EXECUTIVE SUMMARY | 2013 Our Plan to Fight Poverty 28 OUT OF EVERY 100 PHILADELPHIANS LIVE IN POVERTY Mayor Michael A. Nutter Shared Prosperity Philadelphia is the first step in creating and implementing a comprehensive strategy to address poverty in Philadelphia. Persistent poverty is one of the biggest threats to our city’s future prosperity. It costs us tax revenue while increasing our already high demand for city services. Worst of all, it deprives thousands of our citizens from accessing their true potential. Poverty has increased from generation to generation for decades. If we want a thriving Philadelphia, we must reverse that trend. Shared Prosperity Philadelphia builds a foundation for systemic, long-term change. The Mayor’s Office of Community Empowerment and Opportunity (CEO), Philadelphia’s Community Action Agency, will play a key role in this effort. The City launched the office in January 2013 with an ambitious goal: to organize and implement a coordinated approach to reduce poverty — an approach that could get off the ground quickly and last for as long as necessary. Collaboration is at the center of the plan. CEO will convene stakeholders from the government, philanthropy, academia, business, and consumer communities to achieve a common understanding of Philadelphia’s poverty problem and everyone’s role in its ongoing solution. This plan is designed to help lift citizens and communities out of poverty and increase opportunities for low-income individuals and families. It is a call to work together. We can make a difference. Come join us. 2 THE SILENT CRISIS In some ways, today’s Philadelphia is bustling with 28 out of every energy and promise. Between 2000 and 2010, our 100 Philadelphians population grew for the first time in six decades. Yet the city faces a silent crisis that could prevent it live in poverty. from realizing its full potential: persistent poverty. 11 are children. LOWEST MEDIAN INCOMES BY ZIP CODE 3 40% 35% 30% A t a staggering 28 percent, Philadelphia’s poverty rate is the 25% highest among the nation’s 10 largest cities. Over 430,000 NEARLY 1 OUT OF EVERY 2.5 of our 1,547,600 citizens live below the federal poverty 20% CHILDREN LIVES BELOW THE line. Many thousands more earn just enough to escape the 15% technical definition of poverty, which is just $23,550 for a FEDERAL POVERTY LINE. family of four. Nearly 200,000 survive on incomes that put 10% them in a “deep poverty” category, defined as less than half 5% the federal poverty limit. Poverty by Age Group 0% 40% Poverty affects the entire city, but some groups suffer from TOTAL CHILDREN ADULTS SENIORS POPULATIONit more than UNDERothers. 18 Black Philadelphians18-64 and Latinos65+ are 30% Number twice as likely to be poor as whites. Poverty is also high 12 430,000+ 135,000 265,000 32,000 of People among people with disabilities (40 percent) and households headed by single mothers (42 percent). 20% Most distressing of all, 39 percent of Philadelphia’s children 10% are poor. 0% Total Children Adults Seniors Population under 18 18–64 65+ People: 430,000+ 135,000 265,000 32,000 Poverty by Race, Nationality, Disability, and Social Factors (rate and population size) RACE NATIONALITY SOCIAL FACTORS 50% 40% 30% 20% 10% 28% 17% 34% 30% 42% 29% 42% 40% 0% Number of People 430,000+ 92,000 214,000 28,000 80,000 54,000 193,000 93,000 TOTAL WHITE BLACK or ASIAN HISPANIC FOREIGN FEMALE WITH ANY POPULATION AFRICAN or BORN HOUSEHOLDER DISABILITY RACE NATIONALITY SOCIAL FACTORS AMERICAN LATINO with or w/o 50% children 40% 30% THE POVERTY RATE FOR BLACK AND LATINO PHILADELPHIANS IS MORE THAN DOUBLE THAT OF WHITE PHILADELPHIANS. 20% 10% 28% 18% 34% 30% 42% 29% 42% 40% 0% Number of People13 430,000+ 214,000 28,000 80,000 54,000 193,000 93,000 TOTAL WHITE BLACK or ASIAN HISPANIC FOREIGN FEMALE WITH ANY POPULATION AFRICAN- or BORN HOUSEHOLDER DISABILITY AMERICAN LATINO with or w/o children 4 Median Household National Average: Income: 25 Largest Cities $50,502 A FRAYED SAFETY NET San Jose District of Columbia The nation’s economy is rebounding too slowly San Francisco Seattle from the worst economic downturn since the San Diego Great Depression. Philadelphia’s recovery is Charlotte New York City lagging further behind. Austin Boston Our median income ($34,207) ranks 24th out of the 25 largest Fort Worth American cities. In Harrisburg, the Pennsylvania government Denver eliminated benefits like General Assistance. The disabled, Los Angeles individuals recovering from addiction, victims of domestic Jacksonville violence, and other vulnerable people were left without any Phoenix source of income. Significant percentages of residents eligible Chicago for government benefits do not get them. Some are unaware of Houston their eligibility. Others are deterred by a needlessly confusing San Antonio and time-consuming qualification process. El Paso Dallas Columbus Indianapolis Baltimore Memphis Access to Key Public Benefits Philadelphia Detroit IT IS DIFFICULT FOR INDIVIDUALS TO NAVIGATE 0 THE WEB OF PUBLIC BENEFIT PROGRAMS. $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 RETIRED NOT IN LABOR SNAP/FOOD STAMPS MARKET SOCIAL SECURITY ADULTS DISABLED SSI TRANSITIONAL SUBSIDIZED JOBS IN SSDI LABOR CHILD TAX CREDIT/ UNEMPLOYED CHILD CARE SUBSIDY PHILADELPHIA’S MARKET Full-Time LOW-INCOME UNEMPLOYMENT INSURANCE INDIVIDUALS MEDICAID/MEDICARE EARNED INCOME UNEMPLOYED TAX CREDIT (EITC) Part-Time HOME ENERGY WORKING ASSISTANCE Part-Time CHILDREN’S HEALTH INSURANCE PROGRAM CHILDREN EARLY CHILDHOOD WORKING EDUCATION Full-Time K–12 EDUCATION 5 EYVER PHILADELPHIAN’S CRISIS FCI A NG THE CRISIS The effects of poverty ripple out beyond those The City of Philadelphia is committed to affected directly to nearly everyone who lives understanding, confronting, and reducing or works in the city. the effects of poverty in Philadelphia. Poverty means lower tax revenues in city coffers, C EO has embarked on an accelerated plan to ensure an increased burden on city services, and, ultimately, that the city not only creates the most accurate and a higher burden on Philadelphia’s homeowners and realistic portrait of the problem, but also maximizes taxpayers. Hundreds of thousands of Philadelphians the efforts of the many organizations and individuals work long hours yet remain in poverty, never joining already working on it. A clear grasp of the scope of the the city’s already-shrinking middle class. Their lack need and a plan to address it should help attract new of disposable income means they purchase fewer funds from both private and public sources. goods and services. This depresses the economy as a whole, impeding the success of entrepreneurs and established businesses. Every link in this chain of poverty feeds an unhealthy pessimism about the city’s future growth and prosperity. IN 24 OF THE CITy’s 46 residenTIAL ZIP CODES, THE POVERTY RATE IS OVER 20%. CONCENTRATIONS ARE GREATEST IN NORTH AND WEST PHILADELPHIA. % LIVING IN POVERTY BY ZIP CODE Germantown North Philadelphia- North Philadelphia Yorktown Fairmount North-Brewerytown Fairmount North Northeast- Frankford Port Richmond North- Philadelphia North Brewerytown West of Philadelphia West Philadelphia-University City Broad North Philadelphia-Yorktown Nicetown North Philadelphia-West of Broad Port Nicetown Richmond West Philadelphia-West Market Northeast-Frankford $29,849 Germantown $28,988 $22,755 10%5%0% 15% 20% 25% 30% 35% 40% 45% 50% 55% $21,177 $24,048 $14,586 $14,984 $20,697 West Philadelphia- $26,487 West Market $21,801 MEDIAN INCOME West Philadelphia- BY ZIP CODE University City 6 EFFE CTIVE COLLABORATION Confronting poverty requires teasing out its Adopting a philosophy of “collective impact,” multiple contributing factors while at the same CEO will work to dismantle the barriers to effective collaboration among poverty-fighting agencies and time approaching them as a whole. institutions. These groups often work in isolation from one another, sometimes duplicating data and services. T his is a daunting task that requires meticulous In addition to bringing organizations together, CEO research, strong commitment, creative problem will objectively track progress, retaining the flexibility solving, clear and continuous communication, and to modify programs in response to up-to-date data the backbone support of a coordinating agency that gathering and cutting-edge research. both holds the vision and applies stringent standards of efficiency and efficacy. CEO was established to be that agency. A COMPREHENSIVE STRATEGY Shared Prosperity Philadelphia is the major first FIVE GOALS F ocus job creation and step in our comprehensive strategy. This document workforce development efforts represents a detailed analysis of information on adults with the greatest and insights from 200 stakeholders and experts, barriers to employment gathered from group meetings, focus groups, Strengthen surveys, and one-on-one interviews. These experts Expand access economic security included leading academics, officers of philanthropic to public benefits and asset-building foundations, members of the CEO oversight board and essential services and staff, and City officials, including the mayor, deputy mayors, commissioners, and representatives of City Council. Central to the process were the frontline experiences of providers and consumers of a range of anti-poverty services. The data and expertise gleaned from this highly iterative process frames an action plan focused on reducing the deleterious effects of poverty on individuals and communities while constructing a set of policy goals that can increase the number of job opportunities available in the city and prepare Philadelphians to better qualify for them. Increase housing E nsure that children enter security and school prepared to learn affordability and expand opportunities for year-round learning 7 Focus job creation and workforce development efforts on adults with the greatest barriers to employment Background Strategies SIGNS OF SUCCESS One in 10 Philadelphia adults is unemployed.