1 / 37

Growing the Providence Economy

Growing the Providence Economy. Presented to: Mayor David N. Cicilline’s Working Group on Growing the Providence Economy February 12, 2003. Today’s Goals Share information about what we know Jobs Tax Base People and Neighborhoods What’s Already in Place

viho
Download Presentation

Growing the Providence Economy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Growing the Providence Economy Presented to:Mayor David N. Cicilline’s Working Group on Growing the Providence Economy February 12, 2003

  2. Today’s Goals • Share information about what we know • Jobs • Tax Base • People and Neighborhoods • What’s Already in Place • Set the stage for making recommendations

  3. The issues… • Jobs • Tax Base • People and Neighborhoods

  4. We are in a High Wage Region • phenomenal decade of growth in high skill industries • increased income polarization

  5. Providence is still an employment hub, but not adding jobs like the region Indexed Job Growth • 121,000 jobs • 101,000 private sector jobs • 68,000 resident labor force • From 1994 to 2001, only 1 in 5 new jobs in RI were located in Providence US MA RI Providence

  6. Providence has lost large numbers of jobs in financial services mfg traditional products metals mfg *The loss of manufacturing means the loss of middle wage jobs with low barriers to entry Job gains: professional services medical and social serv temp agencies hospitality eating & drinking retail Providence is losing middle and high wage industries Providence Jobs by Industry Middle wage Low wage High Wage

  7. Providence’s big non-profit institutions, the colleges and hospitals, have been an anchor in the economy. Three sectors dominate the city’s economy with 44,000 jobs Local Health Services Education & Knowledge Creation Local Commercial Services Providence is gaining jobs fast in the emerging medical technology cluster In key industries where wages are rising, the city is losing employment while gains are being made in the metro area Business Services -- Publishing & Printing Metal Manufacturing -- Information Technology

  8. Providence industry wages are the same or higher than the state in almost all industries. The average wage for jobs in Providence was 10% higher than the state The average Providence male working full-time earns 23% less than RI average Providence median HH income is 36% less Providence still is a center for high-wage jobs, but resident earnings are low Average Wages by Location of Job and Worker Residence Sources: 2000 Census per capita income of male full-time, year-round workers; 2000 ES202 Private Covered Employment, Mean Earnings

  9. Inter-related factors contributing to declining earnings by Providence residents • Declining ratio of workers to population = lower incomes • Brain drain • Concentration of adults without HS literacy and English proficiency • Loss of jobs that can be performed without a college education • Declining earnings for workers without some college education Providence Population Population Labor force Employed residents

  10. Discussion Points:Jobs • All places are losing old economy jobs, Providence is not replacing them • Multiple factors contributing to Providence’s poor performance in gaining new jobs • Importance of colleges & hospitals as economic anchors • Multiple factors contributing to falling personal income

  11. The issues… • Jobs • Tax Base • People and Neighborhoods

  12. Providence Property Tax Base • Market value of taxable real estate in FY2002: $7.1 billion • Providence Tax Base: • Residential: 57.6 % • Commercial: 30.4 % • Industrial: 4.6 % • Other: 7.0 % • 24.5% decline in market value since FY1992 ($2.3 billion)* • $4.1 billion in statutory exemptions (in addition to $7.1 billion) • Providence property tax levy significantly higher than state • * Adjusted for inflation

  13. Providence and the rest of the core now account for less than 1/3 of the state’s commercial land value Share of Property Value - Commercial Only 1970 2000 6% 11% 18% 32% 26% 50% 26% 31% Core Ring Suburban Rural Core Ring Suburban Rural • Comparable changes occurred in distribution of industrial values

  14. Vacant and Abandoned Properties in South Side

  15. Discussion Points:Tax Base • Make better use of underutilized properties • Deal with challenges of developing urban properties: • Brownfields • Building Codes • Land Assembly • Revenue / cost gaps • Grow taxable private industries • Open dialogue with tax-exempts • Long-range planning • Comprehensive property inventory

  16. The issues… • Jobs • Tax Base • People and Neighborhoods

  17. Median Family Income in Providence City: $32, 058 State: $54,781 Incomes in Providence grew 2.5 times slower than the state rate. When adjusted for inflation, median family income in the city actually decreased by 13%. Providence has the largest concentration of both low-income and high-income families in RI. 40% of children in the city live in poverty (3rd highest in the nation). Child poverty rate in RI is 17%. Numbers on map indicate median family income for block groups rounded to nearest $1,000. Source: Census 2000 SF3

  18. Change in Median Family Income, 1990-2000 W a n s k u c k C h a r l e s H H o o p p e e - 7 % - 1 5 % 2 0 % B B l l a a c c k k s s t t o o n n e e M M o o u u n n t t 1 4 % H H o o p p e e E E l l m m h h u u r r s s t t 1 4 % 1 % M o u n t P l e a s a n t M a n t o n S m i t h H i l l - 1 2 % W a y l a n d - 1 4 % V a l l e y C o l l e g e H i l l 4 8 % - 3 4 % 1 3 % D o w n t o w n - 1 4 % O l n e y v i l l e F o x P o i n t 2 % H a r t f o r d - 1 1 % 1 5 % - 3 0 % U p p e r S o u t h P r o v i d e n c e S i l v e r L a k e W e s t E n d 6 0 % - 8 % L o w e r S o u t h P r o v i d e n c e - 1 9 % E E l l m m w w o o o o d d R e s e r v o i r - 3 % W a s h i n g t o n - 7 % - 1 0 % S o u t h E l m w o o d 1990 $ adjusted - 1 9 % F e d e r a l H i l l - 2 3 % C h a n g e i n A d j u s t e d F a m i l y I n c o m e 1 9 9 0 - 2 0 0 0 P a r k G r o w t h 1 % t o 2 0 % 2 0 % t o 6 0 % D e c l i n e - . 0 1 % t o - 1 9 % 1 3 % - 1 9 % t o - 3 4 % Numbers on map indicate the percentage change in family income when adjusted for inflation. Providence: -13% Rhode Island: +3.3% Source: Census 1990 and 2000 SF3

  19. Unemployment in Providence City rate: 9.3% State rate: 5.6% Half the city’s neighborhoods have areas of unemployment 20% or higher. Numbers on map indicate percent of civilian labor force unemployed for block groups. Source: Census 2000 SF3

  20. Barriers to Employment • Educational attainment • Literacy • High school dropout • Language • Single parent households (e.g., child care, transportation)

  21. High School Graduate or Higher, 2000Providence, RI Neighborhoods City rate: 65.8% State rate: 78.0% Universe: Population over 25 years. Source: Census 2000 SF3

  22. Adult Literacy • 47% of state’s adult population is functionally illiterate • – highest in New England • – Providence is even higher • Dropouts • 36% of Providence students drop out • – range from < 3% at Classical to > 56% at Hope • Providence rate is two times the state rate • – RI is highest in the region

  23. Linguistic Isolation, 2000 Numbers on map indicate percent of linguistically isolated households per block group. Rhode Island – 8.5% Source: Census 2000 SF3

  24. Discussion Points:People and Neighborhoods • Make more effective investments in adult literacy • Need strategies for employing linguistically isolated • Need realistic strategies to engage youth who are dropping out of school • Examine barriers to employment that are not skills-related • Transportation • Child care

  25. Discussion • Refer back to discussion points: • Jobs • Tax Base • People and Neighborhoods • What’s Already in Place • Refer to matrix from ICIC presentation, plus… • Cities Count – RI Foundation and RIPEC • Creative Economy – Providence Foundation • Urban Revitalization Fund – The Providence Plan

  26. Discussion Points:Jobs • All places are losing old economy jobs, Providence is not replacing them • Multiple factors contributing to Providence’s poor performance in gaining new jobs(business climate; land/space availability; neighborhood issues; absence of proactive recruitment and retention) • Importance of colleges & hospitals as economic anchors • Multiple factors contributing to falling personal income (brain drain; literacy, language, and skill levels; loss of jobs for workers with limited skills, education, and language; declining real earnings for workers without some college; declining ratio of workers to population)

  27. Discussion Points:Tax Base • Make better use of underutilized properties • Deal with challenges of developing urban properties: • Brownfields • Building Codes • Land Assembly • Revenue / cost gaps • Grow taxable private industries • Open dialogue with tax-exempts • Long-range planning • Systems (e.g., parcel-based GIS) integrating values, ownership, and potential assembly options

  28. Discussion Points:People and Neighborhoods • Make more effective investments in adult literacy • Need strategies for employing linguistically isolated • Need realistic strategies to engage youth who are dropping out of school • Examine barriers to employment that are not skills-related • Transportation • Child care

  29. Growing the Providence Economy: • What’s Already in Place • Refer to matrix from ICIC presentation (attached) • Plus… • Cities Count – RI Foundation and RIPEC • Creative Economy – Providence Foundation • Urban Revitalization Fund – The Providence Plan • (Use discussion to add to list)

  30. What’s Already in Place: Inventory From ICIC Report • Research / Strategic Planning • Industry/Cluster-Specific Advocacy and Support • Business Environment • Business Attraction • Business Retention Nbrhd • Neighborhood Improvement • Program • Southside Investment • Partnership • Main Streets • DownCity Partnership • Enterprise Community • JewelryDistrictAssociation City • Department of Planning and • Development • Providence Plan • City PR Storefront Program • City PR Business Liaison • Program • PEDC Revolving Loan fund • Prov. Planning & Dev’t • PEDC Revolving Loan fund Region/State • RIEDC - Procurement • Assistance Center • Mill Building Revitalization Act • RIEDC Smart Building • Initiative • RIPEC • Verizon Foundation • RIEDC • National Grid USA grants • RITEC • RI Manufacturing Partnerhsip • Workforce Partnership of • Greater Rhode Island • Rhode Island Economic • Policy Council • Grow Smart RI • Rhode Island EDC • Greater Prov. Chamber • Rhode Island EDC • mass-exodus.com • Greater Prov. Chamber • Workforce Development • Minority Business Development • Entrepreneurship Training & Support • Small Business Advisory Services Small Business Finance Nbrhd • Greater Elmwood Neighborhood • Services - Micro Business Peer • Group Lending Program • The Algonquin House • S. Prov. Development Corp. • Greater Elmwood • Neighborhood Services - • Micro Business Peer Group • Lending Program • SWAP mentoring program for neighborhood contractors • NetWORKri City • Center to Advance Minority Participation in the Building Trades • Urban Revitalization Fund • City PR Business Liaison • Program • Urban Ventures • RIEDC - Urban Ventures Region/State • RIEDC - Minority Business • Enterprise Program • Rhode Island Coalition for • Minority Investment • Charles Newton - state • office of Minority Bus. Dev. • netWORKri • HRIC • Workforce Partnership of • Greater Rhode Island • Providence/Cranston • Workforce Development • Office • RI Urban Enterprise • Equity Fund • First Stop Business • Information Center • Slater Centers • Rhode Island Small Business • Loan Fund Corporation • Rhode Island EDC • RISBA • Greater Prov Chamber Page 1 of 2

  31. What’s Already in Place: Inventory From ICIC Report • Strategic Planning • Industry/Cluster-Specific Advocacy and Support • Business Environment • Business Attraction • Business Retention Nbrhd • South Providence Development Corporation • LISC City Region/State • Manufacturing Jewelers and Suppliers of America • Rhode Island Printing Industry Coalition • Prov. Warwick Conv’n & Visitors Bureau • OSHEAN • RI Foundation&Clean Land Fund • Workforce Development • Minority Business Development • Entrepreneurship Training & Support • Small Business Advisory Services Small Business Finance Nbrhd City Region/State Greater Prov. Chamber Page 2 of 2

More Related