administration of often out-dated zon- ing ordinances, building and fire codes, permitting Local Barriers processes, and design requirements reduce develop- While part of the blame for older industrial cities’ ers’ confidence that they can get projects completed DUSTRIAL CITIES continued economic malaise lies with states and the on time and meet their revenue targets. And that’s federal government, local governments have assuming land is available for development in the undoubtedly contributed to their own fate through first place. Quite often, the responsibility for invento- bloated government structures and a host of every- rying, acquiring, and disposing of vacant and aban- day inefficiencies and long-term ineptitudes that doned parcels is spread among multiple government repel new business and residents from locating in agencies, resulting in complicated, fragmented, and the city and diminish the opportunities available to inefficient systems that keep such properties off the existing families. market and unavailable for productive reuse.58 At the most basic level, cities are often criticized Those projects that do get built, finally, aren’t for their performance in providing basic services, like always necessarily the best or right ones. Too often, picking up trash, plowing snow, and keeping public cities’ economic development policies are more about parks, streets, and sidewalks clean—not to even men- chasing after the latest fads than strategically devel- 33 tion making the streets safe and educating the cities’ oping and implementing plans that capitalize on their children. But while citizens are all too aware of defi- unique assets, link to their larger metropolitan econ- ciencies, many cities don’t maintain accurate, pub- omy, and have the potential to widely benefit local licly available data and documentation on how well residents. The proliferation of stadium and conven- they are actually performing these services, and how tion center building over the past 15 years illustrates much it is costing them to do so.57 Simultaneously, this trend. Even with hard evidence that such proj- ects rarely pay the expected div- The inability of many cities to get the basics of city idends, city leaders continue to 59 administration right extends to the legal and pursue them. Fiscally-strapped cities can also fall into an “any administrative procedures that make the process of development is better than land reclamation and real estate development nothing” trap that leads them to approve fast-food, gas station, in many urban areas time consuming and expensive. and other projects that may be inappropriate to the strategic the internal processes for administering local govern- development of vibrant, walkable commercial corri- ment services are often opaque such that local resi- dors. Whether due to a genuine hope that they will dents and businesses have little understanding about beat the odds, a desire for short-term (e.g. political- how and why the decisions that impact them on a cycle) returns, or simply a lack of imagination, these daily basis are made. Such a lack of accountability types of practices allow local governments to avoid and transparency can mask mismanagement, incom- the real challenges associated with fueling economic AMERICA’S OLDER INDUSTRIAL CITIES IN REVITALIZING ROLE PROSPERITY:RESTORING THE STATE III.AND CHALLENGES OF OLDER IN THE ORIGINS petence, and corruption, in the process undermining growth that is robust, sustainable, and inclusive— both the public trust and local governments’ ability to challenges that they must overcome together with make needed improvements to broken systems. their state leaders and the federal government. ■ The inability of many cities to get the basics of city administration right extends to the legal and adminis- 34 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM IV. SEIZING THE MOMENT fabric and evolutionisevidentinitsunique F Moment IV. loadsicie tangible setoffeatures torenewasameansfuturegrowth. also adistinctive, but providing notonly aprofound sense ofhow andwhy eachdeveloped asitdid, histories, rich cities’ reflect theolderindustrial theseattributes terparts.Together, • To beginwith,eacholderindustrialcity’s origin with moneyandvision,possibly be. what was,aswellarudiment ofwhatcould, and underutilizedwharfs—remains areminderof scarred withabandonedwarehouses, brownfields, attractions. For manyothers,thewaterfront—still waterfronts asmajorregional,evennational, few—have workedinrecentyearstoexploittheir Providence, Cleveland,andRichmondtonamea Some ofthesecities—Baltimore, goods inandoutoftheregion. means bywhichtotransport canal thatwasoncetheprimary water—a river, lake,bay, or industrial citiesgrewupalong 86 percent(56)ofthe65older . For example: Seizing the pr rmternwr eeal oehmgnu,suburban coun- morehomogenous, generally fromtheirnewer, apart thatset them attributes andcultural economic, numerous physical, citieshave the65olderindustrial Like mostdenseurbancenters, there aremany reasonstobeoptimisticabouttheirfuturerecovery. citiesface, challengesolderindustrial or alltheseemingly intractable physical • • All ofthesecitieshavelocalbusservice,14 some oftheirformerluster, theyrepresent a While someoftheseneighborhoods mayhavelost walkable communitieslocated inthesecities. together helpshapethemany greatstreetsand of additionalhomesandsmallbusinessesthat number doesn’t include,ofcourse,thethousands the NationalRegisterofHistoricPlaces. These 65citiestogetherhave4,209propertieson upon tosupportnewgrowth. a subwayorlightrailsystem,and43have Amtrak servicetoanothercity. tems wereenabledby—andhelped shape—what isstilladenseurbangrid. While thequalityandcapacityofthese iis busandrailnetworksmayhave cities’ diminished overtime,the“bones”are there tobeupgradedandexpanded 60 These sys- 61 This major opportunity to capture new growth. For example: In addition to their physical characteristics, the 65 • Older industrial cities boast a significant number older industrial cities also have strong economic of cultural institutions and organizations that attributes that will necessarily be key to their recov- serve as both local amenities as well as regional ery. For example: and even national attractions. All told, these cities • Despite their sluggish economies, older industrial have nearly 300 museums—from art museums to cities remain significant regional employment zoos—approximately 60 resident philharmonic centers. Home to just 26 percent of their metro- and symphony orchestras, and over 30 resident politan populations, they still contain, on average, opera companies.67 These numbers don’t include, a third of their metropolitan jobs. Fourteen older of course, the dozens of galleries, theaters, public industrial cities have at least half of their metro art displays, and music venues that are often con- area jobs, with three cities (Decatur, IL, Muncie, centrated in and around downtown areas. IN, and Odessa, TX) boast- 62 ing over three-quarters. The time is ripe for state and local leaders to seize upon • Employment tends to be clustered in older industrial demographic, economic, social, and political trends and cities’ still-dense downtown attitudes that have begun to revalue cities’ special cores, and many have been experiencing a surge in job characteristics. 35 and/or population growth. Center City Philadelphia, for example, comprises just 3 percent of the city’s • Older industrial cities have over three dozen pro- land area, but accounts for 47 percent of all pri- fessional sports teams, including 10 members of vate-sector wages paid citywide.63 And Baltimore the National Football League, nine members of is one of numerous older industrial city down- the National Basketball Association, six members towns whose population has jumped over the past of the National Hockey League, 10 Major League decade; its downtown also gained 6,200 jobs (a Baseball teams, and two professional women’s 7 percent increase) during the past two years basketball teams.68 This is in addition to the many alone.64 minor league teams located in small- and • Older industrial cities have a large concentration medium-sized older industrial cities. of education and medical facilities in their urban • Finally, older industrial cities’ culture is embedded core. The 65 cities boast a total of 242 four-year in their vibrant public street life—that unique colleges and universities and 164 two-year interaction of people that Jane Jacobs refers to as colleges, for example, with all but two of the the “sidewalk ballet.”69 The diversity of people liv- cities (New Bedford, MA and Saginaw, MI) ing, working, and playing in close proximity to having at least one four-year or two-year college one another contributes to the very “city-ness” within their borders.65 These cities also have a that makes urban areas so special—and invokes a total of 470 hospitals and medical centers, includ- sense of place, unpredictability, and excitement ing 288 general medicine and surgical hospitals often missing in newer communities.

and another 182 specialty facilities that together The time is ripe for state and local leaders to seize AMERICA’S OLDER INDUSTRIAL CITIES IN REVITALIZING ROLE PROSPERITY:RESTORING THE STATE IV.THE MOMENT SEIZING employ approximately 680,800 people.66 upon demographic, economic, social, and political Finally, America’s older industrial cities are rich trends and attitudes that have begun to revalue cities’ with social and cultural amenities such as muse- special characteristics. The 1990s brought a sea ums, theater, music, and sports, and possess the change in how urban areas are viewed—as places in dynamic mix of people that characterizes city life. which to invest, conduct business, live, and visit. The 36 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM IV. SEIZING THE MOMENT e ae T6 0 2 0 0 3 3 13 2 0 3 2 0 0 8 14 3 5 1 1 1 0 0 3 6 0 19 2 17 1 0 1 0 3 0 3 21 2 8 6 0 6 0 2 1 8 3 0 1 6 0 0 1 31 7 0 1 3 1 1 3 0 8 4 0 2 3 11 142 11 2 60 1 6 5 37 0 3 7 32 3 1 2 4 3 0 67 1 LA 1 3 162 9 0 2 CT 3 10 4 0 IN 24 MA 1 3 7 2 1 3 48 5 69 FL WI 3 0 3 3 2 4 3 4 1 CA 2 New Orleans 14 2 155 New Haven 9 16 0 OH 4 1 GA 8 78 2 3 New Bedford 1 2 6 40 Muncie 2 4 7 51 0 2 5 CA 0 1 Milwaukee 0 1 CA 14 Miami PA 27 6 3 0 3 131 2 Merced 1 0 16 MI 4 MS 11 35 29 Mansfield 2 0 0 4 19 3 1 Macon 3 4 0 WV 3 CT Los Angeles 28 18 2 2 10 Long Beach 1 104 3 PA 16 CA 2 7 3 MI Lancaster 6 227 2 8 Kalamazoo 2 8 4 22 PA Jackson 98 MA 1 7 2 2 Huntington 4 6 5 1 MI 1 Hartford 2 IL 1 Harrisburg 3 216 0 OH Fresno 38 242 VA 5 2 Flint 4 66 1 1 Fall River 2 OH 54 Erie 13 1 OH OH Detroit NY 137 2 Decatur 6 20 13 Dayton 1 CT 9 Danville 14 AL Cleveland 17 NY 57 Cincinnati TX Canton 21 MD PA Buffalo Bridgeport PA NY Birmingham GA Binghamton Beaumont Baltimore Altoona Allentown Albany Albany City Older industrial cities boast a range ofOlder industrialcitiesboastarange tt Proper State itrcadToYa eia Sports Medical Two-Year and Historic isUniv ties orYa optl Major Hospitals Four-Year Colleges ersities physical, olgsF Colleges cnmc and economic, acilities cultural assets and League uem Teams Museums arnO 0 0 0 38 0 0 3 293 1 0 0 5 0 470 3 3 5 1 3 6 0 1 0 5 164 0 0 2 15 1 4 3 7 3 0 2 3 0 0 242 4 3 23 0 0 0 2 2 1 5 2 2 4 2 2 4209 0 1 0 14 4 5 2 1 0 0 9 1 2 48 4 22 4 1 1 1 0 2 8 4 0 40 2 5 15 2 12 3 OH OH NY 3 0 41 1 70 2 4 National RegisterofHistoricPlaces,2007; American 0 Association of Museums,2007;NFL,NBA,NHL,MLB,WNBA,MLS 2 2 3 5 1 17 NJ Sources: U.S.DepartmentofEducation,NationalCenterforEducation Statistics,2007; 3 AHA Annual SurveyDatabase:FY2005; 7 0 0 10 2 2 4 2 9 2 IN NY Total: 29 1 2 6 1 CA Youngstown 3 0 81 4 4 3 58 Warren MO 28 2 0 26 2 Utica 19 2 OH Trenton 5 0 19 MA 1 1 Terre 1 Haute 6 LA 6 29 PA 7 Syracuse 29 3 14 4 1 Stockton 1 NY St. Louis 5 15 CA 0 Springfield 111 8 1 MI 20 Springfield 9 30 CA 1 Shreveport 1 Scranton 155 NY NC 6 Schenectady 18 3 VA PA Santa Maria 149 52 San Bernardino RI 1 Saginaw TX 517 Rocky Mount 73 PA Rochester AR Richmond TX PA Reading NJ Providence Port Arthur Pittsburgh Pine Bluff Philadelphia Odessa Newark City Older industrial cities boast a range ofOlder industrialcitiesboastarange tt Proper State itrcadToYa eia Sports Medical Two-Year and Historic isUniv ties orYa optl Major Hospitals Four-Year Colleges physical, ersities cnmc and economic, olgsF Colleges cultural assets acilities and League (continued) uem Teams Museums 37 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES IV. SEIZING THE MOMENT 38 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM IV. SEIZING THE MOMENT holds: makeup, andlocationalchoicesofthenation’s house- Major demographicshiftsarechangingthesize, The Demographic Moment however, toturnthetide. been largelymarginalinscale.Themomentisnow, wide statisticsdemonstrate,theseachievementshave of certainhistoricneighborhoods—butastheircity- in downtownlivingandrealestate,thegentrification have experiencedstrongpocketsofsuccess—asurge by themarketplace.To besure,manyoftheseplaces leveraged bystateandlocalleaders,undervalued the attributesdescribedabovearestilllargelyunder- recovery. Whilethe potentialisclearlythere,manyof have receivedonlyasmalltasteofthebenefits private sectorhadonceabandoned,andthenignored. cities—or atleastsubstantialpartsofcities—thatthe result hasbeenareturnofthemarketinmany • • • Unfortunately, most olderindustrialcities,asyet, into “senior”status. will continuetoriseasthe baby boomersmove 13 percentofthetotalpopulation,asharethat In 2000,residentsover65accountedforalmost Meanwhile, ourdomesticpopulationisaging. trends, islikelytogrow. since 1930,andonethat,basedonexisting tion wasbornoutsidetheU.S.—thehighestshare Twelve percentofthecountry’s currentpopula- 1.8 millionmorethanarrivedduringthe1980s. came totheU.S.legallyduring1990s, growth—approximately 9.1millionimmigrants Immigration isfuelingmuchofthisnational 67 millionpeopleby2025. population isexpectedtorisebyatleastanother According toCensusestimates,thecountry’s 93 percentofthenation’s metropolitanareas. enced somegrowthduringthedecade,asdid 1990s. Infact,everystateintheunionexperi- by 33millionpeopleduringthecourseof a sustainedpathofpopulationgrowth,increasing Unlike EuropeandJapan,theUnitedStatesison decades tocome:By2012, theworkforcewillbe increasing demandforyoung workersinthe 73 These trendspointtoan 72 71 70 similar “overflow”effects. Haven (nearNew York), whicharealsoexperiencing Boston) andScranton, Allentown, Trenton, andNew Springfield, NewBedford,andFall River(near is muchthesameincitieslikeProvidence, nation’s capitalwithoutthehighcosts.Thepotential access toWashingtonians whowantproximitytothe paratively affordablehousingandconvenienttransit campaign, forexample,hasbeenpromotingitscom- in proximatemetros.Baltimore’s “LiveBaltimore” ing uponpositiveeconomicanddemographictrends dents. Someofthesecitiesarealsoactivelycapitaliz- only 13olderindustrialcitymetrosactuallylostresi- cities inthedataset(5percentversus18percent), slower overallthanthatinthemetrosofother metropolitanareasduringthe1990swasmuch cities’ politan growth.Whilepopulationgrowthinthese the opportunitytocaptureaportionoftheirmetro- established communities. nificantly benefitolderindustrialcitiesandother how andwherepeoplechoosetolive,couldsig- in itsHispanicpopulation, the citywouldactually instance, butwereitnotfor a120percentincrease increased by1percentduring thedecade,for more—but forthesegroups. Allentown’s population not havegrownatall—orwouldshrunkeven ers, andmanycitiesthatgrewinthe1990swould continue tobe,majorgatewaysforforeignnewcom- growth cities.Urbanareashavealwaysbeen,and managed well,couldalsobeaboontoslow—orno— In thefirstplace,mostolderindustrialcitieshave These trendswillhaveaprofoundinfluenceon • Continued growthintheimmigrantpopulation,if increased by66percent. 2000, whiletheoverallnumberofhouseholds hold sizefellfrom3.1personsin1970to2.6 smaller andmorenumerous. population, arecausinghouseholdstobecome fewer children,which,togetherwiththeaging and womanaredelayingmarriagehaving The nation’s familystructureischanging.Men gains. losing morethantwoworkersforeveryoneit and 2025,only4millionwillhavechildren. households projectedtobeaddedbetween2000 74 78 76 Of the32million 75 The averagehouse- 77 cant numbersofforeignrefugees. few—have overthepastfewdecadesgainedsignifi- Louis, aswellUticaandHartford,tonamejusta over—including Los Angeles, Philadelphia,andSt. metropolitanareas,more- 65 olderindustrialcities’ shopping, services,andmedical facilities.Thereare of environmentsthatprovide walkableaccessto be lookingtogiveuptheir suburban homesinfavor number ofseniors,forexample, manyofwhommay nity tosellthemselvesthenation’s burgeoning ate intheupcomingdecades. urban environments—atrendthatwilllikelyacceler- already appeartobefuelingademandformore have lost12percentofitsresidents. revitalization inurbanareas. an enormouseffectonjobgrowthandneighborhood businesses thannative-bornresidents,andhavehad grants nationwidehavestartedagreatershareofnew shown, forexample,thatoverthepastdecade,immi- bring aboutsubstantialbenefits.Recentresearchhas challenges, overthelongtermthesenewcomerscan gration offoreignimmigrantsiscertainlynotwithout Older industrialcitieshaveanexcellentopportu- Changing householdstructures,meanwhile, 81 80 While theinte- 79 Several ofthe for denser, urbanliving. ingly competitiveracetoreplace retiringworkers. cities willhaveastrongupper handintheincreas- 27 percentofMilwaukee’s. Ifthesetrendspersist, Philadelphia’s downtown,forexample, andnearly 2000, youngadultscomprisedover30percentof trial citiesarealreadymagnetsforthiscohort: As of 13 percenttoalmost25percent.Severalolderindus- town populationnearlydoubled,jumpingfrom grew 90percent,andtheirshareoftheoveralldown- olds livinginasampleofthecountry’s downtowns From 1970to2000, thenumberof25-to34-year experienced atremendoussurgeinyoungresidents: 12 percentin1990. in aclose-inmetropolitanneighborhood,upfrom 33 percentmorelikelythanother Americans tolive choices: In2000,25-to34-yearoldswereabout demographic areshowingupintheirlocational Attitudinal changestowardurbanareasamongthis who willbeneededtofillthejobsseniorsvacate. those covetedyoungermembersoftheworkforce Joseph Cortrightcalls“theyoungandrestless”— Whether young,old,orsomewhere inbetween, These citiesarealsowell-positionedtoattractwhat 84 decades. dropped theprevioustwo ing the1990s,afterhaving couples—grew 17percentdur- have grown,aswellchildless includes thosewhosechildren downtowns—a groupthat in asampleofthenation’s couples withoutchildrenliving styles: Thenumberofmarried nesters” areexploringcitylife- bers ofmiddle-aged“empty already signsthatgrowingnum- clearly havesomepreference ing citiesforthesuburbs,and higher incomesthanthoseleav- cities inrecentyearsexhibit areas, thosemigratinginto balance, toliveinsuburban “pre-seniors” willcontinue,on numbers ofseniorsandBoomer Downtowns, particularly, have 83 82 Though growing 85 39 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES IV. SEIZING THE MOMENT 40 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM IV. SEIZING THE MOMENT economy: a resultoffundamentalrestructuringtheglobal A dynamiceconomicmomentisalsonowunderway, The EconomicMoment nation’s moresuccessfulurbanareas. the robustpopulationincreasesenjoyedby for olderindustrialcitiesthathaven’t yetexperienced many regions,signifyingatremendousopportunity of compact,mixed-use,walkablecommunitiesin ence surveybyLevineandFrank revealedashortage ally befallinginshortsupply. Infact,arecentprefer- number ofneighborhoodsthatofferthemmayactu- given thenation’s shiftingdemographicpatterns,the plentiful innewer, lessdensesuburbanareas,and, options andattributesarenotgenerallyasrichor and recreationalamenitiesdescribedabove.Such transportation—as wellasthemanyhistoric,cultural, offer—in neighborhoods,housing,shopping,and cities becauseoftheuniquerangechoicesthey America’s newurbanitesarepresumablychoosing growth. create avirtuouscycleofpopulationandhousing can attractthecriticalmassofresidentsneededto hoods thosewithchoicesdemand,thesecities,too, the goodservices,safestreets,andqualityneighbor- that theycanbothleveragetheirassetsandprovide • • • institutions ofhigherlearning in research institutions,andother versities, colleges,medical The roleandfunctionofuni- politan areas. nomic growthacrossmetro- single biggestdriverofeco- highly skilledworkers—nowthe demands greaternumbersofhighlyeducated, The shifttoaknowledgeandinnovationeconomy jobs inthecountry. declined, andnowrepresents32percentofall percent from1970to2000asmanufacturing ices, andideas.Servicesemploymentgrewby214 the design,marketing,anddeliveryofgoods,serv- economy fromtheproductionofcommodities,to Globalization hasacceleratedtheshiftofour 88 87 86 To the extent in separatelocationsfromoneanother. sumer servicingoperations,anddistributioncenters marketing), researchanddevelopmentfacilities,con- and-control” functions(e.g.,headquarters, cal locationsbyfunction,locatingtheir“command- increasingly causingfirmstodisaggregatetheirphysi- competitive pressuresandtechnologicalchangeare more flexibleintheirdemandforspace.Further, some typesofadvancedmanufacturing)aregenerally service firmsandneweconomyindustries(including one reasonwhysomanyfirmslefttheurbancore— for transportingrawmaterialsandfinishedgoods— requires vastamountsoflandinlocationsconvenient competitive edge. they alsohavethepotentialtogivethembacktheir reliant on“oldeconomy”industries,movingforward, undoubtedly contributedtothedeclineofthosecities environments formanyeducatedworkers. cities—demonstrating theattractivenessofurban areas, thereverseisactuallytruefor237other older industrialcitiesthanintheirmetropolitan dents withabachelor’s degreeislower, onaverage,in workers suchjobsdemand. parts, providedtheycanattractandgrowtheskilled three ofthesefunctionswiththeirsuburbancounter- undoubtedly havetheabilitytocompeteforfirst For example,whileheavymanufacturingoften While globalizationandtechnologicalchangehave • And sotheyare. Although theaverageshareofresi- firms. fer ofknowledgeandideasbetweenpeople which iswidelyheldtohelpacceleratethetrans- the valueandfunctionofdensityproximity, The growthoftheknowledgeeconomyisaltering tion isgrowingandchanging. economic developmentandcommunityrevitaliza- Meanwhile, thenumberofdowntown residents withacollegedegreehassky- rocketed: By2000,almost44percent of residentsinasampledowntowns had abachelor’s degreeorhigher, up 10percentagepointsfrom 1990. Some olderindustrialcities arealready sharing inthistrend:Thedowntowns of Philadelphia(66.7percent), 89 90 Cities economic growth. clusterings oftalentedpeople areaprimedriverof that densityisaprimarypurpose ofcities,andthat foreshadowed over100yearsagoby Alfred Marshall, counterparts. Thesescholarsstartfromthepremise, cities aclearadvantageovermanyoftheirsuburban can actuallyimproveeconomicperformance,giving denser labormarketsandmorevibranturbancenters ety ofnewurbanscholarshasbeguntosuggestthat cities andregions. improving thehealthandvitalityoftheirsurrounding actively participatingindecision-makingabout these schoolsaregrowingtheirrolesascivicleaders, prises—as inPittsburgh.Perhaps mostsignificantly, Philadelphia—and stimulatingnewlocalenter- ing neighborhoodplanninganddevelopment—asin into falteringdowntowns—asinCleveland—influenc- nomic growthandrevitalization,helpingbreathelife developers. Theyarealsoincreasinglyfuelingeco- firms, andasemployers,purchasers,realestate workforce, asincubatorsofnewknowledgeeconomy and regionaleconomies,astrainersofthefuture educators, theseinstitutionsarevitaltomanylocal economic benefitstheyprovide.Beyondtheirroleas with anunprecedentedchancetoleveragethemyriad versities isprovidingnearlyallolderindustrialcities quest toattractnewfirms. bers canbeamajorsellingpointforcitiesintheir residents heldahigherdegreein2000,thesenum- Considering that,nationally, justover24percentof share ofresidentswithabachelor’s degree. cent) wereeachamongthetop10basedontheir Milwaukee (46.2percent),andBaltimore(45.7per- toso cnmcatvt,fcltt im’abilityto ations ofeconomicactivity, facilitatefirms’ Finally, densitymaymatterasneverbefore. A vari- Meanwhile, theenhancedroleofcollegesanduni- A variety of new urban scholars hasbeguntosuggest ofnewurbanscholars A variety centers canactually improvecenters economicperformance, that denser labor markets and more vibrant urban andmorevibrant that denserlabormarkets 94 93 Cities, andotherdenseagglomer- giving citiesaclearadvantageover many 92 of theirsuburban counterparts. 91 the city. ture/food processingfirmsinthenorthwestpartof communication/information technology, andagricul- grow healthcare,biotechnology, nomic developmentagenciesonamajorprojectto hospital, alocalBID,andworkforceeco- Franklin andMarshallCollegeispartneringwitha and universities.InLancaster, PA, forexample, engagement bynonprofitinstitutionslikehospitals ing increasedprivatesectoractivity, andgrowing kets ripeforinvestment.Smallercities,too,aresee- that theyarestartingtoviewcitiesasuntappedmar- “fit” moredenseurbanenvironments—asuresign and Target aremodifyingtheir“bigbox”formatto the sametime,nationalretailerslikeHomeDepot Detroit, theBaltimoreharborarea,andelsewhere. At ulate marketdemandinplaceslikedowntown transformative investmentstrategiesdesignedtostim- with thepublicsectorandnonprofitcommunitieson saturated. Catalyticinvestmentfirmsareworking tressed neighborhoodsassuburbanmarketsbecome area allowsworkerstochangejobsmoreeasily, giving tion. Thelargenumberofemployerswithinanurban Density alsomattersonthelaborsideofequa- places inwhichdobusiness. institutions thatthesecommunitiesmightbegood signal tootherpotentialinvestors,entrepreneurs,and industrial base,itsendsapositive—longoverdue— lost needed tomakeupforolderindustrialcities’ increasingly driveeconomiccompetitiveness. ideas—essential tospurringtheinnovationsthat edge spillovers”—thesharingofinformationand access workersandsuppliers,fosterthe“knowl- 96 While allthisactivityisn’t yetatthescale weaker citiesandmoredis- also increasinglyinvestingin private sectorcompaniesare of theseeconomicshifts.But are alreadyreapingthebenefits urban locales. stability thanemployeesinnon- them bothgreaterflexibilityand Stronger marketcommunities 95 41 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES IV. SEIZING THE MOMENT 42 The Political and Constituency Massachusetts Governor Mitt Romney created an Moment Office for Commonwealth Development (OCD) to pursue a state smart growth agenda focused on revi- Lastly, cities have an opportunity to take advantage of talizing existing communities, supporting compact, a profound political and constituency moment, as walkable development, expanding housing and job public sector and nonprofit leaders are beginning to opportunities, and protecting the environment.97 understand that strong urban economies are key to Michigan’s Gov. Granholm has made investments in building family security, healthy neighborhoods, and cities an explicit part of the state’s economic develop- sustainable, prosperous regions: ment plan, with millions of dollars targeted toward • State leaders are recognizing—and are acting brownfields remediation, regional planning, and local upon—the link between city revitalization and infrastructure improvements. In 2005, she also competitive regional growth. launched “Cities of Promise,” a five-year initiative that • Foundations are realizing that many of their requires 18 state agencies to work collaboratively with objectives—reducing poverty, improving neighbor- eight of the state’s most distressed cities—including

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM INSTITUTION METROPOLITAN THE BROOKINGS IV.THE MOMENT SEIZING hoods, protecting the environment—are depend- Detroit, Saginaw, and Flint—to reduce poverty, spark ent upon a strong and vibrant urban core, and economic development and investment, and improve their support for projects to revitalize older indus- blighted neighborhoods in these communities.98 And trial cities is growing. in Pennsylvania, the Rendell administration is focus- • Community development organizations are ing on the links between economic growth, a skilled increasingly interested in market-based solutions workforce, and targeted government investments that to building neighborhood wealth. at once protect open space, shore up fading towns • Environmental and smart growth groups are and cities, and clean up polluted sites. Tangible focusing on the nexus between the revitalization efforts are already underway: The state has created a of city cores and environmental sustainability. $625 million bond fund, for example, to support the To begin with, there are clear signs that some state state’s Growing Greener II program, which will be tar- leaders understand the importance of economically geted directly towards environmental projects, and and fiscally strong cities. For example, in 2003, then downtown and community revitalization.99 Some new governors, too, are speaking in “urban” including many of those identified here.103 And local terms. New York’s Gov. Spitzer, for example, is already groups like Neighborhood Progress, Inc., in discussing specific new policy directions for reinvigo- Cleveland, are making private sector investment in rating struggling communities, particularly in community assets an explicit part of their core mis- Upstate. His Renew New York agenda aims to signifi- sion, noting that it “is the best way to restore neigh- cantly expand state aid to distressed Upstate cities borhood vitality and improve people’s quality of and towns, reinvigorate the state’s brownfields pro- life.”104 gram, and expand high-speed internet access in Finally, environmental and smart growth leaders underserved urban and rural areas, among other are increasingly focused on the critical role that cities things.100 Such “new blood” in states with large con- play in curbing sprawl, conserving open space, reduc- centrations of older industrial cities provides a ing pollution, and enhancing the nation’s energy effi- unique chance to advance an agenda specifically ciency. Three years ago, for example, Smart Growth aimed at these cities’ interests. America (SGA)—in partnership with LISC (the Local Many philanthropic, civic, and community develop- Initiatives Support Corporation) and the ment organizations are also beginning to advance a Metropolitan Institute at Virginia Tech—launched new form of urban revitalization that focuses on mar- the National Vacant Properties campaign, a major ket revival. These groups are now integrating poverty initiative designed to provide city leaders with infor- and housing initiatives with better schools, parks, mation resources, tools, and technical assistance to transit, and public safety, and launching programs support their vacant property revitalization efforts. 43 focused on entrepreneurship and wealth building. SGA is also now an active partner in helping to They are also getting involved in initiatives focused organize statewide networks to advance state and local agendas for renewing older industrial cities.105 Many philanthropic, civic, and community development At a more regional level, Scenic Hudson has been working for organizations are also beginning to advance a new form 40 years to protect and restore of urban revitalization that focuses on market revival. the Hudson River Valley, a mis- sion which includes renewing brownfields sites and revitaliz- ing core towns and cities.106 And on increasing economic competitiveness and the cre- PennFuture not only has a state-focused “fix it first” ation of quality jobs. The Heinz Endowments, for action campaign, but has also added the Next Great example, has established an Innovation Economy City Initiative—dedicated to increasing the economic Program to help spur the commercialization of competitiveness and environmental health of research and innovations coming out of local univer- Philadelphia—to its list of environmental protection sities and hospitals in the Pittsburgh region.101 Urban programs.107 League chapters nationwide are increasingly focused New attitudes and practices regarding density and on closing the wealth gap between blacks and whites, development patterns are still evolving. Yet efforts to phasing out many of its social programs in lieu of ini- date demonstrate that older industrial cities have an tiatives focused on entrepreneurship, workforce unprecedented opportunity to build broad-based AMERICA’S OLDER INDUSTRIAL CITIES IN REVITALIZING ROLE PROSPERITY:RESTORING THE STATE IV.THE MOMENT SEIZING development, and commercial real estate develop- coalitions around market-oriented approaches to ment.102 PolicyLink’s Core Cities Initiative is working urban revitalization—network building that will be with public and private sector institutions to bring crucial to their ability to seize upon the demographic greater attention, resources, and equitable policy and economic trends now at hand. ■ change to America’s economically distressed cities, 44 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM V. A STATE AGENDA FOR REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES urban prosperity, andadvancesproactive,innovative redresses statepoliciesand practicesthatundermine comprehensive recovery, stateleadersneeda older industrialcities’ level—but theyarenotenough.To trulycatalyze Good thingsarealreadyhappeningatthestate revitalization. critical partnersinanyplansforcities’ programs, states—forallthereasonscitedabove—are focus almostexclusivelyonlocalactionandfederal C Cities Industrial America’s Older for Revitalizing V. lnfrraiigi.Buttheycan’tgoitalone. plan for realizing it. andadvancea theirown visionfor success, whomust develop andarticulate ers, withlocallead- must start Suchastrategy improve performance. city-widemarket thattogetheraimto policiesandpractices instead includesasetofintegrated While mostdiscussionsofurbanpolicytendto A State Agenda urban agenda oiisadporm ie tmngn ra eln,and aimedatmanagingurbandecline, policies andprograms for change—onethatmovesties needanewstrategy beyond thesecommuni- Buttocapitalize onpositive trends, economies. for city reinventing olderindustrial andreinvigorating tobenobettertimeinrecenthistory thereappears ertainly, —one thatboth and shouldhavefiveprimaryobjectives: what aretypicallyseparateandsiloedpolicyareas, ideas forchange.Suchanagendaneedstocutacross • • and entrepreneurship “high road”economyofknowledge, innovation, economic strengths To helpolderindustrial cities fiscally healthycommunities needed toensurethattheyarehighquality, To helpolderindustrialcities so thattheycancreatea “fix thebasics” “fix build upontheir in thecity, depressingthelocaltaxbaseand hamper- deter middleclassfamilies from locating,orstaying, education andqualityjobs. Butfailingschoolsalso ing outontheinstructionthey needtopursuehigher ularly thosethatarepoorand/orminority—aremiss- Most troublingisthefactthatlocalchildren—partic- economiccompetitiveness. impact onthesecities’ move ontoattainacollegedegree—hasdual drop outrates,andthemeagershareofstudentsthat tems—as measuredbytheirlowtestscores,high K–12sys- performance ofolderindustrialcities’ Fixing thebasicsbeginswithschools.Thelagging Transform neighborhoodschools surroundingjurisdictions. tive withcities’ curbing crime,andcreatingacostclimatecompeti- basics”— improvingK–12schools, states helptheircities“fixthe locating inthecity. It’s thusvitalthat dents simply“pricesthemout”of cal climateforbusinessesandresi- and visitorsfeelunsafe,thefis- tional systemisbroken,residents chance ofsucceedingiftheeduca- at urbanrevitalizationwillhavelittle cities addressthefundamentals.Evenbestefforts In thefirstplace,statesneedtodotheirparthelp Fix theBasics demand anearnestcommitmenttowholesalechange. them totackleeachoftheseobjectives—andwill ers understandthattrueurbanrecoverywillrequire unique needsoftheircities,it’s vitalthatstatelead- based ontheircurrentpolicyenvironmentandthe While theemphasiswillvaryfromstateto • • • hoods ofchoice To helpolderindustrialcities income, andwealth class To helpolderindustrialcities growth catalyze developmentandstimulateeconomic physical landscapes To helpolderindustrialcities by helpinglow-wageworkersbuildskills, for peopleofvaryingincomes with investmentsthatcan create neighbor- theirmiddle grow transform their Patrick isplanningtoexpand. school dayin10pilotschools,aneffortthatGov. $1300 dayperstudenttolengthenthetraditional gling districts.Thestateiscurrentlyexpendingabout than low-poverty, low-minoritydistricts. pupil tohigh-poverty, high-minorityschooldistricts 50 percentofstatesactuallyprovidelessfundingper adjusting forlocalcostsofprovidingeducation,over The EducationTrust, forexample,foundthat,after on astableandpredictablebasis.Recentanalysisby ments arebeingfairlydistributedacrossjurisdictions update theirfundingformulassuchthatinvest- neighborhoods. First,statesneedtoexamineand teachers, andmodernfacilitieslocatedinstable failing localdistrictshaveadequateresources,quality need toundertakeaseriesofreformsensurethat educational system. abilitytomakecrucialinvestmentsinthe ing cities’ investors andpotentialresidents thatgovernmentis ishing thequalityofurban life, butbysignalingto can stallcityrevitalizationefforts, notonlybydimin- Public safetyis“basic”number two.Highcrimerates Make thestreetssafe means notonlyensuringthattheirbasesalaries, areas andotherchallengingenvironments.This attract goodteacherstoschoolsindistressedurban states shouldinvestadditionalresourcestohelp dren andfamilieswholivethere. neighborhoods safe,stablecommunitiesforthechil- part oflong-termlocalplanstomakesurrounding schools. Statesshouldrequirethatsuchfundingis toward capitalimprovementsinaginginner-city dents learneachdaybytargetingmajorinvestments help citiesimprovetheenvironmentinwhichstu- Already substantialfundersoflocaldistricts,states working conditions,andtrainingoppor- tunities arecompetitivewithwealthier suburban districts,butalsoproviding bonuses—as NorthCarolinahas done—for attracting,andkeeping, highly qualifiedinstructorsinhard- to-staff schools.Third,statesshould follow theleadofMassachusettsby funding longerschooldaysinstrug- 109 Finally, statesneedto 108 Second, 45 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES V. A STATE AGENDA FOR REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES 46 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM V. A STATE AGENDA FOR REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES for moreeffectivecrimecontrolstrategiesincities, can serveasvaluablefunders,partners,andcatalysts ing directedtolocalities. amount offederal—andstate—criminaljusticefund- States alsocontrolthedistributionofasignificant nile, substanceabuse,andmentalillnessprograms. tems, probationandparoleprograms,manyjuve- are responsiblefortheadministrationofprisonsys- play alargeroleinthecriminaljusticesystem.States ing andfortheprosecutionofcrimes,states,too, local governmentsaregenerallyresponsibleforpolic- protecting theircitizensandbusinesses.Butwhile unable tomeetoneofitsmostessentialobligations— For more information: www.ceoworks.org/homepage.htm www.ceoworks.org/homepage.htm For moreinformation: I New York in re-incarceration overin re-incarceration athreeyear period. successfulplacementinajobresulted30percentreduction pants, among CEOpartici- found that, CEO/MDRC analysis oftheprogram a2006 Moreover, employment. topermanent able tograduate 60percentare dance inNWPandotherpre-employment activities, consistentatten- demonstrate Onceparticipants fund. service internal andmake payments totheDivisionofParolecontract through an individual public crewsunderthat agenciescanpay for CEOwork withtheDivisionofParole, CEOhasabasiccontract City area.While orpaintingclassroomsinpublic collegesintheNew Yorkhighways, collectinglitteron suchjobsascleaningcourthouses, may perform and for public agencies, crewsprovide services NWPwork Parole. withtheNew unique financial arrangement York StateDivisionof isfundedthrougha NWPprogram aminimum wage.The earn and experience whichallows themtogainwork crew, tional work onthecenter’sworking Neighborhood Work Project(NWP)transi- onthepathtofullemployment by start offenders Former parole. systemon leaving thestateprison tooffenders placement services As aresultofitspowerandresponsibilities,states (CEO) provides transitional employment(CEO) provides andjobdevelopment transitional and n New theCenterfor Employment Opportunities York City, Neighborhood W 111 ork Pr oject (NWP) 114 110 ning forthesuburbs. location, andevensendcommitted citydwellersrun- considering thecityasaviable homeorbusiness sonous mixthatcandissuadepotentialinvestorsfrom the formofhightaxesanddiminishedservices,apoi- Such stressgetspassedontofirmsandresidentsin in aconstantbattletomaketheirfiscalendsmeet. can’t fullycontrol,economicallydistressed cities are by risingpension,healthcare,andothercoststhey inability tolevynewfeesandtaxes,ontheother enue. Constrainedononesideoftheledgerbytheir in thewayolderindustrialcitiesraiseandspendrev- Fixing thebasics,finally, requiresstructuralchanges businesses andresidents Create acompetitivecostclimatefor available tojuvenileoffenders. make substanceabuseandmentalhealthservices vism. Thestatehasalsobeenaleaderineffortsto develop evidence-basedprogramstoreducerecidi- local courtsandgovernmentsareencouragedto Community Juvenile Accountability Act, forinstance, urban residents.UnderWashington State’s they needinordertobecomehealthy, productive to getthesubstanceabuseandmentalhealthsupport released offendersfindhousingandemployment, with localgovernmentstodesignprogramshelp nals whokeepcyclingthroughthesystem,working play apowerfulroleinreducingthenumberofcrimi- Finally—and perhapsmostsignificantly—statescan tem—to measurecrimeandmanagepoliceresources. systems—like New York’s well-knownCompStatsys- tiveness ofpolicingbyfundingstate-of-the-artdata also helplocalpolicedepartmentsimprovetheeffec- incarcerating themostviolentoffenders. resources forincarcerationwerebeingfocusedon governments togethertoensurethatlimited and PrisonOvercrowdingtobringstatecounty Gov. Granholmconvened a2004Task Force onJail table toreducecrime.InMichigan,forexample, many playersinthecriminaljusticesystemto resources, servingasleadersintheefforttobring improve thecoordinationofcriminaljustice several ways.Inthefirstplace,governorscanhelp 113 112 States can increasingly outmodedbenefitsystems. helping citiesreignintheskyrocketingcostsof pension benefits,wouldbeimportantfirststepsin dates—and whoultimatelypays—municipalemployee transparency inthesystemregardingwhoman- their employees,forinstance,aswellprovidingmore renegotiate retirementandhealthcarepackageswith curb expenditures.Givinglocalitiesgreaterlatitudeto nonprofit institutionsweretaxable. would collectiftheiruniversities,hospitals,andother a setpercentoftheprojectedpropertytaxesthey Connecticut, payingcitiesandothermunicipalities lieu-of taxes(PILOT)program,likethatemployedby cities. Theymight,forexample,createapayment-in- special attentiontotheneedsoftheirstruggling school) aidinamorepredictableandfairway, with could alsodoabetterjobdistributinglocal(non- unproductive competitionforretailandfirms.States sharing amongneighboringjurisdictionssoastolimit tax, aswellallowing—andincentivizing—revenue of fees)sothattheyarenotreliantontheproperty enue sources(suchasexcisetaxesandvarioustypes localities moreflexibilitytodeveloplocaloptionrev- carious revenuesituations.Theseincludeproviding oftenpre- several things,firstofall,tobolstercities’ ing field”betweencitiesandsuburbs.Statescoulddo they operateand,intheprocess,help“levelplay- sion, statescanimprovethefiscalmilieuinwhich for controllingcostsandstreamliningserviceprovi- States canalsoplayamajorroleinhelpingcities While localgovernmentsneedtotakeresponsibility While astrongdowntown doesn’tnecessarily it’s certainly aprerequisite for success. it’s certainly assure astrongcitywideeconomy, a studyof44U.S.citiessawtheirdowntownpopula- example, nineof12olderindustrialcitiesincludedin eral olderindustrialcities:From 1990to2000,for revival indowntownsacross America, includingsev- Over thepast15years,therehasbeenanamazing Invest indowntownrevitalization between citiesandregions. both thephysicalandeconomicconnections have aclearcompetitiveadvantage,andenhancing supporting industrieswherecitiesandtheirmetros investments designedtorenewthedowntowncore, existing economicstrengths—bymakingtargeted to accomplishthisisbuildoffthesecommunities’ and otheroldercommunities.Themosteffectiveway that focusesexplicitlyonreinvigoratingtheircities Second, statesneedaneconomicdevelopmentplan Build onEconomicStrengths example, that2percentof all metropolitanresidents market revitalizationthatsets aconcretegoal—for information todevelopalong-range strategicplanfor business, andcommunityleaders canthenusethis condition ofitsinfrastructure,etc.Localgovernment, taxes, thestructureandstateofitstransitsystem, politan economy, itscontributiontolocalgovernment downtown jobsandbusinesses,itsroleinthemetro- the downtown,includingnumberandtypeof seed fundingtohelpcitiesundertakeadiagnosticof the core. At themostbasiclevel,thiscaninclude “set thestage”tobringpeopleandbusinessesback for success. As such,it’s vitalthatstateshelpcities a strongcitywideeconomy, it’s certainlyaprerequisite effect onsurroundingneighborhoods. employment, andcanhaveapositive“spillover” While astrongdowntowndoesn’t necessarilyassure residents andbusinesses. struggling tokeepandattract even incitiesthatareotherwise up demandforurbanliving tion increase,indicatingapent- and eventuallyoffices increase inretailestablishments ing inturnhelpsfuelan boost inpopulationandhous- 116 115 This 47 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES V. A STATE AGENDA FOR REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES 48 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM V. A STATE AGENDA FOR REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES most pollutedcity. government namedChattanoogathenation’s thefederal In 1969, Story The Chattanooga theurbancore. vigorate helpfromthestate—torein- ofcityleaders—with onthepart effort innovative wastheresultofaconcerted, but rather by happenstance, of thisanalysis). W Story TheChattanooga The RoadtoRecovery: dents employed tumbled 28percent. inmanufacturing thenumber ofresi- 38percentthedecadebefore, growing nearly allowed itspopulationtoincrease. area, doubled itsgeographic whichmorethan andaggressive annexationefforts, the1970s, during employment substantialgainsinitsmanufacturing ued toexperience on thetwo indices. and “strong” of theothersixwere somecombinationof “moderate” andallbut one Residential Economic Well-Being Performance Index, onboththeCityEconomic Performance Indexandthe ers 11were strongperform- ofthedecade: over thecourse their peers and/orresidentialwell-being thatoutpaced thoseof performance from1990to 2000: “list” 17ofthe302citiesindatasetwere able tomove offthe fact, Chattanooga hadbecomeaRustBelt cityinthemiddleofSun thedecade. than 10percentofitsresidentsduring citieswithapopulationof morethan100,000tolose 18 U.S. thecitywas oneofonly Infact, andresidentsfled: growth stagnated, Chattanooga was one of these strong performers.This wasn’tjust Chattanooga wasoneofthesestrongperformers.This yte18s oee,Catnoawsi ulfe-al After Chattanoogawasinfullfree-fall. however, By the1980s, aeCals AYakima,WA Waco,TX improvementsAll 17ofthesecitiesexperienced intheireconomic OH Toledo, MO Joseph, St. KY Louisville, LA Lake Charles, Spokane,WA LA Lafayette, CO Pueblo, LA Monroe, MN Duluth, AL Mobile, IL Chicago, Chattanooga,TN MI Battle Creek, IN Anderson, OH Akron, nn a osge otercreteooi tts In economicstatus. in noway consignedtotheircurrent hile the challenges may be steep, older industrial citiesare olderindustrial hile thechallengesmay besteep, 118 117 u hl it n eeirtn,thecitycontin- anddeteriorating, But whiledirty (See SectionIIfor amoredetaileddescription 120 By 1990, 119 Employment than 7percent. anditsnumber ofdowntown residentsrose more over thedecade, Chattanooga’s overall populationincreasedby 2percent Meanwhile, $120 million 21st Century $120 million21stCentury Waterfront Plantomake thedowntown onthenextphaseofwaterfrontredevelopment—a embarked fromdowntown. acrosstheriver urban waterfrontpark andanew downtown hotels, thecityaddednewhousing, the decade, therestof America.Throughout inNorth bridge longest pedestrian the Walnut wasreopenedasthe StreetBridge In1993, in 1992. the 1980sandputthemintoaction.The Tennessee opened Aquarium toimprove localschools. atefforts hard atwork were also meanwhile, Localphilanthropicleaders, throughout thecity. tocreateaffordable housing called for thecreationofaneweffort But tothecity. Vision 2000also visitors toattract town aquarium ofadown- Chattanoogaandtheconstruction downtown andNorth vation ofthe linkbetweenWalnut asapedestrian StreetBridge theplancalledfor thepreser- Amongotherthings, Vision 2000plan. related projectsdesignedtorevitalize thedowntown. ofwaterfront- ofa series thefirst creation ofthe Tennessee Riverpark, Chattanooga’s coreasset—itswaterfront—andrecommendedthe Tennessee River.The Task Forcerecognized theinherentvalueof alongthe withdeveloping aplanfor a22milecorridor charged thisgroupwas Foundation, ment andfundedby theLyndhurst Moccasin Bend Appointedby thecountyandcitygovern- Task Force. 18 percent (compared to 23 percent in the older industrial cities). 18 percent(comparedto23intheolderindustrial hadfallenbelow rate andthepoverty cities), the 65olderindustrial had reached$32,000peryear (comparedtojustover $29,000in Medianhouseholdincomeby 2000 cities). cent intheolderindustrial cities) andpercapitaincomegrew21percent(comparedto7per- cent (whiledroppinganaverage 8percentinthe65olderindustrial employment inthecityincreased17per- From1990to2000, cities. economically weakest offthelistofcountry’s itselfright formed But notfor long. Belt—and wasoneoftheweakest citieseconomically inthecountry. h eugnehscniudaae n20,Chattanooga In2002, hascontinued apace. The resurgence tookthebestlaidplansof Chattanoogaleaders the1990s, During alsoledtothe development ofthe partnership A public-private 1980swiththecreationof beginsintheearly The story So whathappened? ytebgnigo h e etr,Chattanoogahadtrans- By thebeginningofnewcentury, 122 121 grew by over 26percent. industries accommodationsandfood service hospitality, jobs inleisure, while jobsinHamiltonCountydeclinedby 22.5percent, facturing thenumber ofmanu- Between 1990and2004, of thelocaleconomy. technology. onhydrogen fuelcell working academicresearchcenters several andisoneof The SimCenterfocuses oncomputationalengineering of the University Tennessee atChattanoogafromMississippiState. theSim Centertocome successfully recruited local university cityofficials andthe In2002, relatedtonewtechnology. industry urbanschools. aroundunderperforming for turning hasbecomeanationalmodel namedafteralocalfoundation, Initiative, education andneighborhooddevelopment inthecity.The Benwood foundations andthegovernment have togetheron alsobeenworking fundedthroughanewhotel/moteltax. was primarily thepublic shareoftheproject contributions; funded throughprivate halfoftheprojectwas While thecityfacilitateddevelopment, includingthe Tennessee venues, andcultural expand parks Aquarium. and createadditionalhousing, moreaccessible, side oftheriver town area.” down- to Chattanoogaanditsvibrant decision arenewalof “our commitment Blue CrossShield’s CEOcalledthe Inits2004announcement, there. ters building anew$300 millionheadquar- employer—is now inthemidstofa Tennessee (BCBST)—thecity’s largest BlueCrossShieldof town, alocationoutsideofdown- sidering Andafterinitially con- in thecity’s core. together theynow 5,000 employ nearly consider leaving thedowntown area, both CIGNAandUnum Provident to inthelate1990scaused thoughmergers Forexample, employers. andhave major helpedthecitytoretainseveral jobs inothersectors, the downtown have alsoallowed Chattanoogatoretainandgrow With all this development, tourism has become an important part hasbecomeanimportant tourism With allthisdevelopment, stepstoward Chattanoogahastaken recruiting thefirst Finally, local projects, infrastructure In additiontothesetransformative 124 123 New public and private investmentsNew public andprivate in port alongtheway: port through four significant governors—have contributed fundingandsup- stateofficials— forces behindChattanooga’s turnaround, the primary ht oee te h hlegs change however steepthechallenges, that, itshows though, Mostimportantly, effort. ents toasuccessfulreform arekey ingredi- andstrongpartnerships afocus onassets, approach, • • • were andbusiness leaders philanthropic, While localgovernment, • Chattanooga’s how acomprehensive renaissancedemonstrates h tt eateto rnprain afterinitialresistanceto of The stateDepartment Transportation, The stateof Tennessee provided directfundingfor boththeinfra- highway tocitycontrol over eventually turned akey the city’s newwaterfrontplans, related tothe21stCentury Waterfront the surrounding structure Tennessee andfunding Aquarium local hotelmoteltax by anewstate-approvedWaterfront Plandebtissupported the aspreviously noted, financing basedonsalestaxrevenue and, ice ontheSouthsideprojectwasfundedthroughtaxincrement Debtserv- the Waterfront Planwastheresultofstatelegislation: University of University Tennessee. ofthe between thecityandlocalbranch direct partnership Funding for boththedevelopment ofdowntown’s Southsideand Efforts to recruit andgrow theSimCenterareresultofa torecruit Efforts is possible. 49 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES V. A STATE AGENDA FOR REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES 50 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM V. A STATE AGENDA FOR REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES town areas. versity andcommunitycollegecampusesintodown- look foropportunitiestoexpandtheirsuburbanuni- tions forstate-ownedofficesandfacilities,aswell do—that downtownsbegivenfirstpriorityasloca- should alsorequire—asMichiganandPennsylvania edge intoaconcreteplan need toparlaythisknowl- communities. Statesthen development inolder attraction andcluster associated withbusiness the uniqueopportunities—andchallenges— location ofpotentialcompetitiveclusters,including states undertakearigorousanalysisofthetypeand their surroundingregions.Thisfirstdemandsthat in industriesthatwillfuelprosperitycitiesand and entrepreneurialism,mustencouragegrowth their parttocreateaclimatethatfostersinnovation economies inavacuum.Stateleadersneedtodo from thelatestnationalfad. and thatbuildsfromlocalnichesratherthanborrows firms andjobsratherthansimplyattractingthem, nomic developmentthatfocusesoncultivatingnew needed insteadisanewandimprovedbrandofeco- schemes ortaxincentiveprograms,however. What’s too powerfultobemitigatedbysmokestackchasing it. Thesecitieshavebeenupagainstmarketforces and lookingforthenextbigthingthatcouldreplace manufacturing andthehighpayingjobsitprovided, cities havebeengrapplingwiththedeclineofheavy For severaldecades,alargeshareofolderindustrial niches competitive andmetros’ Focus oncities’ are keypartnersintherevitalizationprocess. nity collegeslocatedinornearthedowntowncore area, andensuringthatstateuniversitiescommu- ture—from transittobroadband—inthedowntown “big ticket”realestateprojects,upgradinginfrastruc- the plan,providinggrantsandloanstounderwrite reach it.Statescantargetinvestmentsaccordingto programs thepublicsectorshouldinvestintohelp live downtown—andidentifiesspecificprojectsand But localgovernmentscan’t remaketheir 125 States allow workersinhighcostregionstotakeadvantage located intheorbitoflargerhubs.Suchlinkswould expanding railservicebetweenolderindustrialcities tion dollarscouldbewellspentoncreatingor nections, intwomajorways.First,statetransporta- to advancetheirwiderregionaleconomy. industry relationshipswithothernearbycommunities or New York, aswellbuildingtighterworkforceand opment inthrivingmetropolitanareassuchasBoston advantage ofstrongjobmarketsandexpandingdevel- physically andeconomically. Thisincludesbothtaking to “connectup”withothercitiesandregions,both Older industrialcities,finally, havearealopportunity Enhance theconnectivitybetweenregions cialization. the rateoftechnologytransferandproductcommer- venture capitalnetworks,andfoundationstoincrease private businesses,commerciallendinginstitutions, the combinedresourcesofeducationalinstitutions, Zone (KIZ)programspecificallyfocusesonaligning Commonwealth, whileitsnewKeystoneInnovation develop technology-drivenenterprisesinthe resources toanumberofcollegesanduniversities the statehaveforovertwodecadesprovided (BFTP)fourregionalcentersin Technology Partners’ Pennsylvania, forexample,theBenFranklin to inspirerisk-takingamonglocalentrepreneurs.In supports—such asstate-fundedincubatorfacilities— in goodsproduction;orprovidingfinancialandother long-standingprowess could takeadvantageofcities’ investing inadvancedmanufacturingindustriesthat uct developmentinuniversitiesandmedicalcenters; programs topromotecutting-edgeresearchandprod- might include,forexample,creatingandsupporting capitalize onthoseexistingstrengthsandniches.This to re-alignexistingeconomicdevelopmentdollars States canhelpcitiesandregionsforgethesecon- fodridsra iis moreaffordable housing, of olderindustrialcities’ expand employmentopportunitiesforexisting older industrialcityresidents,aswellfacilitate the abilityofsmall-andmid-sized citiestoserve as backofficeorsatellitelocations forhead- quarters locatedanhouror twoaway. Such connections couldbeparticularly beneficialfor through state-wideeconomic analyses—likethat within. Statescanpromote suchcollaboration and infrastructureneededto supportthem—from strong networksofrelated firms—and theinstitutions nomic regiontoprospectivefirms,aswellgrow instead workcooperativelytomarketthewidereco- competing, neighboringmetropolitanareascan plement andreinforceoneanother. Thusratherthan nities andtheirinstitutionsdevelopnichesthatcom- both withinandacrossstatescanhelpthesecommu- strengths, collaborationandplanningamongregions naturally mustworktoleveragetheirownunique tories andassets.Whileindividualcitiesregions among citiesandregionswithsimilareconomichis- Philadelphia. are workingtoexpandtheirtiesNew York and for citiesintheLehighValley inPennsylvania that New BedfordandFall River, inMassachusetts,and L Partnership Hartford-Springfield For more information: www.hartfordspringfield.com/ www.hartfordspringfield.com/ For moreinformation: cies andinvestments thatcanpositively impactthecorridor. aswell aslobbies for poli- focused onbuilding the regionaleconomy, research sponsors organization amongotheractivities.The shows, andexhibitingattrade for consultantsandbusinesses, hosting tours andother assets, cultural, educational, onitseconomic, information ofinnovation—by providing andhistory ofuniversities concentration for its ing theregion—dubbed “New England’s Knowledge Corridor” hasfocused onmarket- thepartnership Sinceitsinception, assistance. andsecure federal andinfrastructure, invest intransportation omy, theregionalecon- togethertobuild andmarket resources andwork pooltheir communities—which arelocatedonly 25milesapart—to istohelpthesetwo ofthepartnership purpose Partnership.The Economic theHartford-Springfield together in2000toform came andgovernment leaders educational, economic development, business, areapolitical, Recognizingthispower, and spanstwo states. 1.9million people powerful economicregionthatishometonearly and MAtogetheranchoralarge CTandGreaterSpringfield, Hartford, States canalsoencouragestrongerrelationships n omnidsra n utrlhrtg,Greater heritage, andcultural and acommonindustrial asharedairport, 91, Interstate inked by theConnecticutRiver, crosses statelines. spatial organizationoftheeconomy, evenwhenit agencies andprogramstobetteralignthemwiththe Moreover, statescanidentifywaystoreorganizetheir economies, butthespecialstrengthsofotherareas. regions betterunderstandnotonlytheirown described above—thathelpindividualcitiesand ketable sitesfordevelopment. turn vacantandabandonedpropertiesintomar- turnaround, andgivecitiesthetoolstheyneedto ects thathavethepowertotrulycatalyzeamarket cities andolderareas,investinafewlarge-scaleproj- resources onupgradingcrumblinginfrastructurein ingly. To thisend,stateleadersneedtofocustheir investments andamendantiquatedpoliciesaccord- ences ofthechangingeconomy, andthentargettheir assets ofcitiesthataremostalignedwiththeprefer- that statesrecognizeandleveragethosephysical A truecommitmenttourbanrevitalizationdemands Landscape Transform thePhysical particular communities. investments soastohelprestore theeconomiesof of existinginfrastructure,but alsoprioritizingthose include notonlytargetinginvestmentstowardareas money, andenhancetheirexistingassets.These their limitedinfrastructureresourcestobothsave how statescanmostefficientlyandeffectivelyutilize Association offersaseriesofrecommendationsfor Ohio, and$8.1billioninPennsylvania. to be$12.8billioninNewJersey, $8.7billionin wastewater systemsalone,forexample,isestimated of theirlifespan.Thecostneededimprovementsto and roadsystemsinthesecitiesarereachingtheend their aginginfrastructure.Manysewer, water, transit, states helpplanforandinvestinmajorupgradesto locations forbusinessesandfamilies,it’s vitalthat In orderforolderindustrialcitiestobecompetitive Fix itfirst achieve thesegoals,however, statesfirstneedto A recentissuebriefbytheNationalGovernors 127 This issoundadvice.To 126 51 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES V. A STATE AGENDA FOR REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES 52 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM V. A STATE AGENDA FOR REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES ment. it, freeingupnearly20acres oflandfornewdevelop- Thruway in2003andrestore thestreetgridbeneath ple, spent$45milliontobring downtheEastPark district, amongotheractivities.Milwaukee,forexam- wharf intoabustlingshoppingandentertainment ing alargepublicpark,orturninganabandoned way thatcutsacityofffromitswaterfront,redesign- include, forexample,tearingdownanobsoletehigh- alytic effectonurbanredevelopment. transformative investmentsthatcanhaveatruecat- they startthinkingcreativelyagainaboutthekindsof distinct. undermined thedensityandvitalitythatmadethem ple andbusinesses—andinsomecaseshaveactually nomic andphysicalvoidsleftbytheoutflowofpeo- and programsthathavedonelittletofilltheeco- incremental, andoftenpoliticallyexpedientprojects half century, citieshavefocusedmoreonsmall, physical developmentofourcities.Butoverthepast Robert Moses—powerfullyshapedandreshapedthe Frederick LawOlmstead,orforbetterworse, unbridled ambition—thinkDanielBurnham, Urban historiansoftenrecounthowboldvisionsand Invest incatalyticdevelopmentprojects ownvisionsandplans. palities’ existing transitfacilities,inaccordancewithmunici- tives toredevelopandrevitalizecommunitiesaround Transit Village Initiative,forinstance,providesincen- ning andeconomicdevelopmentgoals.NewJersey’s infrastructure systemsalignwithneighborhoodplan- tion, maintenance,andreplacementofdeteriorating hensive plansoutlininghowtheopera- also requirethatcitiesdevelopcompre- climate inolderareas.Theyshould reallocated toimprovetheinvestment for determininghowtheymightbe going, anddevelopstrictcriteria assess wherecurrentdollarsare services andsystems. boring jurisdictionstoshareoverlappingorredundant incentivizing cooperativeagreementsbetweenneigh- should examineopportunitiestoreducecostsby Reinvigorating olderindustrialcitiesdemandsthat 130 And thecontinueddevelopment of 128 Finally, states 129 These might attraction. Aug Park intoasignificantlocalamenityand regional $1.9 millioninvestmenttoturnitsdeterioratingNay that oftenreceivestateinvestments. puses, andotherfacilities(e.g.,museums,stadia) siting ofstateofficebuildings,publicuniversitycam- above, bymakingsmartdecisionsonthedesignand States canalsocatalyzelocalmarkets,asnoted tion acrosscities.Thiswould goalongwayin ria tofacilitatecollectionand promotestandardiza- state-established definitions anddatacollectioncrite- ing, taxstatus,marketvalue, andownership—using sites—including informationontheirlocation,zon- collection ofparcel-basedinformationonthese vide fundingtoalllocalgovernmentsfortheon-going abandoned propertiesovertime.Statesshouldpro- develop systemstoinventoryandtrackvacant the firstplace,statesareinaprimepositionto ment opportunitiesforthenear- andlong-term. In and turnexistingliabilitiesintomarket-readydevelop- can helpcitiescopewithvacancyandabandonment, property values. at thesametimethattheyactasadragonproximate often contaminated,lotsthatarecostlytomaintain with thousandsofabandonedbuildingsandvacant, vibrant neighborhoodsandindustrialareasareleft their physicalfootprintshavenot.Instead,once base hascontractedoverthepastseveraldecades, residentialandbusiness While olderindustrialscities’ Create marketablesites and implementspecificpriority“impact”projects. state programsandservicestohelpcommunitiesplan gram, forexample,targetsthedeliveryofmultiple Pennsylvania’s Community Action Team (CAT) pro- projects designedtostimulateprivateinvestment. portation, andotherfundstowardlocallyidentified strategically targetingeconomicdevelopment,trans- States haveanarrayoftoolsattheirdisposalthat 131 States cansupportsucheffortsby difference, asevidencedbyScranton’s Baltimore’s InnerHarborisonethe most well-knownexamplesofalarge- scale waterfrontredevelopmentproj- ect inthecountry. Butevenless expensive projectscanmakeabig 132 redevelop blightedurbanareas. limited andappropriateuseofeminentdomainto them forfutureuse;and(4)continuingtoallowthe to gaincleartitlevacantpropertiesandassemble banks—as Michiganhasdone—thatallowlocalities program; (3)enablingtheestablishmentoflocalland ronmental remediationtax-increment-financing(TIF) insurance program(likeMassachusetts’),oranenvi- brownfields development,suchasanenvironmental ownership; (2)developingnewtoolstopromote tems cansitidleforyearsbeforethecitytake of delinquentproperties,whichundercurrentsys- sure lawstoexpeditetheacquisitionanddisposition include: (1)reviewingandreformingtaxlienforeclo- redevelopment ofunderusedsites.Thisshould also thenfocusonwaystoencouragelarge-scale assemble andredevelopvacantlots.Statesshould helping citiesidentifyandtrackopportunitiesto land bankauthorities. torevitalizeare now theircommunities working throughtheirown through taxforeclosure—seven othercountiesthroughoutthe state area ithasacquired inFlintanditssurrounding 4,000 properties tofoster thereuseofoverGenesee County—whichhasworked pdpoete,amongotherthings. oped properties, andselltheredevel- newbuildings; orconstruct rehabilitate, demolish, parcels; buy andassemble landintolarger revenue; bonds toraise land banksinthestatenow have thepower moneyorsell toborrow Packaged withfour additional Acts, them backintoproductive use. and redevelop vacantandabandonedlandbuildings andput assemble, abilitytoacquire, greatly facilitatinglocalgovernments’ ties, onproper- themtoexpeditetitleclearance andpermitted authorities tion explicitly enabled thecreationofcityandcountylandbank thislegisla- ontheGeneseeCountyLandBank Authority, part large and signedintolaw Modeledin theLandBankFast Track Legislation. ,00.html www.michigan.gov/cis/0,1607,7-154-34176--- For moreinformation: I State ofMichiganLandBankF tisan Michigan Land Use Leadership Council’s recommendation tisan MichiganLandUseLeadership n January 2004, Michigan Governor Granholm adoptedthebi-par- MichiganGovernor Granholm 2004, n January 134 ast T 133 Following theleadof rack Authority ing inpoorneighborhoods. reduce thehighcostburdens sufferedbyfamiliesliv- take moremoneyhomeattheendofday, and the vocationalskillsofresidents,ensurethatworkers To thisend,statesmustworkwithcitiestoimprove in otherwords,growingthemiddleclassfromwithin. nities andwealthoftheirexistingresidents—without, working toalleviatepovertyandincreasetheopportu- Older industrialcitiescannotgetaheadwithout and growinghighendjobs.Butthisisn’t enough. residents byimprovingschools,upgradingamenities, make thesecitiesmoreattractivetohigherincome the familieswholivethere.Onewaytodothisis necessarily meansimprovingtheoverallincomesof Improving theeconomiesofolderindustrialcities Grow theMiddle Class I Assistance Fund The CleanOhioRe o oeifrain www.clean.ohio.gov/ For moreinformation: cleanups at126abandonedandpollutedsites. theFundhashelpedadvance sinceitsinception, Advocates say that, as theamountandtypeofinvestment theapplicantisproviding. as well andbenefits communities, tolow-income andminority ments, environmental improve- based onthepotentialeconomicbenefits, selectsthestrongestprojects ofDevelopment, the OhioDepartment chairedby thedirectorof funds eachyear.The CleanOhioCouncil, canapply for the withagovernmental entity, incooperation working aswell asnonprofit orfor-profit groups districts, andconservancy ties, authori- port Localgovernments, brownfieldsand underutilized sites. andredevelopment ofthestate’s many vacant cleanup, evaluation, ing thestatetoinvest upto$200millionfor activitiesinvolving the allow- and CleanOhio Assistance Fundrepresenthalfofthisinitiative, CleanOhioRevitalizationFund brownfields toproductive use.The urban aswell astoconvert areas, of thestate’s andnatural farmland create the$400millionCleanOhioFundtofundpreservation n November 2000, Ohio voters approved Ohiovoters aballotreferendum to n November 2000, vitalization Fund/CleanOhio 136 135 53 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES V. A STATE AGENDA FOR REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES 54 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM V. A STATE AGENDA FOR REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES ready employeestheyneed to succeed. ways togoodjobs,andhelp businessesaccessthejob- can helplow-incomeworkers establishcareerpath- Ohio, Pennsylvania, andCaliforniahavedone—that ation andgrowthofworkforceintermediaries—as area. Finally, statesshouldinvestdirectlyinthecre- within thecityandthroughoutwidermetropolitan direct connectionswithpotentialemployersboth working opportunitiesthatcanhelpstudentsmake should includeinternship,apprenticeship,andnet- ness groups,andprivatesectorintermediaries and on-goingcollaborationwithindustryleaders,busi- clusters. Theseprogramsshouldbedesignedinclose such ashealthcare,orinspecificregionalindustry the “hard”skillsrequiredforjobsingrowingsectors expand programstohelpinner-city workersdevelop nity colleges,andfour-year universities—tocreateor including vocationalandtechnicalschools,commu- resources toalltypesofpost-secondaryinstitutions— tomer service.Statesshouldalsoprovidetargeted focused on“soft”skillslikeproblemsolvingandcus- English asaSecondLanguageinstructiontosessions basic computersoftwareprogramstoVocational workplace. Thesecanrangefromclassesonuseof employed—the basicskillsneededtosurviveinthe new immigrants,thechronicallyun-orunder- teach newandhard-to-employworkers—youngadults, ments andnonprofitstodesignfundprograms dents. First,statesshouldteamupwithlocalgovern- expanded tobetterservetheneedsofinner-city resi- workforce deliverysystems.Theseeffortsshouldbe has spurredstatestostreamlineandenhancetheir to regionaljobopportunities. industry needs,aswellprovidedirectconnections offer jobtrainingprogramsthatalignwithlocal opment ofstate-of-the-artworkforcesystemsthat forming K–12schools.Butitalsorequiresthedevel- keep qualityemployment.Thisbeginswithhigh-per- have theeducationandskillsneededtoattain idents, includingmanyrecently-arrivedimmigrants, cities firstandforemostrequiresthatlow-incomeres- Growing arobustmiddleclassinolderindustrial they needtocompete Give residentstheskillsandconnections The 1998federalWorkforce Investment Act (WIA) 137 even withthefederalEITC. A stateEITCequalto year fallsabout$276below thefederalpovertyline, Policy Priorities, afamilyoffourearning$14,600per (EITC). According totheCenteronBudgetand version ofthefederalEarnedIncomeTax Credit the leadof19statesthathaveenactedtheirown few keyways.To beginwith,allstatesshouldfollow than ever. model forprovidingsuchsupportismoreoutofdate include full-timeworkers,theold“welfareoffice” because agrowingnumberoflow-incomefamilies that helpthemkeepmoreofwhattheyearn.But good jobs,butthattheyaresupportedbyprograms poverty requiresnotonlythattheyareabletoaccess The abilityofmanycityresidentstomoveout Make workpayforlow-incomeworkers G P Career Ohio o oeifrain www.kwfdn.org/adult_learning/career_pathways/ For moreinformation: higher-wage occupations. andultimately helpthementerhigher-skilled, low-income workers, educationalattainmentlevels of will helpincreasethepostsecondary thehopeisthatCareer Pathways intermediaries nascent effort, training for program coordinators andteammembers. coordinators for program training including cal assistanceandcapacitybuilding for the partnerships, costsandfor techni- Fundingisusedfor operational force education. work- asystem-wideapproachtopostsecondary ensuring agencies, andgovernment providers, socialservice employers, technical schools, adultbasiceducationprograms, development systemrepresentatives, institutions—includeworkforce which aremanagedby postsecondary developmentare managedby agenciesandfour localworkforce of ofwhich Eachofthesixpartnerships—two additional partnerships. mitted anadditional$300,000ayear tocreatethree for threeyears laterthatyear theGovernor’s Workforce Policy Boardcom- careers; advancetheir with helpingunemployed andlow-wage workers charged partnerships the establishment ofthreeintermediary-led KnowledgeWorks initially launchedtheprojectwith Pathways Project. with theKnowledgeWorks Foundationtodevelop theOhioCareer begancollaborating in2005Ohiopolicymakers and technicalschools, States candotheirparttohelpthesefamilies,ina between thestate’s anditscommunity colleges labormarkets rowing outoftheneedtobreakdown thedisconnect 139 athways Pr athways oject 138 While stilla dollars forlowincomefamilies. can adduptohundreds,sometimes thousands,of ularly acuteinmanyinner-city neighborhoods,and furniture andappliances.Thesedisparitiesarepartic- at least1.6millionpaidtoomuchforbasicgoodslike about 4.5millionpaidmorefortheirautoloans,and paid higherthanaveragepricesfortheirmortgage, nearly 4.2millionlow-incomehouseholdsnationwide that somanylow-incomefamiliesshoulder. In2005, industrial citiesistoreducethehighcostofliving A finalsteptowardbuildingamiddleclassinolder urban areas Reduce thecostsofbeingpoorin public benefits,andasset-buildingresources. preparation andaccesstotheEITC,othertaxcredits, laborative of17organizationsthatprovidesfreetax Philadelphia’s CampaignforWorking Families, acol- Philadelphia) hasprovidedfinancialsupportto For instance,Pennsylvania (alongwiththeCityof and applicationforotherwork-supportprograms. extended theireffortstoincludeoutreach,screening, federal taxcreditsliketheEITC,buthavenow began byconductingoutreachtofamilieseligiblefor fits forworkingfamilies.Manysuchorganizations profit organizationsthatfacilitateaccesstokeybene- Second, statescanprovidemodestsupporttonon- subsidies toapplyforMedicaidonthesameform. for example,allowfamiliesapplyingchildcare eligibility inotherprograms.SomeOhiocounties, information fromoneprogramtoupdate the phone,online,orbymail;andsharingafamily’s grams; permittingfamiliestoapplyforprogramsover renewal periodsandprocessesacrossbenefitpro- and assetverificationrequirements;coordinating ance. Thesemayinclude:reducingonerousincome child careassistance,andsubsidizedhealthinsur- administered benefits,suchasnutritionalsupports, procedures forworkingfamiliestoreceivekeystate- First, theycanadoptmoreflexiblepoliciesand to keypublicsupportsforworkersandtheirchildren. ily’s incomeabovethepovertyline. 15 percentofthefederalEITCwouldbringfam- States shouldalsotakestepstostreamlineaccess 144 140 143 142 141 as educationandhomes. money forinvestmentsinwealth-growingassets,such out-of-pocketexpenses,freeingup urban families’ high schoolstudents. cial literacyclassasagraduationrequirementfor among anumberofstatesthatnowrequirefinan- cial interest.IllinoisandGeorgia,forinstance,are residents makedecisionsthatareintheirbestfinan- demand sideoftheproblembyhelpinglow-income Carolina havedone.Statescanalsotargetthe tory refinancingpractices,asNewMexicoandNorth tions onmortgageprepaymentpenaltiesandpreda- over adozenstateshavedone,andplacingrestric- the interestratesandfeessetbypaydaylenders,as the poor. Effortscouldinclude,forexample,capping ers, autodealers,andothersthatdriveuppricesfor business practicesofmortgagelenders,checkcash- leaders needtocrackdownontheunscrupulous predatory terms. predatory 90 percentofwhichwasduetoareductioninloanswithabusive or almost a substantialdeclineinthenumber ofrefinance originations, from 1998to2000—afterthelaw hadtaken affect—the statesaw Carolina, ofNorth According toresearchconductedattheUniversity cost loanstoreceive financial counselingbefore signingontheloan. andrequiresapplicantsfor high- is nonetbenefit tothehomeowner; prohibitsrefinancing ifthere ofaborrower’ssideration abilitytopay; without con- numerous lendingpractices bars tion ofhigh-costloans; establishes adefini- under$150,000; mortgages penalties onfirst-lien thelaw prohibitsprepayment Amongotherthings, nancing practices. Carolina’s abusive isoneofthefew refi- thattargets North lending, states have enactedstatutestoguardagainsthigh-costmortgage o oeifrain www.responsiblelending.org/ For moreinformation: I Carolina’s North States canplayamajorroleinbringingdown predatory lending laws in the country.While numerous other lendinglaws inthecountry.While predatory n 1999, North Carolinaenactedoneofthemostpotentanti- North n 1999, 147 Anti-Pr 146 edatory edatory 145 In thefirstplace,state Lending Law 55 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES V. A STATE AGENDA FOR REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES Create Neighborhoods neighborhoods. But while these neighborhood of Choice improvement efforts deserve accolades for helping to bring some investment into long forgotten communi- It is now well understood that neighborhoods of con- ties, they have not done a very good job of facilitating centrated poverty—high numbers of which are the creation of mixed-income developments.148 located in older industrial cities—exact significant Affordable housing options in wealthier urban and costs on families, particularly children. Residents of suburban neighborhoods, meanwhile, remain limited these neighborhoods are more isolated from jobs, are in many areas. further removed from social networks, perform worse As neighborhood services and amenities improve, in school, and have greater numbers of health prob- they naturally become more appealing to higher lems than those in more mixed-income communities. income residents who have options in choosing These neighborhoods are also costly for cities, in where to live; these residents in turn help create the terms of both the high service demands, and the lost market for more growth. But states can move this opportunities, they engender. State leaders need to process along by encouraging the construction of focus on developing housing and redevelopment poli- more market-rate housing in inner-city neighbor- cies aimed at turning deprived areas where those with hoods. For instance, several states, including Indiana few options are consigned to live, into high-quality and Massachusetts, now give preference in the allo- communities where people of varying incomes want cation of their Low Income Housing Tax Credits 56 to live. They must also work to preserve neighbor- (LIHTC) to developments that include market-rate hoods before widespread decline sets in. units.149 Such preference can be even more effective if new LIHTC developments are required to be part Support mixed-income housing of a wider strategy for neighborhood revitalization. Over the past several decades, a wide range of fed- Creating mixed-income housing isn’t just about eral, state, and local policies and practices have been attracting wealthier residents to low-income urban designed to combat the well-documented ills associ- areas, but also requires that poor residents have ated with concentrated poverty. Among other goals, housing opportunities in higher income neighbor- these programs have sought to expand the availability hoods regionwide. To this end, states need to evalu- of affordable, quality housing in distressed urban ate where LIHTC developments are located THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM INSTITUTION METROPOLITAN THE BROOKINGS AMERICA’S OLDER INDUSTRIAL CITIES FOR REVITALIZING AGENDA V. A STATE throughout metropolitan areas, and ensure that they New York State Banking Development Districts are being equitably distributed across communities of varying incomes. States should also encourage the earing that they can’t attract enough retail deposits to make implementation of local inclusionary-zoning statutes their business activities worthwhile, banks often avoid locating in to boost the supply of affordable housing units being F underserved urban neighborhoods.To overcome this problem, in built in wealthier communities.150 1998 New York State created the Banking Development District

(BDD) Program, which provides a range of incentives to banks to S OLDER INDUSTRIAL CITIES Grow inner-city markets open branches in neighborhoods with demonstrated need for finan- Nationwide, low-income households collectively have cial services. Under the program, the state agrees to deposit state about $655 billion in buying power, the vast majority funds into banks that expand services and locate in designated of which is spent on basic necessities such as food, Banking Development Districts; the state also provides access to housing, and transportation.151 But traditional below-market public funds, real property tax breaks, and other local income-based market analyses—which typically tax incentives. In doing so, the state aims to expand consumer access underestimate the incomes of poor families, and dis- to mainstream banking, provide enhanced access to capital for local regard residential density—tend to discount the mar- businesses, and ultimately help stimulate economic development in ket potential in many inner-city communities. The designated communities. As of October 2006, 31 BDDs had been upshot is that these communities are often over- approved for official designation by the state, and its success has looked by mainstream businesses, and thus lack made it a national model for other states looking to establish many of the high-quality, lower priced goods and 57 similar programs. services enjoyed by wealthier areas. State leaders need to work with cities and the pri- For more information: www.banking.state.ny.us/bdd.htm vate sector to help struggling neighborhoods attract the retail, restaurants, banks, and other local-serving businesses that prospective residents seek and exist- ing households desperately need. As a first step, states should appropriate resources to help localities Invest in preservation and rehabilitation collect, maintain, and promote more accurate infor- The history of older industrial city neighborhoods is mation about neighborhood market potential through embedded in their rich stock of distinctive housing the use of innovative data collection, mapping, and and streetscapes. But decades of population and busi- other tools. They should then go further to provide ness loss have decimated the former vitality of many revolving loan funds and other financing mechanisms communities, and have left others struggling to to directly support local efforts to attract supermar- remain stable in the face of continued market kets and other retailers to underserved areas, under- decline. These latter “transitioning” neighborhoods standing that such seed money can go a long way in can get caught in a blind spot where they are too helping cities acquire and assemble land, fill in well-off to qualify for many public sector community financing gaps, or make vital infrastructure upgrades development programs, yet too run down to attract and traffic improvements. Finally, states should look new investment. for ways to creatively use existing resources to jump- States can help local governments and nonprofits start local markets. For instance, New York is employ- preserve these urban communities, in a number of ing its substantial depository power to encourage ways. In the first place, state leaders should help pre- AMERICA’S OLDER INDUSTRIAL CITIES IN REVITALIZING ROLE PROSPERITY:RESTORING THE STATE AMERICA’ FOR REVITALIZING AGENDA V. A STATE mainstream financial institutions to enter poor neigh- vent housing abandonment through homeownership borhoods that can’t attract them on their own, essen- counseling programs, and emergency loan, anti-fraud, tially subsidizing these banks by providing both and other laws and tools designed to prevent mort- below-market and market rate deposits. gage foreclosure and keep families in their homes. In Newark, New Jersey: Fixing the Basics for Higher Returns

ike many cities in the Northeast and Midwest, Newark is still Newark and other economically distressed cities in New Jersey over- Lstruggling to overcome the legacy of dramatic industrial decline. come their fiscal challenges, not by presenting an open checkbook— Though located in one of the wealthiest states in the nation, Newark’s the state government has financial challenges of its own—but by total employment fell nearly 4 percent during the 1990s, and in 2000 targeting existing investments more strategically, and revamping laws over 28 percent of all residents lived below the poverty line—more and policies that hamper redevelopment. than double the national average.157 The city also lost a third of its This case study focuses on just one example of how state reform population in the last four decades.158 could help inject new revenue into its older industrial cities, revenue In July 2006, a new administration, headed by Mayor Cory Booker, that could in turn be used to help families and grow their economies. took office and found that Newark’s government had accumulated a The study looks specifically at how New Jersey could better enable its severe structural deficit. From FY2003 to FY 2007, city recurring rev- local governments, particularly Newark, to generate more own-source enues climbed by less than 10 percent, while spending on city police, revenues through three innovative measures. It then demonstrates fire, and other services increased by 55 percent.The end result is a just one way Newark could utilize the additional revenues from these $115.2 million structural budget deficit for FY 2007, and projected reforms—by improving job training opportunities for low-income and gaps of $138.3 million and $186.0 million in FY 2008 and FY2009, displaced workers—and the positive economic impact this could have respectively. on the city (and ultimately the state) as a whole.

58 To head off a financial crisis, the Booker administration and the City Council are putting in place a number of new strategies designed to Fixing the Basics: State Authorization of New Local make government operate more effectively, and to build confidence in Government Revenue Streams the city’s performance with the public, credit and bond rating agen- The state of New Jersey has already targeted much-needed financial cies, and the state.These efforts include reorganizing and streamlining assistance to the city of Newark. In FY2007 alone the state is provid- city departments, using technology to spur productivity, negotiating ing $174.3 million in direct assistance to the city through grants and more favorable labor contracts, improving budget practices, and state aid, $730.1 million in funding to the Newark Public Schools, and implementing sound, transparent financial management polices. millions more in funding for health, human services, and other services While these undertakings are essential to getting the city’s financial provided through Essex County. State-supported investments in the house in order and putting it on the road to economic recovery, they New Jersey Performing Arts Center and infrastructure for riverfront can only do so much.The state, too, has a vital role to play in helping development are also helping to stimulate downtown revitalization. THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM INSTITUTION METROPOLITAN THE BROOKINGS AMERICA’S OLDER INDUSTRIAL CITIES FOR REVITALIZING AGENDA V. A STATE Transitioning neighborhoods can get order to help reduce Ohio’s very high foreclosure rates, for instance, Governor Strickland recently cre- caught in a blind spot where they are ated a Foreclosure Prevention Task Force that is too well-off to qualify for many public tasked with designing a set of foreclosure prevention and intervention strategies to assist homeowners with sector community development distressed mortgages; the state is also offering a new programs, yet too run down to attract refinancing program that will make available an affordable, fixed-rate financing alternative to home- new investment. owners with mortgage loans that are inappropriate for their financial circumstances.152 Second, states should actively encourage the preservation and rehabilitation of aging homes and As important as these investments are, the state can do more to cities’) UEZ designations beyond the initial 20 year designation period. promote the city’s fiscal stability, and ultimately help it to create a In light of the program’s limited success in Newark and across the more competitive cost climate for business and residents. By allowing state, New Jersey should allow UEZs to opt out of the program Newark, and all municipalities in New Jersey, more autonomy in the either in whole or in part. By doing so, sales tax in those areas would

taxes and charges they levy, the state will be able to promote increase from the current rate of 3.5 percent to the normal state rate S OLDER INDUSTRIAL CITIES Newark’s recovery without decreasing the amount of revenue the of 7 percent.The catch? In exchange for opting out of the program, state collects or increasing its intergovernmental aid to municipalities. the city would be able to retain the revenue generated from the Below are three potential revenue sources that are directly applicable additional 3.5 percent sales tax in the UEZ area for a designated to Newark and also have varying degrees of applicability to other number of years. Under this scenario, the state is not ceding revenue municipalities in New Jersey. to the city since this revenue is currently not being collected by the Urban Enterprise Zone Opt Out. New Jersey’s Urban state.159 The fiscal impact of implementing this “opt out” option has yet Enterprise Program was created in 1983 to encourage retail activity in to be determined. distressed urban areas. Under the program, a city that met certain cri- Personal Property Tax on Containers. The city of Newark is teria for economic distress would have a portion of its major indus- also home to Port Newark. Operated by the Port Authority of New trial and commercial areas declared an Urban Enterprise Zone (UEZ) York and New Jersey, the port is a part of the largest and most com-

by the state. Qualified businesses within each zone would be able to prehensive collection of maritime cargo handling facilities on the east 59 decrease the state sales tax they charged on purchases by 50 percent, coast of North America.160 and a portion of the sales tax revenue generated by these UEZ busi- The Port Authority of New York and New Jersey currently has an nesses would then be reinvested into the city. In 1984, Newark import-export ratio of 2.6, meaning that, in 2005 alone, over 1.4 mil- became one of the original 10 municipalities to have a designated lion more 20-foot equivalent containers (TEUs) were taken into its UEZ in the state. ports than were shipped out.161 Some of the containers coming into After over two decades, however, the impact of the UEZ program Port Newark are transported away from the port by rail or shipped on Newark’s commercial health seems questionable at best: Studies from the port empty of goods. However, given the high cost of trans- have shown, in fact, that on a local level the lower tax rate and subsi- porting empty containers, large numbers of empties are stored in the dies offered by UEZ programs have not tended to affect business area surrounding port for indefinite periods of time.This long-term location decisions.Yet the state has extended Newark’s (and other storage causes blight along the port area of the city, discourages (continued on page 60)

commercial areas. For example, all states should fol- est loans and small grant funds to help low-income low the lead of New Jersey, Maryland, and others that homeowners and small business owners make neces- have adopted new building codes that encourage the sary repairs, upgrades, and other physical improve- rehabilitation of existing structures by allowing ments. Such programs can be a relatively inexpensive greater flexibility in construction standards without way to both improve the quality and livability of dete- compromising basic safety.153 State leaders should riorating properties, as well as enhance the aesthetics also pass legislation authorizing state historic tax of urban neighborhoods. RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES IN REVITALIZING ROLE PROSPERITY:RESTORING THE STATE AMERICA’ FOR REVITALIZING AGENDA V. A STATE credit programs—as 24 states have already done— that give credits to homeowners or developers who restore historically significant properties, many of which are located in urban neighborhoods.154 Finally, states should create programs that provide low-inter- (continued from pqge 59) Newark, New Jersey: Fixing the Basics for Higher Returns

development in the area, and depresses potential property tax rev- Fixing the Basics:The Impact enues by lowering property values of land used by and adjacent to Under New Jersey state law, all municipalities are mandated to storage areas. By imposing a personal property tax of $5 per day for increase property taxes in order to pass a balanced budget.The $30 every TEU stored within the city of Newark, the city would generate million to $76.8 million generated by the revenue streams outlined an estimated $18.3 million annually for every 10,000 TEUs stored above would make it possible for Newark to avoid raising property within the city limits to offset those impacts and potentially discour- taxes, saving the average Newark family between $700 and $1,900. age future container storage growth.162 Due to the inelasticity of stor- These revenues, combined with the savings expected from the ing port containers, and the prominence of the Port Authority of Booker administration strategies discussed above, could help close the New York and New Jersey, minimal harm to the port’s business is city’s budget gaps, in a manner far less corrosive than sweeping prop- assumed. erty tax increases. Local Rental Car Tax. Newark Liberty International is the Once fiscal balance is achieved, there would be many uses for this country’s 13th busiest commercial airport.163 In 2006, 35.7 million pas- revenue—from much-needed investment in infrastructure to public sengers passed through the airport; of these, about 11 percent used a safety to workforce training—that would have a direct impact on the rental car service at the Airport.164 Yet among comparable interna- city and its economy. tional airports within 200 miles of Newark, Newark has one of the Take workforce training as an example of one such use. If Newark

165 60 lowest rental car tax and fee structures. leaders applied $10 million of new revenues toward a workforce The state should enable the city to enact a rental car tax that training program focusing on low-income and displaced workers, how could then be utilized to help maintain the infrastructure used by would the community benefit over the near-term? A number of stud- rental cars, a practice common in neighboring airports and across the ies have highlighted the positive earnings differential resulting from U.S. Due to the ubiquity of rental car taxes, as well as Newark’s cur- publicly-funded workforce training. All else being equal, higher earnings rently low comparable rental car tax burden, Newark airport travelers translate into more economic activity, as consumers have greater can likely accept a modest increase in rental car tax rates with mini- resources to purchase a wide range of goods and services.This in mal impact on rental car activity. By imposing a rental car tax ranging turn leads to more businesses and more jobs, extending the eco- between $1 and $5 per day, the city would be able to generate nomic benefits even further. between $11.7 million and $58.5 million annually.

Rhode Island Historic Tax Credit Program THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM INSTITUTION METROPOLITAN THE BROOKINGS AMERICA’S OLDER INDUSTRIAL CITIES FOR REVITALIZING AGENDA V. A STATE nstituted in 2002, Rhode Island’s historic tax credit program has viously, bringing the promise of renewed economic vitality in those Ibeen widely credited for boosting a new wave of rebuilding and communities. One Grow Smart Rhode Island study found that the revitalization of urban neighborhoods.Through the program, home- return on one dollar of state commercial tax credit investment is owners of historic properties can earn state income tax credits equal $5.47 in total economic output; a separate analysis by the group to 20 percent of the cost of exterior restoration work and owners of estimated that 75 percent of all tax credit projects and 83 percent of historic commercial properties can earn a credit of 30 percent of the investment stimulated by the program occurred in economically qualified rehabilitation expenditures.The program, which is adminis- disadvantaged neighborhoods with low- and moderate- family tered by the Rhode Island Historical Preservation and Heritage incomes.155 Commission, has not only helped return properties to the tax rolls, but it has also succeeded in improving public safety and generating For more information: www.preservation.ri.gov/credits/ new jobs and housing in areas where opportunities did not exist pre- Medicaid, Temporary Assistance for Needy Families (TANF), and State Children’s Health Insurance Program (SCHIP). Yet for all this, most state govern- For example, if Newark used its funds on adult workforce training ments have paid little attention as to how much, and programs similar to those funded by the federal Workforce to what end, they are spending on cities and their Investment Act (WIA), the region would see higher employee earn- residents, and how they could be getting far more ings and greater overall economic activity. Using statewide WIA bang for their buck. Instead, they’ve operated under a estimates as a gauge, $10 million would allow Newark to train S OLDER INDUSTRIAL CITIES sort of “woe is them” mentality, seeing cities as fiscal approximately 1,600 residents, who would go on to earn approxi- drains on the state budget, rather than as potential mately $6,000 more per year after receiving training—yielding a grand investment opportunities. States, in short, have fol- total of $9.7 million in additional worker earnings.166 Factor in the “rip- lowed the market in older industrial cities, rather ple effect” such income generates, and this $10 million investment than working to catalyze it—a rational fiscal choice would also generate approximately $6.2 million in additional regional 20 years ago, perhaps, but one that desperately needs earnings and 226 jobs per year.167 Given that tax revenues are largely to change. a function of economic activity, both the city and state governments The above agenda offers a new approach to state would reap substantial fiscal benefits, as well—benefits that would urban policy, one designed not just to cope with city ultimately flow back to the state’s businesses and residents. problems but to stimulate city recovery. If carried out, State authorization of an expanded local revenue base, imple- the potential returns—for families, for surrounding mented at the city’s option, would not absolve Newark’s elected suburbs, for the environment, and ultimately, then, 61 leaders from the need to make difficult choices and take responsibility for the state as a whole—could be immense. for the results of their actions. But such state action would provide In the first place, investing in the revitalization of Newark with a fighting chance to renew itself in an image the city’s older industrial cities will have an enormous effect leaders are working so hard to make real. on the low- and moderate-income urban households who have “stuck it out” in these cities—whether by Source:The PFM Group and TXP168 choice or a lack of other options—even as the cities continued deteriorate around them. While policies and programs aimed at growing the middle class are obviously designed to benefit families directly, improvements in the overall economies of older industrial cities will also flow back to them through a This agenda demonstrates that there is much states virtuous cycle of growth and development that fosters can—and need—do to reinvigorate the economies of the creation of more and better jobs, the stabilization older industrial cities. But not only do states have the of deteriorating neighborhoods, rising home values, power to help energize cities’ revitalization, they also better public school performance, the increased avail- have a strong—if largely unrecognized—rationale to ability of private sector retail, greater public safety, do so. improved municipal services, and an overall enhance- Older industrial cities contain billions of dollars of ment in the quality of city life. This isn’t just wishful state investments in urban infrastructure such as thinking: Recent studies have demonstrated that, roads, transit, sewer and water systems, and public despite many of the fears associated with the gentrifi- facilities. State funding for urban school systems, cation of urban neighborhoods, low-income residents AMERICA’S OLDER INDUSTRIAL CITIES IN REVITALIZING ROLE PROSPERITY:RESTORING THE STATE AMERICA’ FOR REVITALIZING AGENDA V. A STATE community colleges, and public universities makes up do indeed reap benefits from their revitalization, and a large and growing portion of state budgets. And are about as likely to remain in gentrifying communi- states invest substantially—year in, year out—in the ties—or possibly even more so—than those living in low- and moderate-income families who live in these other neighborhoods.156 Cities must make sure that communities, through a variety of programs like they “get out in front” of revitalization so that the benefits actually do accrue to—rather than simply suburbs need to care about their cities—and how displace—the majority of existing residents. But for over the long run they, too, will reap the benefits of cities so long on the decline, the need to manage policies and programs targeted at city revitalization. economic growth and development—and the new Finally, investments in older industrial cities will revenues such growth generates—is surely a good have an enormous environmental payoff, improving problem to have. the attractiveness of these communities for residents and businesses and giving them This agenda offers a new approach to state urban policy, one an opportunity to capture a greater share of regional growth. designed not just to cope with city problems but to stimulate This in turn helps make more city recovery. If enacted, the potential returns—for families, for efficient use of already urban- ized land and existing infrastruc- surrounding suburbs, for the environment, and ultimately, then, ture, curbs sprawl, conserves for the state as a whole—could be immense. woodlands and open space, facilitates the use of public tran- sit (in turn decreasing automo- bile use), decreases harmful emissions, and reduces Restoring the economies of older industrial cities the overall energy needed to heat and cool homes and will also have an impact beyond their borders. Given 62 offices. The hard evidence of these benefits is mount- that over 70 percent of older industrial cities are ing: A recent study by researchers at the Sierra Club located in economically “weak” metropolitan areas, and U.S. Green Building Council on the energy effi- it’s apparent that the fates of cities and their suburbs ciency of high-density urbanism versus energy effi- are closely tied. While it is as yet unclear if the eco- cient home design suggests that even a moderately nomic fortune of one actually drives that of the other, dense development of 12 housing units per acre pro- researchers have increasingly demonstrated the vides significantly higher energy savings than the max- “interdependence” between the two, and the likeli- imum savings accrued through energy efficient home hood of substantial negative and positive “spillover” design at current levels of density. The study also effects from one to the other.169 Myron Orfield, for found that an average urban household uses just 320 example, has shown that problems once confined to million BTUs of energy annually, 120 million BTUs central cities, such as crime, unemployment, and tax- less than the average suburban household.173 As con- base erosion, eventually undercut the stability of the cerns over the economic and environmental impacts suburbs.170 Analyses by Richard Voith, H.V. Savitch of global climate change continue to escalate, invest- and colleagues, and Larry Ledebur and William

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM INSTITUTION METROPOLITAN THE BROOKINGS AMERICA’S OLDER INDUSTRIAL CITIES FOR REVITALIZING AGENDA V. A STATE ment in cities might very well become a central part Barnes have all associated central city decline and of the national discourse on solutions. State leaders wide urban-suburban prosperity gaps with regional ought to be at the forefront of that discussion. stagnation, as measured by slowed income growth; At the end of the day, then, the widespread market Voith also found in a separate study that city employ- recovery of older industrial cities means a more eco- ment growth has a positive impact on suburban hous- nomically secure populace, stronger ing prices.171 Recent research by Hill and metropolitan economies, and a more Brennan, finally, has demonstrated efficient, environmentally prudent use a strong correlation between city of existing land and resources—which and suburban job growth, indicating together add up to produce healthier, that the market for business location wealthier, more competitive states. is regional in scope.172 Together, these Such returns, to be sure, would be studies make a strong case for why evidence of money well spent. ■ omnei hi w ih,pacingdevicesdogive avisualand intheirown right, formance improve theydonotnecessarily cityeconomicper- events.While cultural majornationalandinternational be winningorattracting could for example, Pacing devices, creating momentumintheinterim. Europeans have toolsfor recognized thatpacingdevicesarecrucial the (20to25years), takes ageneration tained economicrecovery the basics. andimproved citygovernance by fixing sector andfutureinvestors; deemed credible by theprivate planningefforts ledstrategic reform; successfully established astrongandunwavering visionfor economic mayors strong andcredible were mayors electedintooffice.These when inurbanreform European citiesreacheda point” “turning E What theU Revitalizing IndustrialCities: increased to€1.5millionbeginningin2007. thesefunds fundsupto500,000Euros, While theEUcurrently activitiesandevents. ofcultural Europe togetherthroughaseries thepeopleof andLille)todraw Helsinki, includedBologna, years where aEuropeanCapitalofCultureisselectedeachyear (previous EUhasalsolaunchedaCityofCultureproject, European cities.The ideasbetween facilitating theexchangeofpolicyandpractice cohesion andphysical reinvestment. social allocatingresources tosupport tance ofurbanareasintopolicy, theEUhascodified theimpor- Atthesametime, social programs. and infrastructure, ment public investment projectssuchashousing, receive greaterresourcesfromtheirnationalgovernments toimple- recovery ofcities. Union (EU)play a more and Italy.Torino, France; Etienne, St. UK; Sheffield, Germany; Leipzig, Germany; Bremen, Spain; Bilbao, UK; Belfast, citiesare: economic recovery.These initial signs of examine andevaluateEuropeancitiesdemonstrating Economics isleadingaparallel Weak to CitiesProgramme Market theLondonSchoolof Recognizingthisandothertrends, economy. toaknowledge-based fromanindustrial the swifteconomictransition “Pacing devises” canaideconomicrecovery. devises” “Pacing MayorsStrong ha ofrhrpoe ra noain,theEUfundscity-networks, To propelurbaninnovations, further European nationalgovernments andtheEur Some key gleaningsfromtheseEuropeancitiesthusfarinclude: cally distressed cities that emerged in large part asaresultof part inlarge cally distressedcitiesthatemerged rp,lk h ntdSae,containsacollectionofeconomi- like theUnitedStates, urope, .S. Can Learn from Europe CanLearnfrom .S. oprdwt ..cte,Europeancities cities, Compared withU.S. ve citiesf propelled central role intheeconomic central role 174 orward. opean Because sus- Several among otheractivities. andrevitalize urbancommunities, ofpublicattractiveness spaces, improve thequalityand sites, unused orrun-down to regenerate organizations RDAs withlocalpartner alsowork respective regions. (RDAs) topromotequalityjobgrowth andcompetitiveness intheir national government fundsnineRegionalDevelopment Agencies the for example, InEngland, together tofueleconomicgrowth. work whilebusinesses andorganizations tions between cities, arehelpingtofacilitateconnec- andbroadbandnetworks port) air, (rail, andreliable transportation convenient, investments suchasfast, Physical with thegoalofenhancingtheirgreaterregionaleconomy. EuropeancitieshaveSeveral established cross-regionalpartnerships, along alongjourney. are posts” physical expressionofeconomicprogress.They “marker ore ui anr BrookingsInstitutionNonresident SeniorFellow Julie Wagner, Source: over 40percentofthesefunds. withtheEUandnationalgovernment providing on itsoperations, EPORAspentmorethan€65 million Between 1999 and2003, tax. localmunicipalities andalocal nationalgovernment, funded by theEU, EPORAis willlocate. wheredesign-relatedclusters “Design Village,” GIAT intoa isnow beingtransformed site. manufacturing Industries includingthestate-owned GIAT scape ofSaint-Étienne’s urbanarea, EPORAhasplayed roleinreinventing acritical theland- cent ofcost. oftenat40per- andthelocalmunicipality, investors to bothprivate orredevelops thesitesandpreparesthemfor resale EPORA clears Afterpurchase, for futureredevelopment. chase theseproperties founded EPORA(apublic landagency)topur- France for example, ofitsderelictbrownfield sites, facilitatethetransformation efforts.To show venue. intoaconvention andtrade sion oftheobsoleteFiatLingottofactory lands areawiththeiconicGuggenheimmuseum to Torino’s conver- ofBilbao’s dock- are remakingtheircities—fromthetransformation tion. Geographic alliancescanhelpspureconomicgro Geographic ainlgvrmns ln ihteE,canbevitaltothese alongwiththeEU, National governments, inv Transformative Europe is rife with examples of how transformative investments withexamplesofhowEurope isrife transformative 175 estments are estments are tourbanrevitaliza- key 176 wth. 63 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES V. A STATE AGENDA FOR REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES 64 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM VI. ORGAINZING FOR SUCCESS advantage ofthisuniquemomentandbegintoturn state governmentscanhelpthesecommunitiestake policy agendahighlightsthespecificwaysinwhich graphic, economic,andpoliticaltrends.Theabove particularly givencurrentandimpendingdemo- future, to behopefulaboutolderindustrialcities’ and family incomes. andlaggingindividual joblessness, pervasive aswell ashighpoverty, wage growth, and business, Such distressisevidencedby entrenchedtrendsofslow employment, available tomany oftheirresidents. theopportunities anddegraded investment, limitedtheirlocationalvaluefor decimated theeconomichealthofthesecities, W Success VI. Yet, foralltheirproblems,therearegoodreasons elipc,lcl einl andstategovernments and regional, local, real impact, constituencies must insuch away be organized asto In orderfor anewurbanpolicyagendatohave Organizing for Organizing niubnplc niomn,have over time anti-urban policyenvironment, coupledwithalargely tion anddecentralization, tendencies toward deindustrializa- and international impactsofnational brutal stuck inatoughspot.The citiesare America’s olderindustrial ithout adoubt, effectively carry itout. effectively carry to makeithappen.Inpractice,thismeansboth industrial cities,inshort,meansbuildingthecapacity effectively carryitout.Restoringprosperityinolder constituencies mustbeorganizedinsuchawayasto impact, local,regional,andstategovernments order foranewurbanpolicyagendatohavereal their economiesaround.Butthiswon’t beenough:In level—to createandsustain col- at thelocal,regional,andstate ness, andcommunityleaders— the capacityofpolitical,busi- and services,aswellbuilding effectively administerprograms and localgovernmentstomore building thecapacityofstate which toliveandwork. ultimately makingthemmore desirablelocationsin cities functionbetterwith smaller budgets—and ment technologycouldgo a longwayinmaking lize newsystems.Statesupportforlocale-govern- resources toacquire,implement,andeffectivelyuti- objectives, yetolderindustrialcitiesoftenlackthe cies—is essentialtoaccomplishingeachofthese ment, utilization,andsharingofdataacrossagen- that facilitatethecollection,manage- portals, electronicmapping,andtools tion oftechnology—e.g.,advancedweb tions aren’t met.Thestrategic applica- ensuring accountabilitywhenexpecta- city performanceovertime,and ernment getscarriedout,measuring day “behindthescenes”workofgov- nesses, improvinghowthedayto departments interfacewithresidentsandbusi- means enhancingthewayinwhichcityofficialsand and servicestheirhighestpriority. Inshort,this effective administrationofgovernmentoperations must makethecompetent,clean,transparent,and lies cangrowandthrive.To thisend,localleaders and receptivemilieuinwhichbusinessesfami- demands thatolderindustrialcitiescreateahealthy existing municipalboundaries. laborative, cross-sectornetworkswithinandacross At the local level , organizingforsuccessfirst ning tobefilledbykeyurbaninstitutionssuchhospi- in manyolderindustrialcitiesthatisonlyjustbegin- served them—hasleftanenormousleadershipbreach decline intheretailandservicebusinessesthat major employersandresidents—andtheconcomitant wide scalerevitalizationeffort.Thedepartureof structure vitaltocatalyzingandcarryingthrougha government; it’s alsoaboutre-makingthecivicinfra- needs toengagelocalresidents indevelopingacom- government decisionmakers. Together, thisgroup faith-based leaders,community organizations,and portation officials,environmental advocates, opers, lendersandinvestors,universityheads,trans- major employers,businessleaders,realestatedevel- common goal.These“citybuilders”shouldinclude grounds andviewpoints—butallworkingtowarda thinkers andstakeholderswithavarietyofback- together tobuildstrongcoalitionsofinnovative Organizing forsuccessisnotonlyaboutre-making aissance demandsthatlocalleaderscome tals anduniversities.Evenin communities thatdohaveamore active andengagedleadershipclass, individual actorsandorganizations often havetheirownparochial—if worthy—interests basedonparticu- lar issues,geographies,orsimply political caprice. Bringing aboutarealcityren- 177 65 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES VI. ORGANIZING FOR SUCCESS 66 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM VI. ORGAINZING FOR SUCCESS Perhaps thebestthingthatstatescandotoencourage consolidation, and letting entrepreneurial local entities andlettingentrepreneurial consolidation, regional cooperation istosimply getoutoftheway,regional cooperation work orjointogetherastheydeemappropriate. work removing the legal and regulatory obstaclesto removing thelegalandregulatory regional stakeholderstakeaim atthearbitrarybarri- undermining regionaleconomic growthintheprocess. petition ratherthancooperation amongjurisdictions, tax systems—asnotedabove—servetoencouragecom- Unfortunately, currentstate-imposedgovernanceand together toboostregionalcompetitiveness.Older politan level ect andprogramdesignamust. utilized, andbymakingcitizenparticipationinproj- scale projectsinwhichstateresourcesarebeing incentivize localcoordinationandplanningforlarge- get thingsdone.Statescanhelp,byfindingwaysto on whichtotargetearlyefforts,anddesignaplan petitive visionfortheircity, chooseafew“bigbets” o oeifrain www.newpa.com/default.aspx?id=129 For moreinformation: P Pennsylvania StatePlanningBoard step in the state’s efforts to reform itslocalgovernance system. toreform step inthestate’s efforts theserecommendationsareamajorfirst While notyet implemented, oflocalgovernments whensuchstepsareappropriate. and mergers toconsolidations andremoving barriers options, and taxbasesharing improving taxrevenue consistency ofplanningandimplementation, ensuring suchaspoliceandfire, theprovision ofservices right-sizing of Pennsylvania’s recommendationsarefocused on communities.The andimprove thequalityoflife inall economies, both urbanandrural mendations designedtopromotethegrowth andcompetitiveness of ofrecom- whichhassincedevisedaseries defunct PlanningBoard, There areseveralwaysthat statesmighthelp Collaboration mustalsobehappeningatthe oprto elt.I 04Gv Rendellrevived thestate’s In2004Gov. areality. cooperation ennsylvania provides agoodmodelfor makingbetterregional , withcityandsuburbanleadersaligning defy municipalboundaries. planning, andotherissuesthat development, infrastructure economic andworkforce in designingstrategiesaround are naturalandcriticalallies planning organizations(MPOs) alliances, andmetropolitan coalitions, regionalworkforce industrial cities,first-suburb metro- 178 to engageinspecificpolicyreformsaimedatimprov- well. Stategovernments,fortheirpart,neednotonly will requirebetterorganizingatthe or jointogetherastheydeemappropriate. dation, andlettingentrepreneuriallocalentitieswork removing thelegalandregulatoryobstaclestoconsoli- regional cooperationistosimplygetoutoftheway, Perhaps thebestthingthat statescandotoencourage ment—that areclearlymoreregionalinscope. tions—such astransportationoreconomicdevelop- empower countygovernmentstotakeoverthosefunc- grams, or, atthe boldendofthespectrum,actually or councilsofgovernmentstoimplementstatepro- actively utilizeregionalorganizationssuchasMPOs pared byneighboringmunicipalities.Theycouldalso grant applicationsjointlypre- tion, orgivingbonuspointsto such aspoliceandfireprotec- or sharefunctionsandservices to jurisdictionsthatconsolidate collaborate, offeringgrantfunds incentives forlocalentitiesto states couldcreateasystemof regions asawhole.For instance, opportunities in,andthemarketabilityof,their to oneanother, andinsteadworktowardbolstering ers thattoooftensetcitiesandsuburbsinopposition Finally, therevitalizationofolderindustrialcities presented here. can advocate agendalike for that anewstatereform that robust statewidenetworks band togethertoform fromacrosscitiesandoldersuburbs must Urban leaders state level as ties andcitizensthatcompriseit. Yet althougholder however. Thestate,bydefinition,isthemunicipali- particular programorproject. labyrinth ofstateprogramsavailabletosupporta sentatives tobetternavigatetheoftencomplicated and effectivewaysforcitiestoworkwithstaterepre- More narrowly, itmightmeancreatingmoreefficient are vital,ifoftenoverlooked,intersectionpoints. education andhousing,forexample—wherethere efforts acrossdisparateprogramsandagencies— and mission,findingwaystobettercoordinate ment—where thereareclearsynergiesinfunction grams—such asworkforceandeconomicdevelop- this mightmeanbothconsolidatingcertainpro- munities theyaredesignedtoserve. At abroadlevel, they canbemoreeffectiveforthefamiliesandcom- ganize theirprogrammaticinitiativesandagenciesso ing urbaneconomies,butalsolookforwaystoreor- State-level organizingencompassesmuchmore, to reckonwith. become aformidableforce for stateleaders these communitieswill,at long last, like thatpresentedhere.In doingso, advocate foranewstatereformagenda form robuststatewidenetworksthatcan and oldersuburbsmustbandtogetherto this end,urbanleadersfromacrosscities then, thetimehascometodemandit.To level. Ifthesecommunitieswantchange, have notbeenwell-representedatthestate the populationofOhio—theirinterests population ofMichigan,andoverathird lation ofPennsylvania, 30percentofthe eral states—almost40percentofthepopu- represent asubstantialconstituencyinsev- industrial citiesandtheircorecounties ■ 67 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES VI. ORGANIZING FOR SUCCESS VII. Conclusion

fter decades of deterioration and decline, current economic and demographic forces are providing fresh opportunities for older industrial cities to capitalize on their assets, and restore the prosperity that has for too long eluded so many of their neighborhoods and families.

68 AThe revitalization and renewal of older industrial Most importantly, all these actors need to work cities demands a new approach to urban policy and together to set aspirational goals for city renewal, practice, however—at all levels: gauge their progress over time, and continually adjust • States, for their part, need to reorient their poli- their strategies to overcome new challenges, and cies and investments in these cities such that seize new opportunities, as they arise. their market recovery is the top priority. Moving a real reform agenda for older industrial • Cities need to effectively organize so as to com- cities will naturally be an organic, messy, and frus- mand the attention and concerted focus of state trating process that will demand the patience, flexi- leaders—and the confidence of private sector bility, and commitment of many diverse investors. constituencies. Success won’t come easy, it won’t • And business leaders, citizens, community organi- come soon, and it won’t come to every city. But given zations, and other stakeholders in cities, suburbs, the positive trends now afoot, there’s little excuse not and rural areas need to hold government officials to try—and no better time to get started. ■ accountable for ensuring that their tax dollars are being used effectively to grow THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM INSTITUTION METROPOLITAN THE BROOKINGS VII. CONCLUSION robust, sustainable, and inclusive regions—of which healthy older industrial cities are a vital part. ole O241508 42 234 27 123 0.88 254 12 34 -0.608 1.138 0.151 83 277 46 257 5 -0.84 236 1.428 0.982 187 8 123 206 0.5 -1.16 213 -0.867 0.829 131 73 101 -0.681 156 2.481 -0.235 0.032 230 35 2.232 267 -0.359 274 175 26 81 301 -0.453 6 -0.003 CT -0.052 265 0.2 CO 0.485 222 -0.593 MA 0.978 ID -1.029 42 -0.979 152 -0.154 235 1.161 -1.53 0.367 2 18 IN 2.42 212 223 -0.899 260 IL -0.522 16 Bridgeport 140 ND 293 3 Boulder 43 212 AL 0.806 -0.036 Boston 17 -0.679 MT NY 180 Boise 2.554 10 1.256 -0.447 Bloomington OR -0.599 49 PA 119 -0.898 101 1.383 Bloomington -0.077 -1.178 Bismarck 2.904 82 118 0.875 WA -0.542 Birmingham TX 245 1.621 -0.201 Binghamton 67 154 57 1.507 MI 84 Billings 215 0.192 0.371 39 0.727 LA 95 Bethlehem 251 MD Bend 0.203 119 TX 283 CA 0.36 183 Bellingham 285 -0.751 CO Beaumont -0.169 129 193 0.566 0.66 -0.464 105 Battle Creek 180 0.327 GA Baton Rouge 0.911 -0.808 0.419 135 Baltimore -1.242 0.047 -0.223 213 Bakersfield NC -1.072 VA Austin -0.278 248 0.001 GA TX 0.187 Aurora -0.331 GA 260 109 WI Augusta-Richmond County 214 Atlanta -0.036 217 MI -0.557 IN Athens-Clarke County 196 Asheville AK -0.762 IA CA Arlington -0.829 0.12 Arlington -0.562 TX Appleton -0.57 PA Ann Arbor -0.424 Anderson PA Anchorage NY Anaheim NM GA Ames OH Amarillo TX Altoona State Allentown Albuquerque Albany Albany Akron Abilene City Appendix: City Index City Index odto ne odto ne W ConditionIndex Condition Index iyEooi Economic City Economic Scores and Rankingsf Rank: or the302DatasetCities City l-en ne Well-Being Index ell-Being Index Residential Rank: City 69 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES APPENDIX 70 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM APPENDIX uuhM 01 4 004157 77 135 292 60 79 -0.054 106 0.532 0.058 203 -1.509 122 148 0.637 0.509 0.347 264 172 273 116 110 -0.341 271 263 0.158 15 117 91 161 -0.13 35 -0.935 -1.094 -0.265 68 0.305 0.077 269 177 144 -0.928 -0.96 138 1.384 0.208 210 127 0.238 MN -0.214 283 0.94 159 IA 137 AL 0.605 -0.933 291 31 -0.176 0.01 MI 298 -0.056 166 118 288 81 -0.437 0.135 IA CO 253 -1.064 204 FL -0.201 Duluth 202 -0.053 122 173 IL Dubuque -1.138 1.103 185 62 -1.759 AL -1.374 Dothan -0.228 0.064 163 0.507 50 Detroit 19 -0.833 OH 191 -0.353 Des Moines FL -0.34 Denver IA 121 0.033 141 -0.266 VA 11 Deltona 30 -0.36 264 0.628 CT Decatur 25 181 TX -0.225 89 25 Decatur 158 0.72 1.236 263 -0.263 53 Daytona Beach 215 Dayton 0.189 TX 0.02 OH 236 Davenport 1.782 108 GA 290 195 1.066 -0.866 -0.205 Danville SC 1.247 0.46 38 1.169 Danbury 143 -0.19 MO -0.85 0.7 302 Dallas 211 -0.564 Corpus Christi -0.621 102 Columbus CO -1.442 -0.291 OH 128 0.136 TX Columbus TN 87 na Columbia -0.098 CA 0.912 OH -2.274 Columbia 58 IL -0.512 246 Colorado Springs 0.197 288 12 College Station WY 0.015 Cleveland TN 0.289 na Clarksville NC 53 Cincinnati 0.624 WV -0.744 Chico SC -1.115 Chicago 1.771 IL Cheyenne IA Chattanooga 0.708 NV Charlotte FL OH Charleston NY Charleston TX Champaign Cedar Rapids State TX Carson City Cape Coral Canton Buffalo Bryan Brownsville City Appendix: City Index City Index odto ne odto ne W ConditionIndex Condition Index Scores and iyEooi Economic City Economic Rankings f or the302DatasetCities Rank: City l-en ne Well-Being Index ell-Being Index Residential (continued) Rank: City oaCt A07 1033104 55 84 78 0.363 167 286 73 0.679 0.49 300 0.511 258 51 178 -0.102 -1.338 115 0.582 149 225 77 61 -1.967 95 56 -0.87 142 -0.181 0.72 124 242 0.245 290 155 -0.555 -0.13 296 65 0.633 0.402 131 0.227 0.673 239 18 0.018 265 4 272 0.031 IA -0.702 111 44 -1.134 -0.044 129 IN -1.22 93 0.62 ID 0.111 96 103 AL 21 -0.688 -0.965 1.582 143 -1.091 2.43 WV TX 0.108 40 287 191 105 HI Iowa City 0.122 0.799 82 CT Indianapolis 249 171 0.23 Idaho Falls 0.369 PA 126 0.223 218 1.324 0.015 MS Huntsville 41 158 64 219 Huntington SC -1.352 0.36 0.889 -0.399 Houston 90 NC 0.502 Honolulu 220 47 -0.769 -0.251 NC 209 Hartford WI 0.023 170 -0.579 CO 145 120 Harrisburg -0.065 0.881 239 -0.504 0.582 Gulfport 299 16 MT 100 Greenville 111 23 0.261 CA -0.514 Greenville MI 0.821 262 -0.491 Greensboro 87 FL CA 0.008 115 0.19 -0.247 72 61 Green Bay 19 -0.657 CA Greeley -1.406 0.206 1.625 0.294 Great Falls 220 TX 1.305 147 Grand Rapids -0.926 IN Glendale 202 0.474 AR 106 0.088 0.588 237 Gainesville 0.594 1.509 MI Fresno 193 FL CO Fremont -0.582 153 AZ Fort Worth -0.128 Fort Wayne 47 -0.449 31 NC 0.167 -0.683 Fort Smith ND AR Fort Lauderdale -0.408 Fort Collins MA CA -0.169 Flint Flagstaff IN 0.746 OR PA 1.054 Fayetteville Fayetteville IN Fargo TX Fall River Fairfield WI NC Evansville State Eugene Erie Elkhart El Paso Eau Claire Durham City Appendix: City Index City Index odto ne odto ne W ConditionIndex Condition Index Scores iyEooi Economic City Economic and Rankings for the302DatasetCities for Rank: City l-en ne Well-Being Index ell-Being Index Residential (continued) Rank: City 71 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES APPENDIX 72 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM APPENDIX efr R06 0005138 259 208 38 44 0.035 278 -0.876 189 169 -0.398 0.924 223 60 0.852 -1.181 209 22 179 32 -0.245 -0.12 257 214 90 78 -0.536 181 245 0.61 -0.423 165 -0.183 1.315 109 51 189 93 176 1.023 -0.459 -0.82 0.46 190 293 0.399 -0.339 246 277 -0.734 OR 195 -0.091 126 0.31 TX 289 0.755 -0.377 69 0.447 237 -0.278 OH 141 199 -0.392 -1.537 NH WI -0.757 136 GA 231 -1.01 74 132 0.137 -0.416 36 Medford 146 VA 4 -1.13 -0.629 TX 139 McAllen 0.5 107 -0.318 -0.083 218 Mansfield KY 14 41 0.052 Manchester -0.598 85 CA 255 0.578 -0.007 TX Madison Macon 0.925 230 -0.125 108 0.027 CA Lynchburg 164 148 248 2.592 0.336 AR NE -0.495 Lubbock 1.694 56 0.876 117 Louisville 150 29 76 0.486 OK -0.812 Los Angeles 59 Longview KS KY 186 -0.631 0.332 70 Long Beach -0.02 190 -0.763 37 -0.226 144 NV 22 Little Rock TX 241 NM Lincoln 0.069 0.672 -0.027 33 1.125 MI 0.413 Lexington-Fayette 0.646 Lawton PA 219 -0.371 238 71 -0.246 0.597 FL Lawrence -0.118 0.915 1.21 Las Vegas -0.672 63 LA LA Las Cruces 134 0.984 IN Laredo 24 Lansing -0.581 WI 45 112 -0.685 Lancaster TN 0.495 TX 34 256 Lakeland Lake Charles 0.583 -0.025 WA Lafayette 1.258 MO Lafayette MI 0.105 0.781 La Crosse AR Knoxville -0.817 0.949 TN Killeen WI Kennewick NC Kansas City FL TN Kalamazoo MS Jonesboro TX Johnson City State Janesville Jacksonville Jacksonville Jackson Jackson Irving City Appendix: City Index City Index odto ne odto ne W ConditionIndex Condition Index Scores and iyEooi Economic City Economic Rankings f or the302DatasetCities Rank: City l-en ne Well-Being Index ell-Being Index Residential (continued) Rank: City aaieN .9 .8 86 149 116 133 88 182 49 0.482 92 -0.026 185 0.243 0.094 48 -0.208 2 204 0.473 0.795 0.448 184 124 187 -0.224 217 169 7 160 0.811 210 234 7 68 -0.462 -0.223 3.891 176 86 0.145 -0.476 -0.372 244 -0.233 92 -0.067 301 1.9 100 -0.497 207 43 FL -0.674 0.524 NV 2.31 -0.155 152 268 274 FL 0.3 281 -0.745 CA 110 -2.044 0.234 0.371 33 188 256 11 KY -0.393 WI 0.804 FL 286 71 Pensacola UT 261 -0.16 -1.109 -0.928 48 -1.224 Paradise CA 278 0.111 Palm Bay 294 259 NE 164 -0.863 Oxnard 0.983 -0.373 1.479 160 192 Owensboro 235 UT -1.075 Oshkosh 0.589 273 -0.913 TX 171 287 OK Orlando 0.735 -1.025 CA 67 Orem -1.537 232 94 -0.091 -0.824 97 CT 175 Ontario 229 -0.213 -0.275 54 Omaha -0.617 299 VA 250 130 Oklahoma City -0.979 -0.129 -1.08 Ogden SC 291 NJ 142 0.61 Odessa 151 VA -0.669 0.42 211 Oakland -0.275 205 -0.576 NY 0.221 198 -1.777 0.683 Norwalk 134 28 -0.782 -0.002 LA North Charleston CT -1.498 Norfolk -0.092 Newport News 114 -0.142 MA 177 272 NH -0.444 Newark CA -0.468 258 20 -0.429 0.073 New York IN TN New Orleans 1.129 229 New Haven LA AL New Bedford 0.093 155 -0.29 -0.972 CA Nashville-Davidson AL -0.822 145 Nashua 1.484 Napa MT -0.62 Muncie Montgomery MN -0.175 WI TX Monroe FL -0.118 AZ Modesto Mobile CA Missoula Minneapolis TN Milwaukee FL State Midland Miami Mesa Merced Memphis Melbourne City Appendix: City Index City Index odto ne odto ne W ConditionIndex Condition Index Scores iyEooi Economic City Economic and Rankings for the302DatasetCities for Rank: City l-en ne Well-Being Index ell-Being Index Residential (continued) Rank: City 73 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES APPENDIX 74 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM APPENDIX a oeC .0 91778 221 9 58 -0.52 1.737 23 162 289 170 0.663 1.626 240 96 154 192 29 295 1.185 -0.074 -1.431 -0.123 127 178 200 -0.664 125 0.403 -0.039 228 -0.402 1.102 266 13 59 -1.549 179 222 163 200 -0.332 174 0.019 -0.302 153 63 0.14 32 70 205 -0.571 CA CA -0.985 251 1.402 -0.308 198 0.613 -0.595 -0.09 280 -0.437 183 24 80 CA CA -0.27 -0.037 207 0.628 247 0.994 0.495 -0.359 137 281 242 Santa Ana -0.783 66 224 CA -0.317 CA TX San Jose 233 -1.207 TX -0.349 125 San Francisco 1.173 0.509 CA 62 69 San Diego -0.478 298 282 UT OR -0.761 0.044 San Buenaventura 66 -1.046 -0.677 MI 243 San Bernardino -0.538 0.574 280 98 San Antonio -0.671 1 CA 13 128 San Angelo 54 0.029 297 IL 0.602 -1.228 Salt LakeCity 0.591 NC -1.39 284 Salinas NY 94 0.612 9 Salem -0.708 250 MN 97 VA -1.037 Saginaw 285 0.376 0.13 2.966 CA Sacramento 1.7 -1.668 166 0.702 267 99 Rocky Mount NV VA 270 -1.068 120 Rockford 0.228 CA -0.768 Rochester 2.072 0.382 PA 55 -1.332 Rochester 1 98 216 Roanoke -0.1 SD -0.911 NC Riverside 0.212 WI -1.077 Richmond 0.044 254 CO Reno UT 27 266 Redding 0.685 -0.567 0.213 Reading 5.219 206 RI OR 295 Rapid City ME Raleigh -0.812 Racine -0.909 1.192 Pueblo FL TX ID Provo TX -0.469 Providence -1.211 Portland PA Portland AR AZ Port St.Lucie Port Arthur IL PA Pocatello State Plano Pittsburgh Pine Bluff Phoenix Philadelphia Peoria City Appendix: City Index City Index odto ne odto ne W ConditionIndex Condition Index Scores and iyEooi Economic City Economic Rankings f or the302DatasetCities Rank: City l-en ne Well-Being Index ell-Being Index Residential (continued) Rank: City us K-.3 6 .7 99 197 268 102 194 0.376 -0.31 3 36 -1.033 249 0.37 161 -0.285 168 233 140 74 224 0.931 2.474 279 -0.765 208 6 269 -0.074 261 -0.232 -0.606 0.023 91 0.485 114 15 -0.6 88 -1.187 240 271 104 -1.049 -0.488 57 1.97 168 -0.841 OK 80 89 0.451 216 AZ 0.253 173 297 1.628 NJ 0.268 -1.082 -0.688 227 0.188 255 KS 52 -0.115 167 0.672 188 OH 0.368 0.268 162 -0.468 20 133 196 -0.146 Tulsa -1.286 AZ 276 75 CA IN Tucson -0.617 -0.849 FL 182 0.748 247 65 Trenton 17 -0.237 -0.232 50 Topeka FL 262 WA Toledo -0.216 -0.292 85 1.222 -0.009 5 227 NY Thousand Oaks -0.993 0.562 270 CA Terre Haute 165 79 -0.76 -0.342 Tempe CT 1.296 0.577 226 0.788 Tampa 238 159 231 -0.849 MN Tallahassee 52 FL 28 -0.563 0.326 Tacoma 2.092 MO 194 -0.952 Syracuse 45 232 MO -0.227 225 72 Stockton 0.389 MN -0.558 157 -0.639 39 Stamford -0.066 OH -0.667 St. Petersburg 252 1.127 0.711 37 MO 10 St. Paul -0.412 MA -0.6 St. Louis 0.844 IL -0.614 WA St. Joseph 300 156 0.49 -0.183 121 St. Cloud 0.907 IN Springfield 103 -0.792 SD 0.928 Springfield IA 1.956 40 203 Springfield LA Springfield -1.468 WI -0.181 WA 199 0.033 Spokane PA South Bend 0.19 221 Sioux Falls AZ Sioux City -0.457 0.899 NY Shreveport GA FL -0.435 Sheboygan Seattle CA -0.583 Scranton CA Scottsdale NM Schenectady CA Savannah State Sarasota CA Santa Rosa Santa Maria Santa Fe Santa Cruz Santa Barbara City Appendix: City Index City Index odto ne odto ne W ConditionIndex Condition Index Scores iyEooi Economic City Economic and Rankings for the302DatasetCities for Rank: City l-en ne Well-Being Index ell-Being Index Residential (continued) Rank: City 75 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES APPENDIX 76 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM APPENDIX uaA .6 6-.3 201 276 296 -0.335 174 186 112 146 64 -1.149 -1.658 46 -0.149 21 132 130 -0.229 30 0.287 0 113 282 0.623 252 284 228 0.764 151 0.102 1.22 0.12 26 139 14 1.123 172 0.105 184 244 -1.061 113 -0.818 -1.327 76 -0.619 275 147 197 AZ -0.032 275 253 1.216 201 -0.065 1.401 -0.138 WA 243 OH -0.355 294 0.279 -0.712 150 0.534 MA on thepayrollandestablishmentsvariables. 226 -1.126 -0.02 Rankings fortheCityEconomicConditionindexareoutof301cities;CarsonCity, NVdoesnothaveanindexscore andwasnot -0.426 Rankings areoutof302centralcities. A highindexscoreindicatesbettereconomichealth. -0.982 -0.8 NC NC 279 -0.444 83 Yuma -0.722 KS 136 TX Youngstown -1.203 -0.137 241 Yakima 292 107 -0.616 IA Worcester CT Winston-Salem RI DC Wilmington 75 -1.035 0.332 OH -0.051 Wichita Falls TX -0.693 Wichita -1.159 CA 0.16 West Hartford Waterloo NJ Washington VA 0.453 TX Warwick CA Warren NY TX Waco Visalia Virginia Beach AL State Vineland Victoria Vallejo Utica Tyler Tuscaloosa City Appendix: City Index City Index odto ne odto ne W ConditionIndex Condition Index Scores and iyEooi Economic City Economic Rankings f or the302DatasetCities Rank: City l-en ne Well-Being Index ell-Being Index Residential (continued) ranked duetomissingdata Rank: City 11. Danville,VA was not ranked.These 46citieswere Danville,VA in40 wasnotranked.These 11. Theremaining 35olderindustrialcitiesfell intooneof 10. having These65citiesare indeedcomparatively “old”, 9. Inonly 32percent oftheremaining 237citiesinthe 8. California andNew York are tiedwiththethird largest 7. Indiana, Illinois, These14statesare Connecticut, 6. Thebreakdown ofolderindustrialcitiesby sizeroughly 5. Thetotalpopulationofolderindustrialcitiesin2000 4. and We usedz-scores tostandardize thevariables, 3. theannual payroll Duetodataavailability constraints, 2. Theprincipalcity(s)ofanarea always includesthe 1. Endnotes cities were inthesamemetropolitan area). different metropolitan areas (someolderindustrial two performance indexes. seven otherStrong-Moderate-Weak groupings onthe average thantheother237indataset. reached 50,000inpopulationover 40years earlieron least 20percent in1970. dataset wastheshare employed inmanufacturing at dataset (33). much smallershare ofCalifornia’s citiesintheoverall thoughthey represent a number ofthesecities(7), andWisconsin. Virginia, Island,West Rhode Pennsylvania, Ohio, New York, New Jersey, Missouri, Michigan, Maryland, Massachusetts, 3.0percent). lion (3.1percent vs. same proportion ofcitieswithpopulationsover 1mil- andthe 32.8percent), in thedataset(27.7percent vs. and 250,000residents thanthenumber ofthesecities resent asmallershare ofcitieswithbetween 100,000 Olderindustrialcitiesrep- 6.6percent). (7.7 percent vs. andwith between 500,000to1millionresidents cent), 12.6per- 250,000 to500,000residents (15.4percent vs. withbetween 45.0), 100,000 residents (49.2percent vs. overrepresentation ofolderindustrialcitieswithunder isaslight mirrors thatofthedatasetasawhole.There was 16,350,102. scale andcouldeasily becompared. index scores for eachindexwere onroughly thesame the aresult, by thenumber ofvariablesintheindex.As we divided nomic health.To geteachcity’s indexscores, so thatahigherz-score always indicatedbettereco- thesignsonz-scores were reversed poverty rate, suchas cates alesserdegree ofeconomicdistress, For thosevariablesfor whichalower valueindi- index. summed thez-scores across thevariableswithineach county level. and establishmentsvariableswere measured atthe dents. and thathave atleastasmany jobsasemployed resi- one-third thesizeoflargestplaceinmetro area, places withmore than10,000peoplethatare atleast principalcitiesalsoinclude Finally, employed residents. located there meetsorexceedsthenumber of 50,000 canalsobeprincipalcitiesifthenumber ofjobs Placeswithmore than people or100,000workers. a metropolitan area includeany withmore than250,000 principalcitieswithin employment thresholds.Additional as well asadditional citiesthatmeetpopulationand largest incorporatedplaceorcensusdesignatedplace, 12. U.S. Department ofHousingandUrbanDevelopment, Department U.S. 12. 21. U.S. Department ofHousingandUrbanDevelopment, Department U.S. 21. Institutefor Investment HigherEducationPolicy,“The 20. Steven Ruggles,Trent Donna Alexander, MiriamKing, 19. Officeof Technological Congress, U.S. Assessment, 18. Booth,“Long Waves andUneven Regional DouglasE. 17. ofHousingandUrbanDevelopment, Department U.S. 16. Only eightofthe65olderindustrialcitiesexperienced 15. Ibid. 14. Ibid. 13. 23. Jordan Rappaport,“The Shared ofCitiesand Fortunes Jordan Rappaport,“The 23. 2 Oliver Gillham, 22. 2006 from Retrieved October18, State oftheCitiesDataSystems. available at “Brownfields Frequently Asked Questionsand Answers,” attained anadvanceddegree aswell. Bachelor’s degree doesnotincludethosewhohave with a Benefits ofHigherEducation”(2005).Those 50-State Payoff:A Analysis ofthePublicandPrivate 2004). MinnesotaPopulation Center, (Minneapolis: Current Population Survey:Version 2.0 Microdata Series, IntegratedPublicUse andMatthew Sobek, Leicach, (Numbers basedonauthor’s calculations.) they are different onvery economictrajectories. disparities inoverall growth ratesmake itapparent that the cities versus 6.4percent intheother237cities), sweepingly different (5.5percent intheolderindustrial cities’ respective shares ofFIREjobsin2000weren’t thesegroups of continued togain(13.3percent).While whiletheothercities during the1990s(-12.5percent), olderindustrialcitiesactually lostFIREjobs trial cities; 27.1 percent average increase seenintheolderindus- considerably higherthanthe employment inthissector, sample citiessaw a188.7percent average increase in the237other From 1970to2000, tive ofthesetrends. The comparative growth ratesofFIREjobsare indica- 1995). Government PrintingOffice, U.S. (Washington: Technological ReshapingofMetropolitan America 448–458. Growth,” State oftheCitiesDataSystems. ment dropped by 3.3percent. manufacturing employ- U.S. Duringthisperiod, Bluff,AR. andPine NC; RockyMount, Odessa,TX; CA; Maria, andSanta SanBernardino, Stockton, Fresno, Merced, increases inmanufacturing from 1970to2000— Suburbs” Federal 2002). Press, Review see: For more ontheconversion procedure usedby HUD, for 2000hadtobeconverted from NAICStoSIC. thedata Consequently, Classification System(NAICS). classified according totheNorth American Industry datawere industry withthe2000Census, Starting tem. based ontheStandard IndustrialClassification(SIC)sys- The dataare aggregated by placeofresidence andare socds.huduser Third Quarter (2005). Third Quarter Southern EconomicJournal socds.huduser www.hud.go The LimitlessCity Reserve BankofKansasCityEconomic Reserve .org/CBPSE/note v/bfields/bro .org/socds_home Wsigo:Island (Washington: 53 (2)(1986): wnqa.cfm. .htm . .html The . 0 Myron Orfield, 40. and SeeHarold L.Wolman andothers,“States Their 39. 2002CensusofGovernments. CensusBureau, U.S. 38. 7 David Rusk, 37. themurder rateinolderindustrial citieswas In2000, 36. ofHousingandUrbanDevelopment, Department U.S. 35. Education DiplomasCount2006.”Week,“Making Rates 34. SeetheSchoolMatterswebsite at 33. Progress: Stoll,“Modest Steven Raphael andMichael A. 32. Ibid. 31. Ibid. 30. Ibid. 29. ofHousingandUrbanDevelopment, Department U.S. 28. RacialandNonracial Frey,“Central City White Flight: 27. thattime, Segregation reached itshighin1970.At Ibid. 26. andJacobL.Vigdor, Glaeser, Edward L. Cutler, David M. 25. 4 ila .Fe,CnrlCt ht lgt Racialand Frey,“Central City White Flight: WilliamH. 24. 41. Robert PuentesandLindaBailey,“Increasing Funding Robert 41. Reality 2007). Mae Foundation, Fannie for theFuture” Partnerships (Washington: Cities: Woodrow 1993). Wilson CenterPress, www.fbi.go website seetheUniform at CrimeReports FBI; From ofthe theCriminalJustice Information Service 10,000 populationintheother237citiesdataset. compared to0.64per 1.49 per10,000population, State oftheCitiesDataSystems. 2002–2003. by districtandtype, ating, based onthepercentage ofentering9thgradersgradu- www.schoolmatters.com. 2002). Brookings Institution, Jobs inthe1990s”(Washington: The Narrowing SpatialMismatchBetween Blacksand State oftheCitiesDataSystems. Causes.” Sociological ReviewAmerican 1960to1993,” andRaceRiots: Segregation, “Poverty, McEneaney, andElizabethH. SuzanneShanahan, Olzak, Susan Seealso, a censustractthatwas68percent black. theaverage black American lived in ferent censustract; required thatnearly 80percent ofblacksmove toadif- racial integrationintheaverage MSAwould have Journal ofPolitical Economy “The RiseandDeclineofthe American Ghetto,” Cities andSuburbs.” Shared of Fortunes Rappaport,“The 425–448; (1979): Nonracial Causes,” nttto,2005). Institution, Transportation Reform MetropolitanTaking Agenda for theHighRoad:A eds., Decisions.” Puentes, InBruceKatzand Robert and Accountability for Metropolitan Transportation Wsigo:BoknsIsiuin 2002). Brookings Institution, (Washington: iisWtot Suburbs Cities Without v/ucr/02cius.htm. American Metropolitics:The New Suburban Metropolitics:The American American Sociological ReviewAmerican Wsigo:Brookings (Washington: 0 3 19) 455–506. 107 (3)(1999): 1()(96:590–613. 61 (4)(1996): (Washington:The 44 (3) The 77 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES ENDNOTES 78 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM ENDNOTES 55. U.S. Department ofHousingandUrban Development, Department U.S. 55. Joseph Gyourko andRichard theU.S.TaxVoith,“Does 54. Benefitsfrom theHomeMortgage GeraldPrante,“Who 53. Ibid. 52. and Puentes,“Highways Edward BeimbornandRobert 51. How HandUp: AmiNagleandNicholasJohnson,“A 50. Instituteon Taxation Pays:A andEconomicPolicy,“Who 49. Greg Great LeRoy,“The American Jobs Scam” 48. Casefor Workforce Giloth,“Introduction:A P. Robert 47. Geography Greg ofIncentives: Leroy andothers,“The 46. StateRoleinUrbanLand NancyGreen Leigh,“The 45. Locationand LanceFreeman,“Siting Affordable Housing: 44. How Ohio’s Pavement: Edward Hillandothers,“Slanted 43. PuentesandRyanPrince,“Fueling Robert 42. Wsigo:BoknsIsiuin 1999). Brookings Institution, (Washington: 2000ElectionandBeyond National Priorities:The eds., Reischauer, D. andRobert J.Aaron In Henry New Metropolitan CityLimits:A Agenda.”Katz,“Beyond “Public Housingthat ascitedinBruce Works” (1996), 1997). BankofPhiladelphia, Reserve Central CityDecline?” Working Paper 97-13(Federal Treatment ofHousingPromote Suburbanizationand news/sho available at 2006), Interest Deduction?”(Washington:The Tax Foundation, Reform Metropolitan Agenda forthe HighRoad:A Transportation eds., Policy.” Puentes, InBruceKatzandRobert Leveling thePlaying Fieldin Transit: Transportation 2006). Budget andPolicy Priorities, Escape Poverty Centeron in2006”(Washington:The State EarnedIncome Tax Credits Help Working Families (2003). Distributional Analysis of Tax Systemsin All 50States” 2005). Inc., Koehler Publishers, The Great JobsScam American basedonGreg LeRoy, article 2005; CorpWatch, 2004). Temple University Press, for the Intermediaries Twenty-First Century ed., Intermediaries.” Giloth, P. InRobert Transportation EconomicDevelopment Fund(TEDF)). and Michigan EconomicGrowth Authority (MEGA); grams (EconomicDevelopment Job Training (EDJT); included analysis ofthree economicdevelopment pro- and Saginaw, Traverse City)and Lansing, Kalamazoo, GrandRapids, Flint, on seven regions (Detroit, studyfocused 2006).The GoodJobs First, (Washington: Economic Development andLandUseinMichigan” 2003). for Cities, Brookings InstitutionandCEOs Reform” (Washington: Vey,“Seizing City Assets:Ten StepstoUrbanLand Brophy andJennifer S. PaulC. 2002), CEOs for Cities, Brookings Institutionand Redevelopment” (Washington: 2004). Brookings Institution, Credit Developments inthe1990s”(Washington: Neighborhood Trends ofLow IncomeHousing Tax 2005). Brookings Institution, (Washington: Metropolitan Agenda forRoad:A Transportation Reform eds., Puentes, Bruce KatzandRobert Highway CitiesandSuburbs.” SpendingShortchanges In 2005). Brookings Institution, (Washington: Metropolitan Agenda forRoad:A Transportation Reform eds., Puentes, Bruce KatzandRobert PrimerontheGas Transportation Finance:A Tax.” In Wsigo:BoknsIsiuin 2005). Brookings Institution, (Washington: w/1341.html. www.taxfoundation.org/ SnFacso Berrett- (San Francisco: Taking theHigh Taking theHigh (Philadelphia: Workforce Taking Setting 71. U.S. Census Bureau,“Interim StatePopulation CensusBureau,“Interim U.S. 71. Stateof American AlanBerubeandBruceKatz,“The 70. JaneJacobs, 69. and MLB, NHL, NBA, IncludesmembersoftheNFL, 68. Museumsincludethosethatare membersof 67. AmericanHospital Association (AHA) Annual Survey 66. NationalCenterfor ofEducation, Department U.S. 65. of ofBaltimore Downtown Inc.,“State Partnership 64. CenterCityDistrictandCentralPhiladelphia 63. ofHousingandUrbanDevelopment, Department U.S. 62. 1 See 61. 0 National Trust Database( 60. HeywoodAvailable: Sanders,“Space for example, See, 59. Vey,“Seizing City Assets:Ten Brophy and StepstoUrban 58. Segal, andGeoffrey F. JamesNolan, AdrianMoore, 57. 56. Margery Margery Austin Turner,“Moving OutofPoverty: 56. 74. Shaila Dewan,“Cities CompeteinHipnessBattleto ShailaDewan,“Cities 74. Census 2000 73. Estimatesofthe CensusBureau,“Annual U.S. 72. www.census.go available at Projections" (2005), 2006). Government, ofCommunities andLocal Department Cities” (London: 1961). Books, (New York:Vintage WISL,WUSA). USL, NPLS, Professional SoccerLeagues(MLS, U.S. america.org/ aam-us.org/ the American Association ofMuseums(see FY2005. Database, 2007. Education Statistics, Downtown 2006.” Baltimore Report Report.” StateofCenterCity Development Corporation,“2006 State oftheCitiesDataSystems. andculture. engineering, archeology, architecture, nificant in American history, andobjectsthatare sig- structures, buildings, sites, tricts, ( American Public Transportation Association nttto,2005). Institution, BrookingsDevelopment (Washington:The Strategy” The RealitiesofConvention CentersasEconomic Land Reform.” 237–259. (2005): Cities,” Efficiency inU.S. “Putting Outthe MeasuringMunicipalService Trash: 373–394. Housing Assistance,” Expanding MobilityandChoicethrough Tenant-Based 2005). CEOsfor Cities, in theKnowledge Economy” (Chicago: Joseph Cortright,“The YoungSee also, andtheRestless Attract Young,” comp-chg.html. www.census.go available at 2004–05”(2005), United States, Components ofPopulation Changefor the projectionsagesex.html. www.apta.com www.cr.nps.go Death andLife ofGreat Cities American ); Opera America (see OperaAmerica ); ;officialcitygovernment websites. ); The New York Times v/population/www/pr v/popest/states/NST- );Amtrak ( );Amtrak v/nr/ Housing Policy Debate Housing Policy Urban Affairs Review Urban Affairs www.ntdpro The Registerincludesdis- www.amtrak.com oebr2,2006. November 25, , www.opera gram.gov ojections/ 9 (2)1998: www. 41 (2) ). ); 89. See, for example, Robert D.Atkinson andDanielK. D.Atkinson Robert for example, See, 89. Robert Weissbourd andChristopherBerry,“The 88. Bureau ofEconomic Analysis. 87. Frank,“Transportation Jonathan Levine andLawrence D. 86. Lives Downtown.” Birch,“Who 85. Cortright,“The Young andtheRestlessin 84. Boomersand WilliamFrey,“Mapping Older America: 83. Lives Downtown” (Washington: Birch,“Who EugenieL. 82. anaverage of0.35percent oftheadultimmi- In2005, 81. ‘There’ to H.Wilson,“From Audrey SingerandJill. 80. Jennifer S.Vey andBenjaminForman,“Demographic 79. Massachusetts’ SeeMarkMuro andothers,“Reviving 78. Impactof Di,“The andZ.X. Belsky, E.S. Masnick, G.S. 77. FrankHobbsandNicoleStoops,“Demographic Trends 76. 80percent ofwomen hadbeenmar- Intheearly 1960s, 75. noainFudto,2007). Innovation Foundation, Information (Washington:The Technology and Benchmarking Economic Transformation inthe States” Correa,“ The 2007StateNew Economy Index: 2004). for Cities, CEOs Changing DynamicsofUrban America” (Boston: inaNew Era.”cited inNelson,“Leadership Development inthe Atlanta Region.” (Forthcoming), SufficiencyofCompact Neighborhood Choices:The and Land-UsePreferences andResidents’ Knowledge Economy.” forthcoming). Institution, Brookings (Washington: Seniors inthe21stCentury” 2005). Brookings Institution, (2007). Center for anUrbanFuture,“A World ofOpportunity” 2006.)Seealso Ewing MarionKauffmanFoundation, 1996–2005” of Entrepreneurial NationalReport Activity, Index (SeeRobert Fairlie,“Kauffman W. 100,000 adults). for thenative-born adultpopulation(or280outof compared to0.28percent a new businesseachmonth, grant population(or350outof100,000adults)created 2006). Brookings Institution, (Washington: RefugeeResettlement inMetropolitan America” ‘Here’: 2002). Brookings Institution, Census” (Washington: Evidencefrom the2000 Change inMedium-SizedCities: 2007). Institution andMassINC, Brookings Renewal” (Washington andBoston: LessonsLearnedandan Agenda for Gateway Cities: Planning American Association inaNew Era” Nelson,“Leadership 2004)ascitedin C. Arthur Center for HousingStudies, University Harvard Joint United States”(Cambridge: Projections onProjected HouseholdGrowth inthe New CensusBureau InterimNationalPopulation 2002). CensusBureau, U.S. (Washington: in the20thCentury” Economy.” “The Young andtheRestlessinKnowledge ascitedinJoe Cortright, 2002), University ofCalifornia, the Twentieth (Draft5.1)(Berkeley:The Century” Householdsthrough Fischer,“American Hout andC.S. (M. 32 that80percent ofwomen have beenmarried. ried by itisnotuntilage thetimethey turned24.Today, 2()(06:393–406. 72 (4)(2006): Journal ofthe 0.SeeNancyZuckerbrod Schools andMelissa Trujillo,“U.S. 109. TheEducation Trust,“Funding Gaps 2006.” For example, 108. See 107. See 106. See 105. See 104. 0.See 103. LeagueShiftsFocus to Briggs,“Urban Johnathon E. 102. See 101. 2007press release “Renew SeetheJanuary, New York 100. See 99. 8 See Communities“Michigan’s for a Cities:Thriving 98. 7 See 97. FranklinandMarshallwasthefirstuniversity in 96. inaBetterFuture: Muro andPuentes,“Investing 95. Bogart, WilliamT. 94. Jennifer S.Vey,“Higher EducationinPennsylvania: 93. Census2000. 92. Lives Downtown.” Birch,“Who 91. Changing IV,“The Alternative Workplace: MahlonApgar, 90. www.mass2020.org/ mation onextendingthe schoolday are available at and additional infor- articles 2007.These 27, February 2007 and “Patrick ExtendsHimself,” Weigh ExtendingHours,Year,” 25, February ABC News, exceed $1,000perchild. between thelowest andhighestpoverty districtsthat New andPennsylvania—haveYork, fundinggaps New Hampshire, Montana, Michigan, states— Illinois, thisstudyfound thatsix dents growing upinpoverty, after adjustingfor theadditional costofeducatingstu- CoreCitiesInitiative 2007. Economic Empowerment,” SectionID=3&Par www.state.ny Agenda SeeksUpstate Turnaround,” available at documents/go Thriving Economy,” available at 1&L0=Home&sid=Eocd the project. astatedesignationthatwillhelpfund (KIZ) status, Pennsylvania toreceive Keystone Innovation Zone GrowthSmarter Development Patterns.” A Review oftheFiscalandCompetitive Advantages of 2004). Brookings Institution, GrowthSmarter Development Patterns”(Washington: A Review oftheFiscalandCompetitive Advantages of inaBetterFuture: Muro Puentes,“Investing andRobert citedinMark 1998), Prentice Hall, NJ: Saddle River, (2002). ActionAgenda” Revitalization:An Economic “Leveraging CollegesandUniversities for Urban Competitive InnerCityandCEOsfor Cities, Initiative for a 2005);The Brookings Institution, A Competitive Asset for Communities” (Washington: 27–43. (2) (2005): Introducing aConcept,” GlobalCity: SaskiaSassen,“The 121–136; 76 (3)(1998): Where andHow People Work,” www.pennfuture www.scenichudson.org www.smartgrowthamerica.org www.neighborhoodprogress.org www.policylink.org/Pr www.heinz.org/home/pro www.growinggr www.mass.go .us/govern v/Cities_186085_7.pdf Economics ofCitiesandSuburbs v/?pag entID=48 / eener2.com/ . . .org Brown Journalof World Affairs eID=ocdhomepag or/pr . Chicago Tribune, . ojects/ . . www.michigan.gov ess/0102071.html Harvard BusinessReviewHarvard grams_cms.aspx? . Boston Globe . . . February 9, February e&L= , (Upper / . XI 1.NationalConference ofStateLegislatures,“Lawmakers 113. Michigan Task Force onJailandPrisonOvercrowding, 112. Whilesomecitiesreceive direct fundingorcompeti- 111. Theseprograms significantly intersectwiththecriminal 110. 1.CrsohrB Leinberger,“Turning ChristopherB. Around Downtown: 116. Lives Downtown.” Birch,“Who 115. Power of CEOandMDRC,“The Work:The Centerfor 114. 126. American Society of Civic Engineers 2005 Report AmericanSocietyofCivicEngineers2005Report 126. See Vey,“Higher Education inPennsylvania: 125. Cross toBuildNew Office VickiGregg,“Blue 124. William and theEconomy” in Tharp,“Jobs 123. Lives Downtown.” Birch,“Who CensusBureau; U.S. 122. ofHousingandUrbanDevelopment, Department U.S. 121. Overview” in EileenRobertson-Rehberg,“Demographic 120. ofHousingandUrbanDevelopment, Department U.S. 119. 1.Chattanooga/HamiltonCounty Air Pollution Control 118. Yakima,WA wasstrong ontheCityEconomic 117. programs/cj/kingcounty 2006at posted December11, Juvenile Justice System,”Visit KingCounty,Washington, March 2005. Final Report, www.ojp.usdoj.go See 60 percent ofallocations. tered through thestatesandthey generally control a year Justice Assistance Grantprogram—is adminis- justice assistanceformula program—the $400million thebasicfederal tively awarded federal grants, 2006. Justice Statistics, Bureau of ofJustice, Department S. Jail Inmates”U. HealthProblems ofPrisonand Glaze,“Mental Lauren E. Jamesand DorisJ. jails hadamentalhealthproblem. inmates andalmosttwo-thirds ofallinmatesinlocal studyfound thatmoreDepartment thanhalfofallState Justice 2006.Another Bureau ofJustice Statistics, ofJustice, Department and Federal Prisoners2004”U.S. State UseandDependence, Karberg,“Drug Jennifer C. Mumolaand SeeChristopherJ. the preceding month. of theiroffense andmore thanhalfhaduseddrugsin that they were undertheinfluenceofdrugsattime that approximately one-third ofstateinmatesreported survey 2004Justice found Department justice system.A Twelve Brookings StepstoRevitalization” (Washington: www.mdrc available at Program” (2006), Reentry ComprehensiveEmployment Opportunities Prisoner www.asce.org/r availableCard on at American’s Infrastructure, A Competitive Asset for Communities.” www.chattanoo Complex inChattanooga,” 2005, postedFebruary 2006). Research Council, Chattanooga RegionReport State oftheCitiesDataSystems. 2006). Community Research Council, 2006 StateofChattanooga RegionReport State oftheCitiesDataSystems. Board, Index. Performance Economic Well-Being Performance Indexbutweak ontheResidential 2005). Institution, www.apcb.org .org/pub epor ga-chamber v/BJA/grant/ja lications/426/full.pdf tcar . Catnoa Community (Chattanooga: .htm d/2005/inde www.ncsl.org/ .com . g.html . (Chattanooga: x.cfm 2006 Stateof . . 142. Many of these organizations in turn partner withnon- Many oftheseorganizationsinturnpartner 142. TheCenteronBudgetandPolicy Prioritiesprovides 141. How StateEarned HandUp: NagleandJohnson,“A 140. CleanOhioFundNow SpencerHunt,“Land-preserving 136. ofNaturalResources,“Clean OhioDepartment 135. SeetheGeneseeCountyLandBankwebsite at 134. County MottFoundation,“Genesee CharlesStewart 133. See 132. See 131. See 130. Unleashing SeeBruceKatz,“Transformative Investments: 129. See 128. ItFirst:Targeting NGACenterfor BestPractices,“Fixing 127. 3.I 03 71percent offamilieswithincomesunder In2003, 139. Ibid. 138. New Labor Rubin,“Building HeathPrinceandJerry 137. 4.Reducingthecostsoflivingfor low-income familiesby 145. Putting Opportunity: Poverty, Matthew Fellowes,“From 144. Sarah Torian,“State for Earned andLocalSupport 143. www.cbpp see key low-income programs instates; a comprehensive guidetosimplifyingandcoordinating Poverty in2006.” Income Tax Credits Help Working FamiliesEscape www.nature “Keep theCleanOhioFundRolling,” available at seealso The Nature Conservancy, 2006; November 27, is theOneSeekingaSavior,” http://ohiodnr Ohio FundOverview,” available at www.thelandbank.org Service Goes to Work onFlint,” Mott Mosaic PuttingProperty BackintoProductive Use,” Land Bank: TransformativeInv www.brookings.edu/Metro/speeches/20060405_ 2006)at the Potential of American Cities”(Speech, comm and Invigorate ExistingCommunities” (2004). infrastructure Investments toImprove StateEconomies, WorkingPoorF MajorInitiativ See Poor FamiliesProject. Source:Workingfamily ofthree) hadaworker. 200 percent ofpoverty (roughly $35,000for a 2006). Future, Jobs for the Workforce Intermediaries”(Boston: StatePolicies thatSupport Market Institutions: states/ohio/pr e pnigpwr Ibid. new spendingpower. even onepercent would add uptoover $6.5billionin 2006). Brookings Institution, (Washington: the Market to Work for Lower IncomeFamilies” 2006). Casey Foundation, E. Income Tax Credit (EITC)Campaigns”(Baltimore:Annie 2005). NationalLeagueofCities, Benefits” (Washington: “Screening Tools toHelpFamilies Access Public andJulie Bosland, Sean Coffey,Abby HughesHolsclaw, cations thatfacilitatebenefitscreening andenrollment. profit software developers whoprovide accesstoappli- www.newpa.com/default.aspx?id=193 www.scrantonpa.go www.mkedcd.org/park www.state aur ,2005. 6, January , unity/village/ .org/pubs/prosim.htm ,April 2006; Chris Mccarus,“Land Bank ChrisMccarus,“Land 2006; ,April .org/wherewew es/F eserv .com/cleanohiofund .nj.us/transpor amiliesProject.aspx amilyEconomicSuccess/ estments.pdf es/ar Great Lakes BulletinNews . v/dev www.aecf.org/ t12993.html The ColumbusDispatch east/inde ork/nor elopment.html tation/ . /. . thamerica/ x.html . . . , 79 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES ENDNOTES 80 THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM ENDNOTES 6.Port Authority ofNew York andNew Jersey, 160. andIngridGouldEllen,“Cautionary EllenSchwartz Mary 159. CensusBureau U.S. 158. ofHousingandUrbanDevelopment, Department U.S. 157. GentrificationHarmthe SeeJacobL.Vigdor,“Does 156. IslandHistoric LLC,“Rhode LipmanFrizzellandMitchell, 155. National Trust for HistoricPreservation,“State Tax 154. For more information seePhilipMattera,“Breaking 153. 2007press release “Strickland SeetheMarch, 152. Puttingthe Opportunity: Poverty, Fellowes,“From 151. Local Affordable SeeBruceKatzandothers,“Rethinking 150. Promise HousingDevelopments: Smith,“Mixed-Income 149. HousingDevelopments: AlastairSmith,“Mixed-Income 148. and Walter R. Stegman, Michael A. Quercia, G. Roberto 147. Ibid. 146. www.panynj.gov 2000). Institution, Brookings Notes for Competitive Cities”(Washington: State oftheCitiesDataSystems. Association City inthe1990s,” New York andDisplacement: Braconi,“Gentrification Review Mobility inGentrifyingNeighborhoods,” Residential orSuccession?: Freeman,“Displacement Lance (2002); Brookings Institution, (Washington: eds., Poor?,” GaleandJanetRothenbergPack, In William G. www.gro available at Income Neighborhoods”(2005), Credit LocatedOverwhelmingly inLow andModerate “Projects Investment UsingHistoricPreservation %20Report.pdf www.growsmartri.com/pdfs/RI%20Final available at Fiscal Impact Analysis” (2005), InvestmentPreservation Economicand Tax Credit: Credit program. 26 stateswithoutaStateHistoricPreservation Tax andPennsylvania are amongthe New Ohio, York, New Jersey, California, Asof2003, (2003). Summary” Stateby State Incentives for HistoricPreservation:A 2006). First, GoodJobs of ExistingStructures” (Washington: Reforming BuildingCodestoEncourageRehabilitation How StateandLocalGovernments are the Codes: News3707/tabid/205/Default.aspx available at Establishes Foreclosure Prevention Task Force,” Market to Work for Lower IncomeFamiles.” 2003). Brookings Institution, Practice” (Washington: Lessonsfrom 70 YearsHousing Strategies: ofPolicy and and Reality.” 2004). Brookings Institution, (Washington: Policy and What ItMeansfor theUnitedKingdom” Evolution of Connection:The American Neighborhood ofChoiceand BruceKatz,“Neighborhoods 2002); Neighborworks andJoint Centerfor HousingStudies, Promise andReality”(Washington andCambridge: LendingLaw,”Predatory Carolina’s theImpactofNorth Davis,“Assessing Anti- 20) 573–601. (2004): Brookings-Wharton Papers onUrban Brookings-Wharton Affairs 0()(05:4341 LanceFreeman andFrank 463-491; 40 (4)(2005): wsmar 0()(04:39–52. 70 (1)(2004): governor ; Smart Growth Smart RhodeIsland, ; / tri.com/Census%20Analysis.htm . Journal ofthe Planning American .ohio.go Housing Policy Debate Housing Policy v/Ne ws/Mar . Urban Affairs ch2007/ 15 (3) . 7.SeetheRDA website at 175. 7.Edward HillandJohn Central Brennan,“America’s W. 172. 7.SeetheEuropean UnionOfficial Website onthe 174. HoldsPromise for New UrbanNews,“Urbanism 173. 6.Port Authority ofNew York andNew Jersey, 164. Busiest 50 Federal Aviation Administration,“Top 163. Ownersofstoragefacilitiescurrently pay property 162. Data Basedon2005statisticsfor generalcargo tonnage. 161. 171. See Richard P. Voith,“City and SuburbanGrowth: Voith,“City SeeRichard P. 171. Myron Orfield, 170. andothers, Jr., Manuel Pastor, 169. andScottQuehlof RachelBarkley, JillianBarrick Jones, 168. Themultiplier utilizedhere isfrom theRegionalInput- 167. Training costsperworker are basedonestimatescited 166. RentalCar Hertz Agency, 165. www.englandsr europe/ca Planning Association Cities theLocationof Work,” 1996). (November/December, City andSuburbanJob Growth” Effects of SuburbanHousingMarket:The Voith,“The Richard 1993); NationalLeague ofCities, (Washington: andLocalEconomicRegions Suburbs, Cities, Together: Barnes, Ledebur and Larry William R. 341–357; ec.eur available at European Capitals ofCulture, Efficiency,” Jul05.html www.newurbanne available at Use,”Reducing Energy July/August 2005, www.w Region,” andtheNew Metropolitan Suburbs, Central Cities, Savitch andothers,“Ties That Bind: H.V. 445–464; Need Cities?” Suburbs Richard Voith,“Do 1992); (September/October, www.panynj.gov/avia www.faa.go for 2006,”Commercial U.S.Airports available at rental chargestotherental operator. taxes ontheproperty whileowners ofcontainerspay BusinessWith/seapor and New Jersey, Port Authority ofNew System(PIERS); Reporting York provided by Journal ofCommerce Port Import-Export Substitutes orComplements?” 1997). Policy, Brookings InstitutionandLincolnInstituteofLand Community Stability 2000). University ofMinnesotaPress, Cities andSuburbsCanGrow Together pleted thisstudy. and Travis of PFM, com- JamesandJonTXP, Hockenyos, Bureau ofEconomic Analysis. Output ModelingSystem(RIMSII)developed by U.S. www.fred-info availableworker at basedon WIA estimates, increased earningspertrained (2004); Annual Report” Workforce Development,“Workforce Investment Act in theStateofNew Jersey ofLaborand Department .cfm?airportT opa.eu/cultur orldchanging.com/ar Economic Development Quarterly Economic Development Quarterly World Changing p_00_01_02_en.html , cited by Jamais Cascio,“Density as citedby JamaisCascio,“Density , v/ne Journal ofRegionalScience Metropolitics:A Regional Agenda forMetropolitics:A ype=Commer .org/WIA.htm www.panynj.go das.com/home.aspx ws/updates/busiest_airpor (Washington andCambridge: 7)()(05:411–432. 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School ofEconomics: www.newpa.com/default.aspx?id=129 5()(01:2326 Seealso 203–216. 15 (3)(2001): Economic . For more information About the Brookings Institution Metropolitan For more information on restoring prosperity in older industrial Policy Program cities, please visit the Restoring Prosperity Initiative website at The Metropolitan Policy Program at the Brookings Institution was www.restoringprosperity.org/ You can also download copies of launched in 1996 to provide decisionmakers cutting-edge research the report from The Brookings Institution Metropolitan Policy and policy analysis on the shifting realities of cities and metropolitan Program website at www.brookings.edu/metro. areas.The program reflects our belief that the United States is undergoing a profound period of change—change that affects its demographic make-up, its development patterns, and its market dynamics.These changes are reshaping the roles of cities, suburbs, Author Contact and metropolitan areas and the challenges they confront. 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