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A review of this month's indicators shows that although the unemployment rate remains higher than at any time in the last 10 years, the economy in Travis County is beginning a slow recovery. Unemployment decreased slightly again this month, and although job loss has slowed when compared to last year, large layoffs are occurring this month. At the same time, we still see an increased demand for social services when compared to last year. Those hardest hit by the economic downturn have not begun to see an improvement in their personal financial conditions.
Items highlighted with blue text are new for this month.
ECONOMY:
- The U.S. Labor Department reported on April 5th that the number of workers on U.S. payrolls grew by 58,000 in March - slightly more than the 41,000 projected increase and consistent with forecasts showing that the economy is slowly climbing out of the recession.
- Home sales are one indicator that the economy may be on the upswing. February saw the fourth consecutive month of growth for the Austin-area housing market with a 10% increase in the number of homes sold. According to an Austin American-Statesman article, if the trend continues, the housing market should make a rapid recovery from the mild slump experienced during 2001.
- Jon Hockenyos, an economist with Texas Perspectives, doesn't expect to see a rebound in the economy until later this year (Austin American-Statesman).
EMPLOYMENT:
- Although job creation has exceeded layoffs, Angelou Economic Advisors reported 23,000 layoffs in 2001.
- The Travis County unemployment rate dropped slightly again from 5.6% in February to 5.4% in March. The March Travis County unemployment rate was better than the State's unemployment rate of 5.6%.
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- Between January 1 and April 22, 2002, 1,942 people were laid off in the greater Austin area (WorkSource).
- According to local economist, Jon Hockenyos, there shouldn't be "any more big local layoffs" (Austin American-Statesman).
- AMD (Advanced Micro Devices) announced in early May that they will lay off 800 chip manufacturing workers in Austin. They will also be notifying an additional 200 workers that their jobs will be eliminated. AMD's Austin employment has dropped from more than 4,000 a year ago to about 3,000 people (Austin American-Statesman).
- The Central Texas job market added about 3,000 jobs in March - 1,000 of which were temporary positions at stores and restaurants for South by Southwest, the Star of Texas rodeo, and sporting events. In addition, the Internal Revenue Service hired 400 workers for tax season, and about 300 construction jobs were added (Austin American-Statesman).
- Traffic at the four WorkSource Career Centers remains brisk. WorkSource Career Centers received 16,036 visits in January 2002, 13,336 visits in February, and 14,503 visits in March indicating that demand for employment assistance remains high.
- The struggling economy has forced the Greater Austin Chamber of Commerce to reduce expenses by cutting 20% of its staff and requiring remaining employees to take days off without pay. The Chamber is also moving its offices from Congress Avenue this fall to cut expenses.
- The University of Texas at Austin's College of Engineering and the McCombs School of Business, which account for about a fourth of all UT graduates, experienced a 35% decrease in the number of combined on-site recruiters this year. In the College of Natural Sciences, the total number of job interviews plummeted 54% to 1,210 (Austin American-Statesman). Nationally, hiring out of college has declined more than 36% in the last year (National Association of Colleges and Employers). Exceptions to the labor market decline are teachers and nurses, occupations which continue to be in great demand.
COST OF LIVING:
- Despite legislative approval of a pay raise for state employees, a slow economy is keeping the raises from occurring. The state would need an additional $191 million by September to make the raises possible.
- Of the top 10 occupational categories in the Austin-San Marcos Metropolitan Statistical Area (MSA), 28.8% of the jobs (186,360) have a median hourly wage of less than $10. The Center for Public Policy Priorities indicates that a single adult with no children needs to earn at least $10/hour in order to secure basic necessities. However, a single parent with one child needs to earn a minimum of $17/hour ($33,819/yr). For a family of two parents and two children, the Austin-San Marcos MSA is the most expensive metropolitan area in the state in which to live.
- A recent study by the Public Policy Institute of California found that cities that boost minimum wages above the federal level do reduce poverty for the working poor but also increase unemployment.
- The median price for a single-family home rose 5% in February to $160,000, its highest level ever (Austin American-Statesman). According to a March 30th article in the Austin American Statesman, assessed market values of homes in Travis County are expected to increase 10% in 2001.
- Results of a first-quarter survey by PMI Mortgage Insurance Company indicate that the Austin-San Marcos region tops a national ranking of areas most likely to see home values decline more than 10% in the next two years. PMI's analysts said Austin has about a 15% chance of experiencing such a drop. However, local economist Jon Hockenyos predicts that the median home price will, at most, level off after rising steadily for more than a decade.
- The Center for Community Change conducted a study showing that lower-income black people are 2.4 times more likely to receive high-cost/subprime loans than lower-income white people. Upper-income black people are three times more likely to receive subprime loans than their white counterparts. Austin was ranked ninth nationally with 63% of all black loan takers receiving subprime loans (Austin American-Statesman).
- According to the 2000 Census, 45% of Austin housing is owner-occupied. The state average is nearly 64%. The Austin rate is perhaps the lowest in the nation (The Good Life, March 2002).
SEPTEMBER 11 IMPLICATIONS:
- The Austin Police Department is restructuring in response to the events of September 11th, including forming a Homeland Defense Division, expanding Search and Rescue and Explosive Ordinance Disposal (EOD, or Bomb Squad) units, and considering changes to the role of Street Response.
DEMAND INDICATORS:
Housing, Homelessness, Basic Needs:
- From January 1 through March 20, 2002, the most frequent calls to United Way's First Call for Help were for basic needs, including utility bill assistance (721 calls, remaining relatively stable when compared to last year), rent assistance (605 calls, up 43% from the same time period last year), and food pantry requests (389 calls, up 33%). United Way's First Call for Help also experienced increases in the number of calls from people needing: mortgage assistance (up 225%, or 52 calls), employment assistance (up 160% or 104 calls), referrals to Medicaid (up 167% or 32 calls), and referrals to CHIP (up 45%, or 77 calls). Calls for affordable/low-cost housing and homeless shelter decreased by 44% and 35%, respectively, during the same period. (In 2001, First Call for Help had a Homeless Helpline Specialist, which may explain the increase in calls for homeless shelters during that time.)
- In 2001, Family Eldercare experienced a 31% increase in bill payer cases; a 35% increase in Case Management cases; a 48% increase in general calls for assistance (central intake services); a 30% increase in In-home Care cases; and a 16% increase in Eloise's House Day Respite clients. The average wait for Bill Payer services is 3 months and 24 people are currently on the waiting list. Similarly, the average wait for Guardianship services is 11 months, and 34 people are on the waiting list. In addition, it is estimated that 20 older adults are turned away per year from the Elder Shelter due to lack of space.
- In the first quarter of 2002, the Housing Authority of the City of Austin (HACA) had a waiting list of 2,117 families for Public Housing and 6,026 families for Section 8 Housing. Compared to the first quarter of 2001, the waiting list for Public Housing decreased by 16%, but the waiting list for Section 8 Housing increased by 823%. The wait for Public Housing is 6 to 18 months depending upon the number of bedrooms required. The wait for Section 8 Housing may be a year or longer. HACA will not accept applications for the Section 8 Waiting List after May 31, 2002.
- A recent Supreme Court ruling upheld the right of public housing authorities to evict families for drug-related criminal activity even when the leaseholders may be unaware of the criminal actions of household members or guests. Among those expressing concern over the ruling were advocates against domestic violence who are wary of placing the burden of controlling the behavior of household members and guests on those who may be victims of domestic violence.
- Austin Area Interreligious Ministries' Hands on Housing program gathered almost 500 volunteers to work on 30 homes in the Rosewood neighborhood during the weekend of April 20th.
- The majority of states have seen welfare caseloads increase since the beginning of the recession and September 11th (Center for Law and Social Policy). For the first time since TANF was implemented, the average annual change in states' caseloads reflected an increase. TANF caseloads increased between September and December, 2001 in 40 of 50 states, rising over 4% in one quarter on average.
- A recent report released by The Sentencing Project estimated that 92,000 women in 23 states were denied TANF assistance and services due to a prior drug felony conviction.
Physical and Mental Health:
- Due to higher-than-anticipated service utilization and increased cost, Seton Health Plan is ending Seton Solution, its individually financed health maintenance organization plan. Seton sent a letter April 1st to the estimated 1,900 members of Seton Solution announcing that their health care coverage will end Oct. 31st.
- A new study from the Centers for Disease Control and Prevention reports that emergency room visits in the US increased by 14% from 1997 to 2000, emergency room waiting times for patients with less urgent problems increased by 33%, and 90% of emergency rooms at large hospitals are at or above capacity for treating patients. Possible causes include nursing shortages, a lack of on-call specialists, a shortage of inpatient beds resulting from workplace shortages, and inadequate reimbursement from Medicare and private insurers. Emergency room closings also contributed to crowding pressures.
- In the first three months of 2002, Travis County emergency rooms were closed 1,447 hours to at least some ambulance patients - an increase of more than 100% from 2001 and the worst year on record.
- A nationwide shortage of nurses that has existed since the late 1990s is expected to worsen over the next 20 years (Austin American-Statesman). While Texas is growing more than twice as fast as the rest of the nation. We rank 46th in the nation in registered nurses per 100,000 residents, making the shortage especially problematic.
- Urgent Care Plus, an "immediate care" clinic with 10 treatment rooms, is set to open May 6th in far Northwest Austin. Urgent Care Plus hired between 15 and20 employees to staff the facility.
- A recent study by the Institute of Medicine found that racial and ethnic minorities in the United States receive lower quality health care than whites, even when their insurance and income are the same. Explanations for the disparities include racial bias and the fact that minorities are less likely than whites to have long-lasting relationships with primary care physicians. The disparities contribute to higher death rates among minorities from cancer, heart disease, diabetes, and HIV infection.
- A recent study by the Center for Studying Health System Change found that, in 2001, one in seven Americans had trouble getting medical care or had to delay care, primarily due to cost. Accessing care was most difficult for the uninsured, those with low incomes, or those with poor health. Accessing health care was ore difficult in 2001 than in 1997. In 2001, 5.8% of Americans said that they had gone without needed care, compared to 5.2% in 1997. Similarly, in 2001, 33% of Americans said they could not get a timely appointment, compared to 23% in 1997.
- 152,709 people in Travis County do not have health insurance, approximately 23.6% of the total population. Nationally, 14% of the population does not have health insurance. 21.4% of the Texas population does not have health insurance, tying with New Mexico as the states with the highest percentage of uninsured people in the nation (U.S. Census Bureau, September 2001). According to the Austin/ Travis County Health and Human Services, Indigent Care Collaboration CHIP Outreach Coalition, Travis County has 20,081 children under age 19 who are uninsured.
- A study by the World Health Organization (WHO) showed that one in three countries spend less than 1% of their national health budgets on mental health. According to the report, the US spends between 5% and 10% of their total health budget on mental health.
- In 2001, Austin police responded to 75 suicides, most occurring in northwest and southwest Austin. This appears to be consistent with suicide rates in Austin over the past three years, which have been consistently near 10.5 per 100,000. Nearly 2,100 people commit suicide each year in Texas. White males age 75 and over have the highest suicide rate.
Education:
- The Board of the Austin Independent School District recently approved a blueprint to improve six schools (Blackshear, Harris, Oak Springs, and Sims Elementaries and Pearce and Dobie Middle Schools) in East and Northeast Austin. The plan includes replacing five of the six principals, changing the reading curriculum, adding money and resources to the schools, providing more training for teachers, and using only certified, experienced teachers. The plan has startup costs of about $1 million.
- Texas Assessment of Academic Skills (TAAS) test scores are up. A record 85% of 10th graders in Texas passed the test this year.
- In a recent survey of Austin Independent School District (AISD) parents, it was found that 95% expect their child will go to college and graduate. Yet, that same survey found that nearly half of parents don't know if their child is taking high school courses recommended by Texas Education Agency (TEA) that will prepare him/her for college. Further analysis of TEA data shows that relatively few students are actually taking steps that will lead to college. For example, in the Class of 2000, 62% of all students took college entrance exams (only 51% of African Americans, only 38% of Hispanics), and only 41% had "passing" scores (20% for Hispanic students, 11% for African American). In a major step to address this gap, AISD has already made the recommended college prep program the default curriculum for all high school students.
Childcare:
- Currently, there are 3,811 children receiving WorkSource childcare subsidies and 1,513 children are on the waiting list.
- The Fund for Child Care Excellence has been established, and will recruit and train workers in the childcare field for free, providing them with five times the amount of training required by the state. Training is scheduled begin in August. The Dell Foundation has committed $3 million over the next three years toward this effort (Austin American-Statesman).
Public Safety:
- Travis County Commissioners and their staff are looking for $750,000 to $1.7 million to cover court-appointed attorneys' fees which increased under the newly enacted Texas Fair Defense Act. Over the past five years, the county spent about $3 million annually to pay lawyers who represented indigent defendants accused of crimes ranging from misdemeanors to murder. According to a county report, commissioners will have to plan for as much as $2.26 million more for FY 2003.
- According to the Justice Policy Institute, the cost of incarcerating over 458,000 prisoners for drug offenses now exceeds $9 billion annually in the United States.
- According to a January 23rd Austin American-Statesman article, the total number of indexed crimes were 23% higher in December of 2001 than they were in December of 2000. Auto theft (+50%), burglaries (+35%), robberies (+24%), and property thefts (+19%) all increased in Austin over the past year. At the same time, the number of arrests fell 6%. There were five murders in Austin in December of 2001 compared to three in December of 2000.
- In late September 2001, the Austin Police Department created a separate patrol area for downtown, which doubled the number of officers on duty during peak crime periods (usually weekend nights). In the six months since the change, arrests and reports of crime downtown have decreased, even as the crime rate in Austin has increased.
- The Travis County Sheriff's Office has stated that overcrowding has caused some plumbing problems at the downtown jail. According to News 8, the jails are 300 to 600 inmates over designed capacity at any time.
- The Child Advocacy Center released its 2001 Child Fatality Review Report on April 29th. The report shows that 124 children between the ages of 0 to 17 died in 2001, compared to 122 in 2000. Of the 124 children who died, 92 were from natural causes, 22 were accidental deaths, 6 were homicides, two were suicides, and two were undetermined. The leading cause of accidental childhood deaths in Travis County was auto accidents. Nine of the 12 children who died in cars were not wearing seat belts.
Projections:
- Research shows that economic deprivation can increase the incidence of substance abuse, crime, adolescent pregnancy, school dropouts, poor health outcomes, etc. If current economic trends continue, it is possible that Travis County will see additional impacts on these and other indicators in the future. The CAN will continue monitoring changing conditions in our community in order to respond more quickly and effectively.
- The Travis County population is expected to increase 12% between 2000 and 2005 and another 15% between 2005 and 2010, according to projections from the Capital Area Planning Council (CAPCO). Projections for Travis and surrounding counties are displayed in the table to the right:
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- According to Census Bureau estimates released on April 29th, Travis County's population increased by 2.6% (from 812,280 to 833,797) from April 2000 to July 2001. Williamson County was the fifth fastest-growing county in the nation, jumping 11.2% in the same time frame.
RESOURCES
RESPONSES TO COMMUNITY CONDITIONS:
- The Austin City Council and the Travis County Commissioners Court each committed $500,000 toward the basic needs crisis, for a total of $1 million to be spent before the end of the year.
- As a result of the additional $1 million allocated to the basic needs crisis, in April, Any Baby Can provided basic needs assistance to 27 families with children who have special needs, the majority of which went toward utility, rent, and mortgage assistance. Meals on Wheels is providing an additional daily meal to 400 homebound clients whose only nourishment is the lunchtime meal delivered by Meals on Wheels volunteers.
- Responding to recommendations emanating from CAN's January retreat, a Grants Clearinghouse is being hosted by Austin Community College's Grants Development Department and its Center for Community-Based & Nonprofit Organizations in a collaborative effort with the Grants Clearinghouse Steering Committee and the CAN. The site at http://www2.austin.cc.tx.us/npo/grantwebsites.htm contains information on grant opportunities and grant-related web sites.
RESOURCE ISSUES IN THE COMMUNITY:
- Gonzalo Garza Independence High School, an academic alternative AISD High School for juniors and seniors, is in danger of losing its child care center for the 2002-2003 school year. AISD is currently searching for alternative sources to fill a $170,000 loss in funding.
- Casis Elementary will be establishing a State Licensed Child Care Facility in response to the need for quality on-site care for children of employees of Austin ISD. The facility will open in August.
- The Morton and Angela Topfer Family Foundation pledged $500,000 to Family Eldercare for an independent living facility. The 53-unit housing development will be built on 2 ½ acres in Central East Austin near the Conley-Guerrero Senior Center and the Rosewood Zaragosa Medical Clinic.
- People's Community Clinic received a $1 million gift from Bettye and Bill Nowlin, the Clinic's largest individual gift ever. The donation will help the Clinic take care of many of the 2,000 people it turns away every month (Austin American-Statesman).
- St. David's Healthcare Partnership announced on March 26th that they plan to spend $200 million on new construction. St. David's Hospital downtown, South Austin Hospital, Round Rock Medical Center, and several other facilities will be renovated.
- Travis County will receive more than $200,000 in federal money to fund substance abuse treatment programs for juvenile and adult offenders (News 8).
- United Way Capital Area raised $20.6 million this year, an all-time high, and up from $20.5 million last year, but nearly $400,000 less than their goal of $21 million.
- Despite the downturn in the economy, foundation grants rose in 2001. The nation's more than 56,000 foundations increased their spending by 5.1%, to $29 billion.
- The Austin Police Department will receive $4.5 million in federal Community Oriented Police Services (COPS) funds to hire 60 new full-time police officers, according to KEYE news.
- Twelve victim services providers in Austin/Travis County received funds under the Attorney General's Victim Assistance Discretionary Grants Program, totalling $1,813,982. Grants for the biennium will be awarded for projects that provide direct victim services, victim services training, victim assistance public awareness, and emergency funds to victims.
- In April, Austin's sales tax revenue continued to decline for the 11th month in a row - falling 11% from the same period in 2001. By the end of the year, it is anticipated that the City will have $7.6 million less than anticipated sales tax revenues. In response, the City Council unanimously approved a tax anticipation note for $2.8 million that could raise property taxes by one cent per $100 valuation this fall. Additionally, the City will freeze 189 vacant positions, bringing the number of positions that will remain unfilled this year to 337. In order for the City to meet its budget for the year, sales tax revenue would have to increase an average of 6% through September (Austin American-Statesman).
WHAT CAN YOU DO TO HELP?
- Choose a local social services agency to support financially.
- Give to the United Way Capital Area's Community Fund or the Austin Community Foundation's Urgent Issues Fund.
- Contact the United Way Capital Area's Volunteer Center at 512-323-1898 or search for volunteer opportunities on United Way Capital Area's website at www.uway-austin.org.
- Also see the 2001 CAN Urgent Issues Action Plan at caction.org for additional information about community-wide approaches to addressing these issues in our community.
ACKNOWLEDGEMENTS
TRAVIS COUNTY HHS & VS RESEARCH AND PLANNING DIVISION:
Blanca Leahy, Director
Joy Stollings, Charlotte Brooks, Judy Cortez, Sheila Hughes, Lawrence Lyman, Susan Mathis, & Ellen Richards
CONTRIBUTORS:
Fred Butler & Sam Woollard - Community Action Network
Angela Atwood - SafePlace
Travis Froelich - Seton
Annette Gula & Frank Almarez - WorkSource
Sherri Trebus- WorkSource
Jeff Kaufman - Capital Area Planning Council
Susie Duarte - Capital Area Planning Council
Rachel Ladov - United Way First Call for Help
William Petty & Adam Shaivitz - Austin Police Department
Chris Pieper - Center for Public Policy Priorities
Vicki Baldwin- Austin Independent School District
COMMUNITY ACTION NETWORK PARTNERS:
| Austin Area Human Services Association |
Health Partnership 2010 |
| Austin Independent School District |
United Way Capital Area |
| City of Austin |
Austin Area Research Organization, Inc. |
| The Greater Austin Chamber of Commerce |
WorkSource - Greater Austin Area Workforce Board |
| Austin Area Interreligious Ministries |
Capital Metro |
| Austin Travis County Mental Health Mental Retardation Center |
Travis County |
| Community Justice Council |
Higher Education Coalition |
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May, 2002
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