Miami-Dade County Prosperity Initiatives Feasibility Study www.metropolitan.fiu.edu #prosperity305 @FIUMetroCenter 1 The Chairman’s Council for Prosperity Initiatives Hon. Barbara J. Jordan Hon. Jean Monestime Hon. Daniella Levine-Cava Miami-Dade County Prosperity Initiatives Feasibility Study 2 Purpose of the Study Examine the Feasibility and Best Practices of Programs 1 to Improve Economic Opportunity And Self-Sufficiency Social Enterprise Employee Owned Community Land Community Benefit Children’s Savings Incubators and Business Trusts Agreements Accounts Accelerators Cooperatives Miami-Dade County Prosperity Initiatives Feasibility Study 3 Purpose of the Study 2 Build an Economic Justification for Action When Moral Arguments Aren’t Enough Miami-Dade County Prosperity Initiatives Feasibility Study 4 Prosperity Defined: What Makes a Prosperous Region? A growing and stable The economy creates local economy – wealth jobs paying competitive is retained in wages that increase recessions rapidly with skills and experience Stable Economic ! Growth! Opportunity! Economic Equity! Through hard work a Mobility! The benefits of family can climb the economic growth are economic ladder and shared by residents build wealth for across the income successive generations spectrum Miami-Dade County Prosperity Initiatives Feasibility Study 5 Why Prosperity Matters Prosperous Prosperous U.S. economic counties Counties competitiveness relies on the outperform maximize Benefits productivity & low-prosperity human capital – prosperity of its counties skills & talent metros Limited Limited prosperity Prosperity Barriers to creates poses threats prosperity hurt additional Costs to workers low income public costs across the households and a drag on income the regional spectrum economy Miami-Dade County Prosperity Initiatives Feasibility Study 6 Study Structure Identify the Barriers What are the Program Action Agenda to Prosperity Economic Impacts of Feasibility Broader Prosperity? What are the What works, Let’s Do This Costs of Inaction? at What Cost? Miami-Dade County Prosperity Initiatives Feasibility Study 7 Conclusions Despite Miami-Dade’s considerable assets the County’s 1 economy is less competitive and underperforming In Miami-Dade County the Barriers to expanded prosperity 2 have been growing, rather than easing Failing to address Miami-Dade County’s prosperity gap could 3 present a sustained, growing drag on the broader economy Miami-Dade County Prosperity Initiatives Feasibility Study 8 Conclusions The impacts and barriers to expanded prosperity in Miami-Dade 4 are not limited to the County’s lowest income earners Programs to expand prosperity are a sound economic 5 investment Miami-Dade County Prosperity Initiatives Feasibility Study 9 Miami-Dade’s Prosperity Gap: The Barriers to Prosperity Miami-Dade County Prosperity Initiatives Feasibility Study 10 A Central Question Is that still the case today? Miami-Dade County Prosperity Initiatives Feasibility Study 11 A Central Question Is that still the case today? Miami-Dade County Prosperity Initiatives Feasibility Study 12 A National Trend Real Median Household Income United States 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 $60,000 $58,000 $56,000 - 7.1% Loss in Median Income $54,000 $52,000 $50,000 Source: U.S. Census Bureau, Annual 1- Year American Community Survey(s) (Income in 2014 CPI-U-RS adjusted dollars) Miami-Dade County Prosperity Initiatives Feasibility Study 13 A National Trend Real Median Household Income Miami-Dade County 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 $52,000 $50,000 $48,000 - 13% $46,000 Loss in Median Income $44,000 $42,000 $40,000 $38,000 Source: U.S. Census Bureau, Annual 1- Year American Community Survey(s) (Income in 2014 CPI-U-RS adjusted dollars) Miami-Dade County Prosperity Initiatives Feasibility Study 14 A National Trend Change in Mean Household Income by Quintile, 2000 - 2014 United States Lowest Second Third Fourth Highest Top 5 95/20 Fifth Fifth Fifth Fifth Fifth percent Ratio 14.5% - 200% Income Loss of 2 Lowest Quintiles vs. 3 Upper Quintiles -0.8% -2.7% -4.2% -6.9% 14.5% -10.8% Increase in 95/20 Ratio 2000 - 2014 -16.4% Source: U.S Census Bureau, Current Population Survey, Annual Social and Economic Supplements (Income(in(2014(CPI0U0RS(Adjusted(Dollars)( Miami-Dade County Prosperity Initiatives Feasibility Study 15 A National Trend Change in Mean Household Income by Quintile, 2000 - 2014 Miami-Dade County Lowest Second Third Fourth Highest Top 5 Fifth Fifth Fifth Fifth Fifth percent 95/20 Ratio -1.5% - 34.2% Income Loss of at the Middle -5.3% -5.7% -7.1% -7.7% -11.9% -1.5% Decrease in 95/20 Ratio -14.6% 2000 - 2014 Miami-Dade County Prosperity Initiatives Feasibility Study 16 A Tale of Two Economic Cycles Miami-Dade County Prosperity Initiatives Feasibility Study 17 A Tale of Two Economic Cycles Miami-Dade County Median Income Change in Median Income 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 $52,000 1999-2007 2008 - 2014 1999 - 2014 $50,000 -2% $48,000 $46,000 $44,000 $42,000 -11% $40,000 -13% $38,000 Source: U.S. Census Bureau, Annual 1- Year American Community Survey(s) (Income in 2014 CPI-U-RS adjusted dollars) Source: U.S. Census Bureau, Annual 1- Year American Community Survey(s) (Income in 2014 CPI-U-RS adjusted dollars) Miami-Dade County Prosperity Initiatives Feasibility Study 18 A Tale of Two Economic Cycles Change in Mean Household Income by Quintile United States 2000 - 2007 2008 – 2014 Lowest Second Third Fourth Highest Top 5 Lowest Second Third Fourth Highest Top 5 Fifth Fifth Fifth Fifth Fifth percent 95/20 Ratio Fifth Fifth Fifth Fifth Fifth percent 95/20 Ratio 12.6% 1% 12.6% Increase in 95/20 Ratio Increase in 95/20 Ratio 3.2% 2.6% 0.1% 0.1% 0.1% -1.7% -1.9% -2.0% -3.6% -4.2% -5.5% -5.5% -8.9% Source: U.S Census Bureau, Current Population Survey, Annual Social and Economic Supplements Source: U.S Census Bureau, Current Population Survey, Annual Social and Economic Supplements (Income(in(2014(CPI0U0RS(Adjusted(Dollars)( (Income(in(2014(CPI0U0RS(Adjusted(Dollars)( Miami-Dade County Prosperity Initiatives Feasibility Study 19 A Tale of Two Economic Cycles Change in Mean Household Income by Income Quintile Miami-Dade County 2000 - 2007 2008 – 2014 Lowest Second Third Fourth Highest Top 5 Lowest Second Third Fourth Highest Top 5 Fifth Fifth Fifth Fifth Fifth percent 95/20 Ratio Fifth Fifth Fifth Fifth Fifth percent 95/20 Ratio 20.5% 11.3% 3.4% 2.8% 1.8% -0.7% -2.1% -4.6% -7.9% -9.7% -10.8% -11.0% -10.9% -23.6% Source: U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplements Source: U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplements (Income in 2014 CPI-U-RS Adjusted Dollars) (Income in 2014 CPI-U-RS Adjusted Dollars) Miami-Dade County Prosperity Initiatives Feasibility Study 20 A Tale of Two Economic Cycles 95/20 Ratio Miami-Dade County 41.0 39.0 37.0 35.0 33.0 31.0 29.0 27.0 25.0 2000 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplements (Income in 2014 CPI-U-RS Adjusted Dollars) Miami-Dade County Prosperity Initiatives Feasibility Study 21 A Tale of Two Economic Cycles Gini Index for US Counties 2006 - 2014 % Change County & 2014 Rank 2014 2006 2006-2014 1 New York County, New York 0.5939 0.599 -1% 2 Orleans Parish, Louisiana 0.5883 0.551 7% 3 Fairfield County, Connecticut 0.5491 0.542 1% 4 Lee County, Alabama 0.5434 0.494 10% 5 Tom Green County, Texas 0.5429 0.455 19% 6 Suffolk County, Massachusetts 0.5424 0.505 7% 18th 7 Essex County, New Jersey 0.5422 0.521 4% Most Income Unequal 8 Bibb County, Georgia 0.5410 0.465 16% 9 Clarke County, Georgia 0.5389 0.516 4% County in U.S. 10 White County, Arkansas 0.5382 0.460 17% 11 Westchester County, New York 0.5365 0.527 2% 12 McKinley County, New Mexico 0.5364 0.480 12% 13 Caddo Parish, Louisiana 0.5357 0.501 7% 14 Johnson County, Iowa 0.5347 0.482 11% 15 Fulton County, Georgia 0.5338 0.524 2% 16 Orange County, North Carolina 0.5289 0.530 -0% 17 Richmond city, Virginia 0.5263 0.513 3% 18 Miami-Dade County, Florida 0.5239 0.502 4% 19 District of Columbia, District of Columbia 0.5224 0.537 -3% 20 Collier County, Florida 0.5223 0.500 4% Miami-Dade County Prosperity Initiatives Feasibility Study 22 A Tale of Two Economic Cycles Mean Income as Percent of US Income, by Income Quintile, 2000 - 2014 Miami-Dade County Lowest Second Third Fourth Highest Top 5 Fifth Fifth Fifth Fifth Fifth Percent 120% Pre-2000 US#Mean#Income# 2000 Mean incomes lower than 100% 2007 2014 national averages 2000 2007 2014 80% 2007 2007 2007 2000 2007 2000 2014 2000 2014 2014 2014 60% 2000 to 2007 2000 Incomes gained ground against national averages 40% 20% 2008 Gains wiped out 0% Source: U.S Census Bureau, Current Population Survey, Annual Social and Economic Supplements (Income#in#2014#CPI4U4RS#Adjusted#Dollars)# Miami-Dade County Prosperity Initiatives Feasibility Study 23 Pronounced Cyclical Job Loss Total Non-Farm Employment Miami-Dade County 1,150,000 1,100,000 1,050,000 1,000,000 950,000 900,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: US Dept. of Labor, Bureau of Labor Statistics Miami-Dade County Prosperity Initiatives Feasibility Study 24 Low Wage Employment Growth Fastest Growing Occupations Miami-Dade County Median 2014 Median Annual Occupation Hourly Employment Wage 61% Wage Jobs created since 2010 pay Office & Administrative Support 202,100 $14.48 $33,330 below the County average wage Sales & Related 145,320 $11.72 $37,890 Food Preparation & Serving 100,010 $9.22 $22,840 Transportation & Material Moving 78,940 $12.53 $36,130 Health Care Practitioners 65,240 $27.86 $72,450 Education, Training, Library 59,000 $22.76 $51,150 Miami-Dade County Prosperity Initiatives Feasibility Study 25 Stagnating Productivity GDP Per Employee Change in GDP Per Employee Miami-Fort Lauderdale-West Palm Beach, FL MSA Miami-Fort Lauderdale-West Palm Beach, FL MSA $95,000 2001-2006 2007-2014 25% GDP $93,000 20% $91,000 15% $89,000 Employment $87,000 10% Productivity Employment $85,000 5% $83,000 0% $81,000 GDP -5% $79,000 -10% Productivity $77,000 -15% $75,000 Source: US Dept.