This document summarizes the key findings of a report by Elizabeth Kneebone and Alan Berube on confronting suburban poverty in the Chicago region. It finds that the geography of poverty has shifted substantially to suburbs, with over half of the region's poor now living in suburban areas. However, current policies are not well-aligned to address the challenges of suburban poverty, such as limited access to services, fragmented governance, and inflexible funding. The report calls for a new agenda focused on achieving scale for solutions, collaborating across boundaries, and funding strategies that leverage both public and private resources to create opportunities in metropolitan regions.
2. 1
The geography of poverty and
opportunity has changed
2
Current policies are not aligned
to this new geography
3
We need a new agenda for
metropolitan opportunity
4. Today, more of the nation’s poor live in suburbs than in cities
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
1970
1980
1990
Poor Individuals in Suburbs
2000
Poor Individuals in Cities
Number in poverty, central cities versus suburbs, 1970-2012. Source: Brookings analysis of U.S. Census Bureau data
2012
5. In the Chicago region, the share of poor residents in the
suburbs climbed to 52 percent in 2012
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
1970
1980
Poor Individuals in Suburbs
1990
2000
Poor Individuals in Cities
Number in poverty, central cities versus suburbs, 1970-2012. Source: Brookings analysis of U.S. Census Bureau data
2012
6. One-third of the region’s poor live outside Cook County
2007-11
2000
24%
17%
Chicago
32%
Rest of
Cook
59%
Rest of
metro
48%
20%
9. Chicago’s urban and suburban poor are similar in many ways
Share of urban poor
Share of suburban poor
50%
44%
38%
35%
44% 44%
37%
34%
26%
22%
19%
16%
Foreign born
White nonHispanic
Source: Brookings Institution analysis of ACS data
Under 18
Female HH with
kids
Deep poverty
HS dropout
10. Several factors drive suburban poverty in the Chicago region
Population Change
Job Location
Immigration
Housing
Regional Economy
11. Overall population has grown much faster in the suburbs
8.3%
Cities
Suburbs
-4.5%
Percent Change in Population,
Chicago Region,
2000 to 2010
Source: Brookings Institution analysis of ACS and Decennial Census data
12. Immigration is contributing to growth in suburban poverty
81%
19%
Foreign-born
population
Native-born
population
Contribution to Growth in
Suburban Poor Population,
2000 to 2009
Source: Robert Suro, Jill Wilson, and Audrey Singer “Immigration and Poverty in America's Suburbs”
13. Affordable housing is spreading to Chicago’s suburbs
160,188
99,211
2000
2008
Housing Voucher Recipients
in Suburbs
Source: Brookings Institution analysis of HUD “Picture of Subsidized Housing” data
14. Most subprime lending and foreclosures were suburban
68%
70%
Subprime Loans
Loans in
Foreclosure or
Lost
Share of 2004-08 Loans in
Suburbs, Chicago Region
Source: Chris Shildt, Naomi Cytron, Elizabeth Kneebone and Carolina Reid, “The Subprime Crisis in Suburbia: Exploring the Links between Foreclosures and Suburban Poverty”
15. Jobs sprawl is high in the Chicago region
68%
67%
2000
2010
Share of Chicago Region Jobs
Located 10 to 35 Miles
from Downtown
Source: Elizabeth Kneebone, “Job Sprawl Stalls: The Great Recession and Metropolitan Employment Location”
16. The economic downturn left many unemployed in the
suburbs
287,032
168,798
Dec. 2007
Source: Brookings Institution analysis of Bureau of Labor Statistics LAUS data
Dec. 2010
Number of Suburban
Unemployed,
Chicago Region
17. Suburban poverty brings added challenges
Transit Access
Limited Philanthropic Resources
Strained Local Services
Change in School Populations
18. Suburban commuters have less access to transit
100%
91%
City
Suburbs
Share of Low-Income
Neighborhoods with Transit Stop
Nearby, Chicago Region
Source: Tomer, Kneebone, Puentes, and Berube, “Missed Opportunity” (Brookings, 2011)
19. Suburban commuters with transit can’t reach as many jobs
38%
13%
City
Source: Tomer, Kneebone, Puentes, and Berube, “Missed Opportunity” (Brookings, 2011)
Suburbs
Share of Chicago Region Jobs
Accessible to Low-income
Neighborhoods within 90
Minutes via Transit
20. Nonprofits are present in Chicago’s suburbs
1.42
1.04
0.86
Chicago
Rest of Cook
Rest of IL metro
Number of Registered Nonprofit
Social Service Organizations per Poor
Individual, 2007
Source: Alllard and Roth, “Strained Suburbs: The Social Service Challenges of Rising Suburban Poverty,” (2010)
21. But suburban nonprofits are considerably smaller
$938
$617
$506
Chicago
Rest of Cook
Rest of IL metro
Nonprofit Human Services Revenue
per Poor Individual, 2007
Source: Alllard and Roth, “Strained Suburbs: The Social Service Challenges of Rising Suburban Poverty,” (2010)
22. Philanthropic support for suburban organizations is limited
$68
$2
City
Suburbs
Human Services, Housing, and
Workforce Training Grant Dollars per
Poor Person,
Chicago Metro Area, 2007
Source: Reckhow and Weir, “Building a Stronger Regional Safety Net” (Brookings, 2012)
23. Schools are seeing low-income populations multiply
27%
5%
City
Source: Brookings analysis of GreatSchools data
Suburbs
Percent Change in Number of
Students Enrolled in Free and
Reduced Price Lunch, Chicago Region,
2005-06 to 2009-10
24. Low-income suburban students attend schools with belowaverage test scores
59%
39%
Middle- or highincome student
Low-income
student
Average School-Wide Proficiency
Ranking Statewide, Chicago
Suburban Students, 2009-10
25. Poverty is not distributing evenly across Chicago’s suburbs
Below Average Poverty Rate Growth
Carol Stream
Above Average Poverty Rate Growth
Berwyn
Above
Average
Poor
Population
Growth
Below
Average
Poor
Population
Growth
Beecher
Harvey
35. Achieve Scale
IFF
•
•
•
Grew from a $2.7 million loan fund to a
65-person organization with assets totaling $240
million and a loan portfolio of $187 million
Serves five states in Midwest:
Illinois, Indiana, Iowa, Missouri, and Wisconsin
Able to play the role of
researcher, lender, consultant, and/or developer
depending on the needs of the community
Improve systems and networks
Promote high-performance organizations
Support smart consolidation
36. Collaborate and Integrate
Chicago Southland Housing and Community
Development Collaborative
•
•
•
Represents 23 municipalities
Continues to be supported by regional
institutions and local funders
Breaks down policy silos
Identify and reduce barriers
Reward collaborative approaches
Catalyze regional capacity
37. Fund strategically
Mortgage Resolution Fund
•
•
•
Uses a market-based, enterprise-level
approach
Leverages existing nonprofit expertise
and private sector resources
Focuses on measurable outcomes
Commit to enterprise-level funding
Promote tools that leverage public & private resources
Develop consistent, comparable data sources
38. Creating a Metropolitan Opportunity Challenge could help bring
these solutions to scale in regions across the country
Federal Place-Based
Anti-Poverty Programs
$82 Billion; 81 Programs; 10 Agencies
Re-purpose 5% : $4 billion
39. You can read more about the Metropolitan Opportunity Challenge
and the contents of the book on our new website
www.ConfrontingSuburbanPoverty.org
40. The website provides a host of helpful resources:
Profiles of the top 100 metros
Tips for taking action
Case studies of innovators
Video
Infographic
41. Questions
• What are the major challenges you perceive to
grantmaking in the suburbs?
• Who are the “quarterbacks” in this region? What
barriers do they face to scale?
• Are there regional (or sub-regional) tables at which
funders come together to collaborate?
• How can philanthropy and government
(federal, state, county, municipal) help each other to
confront suburban poverty in the region?
• What further research/advocacy is needed to help
move these ideas forward?