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hswm00 | H | S | Committee on Ways and Means |
[House Hearing, 115 Congress] [From the U.S. Government Publishing Office] THE GEOGRAPHY OF POVERTY ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON HUMAN RESOURCES OF THE COMMITTEE ON WAYS AND MEANS U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTEENTH CONGRESS FIRST SESSION __________ FEBRUARY 15, 2017 __________ Serial No. 115-HR01 __________ Printed for the use of the Committee on Ways and Means [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] U.S. GOVERNMENT PUBLISHING OFFICE 33-363 WASHINGTON : 2019 ----------------------------------------------------------------------------------- COMMITTEE ON WAYS AND MEANS KEVIN BRADY, Texas, Chairman SAM JOHNSON, Texas RICHARD E. NEAL, Massachusetts DEVIN NUNES, California SANDER M. LEVIN, Michigan PATRICK J. TIBERI, Ohio JOHN LEWIS, Georgia DAVID G. REICHERT, Washington LLOYD DOGGETT, Texas PETER J. ROSKAM, Illinois MIKE THOMPSON, California VERN BUCHANAN, Florida JOHN B. LARSON, Connecticut ADRIAN SMITH, Nebraska EARL BLUMENAUER, Oregon LYNN JENKINS, Kansas RON KIND, Wisconsin ERIK PAULSEN, Minnesota BILL PASCRELL, JR., New Jersey KENNY MARCHANT, Texas JOSEPH CROWLEY, New York DIANE BLACK, Tennessee DANNY DAVIS, Illinois TOM REED, New York LINDA SANCHEZ, California MIKE KELLY, Pennsylvania BRIAN HIGGINS, New York JIM RENACCI, Ohio TERRI SEWELL, Alabama PAT MEEHAN, Pennsylvania SUZAN DELBENE, Washington KRISTI NOEM, South Dakota JUDY CHU, California GEORGE HOLDING, North Carolina JASON SMITH, Missouri TOM RICE, South Carolina DAVID SCHWEIKERT, Arizona JACKIE WALORSKI, Indiana CARLOS CURBELO, Florida MIKE BISHOP, Michigan David Stewart, Staff Director Brandon Casey, Minority Chief Counsel ______ SUBCOMMITTEE ON HUMAN RESOURCES ADRIAN SMITH, Nebraska, Chairman JASON SMITH, Missouri DANNY DAVIS, Illinois JACKIE WALORSKI, Indiana LLOYD DOGGETT, Texas CARLOS CURBELO, Florida TERRI SEWELL, Alabama MIKE BISHOP, Michigan JUDY CHU, California DAVID G. REICHERT, Washington TOM REED, New York C O N T E N T S __________ Page Advisory of February 15, 2017 announcing the hearing............. 2 WITNESSES Elizabeth Kneebone, Fellow, Metropolitan Policy Program, Brookings Institution.......................................... 6 Mark Partridge, Professor, Swank Chair in Rural-Urban Policy, Department of Agricultural, Environmental, and Development Economics, The Ohio State University........................... 21 William Leavy, Executive Director, Greater West Town Project, Chicago, IL, accompanied by Linda Thomas, Director of Client Services, Greater West Town Project, Chicago, IL............... 35 Tammy Slater, CEO, Goodwill Industries of Greater Nebraska....... 51 QUESTIONS FOR THE RECORD Question from Congressman Danny Davis of Illinois to William Leavy and Linda Thomas......................................... 82 SUBMISSIONS FOR THE RECORD Affordable Rental Housing........................................ 85 Charles Bruner, Ph.D., statement................................. 88 Enterprise Community Partners.................................... 90 Goodwill Industries International................................ 93 THE GEOGRAPHY OF POVERTY ---------- WEDNESDAY, FEBRUARY 15, 2017 U.S. House of Representatives, Committee on Ways and Means, Subcommittee on Human Resources, Washington, DC. The subcommittee met, pursuant to call, at 10:08 a.m., in Room 1100, Longworth House Office Building, Hon. Adrian Smith [chairman of the subcommittee] presiding. [The advisory announcing the hearing follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairman SMITH OF NEBRASKA. The subcommittee will come to order. Welcome to the first hearing of the Human Resources Subcommittee of the 115th Congress. We have a good mix of new and returning members on the subcommittee this session, and I am honored to serve as the chairman of this important subcommittee. I would like to take a moment to introduce the members on our side of the dais: Mr. Smith of Missouri; Mrs. Walorski of Indiana, a new member of the Ways and Means Committee; Mr. Reichert of Washington, a past chair of this subcommittee; Mr. Reed of New York; and Mr. Rice of South Carolina. On my left, we have the ranking member for the 115th Congress, Mr. Davis of Illinois. Mr. Davis, would you care to introduce your members of the subcommittee? Mr. DAVIS. I would indeed. Let me, first of all, though, thank you, Mr. Chairman, for holding this hearing in particular. I certainly look forward to working with you, and I think we are going to be a very productive team. I am honored to serve as the ranking member of this subcommittee, and I am proud to introduce the following Democratic members of the Human Resources Subcommittee: Mr. Lloyd Doggett of Texas, who has been on the committee and is a senior member of the Ways and Means Committee; and, of course, I am fortunate to be working with two members of this committee and two new members of the Human Resources Subcommittee, Ms. Terri Sewell of Alabama, who represents a vast area that is called rural America--as a matter of fact, much of her district has been called the Black Belt of the South; and Ms. Judy Chu of California, who is not here at the moment but with whom I have had the opportunity to work on issues as well. So, Mr. Chairman, we are all indeed proud to be here, pleased to work with you and other members of the committee, and look forward to a wonderful time. Chairman SMITH OF NEBRASKA. Thank you, and likewise. I appreciate the conversations we have already had and I think some priorities that are certainly timely, and I appreciate the opportunity to work together. It is great to work with all of the members of this subcommittee so that we can help more Americans escape poverty and move up the economic ladder. As we all know, the Ways and Means Committee plays an important role in designing policies to improve the lives of Americans across this country. Together, members of this committee work to improve our Nation's healthcare system, modernize our Tax Code to make American business more competitive, improve trade so U.S. companies can sell goods abroad, and, in the Human Resources Subcommittee, help more families access opportunity to move up the economic ladder. This task is more important than ever. While the total number of individuals living in poverty has fallen from its recent peak in 2010, poverty rates and, even more troubling, child poverty rates remain much higher than they were prior to the recession. In addition, a larger share of working-age adults are in poverty than ever before, as fewer men and women today are employed than in the past. Today's hearing represents our first step to address this issue in the 115th Congress. Before we can identify ways to foster greater opportunities, we have to first understand what the challenges look like across the country. That is why the focus of our hearing today is on the geography of poverty. This felt like the right place to start as I thought about the challenges in my own district, where many locations aren't just rural but also remote, and that of the ranking member's as potential bookends of the same story. People often think of poverty only as they see it in cities, not realizing poverty today is more common than ever in suburban and rural areas. People also underestimate poverty in rural and remote areas, not knowing rates of poverty in these areas have for decades been higher than in urban areas. Our instinct might be to think rural Nebraska and urban Chicago are so vastly different, they have nothing in common. But what we are charged to do in this subcommittee is to find ways for individuals and families to succeed. And those challenges are universal, even if they require different solutions. Fortunately, the members of this subcommittee bring substantial expertise to bear, as together we represent a wide range of constituencies from virtually all four corners of this country. This diversity will be an asset as we explore ways to reduce poverty, as I know what works in one area may not always be what works in another. It is important we realize and respect the differences between the constituencies we represent, as too often Congress proposes national, one-size- fits-all solutions when local flexibility is truly what is needed. Clearly, the centerpiece of any poverty-fighting strategy must be employment. We must make sure Federal policies support and reward work and make sure employment pays for those struggling to get ahead. It is also important we get incentives right so everyone benefits when someone moves from welfare to work, from the State agency running the program, to the business owner hiring the employee, to the individual seeking to improve his or her own life. We should also avoid the tendency to focus solely on inputs, like dollars spent or people served, and instead ensure we focus on outcomes. By prioritizing results, we can empower local communities with the flexibility they need to design solutions which have real impact on improving the lives of families and their community. I look forward to hearing from our expert panel of witnesses today, and I know their insights will lay the groundwork for our efforts to help more Americans find jobs, escape poverty, and move up the economic ladder. I now yield to the distinguished ranking member, Mr. Davis, for the purposes of an opening statement. Mr. DAVIS. Thank you very much, Mr. Chairman. And before I begin, let me just thank you for your altering of protocol to allow Ms. Linda Thomas to sit in with her coworker. And she has done so much work in this area, and it is just wonderful for her to have the opportunity to be here. Poverty and lack of opportunity have consequences, not just for individuals and their families but also for their communities. Seventy percent of homicides in Chicago occur in just 20 neighborhoods. The poverty rate in these 20 neighborhoods is more than twice as high as the poverty rate nationally, and unemployment is 6 times higher. I see firsthand that low-income Chicagoans desperately want good jobs with wages that support their families, but these workers often lack the education, skills, and training needed to access those quality jobs. If they are returning citizens, they face significant hurdles to employment and supporting their families. Even for those who are qualified, there remain job shortages across dozens of industries. A new report found that in 2015 about 43 percent of black men age 20 to 24 in Chicago's west-side and south-side neighborhoods were neither working nor in school. At first glance, the poverty I see in Chicago might look different from the struggles Chairman Smith sees at home in rural Nebraska. Although the faces might look different, although the challenges and experiences that brought people down might be different, we have much more in common than we think. Wherever you live, the first step out of poverty is a good job. It sounds simple, but there are a lot of steps needed to make that happen. The research is clear: The first job matters. Good jobs lead to other good jobs. Workers need basic education and a way to acquire the right skills for good jobs, whether that means on-the-job training, a specialized training program, or higher education. They may need an employer who is willing to take a chance on someone who doesn't have much experience or has made mistakes in the past. They need to be reliable employees, and that means they need a way to get to work. If they are parents, they need child care and paid leave so they can work and still care for their families. The Federal Government has a choice. We can invest in lifting up those communities and those families. We can provide the funding for workforce development so that when we measure program outcomes the outcomes will be good. We can update the Temporary Assistance for Needy Families program and the child support enforcement program to give parents opportunities to get the skills and credentials that good jobs require. We can make sure working parents have safe, quality child care available during the hours they work. And we can stop insulting people by suggesting work requirements for programs that offer struggling families food or basic health care. Instead, we can acknowledge that parents are trying to support their families, but they can't find jobs or the jobs they do find don't pay. We need to do that everywhere in the country, from the city streets of Chicago to Chairman Smith's country roads. Thank you, Mr. Chairman. Again, I am honored to serve as the ranking member of this subcommittee, and, indeed, we look forward to the continuation of good work. And I yield back. Chairman SMITH OF NEBRASKA. Thank you. Thank you, Mr. Davis. And, without objection, other members' opening statements will be made a part of the record. I would like to welcome our witnesses to the table here today. We certainly appreciate you sharing your time and expertise and insight as you do share your statements here today. First, we have Ms. Elizabeth Kneebone, a Fellow at the Metropolitan Policy Program at the Brookings Institution. After Elizabeth, we will have Mr. Mark Partridge, a Professor from The Ohio State University. I even said ``The'' Ohio State University. Then we will have Mr. William Leavy, the Executive Director of the Greater West Town Project in Chicago, Illinois, accompanied later by Linda Thomas, Director of Client Services for the Greater West Town Project. Thank you for being here. Last, but not least, certainly, Ms. Tammy Slater, CEO of Goodwill Industries of Greater Nebraska, where she serves 55 counties in Nebraska and operates 8 retail stores, 7 of which are in my district. And I am not sure all 55 of your counties are in the 75 counties of the Third District, but thank you for being here. Thank you all for being here. We are kind of a family here, wanting to know more of your insights and experiences and expertise. So, Ms. Kneebone, please. STATEMENT OF ELIZABETH KNEEBONE, FELLOW, METROPOLITAN POLICY PROGRAM, BROOKINGS INSTITUTION Ms. KNEEBONE. Chairman Smith, Ranking Member Davis, and members of the subcommittee, thank you so much for the opportunity to testify today. This morning, I am going to spend some time giving a brief overview of the changing geography of poverty, including its growth into new and different areas. I will talk about some of the factors that have led to the shifts we have seen in recent years, some of the challenges that have accompanied those trends, and, finally, some of the implications for efforts to effectively address poverty across different kinds of communities. Let's start with the numbers. The 2000s saw poverty grow rapidly in the U.S., and even with the declines we have seen in recent years, by 2015 we still had 43.1 million people living below the Federal poverty line, or 13.5 percent of the population. That is almost 6 million more people than before the recession began in 2007 and 11-1/2 million more people than in 2000. When we think about poverty in the United States, we often think about it in the urban context or as a rural challenge, because that is where it has historically been concentrated, and as poverty grew in the 2000s, it continued to grow in those places. But it grew at an even faster pace outside of them. So, between 2000 and 2015, in big cities and in rural communities the poor population grew by about 20 percent. In smaller metropolitan areas, it grew at twice that pace. And the fastest pace of growth actually took place in suburbs of our major metropolitan areas, which saw their poor population grow by 57 percent. All told, suburbs accounted for about half of the total increase in the Nation's poor population over that time period. Now, poverty rates remain higher in cities and in rural communities, but today more poor people live in suburbs. In 2015, 16 million people in suburbs lived below the poverty line--3 million more than in big cities, that is 6 million more than in smaller metropolitan areas, and 8 million more than in rural America. So why does that happen? What caused these historic shifts? Well, in some cases, it is because more poor people moved to the suburbs for any number of reasons: following job opportunities, which continue to suburbanize; shifting trends in where affordable housing is located within regions; or just following the amenities that the suburbs offered. But more so and an even bigger part of this puzzle was actually the downward mobility of long-term suburban residents over time. Part of that is because of the two economic recessions we saw in the 2000s, particularly the severity of the Great Recession. But it is not just about downturns; it is also about structural changes in the economy that have led to the growing prevalence of low-wage work. And that saw the typical household income fall even before the Great Recession hit. So why does it matter that all of these forces together have pushed poverty up and into more and different places? Partly it is because the places that have seen poverty grow fastest often were not built nor are they now equipped to deal with the levels of need which they are seeing today. Many suburbs don't have the kinds of infrastructure, like public transit, or support services, like a robust nonprofit safety net, that cities have been able to evolve and develop over decades. And overcoming those gaps is challenged by the fact that suburbs stretch over a really fragmented jurisdictional map. There are several jurisdictions, many of them quite small, that make up the suburbs and are just too small on their own and lack the capacity to marshal responses at the scale of need that they are seeing today. Also, they lack resources, partly because resources have lagged this rapid change in the geography of poverty, both in terms of philanthropic support and in terms of Federal and government investments in places. Some of that is because of the lack of capacity in these places. They are not able to compete to effectively bring resources into their communities. Some of it is by design, by the way that these funding sources were designed, with a different geography of poverty in mind. Clearly, more resources are needed to deal with the scale and reach of need that we see today, but even just marshaling and more effectively using the limited resources we have will require that we get to a more effective scale so we can help more people in more places. There are communities across the country that are already finding ways to do this. Often it is through collaboration, whether it is suburbs coming together to work across suburban jurisdictional boundaries, suburbs working with central cities to address shared challenges, or suburban communities joining with their rural neighbors to work on common issues. All of these sorts of strategies and models share a desire and effort to get to that better scale, to use these limited resources more effectively and in ways that can help more people in more places. But they are fighting an uphill battle to do that in the current context. So the way that the Federal Government could be a strong partner here, could align resources more effectively to support these types of strategies and help scale up these types of responses would be: one, to explicitly incentivize collaborative strategies that cut across jurisdictions, that cut across policy silos; that could, number two, catalyze regional capacity to try and help overcome some of these capacity gaps in these communities through these more regionally scaled entities and efforts; and three, finally, allowing for more experimentation and evaluation to show what can work at the regional level and across different types of communities to connect more people and places to opportunity. Thank you. [The prepared statement of Elizabeth Kneebone follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairman SMITH OF NEBRASKA. Thank you, Ms. Kneebone. And I didn't mention earlier, though, that oral statements are limited to 5 minutes. I appreciate your cooperation there. And, certainly, all of your written statements will be included in the record. So thank you, Ms. Kneebone. Mr. Partridge, you may begin. STATEMENT OF MARK PARTRIDGE, PROFESSOR, SWANK CHAIR IN RURAL- URBAN POLICY, DEPARTMENT OF AGRICULTURAL, ENVIRONMENTAL, AND DEVELOPMENT ECONOMICS, THE OHIO STATE UNIVERSITY Mr. PARTRIDGE. Thank you, Chairman Smith, Ranking Member Davis, and other members. I am Mark Partridge. My views reflect my research and not those of The Ohio State University. Today, I will discuss the diversity of rural poverty in rural America and describe ways to reduce poverty and its harmful effects. Much of rural America struggles from low commodity prices and fierce foreign competition, yet portrayals of the death of rural America are misleading. Dating back to 1970s, net migration in and out of rural America has been about zero with urban America. In reality, there are three rural Americas. It is very diverse: one, fast-growing, high-amenity regions near lakes, oceans, and mountains; two, metro-adjacent rural communities with access to urban jobs and services; and, three, remote or extractive-based communities. Rural America's industrial structure is becoming closer to urban America. So can we show Figure 1? For example, Figure 1 shows the shift from the farm economy. From 1969 to 2015, the rural farm employment share declined from 15 to 6 percent. Rural poverty rates are greater than urban rates. 2014 urban and poverty rates were respectively 15 and 18 percent. But rural poverty receives relatively little attention. One reason is distance from media centers. Another is that it is hidden and rarely concentrated in poor neighborhoods. Poverty greatly declined from 1959 to 1973. Poverty, though, is very geographically persistent. Next figures. Figures 4 and 6 from my written testimony show the 1979 and 2015 county poverty rates for the lower 48 States, and the maps look very similar is my point. High-poverty clusters exist in central Appalachia, the Black Belt, Mississippi Delta, Rio Grande, and Western Native American reservations. Children are disproportionately in poverty. One-fourth of rural children and over one-fifth of urban children are afflicted. Fewer opportunities for poor children perpetuate an intergenerational poverty cycle. Rural policy won't succeed by the next election or save every struggling town, yet two broad approaches are available. First are people-based policies that directly support the poor, including education and training. The second is place-based policies in which poor locales receive more aid. Examples include infrastructure and firm attraction. But promoting prosperous rural communities requires building from within. Communities possess many entrepreneurial and human resources. Research finds the fastest growing U.S. firms exist everywhere, from small towns to large cities. Also, higher shares of small businesses and self-employment support faster future growth. Self-employment and other small- business multipliers are double those of regular employment. There are many reasons. Small businesses buy more inputs locally, more profits remain local, and small-business development promotes a virtual cycle of promoting even more business formation. Small businesses can be fostered by reducing regulatory compliance costs. Another is improve small-firm financing. Small-business programs should be expanded through community colleges and State extension programs. The best predictor of future regional growth is the initial level of education. Yet rural America is less educated. Young talented adults from the countryside have long been captivated by bright city lights, but rural communities possess many charms--quiet, safe streets, sense of community and same lifestyles. Once former rural residents marry and have children, rural life becomes attractive. Thus, attraction efforts should be on enticing families in 30s and 40s back to rural communities. Rural communities can compete by promoting safety, recreation, and a clean environment. Yet good public schools are paramount, not only for the children, but the parents that are attracted by quality schools are much coveted. Deficient rural public services harm the poor. Fortunately, there are low-cost ways to improve service delivery. Governments can provide seed funding for rural counties to share personnel and resources, for example. To build capacity, Congress should fully fund Federal-State regional development organizations and create new ones--for example, the Appalachian Regional Commission, ARC. Yet poor funding hampers the ARC's efforts. Still, the ARC has accomplished much with modest resources. It provides bridge loans and seed grants for infrastructure and other programs, but it mainly brokers regional collaborations that cannot be done by one poor community. Other policies should be expanded regardless of residents. For one, the Earned Income Tax Credit provides employment incentives. Early childhood education is also valuable, as is workforce training, access to transportation, mental health provision, and child care. They should be tailored to account for world differences. Accessibility is problematic, and services are stretched as many communities are struggling economically and are afflicted by drug crises. In sum, with long, steady, patient effort, rural poverty can be greatly reduced, producing tremendous benefits for families, communities, and the American economy. Thank you. [The prepared statement of Mr. Partridge follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairman SMITH OF NEBRASKA. Thank you, Mr. Partridge. Mr. Leavy, you may begin. STATEMENT OF WILLIAM LEAVY, EXECUTIVE DIRECTOR, GREATER WEST TOWN PROJECT, CHICAGO, ILLINOIS; ACCOMPANIED BY LINDA THOMAS, DIRECTOR OF CLIENT SERVICES, GREATER WEST TOWN PROJECT, CHICAGO, ILLINOIS Mr. LEAVY. Thank you. My name is Bill Leavy. I am the executive director and founder of the Greater West Town Community Development Project on Chicago's west side. My agency is very honored to have been asked by Chairman Smith and especially Congressman Davis to testify today to deepen public understanding of the extent and impact of poverty in urban communities and to share our experience using community-based job training to combat poverty at the individual and community level. Our experience has shown us that intensive occupational skills training in partnership with local industry is a highly effective way to get people into quality career-track jobs and help them lift themselves out of poverty. I am very honored to be with Linda Thomas here today, our director of client services. She is here to answer specific questions you have about our program and the challenges we face. Greater West Town is a community-based economic development initiative dedicated to expanding education and economic opportunity for the low-income, primarily minority community residents of the greater west side of Chicago. We achieve that mission by providing comprehensive workforce development and educational services through a model community-business partnership strategy that links the employment and training needs of neighborhood job seekers to local economic development efforts and the workforce needs of area companies. Greater West Town services include occupational skills training in the high-growth industries of woodworking and shipping and receiving, job placement support services, and, very importantly, an alternative high school for youth that have dropped out in our community. Greater West Town's programs are focused also to help meet the needs of local employers for the skilled and motivated workers they need to stay and grow in the area while competing successfully in the global marketplace. Greater West Town's target populations include ex- offenders, welfare-eligible single parents, homeless, dislocated workers, high school dropouts, and teen parents. More than 1,800 graduates of the woodworking and shipping and receiving programs have been placed in jobs with area companies. Our targeted community areas have historically been--I am going skip this because Danny has covered the poverty in our neighborhood so well. Danny, I couldn't do it any more or any better. I think my only point that I would like make is that there are major racial barriers in the labor market, and we need to admit them and deal with then. Unemployment rates for black men are disproportionally high. In Chicago, black men are twice as likely to be unemployed as Latinos and three times as likely to be unemployed as whites. So it might be controversial for you guys, but it is there. If you look at the numbers, it is jumping off the page at us. And, of course, a major barrier to finding jobs in our community--so many ex-offenders come back into our community. Our communities are disproportionately receiving ex-offenders as they leave prison. And, of course, our high-school dropout crisis is a huge, huge problem and barrier to economic opportunity. Our neighborhood high schools have reported dropout rates of up to 50 percent. Our occupational skills training is a proven and highly effective model that provides employment opportunities to high- need populations. The program is designed and operated in collaboration with local employer partners. Our employment strategy, training strategy combines a bridge program with basic skills remediation, and that leads to a hard skills program, an occupational certificate program. And it is by getting folks into that occupational certificate program that we get them access to higher-skilled, higher-paid jobs. Greater West Town meets employer needs by providing trained, dependable, motivated workers. And we give employers special value-added labor force development services that the companies cannot provide or undertake on their own. Many local firms credit our programs for their manufacturing success and cite it as an important factor in their decision to remain in Chicago and expand operations. We continually upgrade our instruction with input from our business partners to ensure industry relevance and to make smart investments in cutting-edge technologies and training. Our commitment to support our program participants that ensure their success means that we continually assess participants' needs and provide responses in a timely manner. Recently, Greater West Town has expanded its focus on networking with other community-based agencies to help provide for fundamental needs such as child care, housing, transportation, and food security. Greater West Town's services are in more demand than ever, but resources to support our work are shrinking. And I think I am out of time. Thank you. [The prepared statement of Mr. Leavy follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairman SMITH OF NEBRASKA. All right. Thank you, Mr. Leavy. Ms. Slater. STATEMENT OF TAMARA SLATER, CHIEF EXECUTIVE OFFICER, GOODWILL INDUSTRIES OF GREATER NEBRASKA Ms. SLATER. Good morning. Thank you for the invitation to testify on the challenges and opportunities of serving people in rural Nebraska impacted by poverty. My name is Tammy Slater, and I live in Doniphan, Nebraska, a town of 850-plus people. I am the chief executive officer of Goodwill Industries of Greater Nebraska, located in the third- largest city of Nebraska, Grand Island, with a population of 50,000. We are 1 of 157 autonomous Goodwill organizations in the United States and 1 of 4 Goodwills serving Nebraska. Last year, all Goodwills collectively connected 312,000 people with employment in the United States and Canada. Each local Goodwill organization has an assigned territory that provides services with our geographic area in response to the community's needs. Goodwill Industries of Greater Nebraska services promote independence and access to the community, help people become successfully employed, support goals of wellness and recovery, facilitate group classes to teach responsible behavior, and provide safe and affordable housing. Our Goodwill mission is to serve Nebraskans experiencing intellectual or developmental disabilities, severe and persistent mental illness, substance abuse disorder, behavioral health challenges, and acquired brain injury. Each year, we serve more than 1,600 people in central and western Nebraska with an array of services. We help people earn jobs and advance their careers with specialized services to meet their needs. Our service territory, as Chairman Smith referenced, includes 55 counties and is about 54,000 square miles. Of the counties we serve, 30 percent have a population of 3,000 or fewer. The challenges of poverty, as we all know, from lack of stable housing, adequate nutrition, effective health care, reliable transportation, quality child care, appropriate education, and job training, are common to both rural and urban areas. How we respond to these challenges may be different because we do have sparse population, limited local resources, and scarce employment opportunities. Education and job opportunities are scarce, as I said, for people in rural Nebraska, which is a major roadblock to lifting people out of poverty. In 2015, rural employment was still below pre-recession rates, and earnings are generally lower in rural areas than those in urban. Many of the individuals that we serve require comprehensive services. So partnerships with State and local agencies are important to address the complex needs of people living in rural Nebraska. Community partnerships, such as our public schools, United Ways, areas churches, local Salvation Army posts, help us to build a network in order to help. Government partners in health and human services, like corrections, voc rehab, and Social Security, among others, help people living in rural communities get and keep their life on track. Though partnerships are crucial to success, it is tougher in rural areas because there are fewer community organizations, and we struggle to continue services due to the long distance between communities, which are expensive to maintain. We at Goodwill are grateful for our social enterprise that create jobs and help fund services. Our team members work to understand our neighbors in the communities we serve and how we equip them to overcome poverty. One of those neighbors is Peter. When Peter was referred from Nebraska Vocational Rehab to Goodwill, which that is where we get our referrals, he was unemployed, he was diagnosed with bipolar disorder, adjustment disorder with anxiety and depression, a narcissistic personality disorder, and receiving Social Security. Peter was also on probation for a felony, and his employment retention was beyond poor. Peter was able to access an array of services from our Goodwill, including comprehensive benefits planning, behavioral health day services, and our behavioral health employment program. Together with Peter, the team working to support him, including Goodwill staff, the local probation, his counselor at Nebraska VR, and his family members, he has had a great result. He has been employed for over 1 year, continues to work with our behavioral health and benefits planning. Peter is just one example of the complexity of those we serve every day. I thank you for this opportunity to share our experience. We appreciate the subcommittee's interest in hearing from the field and are very happy to serve as a resource. Thank you. [The prepared statement of Ms. Slater follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairman SMITH OF NEBRASKA. Thank you, Ms. Slater. Thank you very much to all of our witnesses, again, for sharing your expertise and this perspective that I hope we can all share. And we are going to go down the line here with the question-and-answer and just describe our districts a little bit. Obviously, I mentioned earlier that, you know, we have rural parts of America and remote parts. And, obviously, if someone has a commute in the city for various reasons, there can be significant commutes in rural and remote America as well. Sometimes I describe parts of my district in terms of the distance from a Walmart, maybe even a McDonald's, and it runs in the hours. And so it can be very different. And yet, when it boils down to it, many of the needs are similar to even that of the inner city. And, of course, sometimes the commute times of city life would have something that no one in rural America would want to tolerate. But I think that hopefully we will see programs, though, with flexibility and the intent to help people in a very authentic way. But, Ms. Slater, again, thanks for being here and certainly describing the district and your work and sharing some of the stories that you did and certainly some of the clients you serve. And it can be obviously challenging to address poverty and the economic needs of the many communities across our district because of distances even from organizations like yours, even though you are pretty well spread out across the district. Although our unemployment rate is lower and high school graduation is higher than in many States, I know there are still many people struggling to find work and make ends meet. I especially appreciate the story you tell about Peter in your testimony and how, by coordinating services and helping him set goals, he has been able to overcome some of the difficulties he has faced and now has been employed for over a year. At the Federal level, we are thinking about ways to provide more flexibility, coupled with strong accountability, to make sure that your organization and those like it can customize services and benefits so you can help more people like Peter succeed in the workforce. As we think about our efforts, what should we make sure you are able to do or do more of for you to be successful as an organization? What are some of the key factors in what you do which helped Peter be successful, find a job, and stay employed? Ms. Slater. Ms. SLATER. Chairman Smith, when I think about that question, the most important thing is it is not just one service. When I talked about the variety of services that we offer at Goodwill, getting a job, yes, is the main focus because we all know that a job gives us purpose in life, but it is the whole package. Again, someone has to, first of all, be able to understand and know what their barriers are and how can we help them. If I think about Peter, with a mental illness, again, being able to have people understand that illness and how do they now learn to cope with that disease, whatever that may be. Then, once they understand that, what also is important is giving them structure to their life. Because, again, now that they have this barrier or a mental illness to deal with, the structure of how to cope with that, how important medication is. But then, also, how do we then teach them possibly new skills or for them to understand what their skill set or abilities are, and how do we help them understand that to then match them with a proper job. Then the other challenge becomes partnering with employers, because we all know, you hear it across the United States every day, it is tough to find employees. But, again, if we are then bringing someone forward as a potential employee, what is their openness to work with someone that may have some special needs or a mental illness or other barriers that make it possibly more difficult for them? It has to be collaboration. I hope that was strong in my message. It is not just one of any of us. It is all of us coming together and making sure we understand what each of us bring to the table. So, Chairman Smith, the first answer would be flexibility to be able to reach out to the proper services that will meet that individual's needs. Chairman SMITH OF NEBRASKA. Okay. Thank you. Ms. Kneebone, would you be able to reflect on this at all, given your insight? Ms. KNEEBONE. Just to echo what Ms. Slater said, with the flexibility being key, especially as you see some of the more effective models being ones that are able to bring multiple programs together, multiple partners to the table. That also often brings with it a big administrative burden, a lot of red tape, that puts a strain on the providers and takes resources from the actual mission. So I think the ability to allow for more experimentation and figure out how, with accountability, we can allow for more flexible strategies that work over different kinds of communities, that would be key. Chairman SMITH OF NEBRASKA. All right, and very well. Thank you. I now recognize our distinguished ranking member, Mr. Davis, for questions he might have. Mr. DAVIS. Thank you very much, Mr. Chairman. And I thank all of you who have come to share with us this morning. Each one of you talked about a lack of local resources for addressing some of the key challenges of poverty--skill- building, supports like child care, health care, transportation, and housing. Could targeted Federal investment make a real difference in the kind of communities you have studied? Perhaps, Ms. Slater, I will start with you. Ms. SLATER. Yes, I believe so, because, again, the Federal support directs how it trickles down to the State and the region. So, again, it is back to the flexibility and really acknowledging the lack of services in some of the areas. Mr. DAVIS. Mr. Leavy. Mr. LEAVY. Danny, I think, for us, we have been through a lot of iterations of different job training programs. We even been around since CETA, practically, you know--Job Training Partnership Act, Welfare to Work Act, the American Recovery Act. But the point is that most of these programs don't really allow you to do the intensive kind of training we actually do. We may have to cobble together resources from a whole bunch of places to get enough money to get the basic skills remediation, to get the work maturity training and this very expensive occupational skills training, where our shop--you have been there. I mean, this is an expensive operation, but it gets people real skills, and people can really get quality jobs and get a foothold on the career ladder. It is an investment that is not being made and needs to be made. So, again, in the old days, the Job Training Partnership Act used to train tons of African American men in Chicago for jobs in the city. That was almost all wiped out when we went to a voucher-based system with WIA. So, again, we need to put some of the money in job training that we used to have during CETA days, and we used to make a real, real commitment to skills training and lifting people out of poverty. It can be done. I mean, we are a model. It can be done, and Linda and I do it. But we need much, much, much more consistent resource and commitment to comprehensive training and getting industry--I am talking too much. Okay, I will be quiet. Mr. DAVIS. Mr. Partridge. Mr. PARTRIDGE. Thank you. Thank you, Mr. Davis. I mean, I think the answer is yes, and I think they described it well. One of the things, though, I want to point out is, especially in rural communities but even in urban communities, there are these scattered programs and, you know, duplicate services and all sorts of issues. And so that was one of the reasons why in my testimony I discussed expanding regional, State, Federal development organizations, like the Appalachian Regional Commission. They exist on paper like in Ms. Sewell's district, but it doesn't have any--I don't think there are any resources. And so what they would do is, they have--like, the Appalachian Regional Commission only has a $100 million to $150 million budget; however, they are fantastic at being the broker who leads the efforts that brings everything to the table to help with the collaboration that the previous two spoke about that is needed for this. So I think that would be one of the ways that a relatively small amount of money could have a lot of payoff. Mr. DAVIS. Thank you. Ms. Kneebone. Ms. KNEEBONE. I think that point really speaks to addressing the capacity issue, because targeted Federal investment absolutely could make a big difference in these places, especially if it embraces these more wholistic, crosscutting strategies that recognize the complexities that are facing poor people in poor communities. But if we want that funding to be able to reach into some of these communities we are talking about, in places where poverty has grown rapidly more recently, we have to overcome that capacity gap. And having these quarterback-type institutions that can play that role and more effectively marshal all those resources is a critical step. So any sort of funding, I think, should explicitly recognize and target resources to that type of backbone capacity-building and that sort of entity. Mr. DAVIS. Thank you. And quickly, Mr. Leavy, I have always been intrigued by your ability to work directly with local employers, where you know that you are training people for what they need. How did you accomplish that? Mr. LEAVY. Without going into a lot of history, I mean, we understood that race was a big variable. On the old west side of Chicago, where my dad worked--and he worked at a manufacturing company and he lived in the neighborhood, took the bus, blah, blah, blah. When that neighborhood changed to African American, those local companies had extreme difficulty in absorbing and training the local workforce, and we can see it 20 years later. So we went to partner with the Industrial Council of Nearwest Chicago, and these are our local employers. Let's work together, let's create a program that is going to open the doors for our community residents, brown and black, and is going to get you the workers you need. And we actually sat down and planned the bloody thing with our neighborhood small businesses in woodworking and shipping and receiving with the help of the Industrial Council. The key to that was the employers have some sense of ownership and involvement. And employers got to meet our community people during training. They got to see their dedication. They got to see the quality of our people. And racial stereotypes were overcome, attitudes for ex-offenders were overcome. And they were setting the standards for training, so they owned it. It is way more than just, you know, I have a company that I am going to take a job order from and steal. No. These guys are involved and they own the program design and they owned its success. And you probably heard from them. We got our funding cut, and these employers, they went to the mat for us. So they own this thing. And they are 99 percent white small-business owners from the industrial corridor. And it is great when our participants go on a field trip, a tour to a local company; they go in and look at whatever the company is, and they see, oh, there is my neighbor working. So they get the confidence that these guys are giving our people, black people, a fair shake and some opportunity. And, conversely, the small-business owner sees the hard work, the diligence of our trainees. And, of course, the credibility of our staff and the training institution itself kind of brings the community and business together. These guys have been doing this for 25 years, and---- Chairman SMITH OF NEBRASKA. Great. Mr. LEAVY [continuing]. They have got quite a reputation in the employer community. Chairman SMITH OF NEBRASKA. Very good. Thank you. Thank you for your answers there. Now we will go to Mr. Smith of Missouri. Mr. SMITH OF MISSOURI. Thank you, Chairman Smith. It is an honor to serve on your committee. And I like the ring of ``Chairman Smith,'' by the way. I want to thank the panel for being here today. In fact, these issues are extremely important. I have spoken with the chairman and the members of this committee of my personal background and interest in poverty. I grew up in a very working-class family. And I represent an area in southeast, south-central Missouri which is part of the Mississippi Delta, and we have some very interesting dynamics of our own that we deal with. It is the largest congressional district in the State of Missouri, just under 30 counties. It is roughly 20,000 square miles, so it is very rural. Our largest populated community is a town of 38,000 people, Cape Girardeau, Missouri. And I want to give you some interesting statistics about our congressional district. According to the Economic Innovation Group, I represent the 14th most economically distressed congressional district in the country, out of 436-- 14 out of 436, which is absolutely not good. It is also one of the most conservative congressional districts in the country. The Economic Innovation Group report on distressed communities estimates that 49 percent of adults in my district are not in the labor force, and the poverty rate is 20 percent. These numbers are not much different than the city of St. Louis. In St. Louis, 42 percent of adults are not in the labor force, and the poverty rate stands around 22 percent. So we have more people out of the workforce in our district than the city of St. Louis. And that is much different, though--Ms. Kneebone, according to your testimony, I think these are interesting facts for the State of Missouri. The picture is really different in the suburbs of St. Louis. Just 6 miles from the city of St. Louis, it is 36 percent adults who aren't working, and the poverty rate is only 6 percent. The city of St. Louis, the poverty rate is 22 percent. In my rural congressional district, it is 20 percent. All that, in my opinion, says that rural southeast and south-central Missouri experiences poverty in similar numbers to the city of St. Louis, and both are far worse than the suburbs of St. Louis, which the poverty rate is 6 percent. We know that employment is the single largest determining indicator of poverty, but we continued to see factories close for the last several years. In many cases, we see our good- paying factory jobs go overseas because of economic hardships and burdensome regulations. These factories can't keep their doors open, and that means that we are losing good jobs. We had one employer in Butler County, Missouri, in my first year in office that cited that the reason that they were shutting down their doors and eliminating roughly 500 jobs was because of unnecessary and burdensome regulations that they couldn't comply with and was moving to Mexico. This is a real problem and something that has to be changed. When nearly half of adults in my district aren't working and are out of the labor force entirely, our communities are deeply in trouble. Mr. Partridge, with many rural areas declining in population, who is staying behind? Are these areas becoming wealthier as those who remain have good jobs and choose to stay, or are they becoming poorer as those without means are unable to leave? Mr. PARTRIDGE. Thank you, Mr. Smith. I think the answer to that question is it depends. Because if we are talking about a rural district--very, very, very rural districts where people left, what is left behind is often relatively wealthy farmers that are very big. So, in that sense--then you have other districts where you have brain drain, where the talented people leave, and that leaves behind a workforce that is less educated and it is just going to be less dynamic. There is going to be less business formation and so forth. So it really depends on the setting. There is just a lot of diversity. Mr. SMITH OF MISSOURI. So just a lot of barometers and issues. You have been doing a lot to improve the economies of rural areas. Could you give us some examples of what maybe you have done for people in their 30s and 40s to help grow the economy in rural areas? Mr. PARTRIDGE. Well, what I have done is I have tried to point out that when people--especially in the last 15 years, there has been a lot of emphasis on attracting young people with really cool downtowns and so forth, and rural communities can't compete on that. They are just not going to do very well on that basis. However, they can compete on being family-friendly and having a really nice environment and lifestyle for certain people. So, in that sense, people in their 30s and 40s are no longer looking for cool bars; they are looking for a place to send their kids and be safe. That is where rural communities can thrive. Mr. SMITH OF MISSOURI. Thank you, Mr. Chairman. Chairman SMITH OF NEBRASKA. Thank you. And next we have--yes, Ms. Sewell. Sorry. Go ahead. Ms. SEWELL. Thank you, Mr. Chairman. And thank you, panelists. This is the first subcommittee hearing as a new member of Ways and Means that I get to participate in. And I have to tell you that I am very excited, Chairman Smith and Ranking Member Davis, about the opportunity to be on this subcommittee. My district is the Seventh Congressional District of Alabama. I grew up in this district. It is a district that includes the city of Birmingham, which is the largest city in the State of Alabama, but it also includes Selma, Alabama, which is my hometown, and many rural communities around Selma. The median income for a family of four in my district is $34,000, and 22 percent of the families in my district live in poverty. It is affectionately called the Black Belt of Alabama because of the very rich soil. That used to be very agrarian and agricultural. It is where a lot of the Cotton Belt of Alabama, back in the day, used to exist. Now it is filled with a lot of rural communities that are struggling. I often say that what we lack in the Seventh Congressional District in terms of economic prosperity we more than make up for in heart, in fight, in spirit. What we need are better opportunities, more resources, a hand up, not a handout. Having said that, I was very intrigued by what you were talking about, Mr. Partridge, in terms of regional collaboration. The Appalachian Regional Commission, which you cited, has done some great work across the 13 States that it encompasses, with relatively limited resources when you think about the fact that they have to deal with 13 States. In fact, my district doesn't get a lot of resources from the ARC. Many of the collaborative regional resources that we receive come from the Delta Regional Authority, which has a very limited budget. It is one-tenth of what ARC is. Yet it is literally the lifeline for so many of the communities I represent. Can you talk a little bit about the regional collaboration and what we can do as lawmakers that are not in the position of providing appropriating dollars but, rather, authorization of different social net programs that can be effective in reaching communities like so many of us represent? Mr. PARTRIDGE. Thank you, Ms. Sewell. I think you really described a lot of the issues well. So when you get down into central southern rural Alabama, you have a lot of counties. They lack resources. There are many disparate Federal--you know, Economic Development Administration, USDA Rural Development, Department of Labor workforce training, and so on--all these disparate groups. And these counties just lack things like even an economic development coordinator or one without a lot of training who knows how to write these very complex grants. And so that is one of the key things that ARC has done, is it is a Federal-State, so it is flexible, it isn't one-size- fits-all, but they are really kind of a leader. And they have, like, how to do grant-writing, to bringing all these disparate counties together to work collaboratively, because if you get jobs in one county, people commute and take them, it helps the whole region. So, in that sense, what I view these organizations as doing is they are the broker. They are the ones who can bring everybody to the table with relatively modest resources. Ms. SEWELL. What do you suggest we would do on the authorization side when it comes to workforce development? I would like to get you, Mr. Leavy, involved as well. You know, one of my passions is workforce development, because here is what I know for a fact. So many of the folks that I represent want better opportunities. They want jobs. The problem is finding those jobs. In rural America, a lot of those manufacturing opportunities have really dried up. And so, when you finally do get an opportunity, people haven't worked in those manufacturing jobs for generations. My biggest example is Wilcox County, which is the poorest county in the State of Alabama. It is in my district. And we got--I am the only Democrat in Alabama, but I have very good working relationships with my Republican colleagues. And we were able to convince the Governor to give us a $150 million manufacturing opportunity in the poorest part of my district. It is a copper manufacturing facility. Here is the problem: We are now busing in people from other communities, Tuscaloosa, to come and take these jobs, because we have had generations of people who haven't had an opportunity to work. Now, given this great opportunity, how do we bring folks up to speed when it comes to workforce development? Mr. LEAVY. Okay. I will take a shot at that. What happens is, when people are out of the workforce for a long time, they don't trust the employers, they don't trust the system, they are kind of hanging back, they are not willing to make the effort, because they are afraid to fail. So you have to get them started in baby steps, and you have to have institutions that can engage them credibly. And if they are engaged and if they believe in the training institutions and they start putting forth the effort, then you can see these folks can learn just like anybody else can learn. Okay. So it is a--we call it work ethics, okay? And we train for it on the shop floor every day. I mean, Linda's shop is a workplace, and you have to come on time, and you have to respect your fellow workers, and you have to follow the boss's instruction. So you get work ethics training every day on the job. And that is an essential part of getting people to understand that this can work for them, okay, and getting used to the workplace disciplines. So you have the workplace disciplines; you have basic skills remediation. And then people say, oh, hey, if you pass this, if you do that, you are going to get to run that machine, you are going to drive that forklift. People can see progress, okay? And these folks can learn it. They need to get motivated and believe it is possible for them. Ms. SEWELL. Chairman Smith, thank you so much for allowing him to answer that question. I think it just goes to the need that we can try to explore in this committee, workforce development strategies that will work across the board for people dealing with poverty issues in suburbia, in urban, and in rural. Thank you, sir. Chairman SMITH. Right. That is absolutely--and, certainly, for the answers to the questions, that is very relevant. Mrs. Walorski? Mrs. WALORSKI. Thank you, Mr. Chairman. And, again, thank you for holding this important hearing. I am absolutely passionate about this issue. And I am so glad each of you are here. My district is northern Indiana, and so we are 2 hours from Chicago and have, in the past, on some other committees I have been on, looked at best practices and places and things that are happening in Chicago that really are, I think, a standard right now of where we are looking. I want to give a shout-out to our Goodwill in Indiana, the Goodwill Industries, and what they have done in our district, our State, as they have been able to, you know, hone in on this issue of collaboration, which I want to come back to, Ms. Slater, in a second and talk about that. I think it is incredible that all of your research, all of your findings, and other experts that we have had speak to Congress over the last couple of years--it is so apparent to me that all the work that we are doing--when we look at traditional approaches from government, which has been increase funding, increase funding, increase funding, and when you start looking at the numbers of people in poverty, where they are coming from, where they are moving from, it just becomes so important, in my mind, to do the kinds of things you are talking about, which is connecting people to this equation. It still takes people on the front lines to coordinate. It takes people on the front lines to be able to honor human dignity and to make sure that we are looking at all the seeds of the problem and we are actually doing something to make sure that there is an economic ladder out of poverty in this country, the greatest country on the face of the Earth. And I am so convinced that the solutions to our very problems are right here within the kinds of research that you have all done and the kind of things that you have moved along, that we are moving the dignity of people along as well, that, you know, we are equipping a nation. We are doing it, using each other in collaboration. And I think, Ms. Slater, to your point, my district is very much a case study like what you are talking about in Nebraska. I am 2 hours from Chicago. We are urban; we are rural. We have all the same kind of makeup that, you know, a lot of these small rural areas are. I am terrified that if we don't come together and fix this in a bipartisan way that rural America will not recover and that we are going to be groping for bigger issues later if we don't come together and solve this now. But I am so convinced about this issue of collaboration. And I am working on a bill right now as we approach TANF. Can you just talk about some of the best practices that you have used in your community to collaborate on the front line and why that is going to be important as we look at, you know, tangible assistance to needy families in the real quick future here? Ms. SLATER. Sure. Thank you very much. Truly, the thing that comes to mind that you just summarized is it is about people. It is about people working together that are there to actually serve the people we are seeing every day. And so, truly, it becomes--and I think it is one of the advantages, maybe, of the rural community, is we know each other. It is asking for help. It is actually acknowledging what your core is and what cores come from other agencies. The other thing that I think is a plus in the rural community, but not unique, is the fact that if there is an individual with a barrier in a small community, everybody in town knows that. They talk about it. They know Tammy at Goodwill, and they will call and see if we can be of assistance. But it is really about the whole relationship and trying not to make it the competition that sometimes it becomes but what are we really good at. And that is one of our best practices, is we have a lot of diverse programs, but at the end of the day, what are we the best at. So if something else comes along, we have learned to say ``no'' and to extend a hand and offer something that we may know about to someone else. Mrs. WALORSKI. That is incredible. Ms. SLATER. Because you cannot be good at everything. Mrs. WALORSKI. Absolutely. And that is a great point. I just have a question for all of you in this last minute here. One of the things in my community that is a plus, both on the rural and the urban side, is the benevolence of my community and the private dollars in regional coordination that are beginning to flow into our own community from our own people--private dollars, community foundations that are really understanding this. I guess, Mr. Partridge, let me just address that to you; it is your research. Do you see that emerging now in this country, where we are looking at partnerships, even financially, so it is not just a one look at a government but we are looking at resources inside our communities as well? Mr. PARTRIDGE. I think you exactly described it right, in the sense that, you know, a lot of this has been promoted--you know, attempts for collaboration have been promoted by just things haven't been working. And a lot of it is that problems are a lot bigger than what one community can handle. However, at the community level, as you suggested, I mean, the best way is to--every community has great resources. They have entrepreneurship that is untapped. They have human resources that is untapped. And as I noted in my testimony, you know, just the multiplier effects of new jobs created, spillovers from small-business creation and local entrepreneurship are just rather remarkable. And so, in that sense, building from within is, I think, the best strategy, and the kind of collaboration you are talking about is the way to go. Mrs. WALORSKI. Thank you. And thank you, Mr. Chairman, for your indulgence. Chairman SMITH. Thank you. And next we have Mr. Reichert. Mr. REICHERT. Thank you, Mr. Chairman. Thank you all for the hard work that you do. And it sort of seems removed just a little bit, as we are in this formal setting, from the reality of the topic that we are discussing, doesn't it? I always sort of get overwhelmed by that thought. But I was thinking back to one of the first hearings that I had when I was chairman and working with Mr. Davis as the ranking member, and I shared my story. There are a lot of stories here, and you have a lot of stories, a lot of stories out there in the audience today, too, listening. And as I shared my story, after the hearing Mr. Davis said to me, ``You know, you and I could have grown up in the same neighborhood.'' And sometimes we forget that we all come from different places, we all come from areas in our life where we struggle. And Sandra Collins was one of those people from the Goodwill Industries organization in the Seattle area. She testified not too long ago when I was the chairman of this subcommittee. What a success story for Sandra. Sandra was homeless. She had two teenage daughters and was addicted to meth. She had a criminal background. She had no high school diploma, did not have a driver's license when she first connected with the Goodwill. But, as she was giving her testimony, she got news that she was just about to be promoted to supervisor. So Sandra is still working at the Goodwill in the Seattle area and is now the manager. So we are proud of her and proud of the work that Goodwill Industries does all across the country, and we need every one of your efforts. So Ms. Sewell was concerned about people coming in to populated areas and taking jobs, and I am concerned about some of the rural areas having the opportunity to come into those areas and get jobs. But we have to balance that, I know. And I wanted to ask Mr. Partridge, are there any programs that--you know, because sometimes people have to make those decisions to relocate to find a job. What are we looking at as far as programs to help people relocate, not necessarily to take all the jobs but to participate in the workforce? Mr. PARTRIDGE. Well, thank you for the question, Mr. Reichert. I think you really hit upon--one really important issue is that, in the past, the key way that Americans did economic opportunity, reached it, was by migration. We were probably the most mobile society in the world for generations. And in the last generation, that has really changed. Young Americans are much less mobile than before. So one of the ways that poverty can be reduced is taking people from places that there are a lack of opportunities and moving them to places where there are opportunities. And one of the problems is they are relatively poor, they lack resources for that. They don't have a network, you know, to find a job. Their skills might have been okay for where they are at, but they are not necessarily good in an urban environment. So I would encourage efforts to, at least on a pilot basis, to try to look at helping migration of workers to where there are more opportunities. However, it is just a little bit more complex than saying, ``Here is some money, go move,'' because of these other issues about the lack of job networks and the lack of training for the kind of jobs that would exist in urban areas. Mr. REICHERT. Great. Thank you. Mr. Leavy, I wanted to touch on one of your comments as you rolled off the statics about unemployment between Black men, Hispanics, and Caucasians. And I was reading your statement, and you used the word ``controversial'' in your comments, but it is not used in your statement. And I don't see anything controversial about it. I just wanted to point that out. Because people are people, in my opinion, and we are here to help. So let me just further state very quickly that I think it is sad that the 50-percent dropout rate--I mean, that is just an unacceptable number, and I think that is one of the things we have to address. I am an old cop, 33 years on the streets in King County. I worked with people on the street in drug addiction, alcohol, homeless, all the time. One of the things we need to do--and I am very high on prevention. What do we need to do to get these young people to graduate so they don't start already behind the curve? Mr. LEAVY. Well, we have actually--we started an alternative high school for dropouts in Chicago because the dropout rates were so severe---- Mr. REICHERT. But it is still 50 percent. We need to do a lot more. Mr. LEAVY. They have been--it has been--it has been--I use the term, schools had and are still reporting, neighborhood schools had and are still reporting the dropout rate in Chicago has improved a little bit. Okay? I will give you that. And there has been a lot of intervention on dropouts and special programs for dropouts, some of which reasonably work in the city. So we are a lot better on the dropout front than we were 10 years ago. And we did a lot of research on that and got some bills passed with Senator del Valle at the State level to deal with the re-enrollment of dropouts. So there is a commission in Illinois for the re-enrollment of dropouts, and we got the issue in the public attention, and so we have made some serious progress. There are still tons of at-risk kids. And we run an alternative school in the heart of the west side, and our kids are pretty alienated sometimes and pretty tough. And putting together, again, the programs that can engage them and discipline them and challenge them is a hell of a lot---- Mr. REICHERT. I would like to engage further with him at a later time, Mr. Chairman. My time has expired. I yield back. Chairman SMITH. Thank you. Ms. Chu. Ms. CHU. Thank you, Chairman Smith. I represent a very urban/suburban district in Los Angeles County, which has 10 million people. And, Mr. Leavy, the work that you do is in an area that is very similar to this. In L.A. County, we have a very, very large homeless population. In fact, the most recent count revealed that there are approximately 43,000 homeless individuals living in shelters or in the streets. Now, you have done a lot of work with similar urban/ suburban populations in Chicago. How could Federal antipoverty programs best assist homeless populations in places like L.A. County and Chicago? Mr. LEAVY. I am trying to get Linda to talk. She is the expert in--she provides all the intensive support services to the very high-need folks. And we have, what did we say, 22 percent homeless and near-homeless in the training program. So tell them a little bit about the transitional work and how it helps the homeless. Ms. THOMAS. So we, through our city dollars, have come across what we call transitional jobs training funding, where we can work with our clients to provide additional services. We try to help our customers become self-sufficient and to be able to attend training without worry. And so we are able to create jobs within the program and give them a weekly stipend to support them with their needs. We are able to address their ability to secure housing and their ability to get to training and their ability to have clothing and doctors appointments so that they will have a positive outcome through our transitional jobs training funding. Ms. CHU. So, for this homeless population, what elements of what you have talked about are the most important? For instance, how important is accessibility to quality housing? Ms. THOMAS. For the homeless population, if I don't have secure housing, I will not do well in the job. Before I can take on employment, I have to make sure I have secure housing, I have to make sure that I have transportation to get to that job every day. So, when they are in the training program, we are going to immediately on day one start to look at those resources that are out there to make sure this person will have secure housing. Because we have a lot of people, they are homeless with a roof, so they are going to a cousin's house today, they are staying with a friend tomorrow. And so we are going to work with an agency that is going to help them move into housing where it is secure, so when I start my new job, I can go to work not worrying about where am I going to live tomorrow or will I get back to the shelter in time to get a bed. So those are the ways that we work strongly to help out with the homelessness, for housing. Ms. CHU. Yeah. And, in fact, to follow up, in L.A. County, we have higher- income neighborhoods located right next to low-income and poor neighborhoods. And, in fact, poverty is found in pockets and separated, oftentimes, just simply by a neighborhood. So how did we get into this situation, and how can we reduce this inequality between the neighborhoods that are located right next to each other? Mr. LEAVY. Wow. You know, Danny knows, you know, you have the west side, Austin, and then you have Oak Park, and you have a serious dividing line. Oak Park is a pretty liberal, progressive place. They have PADS programs, and they try to keep themselves accessible to the low-income folks in the city. And, you know, I am not sure how you integrate across those barriers. It is a voluntary thing in Oak Park. I live in Oak Park, and they are just very progressive folks out there. In terms of your question, you know, how do you create cooperation across community boundaries, neighborhood boundaries, I mean, Chicago is extremely racially segregated. And you have neighborhoods on the south and west side that, you know, folks on the north side will not go in. And you have pockets of wealth and affluence on the north side. And you need community development--most of our development resources traditionally are--I talk about in my longer thing. You talk about triage. You are putting resources for those most likely to succeed. You are not making the investments in the high-risk areas, in the high-poverty areas where you have multigenerational poverty. I mean, everybody wants to pick a winner, and everybody is afraid to waste money on what might be a loser. And, again, this is an attitude that, you know, we see in job training, we see in education, we see across the board--we see in housing and urban development sometimes. So this triage attitude is something that we really have to get our head around and fight against. What is happening in our training program--because the labor markets are improving and some people are moving ahead and some people are getting jobs, but those left behind are really desperate, are really sinking. Okay? That is the problem. We are separating more. You talk about income inequality. We talk about it, you know, on the cosmic scale when Bill Gates and those guys have all the money, but it also happens in our communities. We are segregating the rich and the poor even more, and we need to figure out how to fix that. Clearly, jobs are part of that, and people investing in jobs for low-income people is clearly a part of that solution. But, again, I think there are more economic development issues involved here than I am prepared to mouth off about right now. Ms. CHU. Thank you. Chairman SMITH. Right. Thank you. Mr. Rice. Mr. RICE. Thank you, Mr. Chairman. Interesting hearing. It seems to me that the way you deal with poverty is you have to do what you can to make sure people have opportunity on the one hand, and then on the other hand you have to do what you can to make sure they take advantage of that opportunity. And it seems like, mostly, today, we are talking about the second part of that equation, trying to get people to take advantage of opportunities that they have. My district, I got seven counties in South Carolina. I have Myrtle Beach, a big popular tourist destination, and employment rates are pretty low there. But if you go inland, I have 3 of the top 10 poorest counties in the State. They were very agrarian and textiles, tobacco and textiles. So you can guess what has happened to them in the last 40 years, right? Agriculture doesn't employ as many people, and certainly not tobacco. Tobacco is a fraction of what it used to be. And textiles, those jobs are all gone. There are a lot of empty factories in Marion County, South Carolina. So, on the one hand, you know, the first part of the equation, trying to do what you can to make sure people have opportunity--and we haven't talked much about that today. But things like tax reform, regulatory reform that Jason Smith was talking about earlier is so important and a lot of the reasons why a lot of these companies that used to be in Marion County have left. And I put that on Washington, D.C. And that is why I am so very happy that this committee is now working on tax reform and the House is working on regulatory reform, because I think the first part of that equation--I mean, you can train people all you want to, but if there are no jobs available when they get out, it doesn't help very much, does it, Mr. Leavy? So, I mean, you have to get them---- Mr. LEAVY. Believe it or not, a trained workforce can be an incentive for a company to come into an area---- Mr. RICE. That is true. That is another part of it. You know, there is a program in the Florence-Darlington Technical College; they have a program for computerized digital machining. And they can take 80 kids a year, and it is a 2-year program. And they have two problems: One, they can't get 50 kids a year to sign up for it; and, two, if they do get them to sign up for it, most of them don't finish. They get through 1 year. Well, the reason they don't finish is because the companies are so hungry for these kids that they hire them before they finish their program. So, in other words, we have this opportunity, but we can't get people to take advantage of the opportunity. And I believe most people would rather work than be on government programs. I think if you rely on the government to provide for your livelihood, you will always live in poverty. I think the government is incapable of providing for you. But we have 80 different means-tested government programs, many of which are designed to help people to move to work, to move to take care of--and they are not working for a large number of people. There are still significant numbers of people who would rather be on government programs than actually go out and take that computerized digital machining class and go to work and make $60,000 a year. How do you fix that, Mr. Leavy? Mr. LEAVY. Well, I mean, we deal with it every day. Opportunity plus effort equals success, okay? People have to make the effort to take advantage of the opportunities presented to them. And do they see and believe and is the opportunity real for them? Their perceptions are a lot. And I live in this every day. In Linda's programs, she is able to get and engage and discipline her people, and the people are enthusiastic, and she has credibility and trust, and the people march through the program and they go out in the labor market and they do well. Okay. And my high school used to be that way, but it is not so much anymore. In our high school, West Side Academy, we are having an issue of student engagement and motivation---- Mr. RICE. Okay. I need you to wind down, because I want to ask somebody else too. Mr. LEAVY. What? Mr. RICE. I want to ask somebody else too, so wind up, if you can. Mr. LEAVY. I will tell you about the West Side Academy some other day. But, you know, it is a question of credibility and trust, and are they perceiving this thing as really working, are they believing in it. And if they believe in the leadership of that school, that school can discipline them, can draw them out, can challenge them. Okay? And they will see it as a benefit to them in their lives. They have to have credibility with those kids, and you can get them to do what they need to do. Mr. RICE. Mr. Partridge, how do you get them to take advantage of the opportunity? Mr. PARTRIDGE. Thank you. One of the things that I have always thought about poverty is that not only do we have to train workers in places where there is a lot of high poverty, there has to be also the opportunity so the person has the incentive to go for 2 years through a training program so they can get a job. And so, in that sense, it is a chicken/egg problem that, you know, there have to be jobs to have incentives for people to get the training so they could actually get a job. So you are absolutely right. It is a chicken/egg issue. And one of the things that you raised is the general macroeconomic environment has not been very favorable for the lower half of the income distribution. And, you know, any efforts there--manufacturing was an old mainstay for that group. And any efforts there to build up that part of the economy, I think, would have very large positive effects. Mr. RICE. Thank you, Mr. Chairman. Chairman SMITH. Thank you, Mr. Rice. Mr. Curbelo. Mr. CURBELO. Mr. Chairman, thank you very much for holding this hearing. I think you always hear politicians talk about the middle class, and, indeed, the middle class is important. It is the engine of the American economy. But that is also where most of the votes happen to be. In poor communities, there aren't as many votes. Yet we are here because you care about this issue, Mr. Chairman, we care about this issue, and certainly our witnesses do. So I thank you all for coming. Ms. Kneebone, I want to talk to you about suburban poverty. I represent a largely suburban district. And you discussed the migration of poverty from the urban cores out into the suburbs, and of course this is a major concern for me. I think one of the aggravators or the factors that contribute to this phenomenon is the lack of transportation out in the suburbs. Most urban cores have fairly sophisticated public transportation grids, but as low-income individuals move from the urban cores out to the suburbs, does that lack of access to public transportation aggravate their circumstances? Ms. KNEEBONE. That is a real challenge for suburban communities across the country, particularly for the poor residents, because as both jobs have shifted away from downtown and poverty has grown more in suburbs, those aren't often happening in the same places. So the distance between where jobs are located and where poor people can afford to live has grown. And we have seen the number of nearby jobs for poor residents fall across the country in urban, suburban, and rural communities. So the fact that suburbs often don't have public transit systems or, when they do, they are not connected suburb to suburb where a lot of these job opportunities are growing does exacerbate that mismatch. It makes it much harder to connect to those employment opportunities that can give them a path out of poverty and also makes it more incumbent on them to own a car and have to deal with the high costs of maintaining a reliable car that would actually be able to get them to where the job opportunities are. Mr. CURBELO. So, given that infrastructure investment is a priority for the new administration and for many of us here in Congress, you think there is an opportunity to use some of that poverty data to more effectively make these investments. Ms. KNEEBONE. Yes, absolutely, both in terms of how we think about where to make transportation investments, in terms of roads versus transit options, you know, where those dollars go, how they are deployed, but also in terms of thinking about where housing is around those networks, where we can take advantage of density around those transit hubs to increase access to opportunity both through affordable housing and through transportation. Mr. CURBELO. Thank you. Dr. Partridge, I should get you on the record about the great theft of 2003, when The Ohio State University robbed the University of Miami of a college football championship. By the way, Mr. Chairman, the year before, we defeated Nebraska in Pasadena. But let's set that aside, because there is very little time. I do want to ask you about education. And we have built this idea in our society that every young person has to go get a 4-year degree at a traditional university like The Ohio State University, like the University of Miami. And, in many ways, our Tax Code supports that idea. Do you think that the lack of an acknowledgement of the diverse paths that there are to success, to getting educated, to acquiring the skills needed to obtain a quality job, that the lack of recognition is aggravating poverty in a lot of communities? Mr. PARTRIDGE. Thank you for the question. In some cases, yes, that there is a segment of the high school population that just is unaware of the opportunities. And you are right, many high school curriculums look like a pre-college training program, and so there are fewer of those opportunities. I think, you know, besides curriculum reform and providing better information to students--that is one of the things that the economists found. If you give the students information, they will make better decisions. Besides that, one of the areas I think is just fantastic in terms of investment and in terms of the role they play in communities and broader communities is community colleges and technical colleges. They are on the ground doing the workforce training, but, even beyond that, they have more of a regional footprint that brings people together in a collaborative process. So, in that sense, investment in technical colleges and community colleges would have a large payoff for the population that we are talking about. Mr. CURBELO. Okay. Thank you very much. I will yield back the balance of my time. Chairman SMITH. Thank you. Again, thank you to all of our members here today and certainly to our witnesses. Your expertise is valuable, and we could probably extend this for a few more hours just in discussion. With that being said, though, you will have the opportunity to extend your remarks for the record. The record will be held open for 2 weeks. And so, if you wish to respond in more depth to some of these questions, you will have the opportunity to do so. And, with that, I say thanks again, and the committee stands adjourned. [Whereupon, at 11:36 a.m., the subcommittee was adjourned.] [Questions for the Record follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] [all]
MEMBERNAME | BIOGUIDEID | GPOID | CHAMBER | PARTY | ROLE | STATE | CONGRESS | AUTHORITYID |
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Brady, Kevin | B000755 | 8164 | H | R | COMMMEMBER | TX | 115 | 1468 |
Davis, Danny K. | D000096 | 7927 | H | D | COMMMEMBER | IL | 115 | 1477 |
Kind, Ron | K000188 | 8216 | H | D | COMMMEMBER | WI | 115 | 1498 |
Larson, John B. | L000557 | 7866 | H | D | COMMMEMBER | CT | 115 | 1583 |
Thompson, Mike | T000460 | 7806 | H | D | COMMMEMBER | CA | 115 | 1593 |
Crowley, Joseph | C001038 | 8068 | H | D | COMMMEMBER | NY | 115 | 1604 |
Tiberi, Patrick J. | T000462 | 8102 | H | R | COMMMEMBER | OH | 115 | 1664 |
Nunes, Devin | N000181 | 7826 | H | R | COMMMEMBER | CA | 115 | 1710 |
Sanchez, Linda T. | S001156 | 7844 | H | D | COMMMEMBER | CA | 115 | 1757 |
Higgins, Brian | H001038 | 8088 | H | D | COMMMEMBER | NY | 115 | 1794 |
Marchant, Kenny | M001158 | 8766 | H | R | COMMMEMBER | TX | 115 | 1806 |
Reichert, David G. | R000578 | 8212 | H | R | COMMMEMBER | WA | 115 | 1810 |
Buchanan, Vern | B001260 | 7885 | H | R | COMMMEMBER | FL | 115 | 1840 |
Roskam, Peter J. | R000580 | 7926 | H | R | COMMMEMBER | IL | 115 | 1848 |
Smith, Adrian | S001172 | 8040 | H | R | COMMMEMBER | NE | 115 | 1860 |
Jenkins, Lynn | J000290 | 7950 | H | R | COMMMEMBER | KS | 115 | 1921 |
Paulsen, Erik | P000594 | 8003 | H | R | COMMMEMBER | MN | 115 | 1930 |
Chu, Judy | C001080 | 7837 | H | D | COMMMEMBER | CA | 115 | 1970 |
Reed, Tom | R000585 | 8090 | H | R | COMMMEMBER | NY | 115 | 1982 |
Sewell, Terri A. | S001185 | 7792 | H | D | COMMMEMBER | AL | 115 | 1988 |
Schweikert, David | S001183 | 7802 | H | R | COMMMEMBER | AZ | 115 | 1994 |
Renacci, James B. | R000586 | 8106 | H | R | COMMMEMBER | OH | 115 | 2048 |
Kelly, Mike | K000376 | 8708 | H | R | COMMMEMBER | PA | 115 | 2051 |
Meehan, Patrick | M001181 | 8125 | H | R | COMMMEMBER | PA | 115 | 2052 |
Noem, Kristi L. | N000184 | 8147 | H | R | COMMMEMBER | SD | 115 | 2060 |
Black, Diane | B001273 | 8153 | H | R | COMMMEMBER | TN | 115 | 2063 |
DelBene, Suzan K. | D000617 | 8374 | H | D | COMMMEMBER | WA | 115 | 2096 |
Walorski, Jackie | W000813 | H | R | COMMMEMBER | IN | 115 | 2128 | |
Holding, George | H001065 | H | R | COMMMEMBER | NC | 115 | 2143 | |
Rice, Tom | R000597 | H | R | COMMMEMBER | SC | 115 | 2160 | |
Smith, Jason | S001195 | H | R | COMMMEMBER | MO | 115 | 2191 | |
Curbelo, Carlos | C001107 | H | R | COMMMEMBER | FL | 115 | 2235 | |
Bishop, Mike | B001293 | H | R | COMMMEMBER | MI | 115 | 2249 | |
Doggett, Lloyd | D000399 | 8181 | H | D | COMMMEMBER | TX | 115 | 303 |
Johnson, Sam | J000174 | 8159 | H | R | COMMMEMBER | TX | 115 | 603 |
Levin, Sander M. | L000263 | 7997 | H | D | COMMMEMBER | MI | 115 | 683 |
Lewis, John | L000287 | 7902 | H | D | COMMMEMBER | GA | 115 | 688 |
Neal, Richard E. | N000015 | 7967 | H | D | COMMMEMBER | MA | 115 | 854 |
Blumenauer, Earl | B000574 | 8116 | H | D | COMMMEMBER | OR | 115 | 99 |
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