AUSTIN, Texas - Where you grow up has a lot to do with your opportunities for success in life, according to a new report by the Center for American Progress.
Sarah Edelman, the study's co-author, says because rentals are too expensive in high-opportunity areas, places with good jobs and schools, and access to safe playgrounds and grocery stores with fresh produce, low-income families end up in high-poverty areas. Edelman says high rents also have led to an increase in racial and economic segregation.
"In most of the markets we looked at, we saw a pretty significant mismatch between where you can afford to rent a place if you're low income and where the places of opportunity are," she says.
The report found the available inventory of affordable rentals isn't enough to provide housing for even a third of the nation's low-income families. Edelman adds almost half of all renters spend more than 30 percent of their income on housing, and more than a quarter spend at least 50 percent, sharp increases from just a decade ago.
Edelman says the combination of stagnant wages coupled with continuing cuts to social services and housing programs has kept millions of Americans stuck in areas with fewer opportunities for advancement. Edelman says eliminating restrictive zoning in more affluent neighborhoods and giving tax credits to renters could open the door for more families.
"We also need more investment in low-income, high-poverty neighborhoods," says Edelman. "One really cost-effective way of addressing this affordability squeeze is to focus on preserving the affordable rental units that we already have."
Edelman says more than 2 million affordable rental units are currently scheduled to phase out over the next decade if they're not preserved. The report also recommends expanding the federal Housing Choice Voucher program to help more families. Edelman notes that only a quarter of eligible households today actually receive rental assistance.
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United Auto Workers' contract negotiations kick off today with Volkswagen at its Chattanooga plant, covering over 4,000 UAW members.
The union says its goal is to achieve an initial agreement that raises standards in wages, benefits and protections to align with those in other unionized plants.
Yolanda Peoples, a member of the UAW bargaining team, said they conducted a survey to prioritize the most pressing issues for changes or improvement.
"The highest concerns was the health and safety. A lot of employees were concerned about the high rate of injuries that we've had inside the plant that weren't being addressed. Really, pretty much was just swept under the table and it wasn't being acknowledged," she explained.
Peoples noted the UAW bargaining team of 20 elected representatives has prepared a "demand book" with some 800 items to present to Volkswagen as the basis for their negotiations. They'll work toward compromises and comprehensive policies that employees and management can agree on.
Peoples said the cost of healthcare insurance was another high point in the survey, which she describes as unaffordable for many workers.
"A lot of the employees have families, and they've taken out the family health care, and the price that we have to pay is extremely high. This year, the prices have gone up in the insurance plans that we have, and a lot of the employees have concerns about that - not only the high deductible, also the cost of the medications," she continued.
She added the policy changes resulted in some doctors being excluded from coverage, forcing patients to switch healthcare providers.
Earlier this year, Volkswagen workers in Chattanooga made history by unionizing, a first for Southern autoworkers outside the 'Big Three' manufacturers.
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September is Workforce Development Month and North Dakota offices managing energy assistance programs hope people in need of a fresh career start will give weatherization work some thought.
Community Action Agencies help low-income individuals sign up for aid to keep their heating and cooling bills lower. These offices also have teams specializing in weatherization, with free repairs and upgrades for eligible households, so their homes are safe and healthy and energy systems run more efficiently.
Willy Soderholm, executive director of the Community Action Partnership-Minot Region, said his crews have veteran leadership but there are still turnover issues with newer staff.
"They're working underneath the trailer-house bellies," Soderholm pointed out. "They're working up in the attics and things like that. And plus, you know, they're working out in the cold."
Despite the challenging work, Soderholm noted those who make it through a full season can realize the stability and rewarding mission aligned with the jobs. He explained there are benefits, competitive pay and training available. His region has a waiting list of more than 40 homes in need of weatherization work and a complete staff could help whittle down the number.
Recent federal policies have boosted weatherization funding, with office leaders noting job availability should not be as unpredictable in the coming years. Beyond charting a new career path, Soderholm emphasized joining one of the teams means you are helping people in your community meet basic needs.
"We're really looking for somebody that has compassion to work with those in need and understand the struggles that are going on out there," Soderholm explained.
Soderholm added his agency's longtime staff is nearing retirement age, which should create pressure and opportunities for others to advance their careers. Similar workforce challenges are reported by other offices around the country.
According to the U.S. Department of Energy, such programs have led to nearly 275 jobs created or retained in North Dakota since 2015.
Disclosure: The Community Action Partnership of North Dakota contributes to our fund for reporting on Budget Policy and Priorities, Health Issues, Housing/Homelessness, and Hunger/Food/Nutrition. If you would like to help support news in the public interest,
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A new report showed Connecticut's post-pandemic job growth lags behind the rest of the nation.
The State of Working Connecticut report found personal income, gross domestic product and job growth are all falling behind the U.S. averages. Though low-wage workers saw significant wage growth to help with their cost of living, post-pandemic inflation has eroded the gains.
Patrick O'Brien, research and policy director at Connecticut Voices for Children and the report's author, said one reason for the state's slow job growth is its overall unaffordability.
"You need to make the state more affordable for families to stay here and grow here and for also some families to move here," O'Brien urged. "You could think about, you know, addressing affordable housing, affordable child care, a child tax credit. Those types of things that make it more affordable for families to live in the state."
Slower economic growth can also be attributed to the lagging recovery of public-sector jobs, which plummeted around the start of the pandemic. But nationwide, such jobs returned to pre-pandemic levels around mid-2022. Connecticut is close to the national average but has not reached pre-pandemic levels. The report showed building up the public-sector workforce could also significantly reduce wage inequality.
The report recommended ending the subminimum wage, limiting noncompete agreements and improving early childhood education to bolster Connecticut's economy. Bringing the changes to fruition will not be easy. O'Brien noted budget controls could prevent such policies from being enacted.
"With the fiscal controls and our tight budget, it's hard to get funding to increase individual programs," O'Brien pointed out. "Because there's a spending cap, that money tends to have to come from somewhere else."
He added the state has tried to reduce government spending by not filling public-sector jobs. But it can negatively affect the state budget, because it slows personal income growth and income tax collection. O'Brien thinks if nothing is done, Connecticut will remain on the same trajectory of repressed economic growth.
Disclosure: Connecticut Voices for Children contributes to our fund for reporting on Budget Policy and Priorities, Children's Issues, Education, and Juvenile Justice. If you would like to help support news in the public interest,
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