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July, 2003
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Community Indicators over the past two months remain thoroughly mixed. Locally,
few indicators show significant change for the better, but few are showing a
significant change for the worse either. There is a growing belief among many
investors and economists that the economy has turned a corner in its recovery
from the 2001 recession. Of course, forecasters acknowledge they made similar
predictions in 2002 and were proved wrong. Whether the local economy is getting
better, worse, or just treading water, demand for most services continues to
rise. Also included in this overview are brief highlights of 2003 legislative
decisions.
Nationally, the unemployment rate continued to climb – 6.1% in May and
6.4% in June – reaching the highest level in more than 9 years. In June,
30,000 jobs were lost nationwide, bringing the national total to 236,000 for
the year. Locally, unemployment rose as well,
but remains below national rates – 5.6% in May, up from 5.3%
in April (local data for June will be released later this month). While up slightly
from May, the unemployment rate remained lower than any point in the first quarter
of 2003. The number of people employed in Travis County remains well
above any other point in the past two years (US Department of Labor, TWC).
EMPLOYMENT:
- New jobs are on the horizon in some local industry sectors:
- 2000 people showed up for a chance at one of 250 jobs being
offered by the Target store opening July 27th in Central Austin.
Another 400 positions are projected at another new location opening near
Lakeline Mall (Austin American-Statesman).
- When the new downtown headquarters opens early in 2005, Whole
Foods will have more than 900 employees downtown, becoming downtown’s
largest private employer (Austin American-Statesman).
- State Farm Insurance Company expects to move 200 jobs to Austin
during the next few years, doubling their current work force in the area
(Austin American-Statesman).
- The number of layoffs reported in Travis County remains relatively
low: 193 in May and 169 through the middle of June. It is anticipated
that this number will climb in the coming months as budget reductions
in the public sector force more layoffs (WorkSource).
- For the week ending June 28, the advance figure for seasonally adjusted
initial claims reported by the Department of Labor
was 430,000, an increase of 21,000 from the previous week's revised
figure of 409,000. The 4-week moving average was 425,000, a decrease
of 4,500 from the previous week's revised average of 429,500 (Dept of
Labor).
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ECONOMY:
LOCAL
- Bankruptcy filings for the area of the U.S. that includes Austin
rose 8 % for the 12-month period ending March 31, as compared to
the national average of a 7.1 % rise (Austin American-Statesman).
- Local businesses show mixed economic results:
- Applied Materials Inc., which employs about 2,200 people in
Austin, showed faint signs of improvement in its fiscal second
quarter, but still expects revenue to be flat or down in the quarter ending
in July.
- Dell Computer Corp. stock reached its highest price since November
of 2000, rising 31% in the first quarter. Dell made a profit
of $598 million, compared to $457 million the year before.
- Motorola, Austin’s second-largest private employer behind
Dell, warned that revenue will be about 6% less than initial forecasts.
The news adds to uncertainty surrounding the employment of about 8,000
workers in Austin. (Austin American-Statesman)
STATE
- Sales tax collections to the state general fund for May 2003
were up 2.9% from May 2002. The first time since September
that collections exceeded the level of the prior year (Texas Comptroller
of Public Accounts).
- In contrast, the City of Austin's sales tax collections fell
almost 15% in May compared with the same month in 2002. It
was the steepest decline in more than 10 years (Austin American-Statesman).
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NATIONAL
- The Consumer Confidence Index for June (83.5) slipped slightly
from May (83.6), but remains higher than April (81). Expectations
for the future, however, continue to climb from 84.8 in April, to 94.5 in
May, to 95.9 in June (June 2003 Consumer Confidence Index, The Conference
Board).
- The index of leading economic indicators increased 1% in May.
This followed a slight gain in April. It is possible that these two consecutive
increases reflect the beginning of an upward trend, ending the flat trend
that began in early 2002 (The Conference Board).
- The Help Wanted Index, a key barometer of the national job market
was flat in May, remaining at 36 for the second month, down from 44 in May
2002. This continues a slow slide over the past few months (The Conference
Board).
- Wall Street stocks gained for the third month in a row in May.
The first three-month rally in two years. The Dow Jones industrial
average climbed above 9,000 for the first time in nearly 10 months. By mid
June, all three major indexes posted the highest close since last summer (Austin
American-Statesman).
- The Federal Reserve cut a key short-term interest rate June 25
by one-quarter of a percentage point to its lowest level in 45 years.
It aims to energize spending and investment and boost the economy (Austin
American-Statesman).
DEMAND INDICATORS:
Basic Needs:
- Since July 1, 2002, 2-1-1 Texas, a service of United Way Capital
Area, has seen the following changes (2-1-1 Texas):
- A 30% increase in households needing assistance in paying their
rent
- Calls for assistance in finding affordable or subsidized housing
has dropped by 10%
- A 45% increase in families requesting assistance with mortgage
payments
- Individuals and families calling to request emergency food assistance
have gone up 52%
- Calls from individuals needing assistance with utility bill payments
have increased by 10%
- In addition, there has been a 31% increase in calls requesting assistance
with covering prescription costs or co-payments
- From 2001 to 2002, partner agencies of the Capital Area Food Bank
saw a 47% increase in the number of households asking for emergency food assistance.
Already in just the first quarter of this year, they have seen another 25%
increase. In addition, the cost to transport produce will double
when compared to last year (Capital Area Food Bank).
- After dropping in 2002, demand on the East Austin Family Pantry,
(which is a collaboration among The Arc of the Capital Area, Austin/Travis
Co.MHMR, Ebenezer Baptist Church, and Any Baby Can) is back up to
2001 levels (The ARC of the Capital Area).
Housing:
- Record low interest rates have spurred home construction during the past
year. For the 12-month period that ended May 31, 9,975 new homes were
started, a 7% increase over the same period last year. In the first
four months of this year, 37% of the 4,841 houses sold in Central Texas were
priced between $100,000 and $150,000 (Austin American-Statesman).
- While construction continues to increase, sales have slowed. With almost
9,800 houses on the market in April and 10,100 houses in May, and
sales down 9.8 % compared to last year, 2003 has been the slowest year for
home sales since 1998. Sales fell nearly 15 % compared with May of
last year (Austin American-Statesman).
- The closing of the Robert Mueller Airport has generated new housing opportunities
in East Austin. Devonshire Park, a planned development of 45 single-family
homes on eight acres just east of Austin’s former airport, opened in
May, with prices ranging from $119,000 to $131,000 (Austin American-Statesman).
- Since the late 1990’s, the Housing Authority of the City
of Austin has increased the number of rent assistance vouchers for Section
8 from 2,203 to 5,023. At any given time, 98% of its 1,928 apartments
and 22 single-family homes are occupied (Austin American-Statesman).
- Garden Terrace, Austin's first Single Room Occupancy Housing project,
is planned to open on September 1st for new residents. It will offer
permanent housing in efficiency apartments through a partnership of Foundation
Communities and Capitol Area Homeless Alliance (Capitol Area Homeless Alliance).
Physical and Mental Health:
| The number of Travis County residents enrolled
in Medicaid edged downward between May and June, yet still remains 7%
higher than January (9% higher for children under 18). CHIP enrollment
continued to climb slowly as it has all year (now up 4% from January)
(Texas HHSC).
Closures of local emergency rooms have increased sharply since 2001.
Austin/Travis County Emergency Medical Services reports that emergency
rooms were closed to some or all ambulances for 10,291 hours in 2002,
a 400% increase over 2001, and are up another 63% in 2003 (Austin
American-Statesman).
The Indigent Care Collaboration is beginning to realize impacts of its
strategies to assure access to quality health care for people who have
little or no health insurance. As of June, over 6,000 people had
been screened and 90% of those screened were found eligible for a range
of medical assistance or charitable programs in the community.
Over 560 physicians volunteered as of June to provide care for
up to ten primary care or twenty specialty care patients per year,
supplementing the range of appropriate health care settings available
for low income and uninsured patients (Indigent Care Collaboration). |
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- KEYE news in conjunction with Austin/Travis County MHMR ran a special on
depression and hosted a subsequent three-hour call in session with MHMR staff
taking incoming calls. KEYE staff reported that they normally receive about
100 calls during a call-in program. KEYE finally shut down the hotline
after receiving 342 calls. This is one indicator of the prevalence
of depression in our area (ATCMHMR).
- National Mental Health Association gave Texas a ‘C’
rating in its observance of the 1996 Mental Health Parity Act. While
Texas has passed a Mental Health Parity Act to ensure that insurance companies
establish the same spending limits on physical and mental health, it still
imposes limitations on the diagnoses covered, and insurance companies can
and do place restrictions on visits or increase co-payments (NMHA).
- A New children's hospital, privately owned by Seton Healthcare
Network, is scheduled to open in 2007 at the old Mueller airport.
The $200 million facility will have 164 beds, compared with 110 at the current
hospital (Austin American-Statesman).
- The city pays Seton $5.6 million a year for taking care of poor and uninsured
patients at Brackenridge. Once the new Women's Hospital opens inside
Brackenridge this fall, that payment will drop to $2.7 million a year for
53 years (Austin American-Statesman).
- In a study of 16 maladies, the Texas Health Care Information Council found
that hospital admissions that could have been prevented are “significantly
lower” in Travis and Williamson counties than the state average.
This indicates that many patients who have less serious conditions are now
accessing care in more appropriate, less costly, places like a community clinic
or physician’s office (Austin Business Journal).
- Healthcare expenses for the very poor in Williamson County rose
30% to $2 million this year due to increased costs, more patients
and less help from the state. The county estimates that it will serve 48 %
more clients this year compared to last year. The Williamson County Commissioners
Court approved a $600,000 emergency measure to supplement the program (Austin
American-Statesman).
- According to a recent study by the National Institute of Mental Health,
16% of Americans – more than 30 million people—will suffer
from major depression at some point in their lives, costing employers more
than $30 billion in lost productivity. The study found increased
rates of depression among young adults, the poor, and less educated. Women
in particular were vulnerable to depression (Reuters).
- With the downsizing and re-organization of state government, budget cuts
at local MHMR Centers, reduction in attendant care services, and demise of
the In-Home and Family Support Program, the ARC of the Capital Area
conservatively estimates a 25% increase in referrals and requests for assistance,
respite care, and case management. This increase would come at a
time when the agency’s donations and foundation funding has been reduced
(The ARC of the Capital Area).
- Any Baby Can reports that their funds for respite care have been cut in
half, their Early Childhood Intervention program is now required to impose
a fee for service, and many of their clients that currently use Medicaid and
CHIP to pay for services will lose their benefits. In addition, 1500
children with special needs still wait on a waiting list for services (6 of
whom have died while on the waiting list), and 40 more children have just
been added (Any Baby Can).
Transportation:
- A report released June 18th by Harvard Civil Rights Project noted the inequitable
transportation policies of Texas, and their effects on vulnerable populations
such as minorities, people in poverty, the disabled, and the elderly. The
report states that because Texas invests relatively less in transportation,
barriers exist for these populations in attaining employment, education, and
affordable housing (Harvard Civil Rights Project).
Education and Workforce Development:
- The results from this year’s new TAKS exams left mixed results.
While third-graders did better than expected, at least 43% of
the area’s sophomores flunked at least one of four subjects.
Next year they must pass tests in all four subjects to graduate (Austin
American-Statesman).
- Round Rock ISD will raise its property tax rate 8 cents to
help balance the budget for the school district. The plan approved
by the school board also includes cutting about 45 teaching positions,
increasing student-to-teacher ratios, and reducing administrative costs
(Austin American-Statesman).
- According to statistics released in early June by the UT admissions
office, slightly more minority students will enroll this fall,
and freshman college entrance exam scores have increased. Hispanic
students will make up 16.6 precent, up from 14.3%, and African Americans
will make up 3.9%, up from 3.4%. The average SAT score for freshmen
entering is 1239, up from 1228 in 2002 and 1223 in 2001(Austin American-Statesman).
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- University of Texas officials reported that they are anticipating
an $80 million budget gap over the next two years, up $20 million
from recent estimates. The say they will have to cut fewer than 150
positions, down from an estimated 500 jobs (Austin American-Statesman).
- The State Legislature approved a bill to give Round Rock
a four-year college that might eventually become Texas State University-Round
Rock (Austin American-Statesman).
- After a brief dip in April, visits to the WorkSource Career
Centers were up sharply in May in Austin/Travis County, to an average
of 890 per day – the highest level so far this year (WorkSource).
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Public Safety:
- The Victim Services Taskforce released their 2003 Victim’s Assessment
on June 25. The report summarizes community data and states that after declining
for several years, violent crime is on the rise. Violent crime incidents
increased 5% from 2,990 in 2000 to 3,203 in 2002. Nationally, it
is estimated that about half of violent victimizations are not reported to
the police, totaling approximately 1,518 unreported victimizations in Austin
per year. The report goes on to list the following statistics:
- Persons age 15-24 comprise 7.4% of the Austin population but comprise
16.25% of the victims of violent crime.
- Men experience violent crimes at rates 60% higher than women; however,
women are the victims of all rapes (by definition) and the majority of
sexual assaults.
- Hispanics are over represented among homicide victims – 54% in
2000.
- Women in households with the lowest income have seven times the abuse
rates of those in the highest income households.
- In 2002, the APD Victim Services Division reported that 47% of victims
knew their offender through blood, marriage, or former marriage, 17% through
intimate relationship, 13% were an acquaintance and only 20% were strangers.
Demographic Changes:
- Austin shrank last year by about 1,100 people, the only
major city in the state to lose population, according to 2002 Census estimates.
However, the overall population of the five-county Central Texas region --
Travis, Williamson, Hays, Bastrop and Caldwell counties -- grew by roughly
27,000 people, a 2% increase (Austin American-Statesman).
- The Kids Count 2003 Data Book was released this month by the Center for
Public Policy Priorities comparing 1990 trend data to 2000 data for indicators
of child well-being. Highlights of this report are as follows:
- While the teen birth rate for Texas continues to be significantly
higher than the national average, the rate dropped from 48% to
42% over that decade.
- 22% of children in Texas are without health insurance,
compared to the national average of 12%.
- Households eligible for food stamps but not receiving them is
53%, as compared to the national average of 41%.
- On a more positive note, 51% of Texas low-income households
with children have housing costs that exceed 30% of their income,
as compared to 59% of low-income families nation-wide.
- The state’s official demographer released a report Texas Challenge
in the 21st Century with projections showing how population changes will affect
every citizen of Texas within the next forty years. A summary of his projections
follows:
- Currently 1 in 10 people are over 65 years old, in 2040 1 in 5 will
be over 65. This will lead to increasing demands in healthcare, and services
for the aging will become more important.
- The median age of Anglos is 38, Hispanics –25, African
Americans –29.
- In 2040 the Texas workforce will be less well educated, less
skilled, and will earn less. Projections predict ‘an enormous’
increase in demand for TANF, Food Stamps, and Medicaid services.
RESOURCES:
- The state budget crunch is threatening to pull funding from Texas’
2-1-1 information and referral system for nonprofit and disaster
information. Last session the legislature allocated $4.7 million to the project
(Austin American-Statesman).
- As many as 200 Central Texas teachers, including 37 in the Austin
School District, will have jobs to return to this fall as a result
of a WorkSource funded lay-off aversion program to train teachers who may
have had their positions reduced or cut because of school district budget
shortfalls. The additional certification program allows eligible teachers,
certified in one area, to receive training this summer and earn additional
certifications (Austin American-Statesman).
- El Buen Samaritano, an Austin nonprofit serving working
poor, Spanish-speaking families, secured $23,000 to leverage a $500,000
grant in order to open a new South Austin facility (Austin American-Statesman).
- ACC plans to raise their tuition for the fall in anticipation
of smaller than expected state appropriations in higher education (Austin
American-Statesman).
- A last-minute revision to the federal tax bill passed at the end of May
will prevent millions of low-income families from receiving the increased
child credit that is in the measure. Most families with incomes from
$10,500 to $26,625 will not benefit (New York Times).
- According to an annual tally of charitable contributions, Americans
gave an estimated $240.92 billion to charities in 2002, only a .5%
decrease from the previous year. Anecdotal reports from charities and other
fund-raising entities say corporate gifts have fallen more significantly (The
New York Times). Locally, an influx of professional, skilled volunteers
is helping to boost the efforts of local non-profits. People who
have been laid-off are donating their time to charities to keep their skills
sharp (Austin American-Statesman).
- WorkSource, working in partnership with IBM, Motorola, National
Instruments, NetBotz, Inc., St. Edward's University, has secured $2,997,940
in grant funding to upgrade the technical skills of high tech workers in the
Greater Austin area. This grant will provide 1,822 current workers
with high skills training in computer languages, programming, and other advanced
information technology skills (WorkSource).
- Austin will be one of ten Texas cities to receive $13.5 million
in federal funding for anti-terrorism equipment and homeland security planning.
The funds will be added to $84.5 million in federal homeland security grants
announced last week (KEYE News).
LEGISLATIVE UPDATE:
- Sweeping reorganization of state health and human services (HB2292)
will consolidate 12 departments into four under the umbrella of the Health
and Human Services Commission. Programs will be grouped into the following
new agencies: Department of State Health Services, Department of Aging and
Disability Services, Department of Assistive and Rehabilitative Services,
and the Department of Family and Protective Services. It is projected
that this reorganization will result in the elimination of more than 2,500
state jobs over the next three years. In addition to reorganization, this
legislation also includes a range of policy and programmatic changes including,
but not at all limited to:
- Narrowing eligibility and reducing benefits under Medicaid and CHIP;
- Co-pays, higher premiums and other cost-sharing measures for Medicaid,
CHIP and many other services;
- Full family sanctions for TANF recipients who do not meet program requirements;
- Directive to increase privatization of a range of functions, including
eligibility call centers;
- Implementing a sliding fee scale for Early Childhood Intervention services;
- Increases in TDH license fees;
- This legislation also includes provisions authorizing an election for the
proposed Travis County Hospital District into law. If approved by voters,
the district will pay for public hospitals, clinics and health care programs
for poor and uninsured residents of Travis County. A nine-member board appointed
by the city and county will oversee the district. (Austin American-Statesman).
- House Bill 1, the state budget for 2004-2005, will spend
less revenue on social services than the 2002-2003 budget. These cuts include:
- Reductions in Medicaid Community Care hours of service for elderly
Texans and disabled adults
- Reductions in Community and Long Term Care
- Reductions in Medicaid Maternity coverage for low-income pregnant women
- Elimination of medically needy spend-down program
- Added asset limit to CHIP eligibility, projected to reduce the number
of children enrolled by 169,295 below projected enrollment in 2005
- Medicaid provider rate cuts
- Elimination of various services for aged, disabled, and adult TANF
recipients on Medicaid
- Reductions in MHMR community services
- Funding TDH programs below current service levels
- Policy changes for TANF eligibility and payment levels, decreasing
the number of families enrolled and decreasing their level of assistance
(CPPP).
WHAT CAN YOU DO TO HELP?
- Choose a local social services agency to support financially.
- Support the local economy by shopping at local businesses.
- Give to the United Way Capital Area’s Community Fund or the Austin
Community Foundation’s Urgent Issues Fund.
- Contact the United Way Capital Area’s Volunteer Center at 512-323-1898
or search for volunteer opportunities on United Way Capital Area’s website
at www.uway-austin.org.
- Also see the 2001 CAN Urgent Issues Action Plan at www.caction.org for additional
information about community-wide approaches to addressing these issues in
our community.
ACKNOWLEDGEMENTS
The Community Overview was researched and written by the Research & Planning
Division of Travis County Health and Human Services & Veterans Services,
with assistance from numerous individuals in the community. We attempted to
include all those who had a part in this undertaking, but if we have inadvertently
omitted anyone, we apologize and ask that you inform us so that we may recognize
you appropriately as the process continues.
TRAVIS COUNTY HHS & VS RESEARCH AND PLANNING DIVISION:
Blanca Leahy, Director
Charlotte Brooks, Judy Cortez, Lawrence Lyman, Christine McCormick, Meg Poag,
Ellen Richards, & Joy Stollings
CONTRIBUTORS:
Fred Butler, Sam Woollard– Community
Action Network
Beverly Fisher– WorkSource
Beverly Scarborough – Austin
Travis County MHMR
Marco Galvan – 2-1-1 Texas, United
Way Capital Area
Susan Eason – The
ARC of the Capital Area
Susan Andersen – Seton
Ray Fernandez – Capital
Area Food Bank
Carol Swicker - Capitol
Area Homeless Alliance
Heather Hardesty - The
ARC of the Capital Area
COMMUNITY ACTION NETWORK PARTNERS:
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