Close the Gap: A Business Response To our Region’s Growing Disparities
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Transcript of Close the Gap: A Business Response To our Region’s Growing Disparities
MW-ZXF585-20060118-310
Close the Gap: A Business Response To our Region’s Growing DisparitiesClose the Gap: A Business Response To our Region’s Growing Disparities
Fall 2008
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TODAY’S AGENDA
• Overview of the Itasca Project
• Socioeconomic disparities in our region– Findings from Mind the Gap report– Highlights of Close the Gap documentary
• Itasca’s response
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THE ITASCA PROJECT
What is Itasca
Who is Itasca
An employer-led alliance to drive regional efforts to keep the Twin Cities’ economy and quality of life competitive with other regions
50-plus community leaders
•Primarily private sector CEOs
• Includes a handful of public sector leaders, such as the Governor, the Mayors of Minneapolis and St. Paul, Chair of the Met Council, and the leaders of the University of Minnesota and MNSCU
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ITASCA IMPACTS ECONOMIC COMPETITIVENESS AND QUALITY OF LIFE BY FOCUSING ON IMPORTANT ISSUE AREAS
• Building Financial Fitness• Understanding and Addressing
Socioeconomic Disparities (Close the Gap)
Socioeconomic disparitiesSocioeconomic disparities
• Creating a World-class K-12 School System in MN
• Supporting the Strategic Re-direction of Minneapolis Public Schools
• Improving Early Childhood Development
EducationEducation
• Strengthening University-Business Relationships
• Retaining and Growing Leading Employers
• Supporting Small Business• Building Financial Fitness
Business & economic growthBusiness & economic growth Infrastructure & enablersInfrastructure & enablers
• Setting Regional Performance Indicators
• Advancing a Comprehensive Transportation Plan
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TODAY’S AGENDA
• Overview of the Itasca Project
• Socioeconomic disparities in our region– Findings from Mind the Gap report– Highlights of Close the Gap documentary
• Itasca’s response
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THE ITASCA PROJECT AND SOCIOECONOMIC DISPARITIES
Addressing the region’s socioeconomic disparities was one of the first issues the Itasca Project took on when it was founded over five years ago.
With support from the McKnight Foundation, Itasca worked with the Brookings Institution Metropolitan Policy Program to better understand the nature and magnitude of our socioeconomic disparities.
This report was used to raise awareness of the troubling disparities and to motivate change in our community. In 2008, in an effort to further build awareness, Itasca partnered with Twin Cities Public Television (tpt) to create a documentary to bring the disparities highlighted in Mind the Gap to life.
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DISPARITIES IN OUR REGION ARE GROWING, AND THREATEN OUR ECONOMIC HEALTH
In Minnesota, not all children are “above average.” In fact, large populations are struggling
In spite of our overall economic strength, there are 3 stark and growing socioeconomic gaps in the Twin Cities – gaps tied to race, class, and place – which threaten to undermine our region’s future
Closing these gaps now is not just the right thing to do, but the smart thing to do
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RACE DISPARITIES CUT ACROSS ALL SOCIOECONOMIC INDICATORS. THEY AFFECT ALMOST ALL NONWHITE RACE AND ETHNIC POPULATIONS . . .
Source: Brookings Institution; Wilder Foundation; MN Department of Health Center for Health Statistics
RACE
Compared to the average white Twin Cities resident
The average black Twin Cities resident is:– Earning 48% less – 73% less likely to own a home
The average Latino Twin Cities resident is:– 4 times more likely to be uninsured – 5 times more likely to be a teen mother
The average Native American Twin Cities resident is:– 2.5 times less likely to have access to a car– 5.5 times more likely to receive inadequate prenatal care
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NONWHITE MINNESOTANS ARE SIGNIFICANTLY LESS LIKELY TO HAVE INSURANCE
Source: MN Health Access Survey (2001, 2004, 2007)
RACE
2001 2004 2007
American Indian
19% 22% 16%
Asian 8% 10% 6%
Black 17% 14% 15%
Hispanic 24% 31% 19%
White (Non-Hispanic)
5% 6% 6%
All 6% 8% 7%
Uninsured population (ages 0 – 64) Percent
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WITH RAPIDLY GROWING MINORITY POPULATIONS, THESE RACIAL AND ETHNIC DISPARITIES ARE BECOMING MORE PROMINENT
Source: Twin Cities Compass
RACE
Population by racePercent
917 20
83 8091
20071990
Nonwhite
White
Between 1990 and 2007 the metro added over
350,000 minority residents – a 166%
increase
2000
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BEFORE REACHING SCHOOL AGE, LOW-INCOME CHILDREN FALL BEHIND HIGHER-INCOME PEERS
Source: MN School Readiness Year 2 study
CLASS
8
10
17
55,001-75,000
35,001-55,000
75,001 or more
0-35,000
6
Language and literacy
8
15
6
10
Mathematical thinking Income Dollars
Percentage of MN Children rated “not yet” performing adequately at kindergarten entrance, by household income
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THIS DISADVANTAGE CONTINUES THROUGHOUT THE EDUCATIONAL SYSTEM, REGARDLESS OF RACE
Source:Metro Trend Watch, Brookings Institution
Low income (up to 185% of poverty level)
All other students
82%
66%
55%
52%
55%
24%
26%
27%
33%
49%White
American Indian
Black
Asian
Hispanic
Third-graders proficient in reading, 2001-02 – Minneapolis and St. Paul
CLASS
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INCOME, LIKE RACE, IS TIED TO A MULTITUDE OF OTHER SOCIOECONOMIC INDICATORS – FOR EXAMPLE, HEALTH
Percent in Poor/Fair Health by Income*
Source:Robert Wood Johnson Foundation, February 2008, Overcoming Obstacles to Health: Stories, Facts and Findings, National Health Interview Survey, 2001-2005
CLASS
7
10
14
21
31
>400% FPL
300 - 399% FPL
200 - 299% FPL
100 - 199% FPL
100% FPL
Percent in Poor/Fair Health by Race
11
19
21
White, Non-Hispanic
Hispanic
Black, Non-Hispanic
* Defined by relation to Federal Poverty Level (FPL)
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THE CENTRAL CITIES HAVE HIGHER CONCENTRATIONS OF POPULATIONS THAT STRUGGLE WITH RACE AND CLASS DISPARITIES
23
54 54
46 46
77
Total population
Minneapolis – St. Paul
Suburbs
Non-white population
Poverty population
Source: Brookings Institution; Wilder Foundation; HUD State of the Cities database
Percent share of population, 2000
PLACE
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POVERTY IS CONCENTRATED IN THE 2 CENTRAL CITIES
Source: Brookings Institution
Share of persons living in poverty, 2000
PLACE
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FROM AN ECONOMIC COMPETITIVENESS STANDPOINT, WHY SHOULD THE TWIN CITIES REGION WORK TOWARD REDUCING DISPARITIES?
Reducing disparities among race and income groups builds a more competitive workforce
– In 2011, the baby boomers will start to retire. By 2029, the oldest baby boomers will retire
– By 2029, the region will have to replace 776,000 workers – 350,000 of these are highly educated
– The achievement gap suggests that, without intervention, the replacement workforce will not match skills of boomers
Reducing disparities among race and income has a positive economic impact
– Increase the tax base – Reduce poverty expenditures – Put more money in the local economy
Reducing disparities among places will make the region stronger and more competitive
– Research suggests that fates of large cities and their metropolitan areas are intertwined – they grow together or they decline together
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MINORITIES WILL MAKE UP A MUCH LARGER SHARE OF THE TWIN CITIES’ FUTURE WORKFORCE
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CLOSE THE GAP DOCUMENTARY
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TODAY’S AGENDA
• Overview of the Itasca Project
• Socioeconomic disparities in our region– Findings from Mind the Gap report– Highlights of Close the Gap documentary
• Itasca’s response
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BROOKINGS SUGGESTED 3 KEY STRATEGIES TO REDUCE DISPARITIES
Update the basics – Make sure education, healthcare, and public safety meet the needs of the region’s 21st century population
Increase income and wealth – Help minority groups close the gap on economic measures (e.g., access to EITC and food stamps, homeownership, financial literacy)
Act regionally – Issues are regional and require regional solutions
Update the basics – Make sure education, healthcare, and public safety meet the needs of the region’s 21st century population
Increase income and wealth – Help minority groups close the gap on economic measures (e.g., access to EITC and food stamps, homeownership, financial literacy)
Act regionally – Issues are regional and require regional solutions
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IN RESPONSE, ITASCA LAUNCHED SEVERAL TASK FORCES TO FURTHER ADDRESS DISPARITIES
Addressing Socioeconomic DisparitiesMary Brainerd (CEO of HealthPartners) and Lynn Casey (President & CEO of Padilla Speer Beardsley)
Financially Fit MinnesotaBrad Anderson (CEO of Best Buy)
Supporting the Strategic Re-direction of Minneapolis Public SchoolsBruce Nicholson (President and CEO of Thrivent Financial)
Creating a World-Class K-12 Education System in MNDick Pettingill (President and CEO of Allina Hospitals and Clinics)
Twin Cities CompassIrv Weiser (Retired Chairman & CEO of RBC Dain Rauscher) and Kathy Tunheim (President & CEO of Tunheim Partners)
22
11
33
44
55
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• Created a Speakers Bureau to distribute message from Mind the Gap
• Created a Speakers Bureau to distribute message from Mind the Gap
Actions Results
Speakers Bureau
Close the Gap toolkit
Close the Gap documentary
• Included tactical suggestions for employers in areas such as Income and Asset Development, Housing, Early Childhood Education, Educational Attainment, Health Care
• Included tactical suggestions for employers in areas such as Income and Asset Development, Housing, Early Childhood Education, Educational Attainment, Health Care
• Presented to over 10,000 people (and counting)
• Presented to over 10,000 people (and counting)
• Distributed over 6,000• Businesses, churches, city and
county departments, and universities incorporated into strategic plans
• Distributed over 6,000• Businesses, churches, city and
county departments, and universities incorporated into strategic plans
• Partnered with tpt to create a documentary which brings to life the disparities highlighted in Mind the Gap
• Partnered with tpt to create a documentary which brings to life the disparities highlighted in Mind the Gap
• Over 50,000 households have viewed all or part of documentary on air
• 8,000 visitors to Close the Gap website• 1,500 DVD’s distributed
• Over 50,000 households have viewed all or part of documentary on air
• 8,000 visitors to Close the Gap website• 1,500 DVD’s distributed
In addition, Itasca has supported community efforts such as ServeAmerica early literacy program, EITC programs and STEP UP summer jobs
In addition, Itasca has supported community efforts such as ServeAmerica early literacy program, EITC programs and STEP UP summer jobs
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FINANCIALLY FIT MINNESOTA
• Mind the Gap report highlighted disparities in financial well-being and recommended a focus on improving financial literacy
• Further research revealed that families in Minnesota and throughout the U.S. are increasingly engaging in unsound financial behavior, with particularly dire consequences for low income families
• In response, The Itasca Project launched Financially Fit Minnesota, which asks companies to commit to increasing participation rates in direct deposit and retirement – and to close the gaps between employee groups
Financially Fit Minnesota employers
3M ▪ Allina Hospitals & Clinics ▪ Best Buy ▪ Deluxe Corp. ▪ Fairview Health Services ▪ Federated Insurance ▪ General Mills ▪ HealthPartners ▪ Jefferson Lines ▪ Met Council ▪ Minneapolis/St. Paul Business Journal ▪ Mortenson Construction ▪ Pentair ▪ Regions Hospital ▪ SUPERVALU ▪ Target ▪ Thor Construction ▪ Thrivent Financial for Lutherans ▪ Travelers ▪ University of Minnesota ▪ U.S. Bancorp ▪ Weber Shandwick ▪ Wells Fargo ▪ Xcel Energy
Still recruiting more employers! Visit www.FinanciallyFitMN.org or email [email protected] for details
22
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Strategy
HOW FINANCIALLY FIT MINNESOTA WORKS
•Model employer behaviors that set a new community standard
•Recruit employers to make organizational commit to –Increase direct deposit participation–Increase retirement plan participation
•Provide tools to help employers set and meet goals – with a focus on closing gaps between employee groups
Objective
Goal is to impact 50,000 Minnesota families
by end of 2009
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SUPPORTING THE STRATEGIC RE-DIRECTION OF MINNEAPOLIS PUBLIC SCHOOLS
• Minneapolis Public Schools faces significant challenges– District lost 25% of students in six years, causing financial
challenges and budget deficits– Falling behind on state testing (75% of individual schools below
state average)– Dramatic achievement gaps (e.g, 82% Caucasian proficient in
math vs. 34% for African American)
• Itasca supported the Strategic Planning process for Minneapolis Public Schools
33
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CREATING A WORLD-CLASS K-12 EDUCATION SYSTEM IN MN
Source:“Minnesota Population Projections 2005-2035”, Minnesota State Demographic Center, June 2007; “Knocking at the College Door,” Western Interstate Commission for Higher Education (WICHE), March 2008
Identify the “best practices” that define world-class K-12 schools and systems
a
Benchmark Minnesota’s performance and system practices against US and international systems
b
Prioritize 3-5 changes to drive Minnesota to world-class “best practices”
c
The Itasca Project and Minnesota Business Partnership are co-sponsoring an initiative to:
Graduation Rates and 10-Year Growth by EthnicityPercent, 2008-2018
160
5728
-4-14-50
0
50
100
150
200
0
20
40
60
80
Graduation
Rate
White Am.
IndianAsian Black His-
panic
Growth
Though historically strong, Minnesota and its education system are facing a number of challenges, including:• Increasing global competition, requiring educated
workforce to remain competitive• Indications that MN students are lagging international
counterparts on achievement• Significant achievement gaps, with a shifting demographic
mix towards student groups who demonstrate lower rates of success in current system (shown below)
44
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TWIN CITIES COMPASS: www.tccompass.org
• Twin Cities Compass promotes our region's well-being by – Measuring progress– Reporting findings– Providing strategies
for action
• Tracks regional indicators across eight key areas
• Itasca supported development and led the convening of experts to identify key indicators
55
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SINCE ITS LAUNCH FIVE YEARS AGO, ITASCA HAS MADE SIGNIFICANT IMPACT ON A WIDE ARRAY OF INITIATIVES
• Supported efforts to secure dedicated funding for transportation • Launched Financially Fit Minnesota – 26 employers working to
improve financial fitness of employees• Created “front-door” to University of Minnesota, greatly
enhancing businesses’ ability to access services and for University technology transfer
• Launched cultivation program to retain and grow Minnesota’s large employers, an important driver of economic competitiveness
• Built awareness of socioeconomic disparities by presenting Mind the Gap to over 10,000 community members; in addition, 50,000 households have seen all or part of Close the Gap documentary
• Supported strategic plan at Minneapolis Public Schools; set path for district reform
• Played leading role in creation and implementation of Twin Cities Compass
• Distributed Close the Gap toolkits to 6,000 employers and helped create plans to address socioeconomic disparities
• Created the GetGoMN.org to link entrepreneurs with funders and support services
• Helped hundreds of Minneapolis students to access summer jobs through Step Up summer job programs
• CEO’s drive and lead every task force – spend real time engaging on the issues
• Relatively small budget, funded by partnership between CEO’s and local Foundations
• Leverage millions of dollars and thousands of hours in pro-bono services and volunteer efforts from community organizations and businesses
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WHY ITASCA IS EFFECTIVE
• Find a unique role for Itasca to play. Role varies by initiative, but usually fills a leadership gap in region
33
• Driven by passion. Each initiative driven by a CEO – based on their passions
11
• Lead with the facts. Willing to invest time and money required to get the best common fact base
22
• Collaborate and partner. Work with those organizations who can help get things done
44
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COMPANY SPECIFIC EXAMPLE - HEALTHPARTNERS
• . REDUCE IDENTIFIED HEALTH DISPARITIES
• . INCREASE DIVERSITY
• . FINANCIAL FITNESS “ PACESETTER”
• . “MIND THE GAP” COMMUNITY ENGAGEMENT
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OPTIMAL DIABETES CARE BY RACEAT HEALTHPARTNERS
Optimal Diabetes Care% patients that meet all 5 treatment goals: controlled blood sugars, cholesterol,
& blood pressure, and regular aspirin use,& non-tobacco use.
13.9%
18.9%
11.6% 12.9%
20.4%19.2%
24.5%
12.9%
18.2%
23.5%
0%
5%
10%
15%
20%
25%
30%
American Indianor Alaskan
Native
Asian Black or African-American
Hispanic orLatino
White
% O
pti
mal
ly M
anag
ed
1Q07 4Q07
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% PATIENTS UP-TO-DATE WITH PREVENTIVE SERVICESHEALTHPARTNERS, 3RD QUARTER 2007
86%
47%
69%
84%
92%
57%
85% 85%89%
47%
77%83%
89%
53%
81%87%
92%
61%
88% 89%
0%
20%
40%
60%
80%
100%
Cholesterol Colorectal Mammography Pap
American Indian or Alaska Native Asian Black or African-American Hispanic or Latino White
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PREVENTIVE SERVICES BY RACE MESSAGESHEALTHPARTNERS 2007
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WHAT CAN PUBLIC HEALTH LEADERS DO TO ADDRESS SOCIOECONOMIC DISPARITIES?
• Look critically at your organization. Conduct an internal assessment and explore how your can incorporate strategies to close the gap into your organizations– Use Close the Gap toolkit for ideas available at:
www.unitedwaytwincities.org/CommunityInfo/closethegap.cfm
• Join Financially Fit Minnesota. Help your employees be more financially secure and prepared for the future– Visit: www.FinanciallyFitMN.org– Email: [email protected]
• Raise awareness and catalyze action. To motivate change, broad awareness and understanding of these issues is required. Use the tpt Close the Gap documentary and the Human Resources Diversity Council discussion guide (coming soon!) to host a discussion at your organization. – Watch for more at: www.tccompass.org/disparities
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We all have a role to play in addressing
socioeconomic disparities
Resources:• Twin Cities Compass: www.tccompass.org• Close the Gap documentary and tools: www.tccompass.org/disparities• Mind the Gap report and Close the Gap toolkit:
www.unitedwaytwincities.org/CommunityInfo/closethegap.cfm• Financially Fit Minnesota: www.FinanciallyFitMN.org
For more info on The Itasca Project and initiatives:• Contact [email protected]