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A review of this month's indicators shows that although the unemployment
rate remains higher than at any time in the last 10 years, the economy
in Travis County is beginning a slow recovery. Unemployment decreased
slightly again this month, and although job loss has slowed when compared
to last year, large layoffs are occurring this month. At the same time,
we still see an increased demand for social services when compared to
last year. Those hardest hit by the economic downturn have not begun
to see an improvement in their personal financial conditions.
Items highlighted with blue text are new for
this month.
ECONOMY:
- Despite a projected increase in demand for
services this summer, the City of Austin will be closing each
branch library for one day each week beginning June 3rd.
This is projected to save the city $323,000 over the year, part of
efforts to offset a $72 million projected shortfall in next year’s
city budget. Property tax rates are also projected to increase to
help cover the shortfall (Austin American-Statesman).
- The state is facing more than $300
million in unexpected social service and health-care costs in 2002-2003
because of the weakening economy and growing demand for public services
(Austin American-Statesman). More than 31% of the state’s $113.8
billion budget goes to social services, more than any other area except
education. However, Texas ranks near the bottom in the nation in per-capita
social service spending.
- Builders started construction on
2,231 new homes in Central Texas from January through March,
2002, a 26% drop from the same months last year.
- Jon Hockenyos, an economist with Texas Perspectives, doesn't
expect to see a rebound in the economy until later this year
(Austin American-Statesman).
EMPLOYMENT:
- § New Census figures released show that
the median family income in the Austin area (including
Bastrop, Caldwell, Hays, Travis, and Williamson counties) rose
22% to $59,426, the largest increase of any metro area in
Texas. The statewide median family income is $45,861.
- § According to an Economic Outlook Survey
released on May 14th, 47% of Central Texas employers plan
to increase their workforces during the third quarter of 2002,
and none of the companies responding to the survey forecast reductions
(Austin Business Journal).
- Although job creation has exceeded layoffs, Angelou Economic Advisors
reported 23,000 layoffs in 2001.
- The Travis County unemployment
rate rose slightly from 5.4% in March to 5.5% in April.
The March Travis County unemployment rate was better than the
State’s April unemployment rate of 5.6%.
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- Between January 1 and April 22, 2002, 1,942 people were
laid off in the greater Austin area (WorkSource).
- AMD (Advanced Micro Devices) announced in early
May that they will lay off 800 chip manufacturing
workers in Austin. They will also be notifying an additional
200 workers that their jobs will be eliminated. AMD's Austin
employment has dropped from more than 4,000 a year ago to about 3,000
people (Austin American-Statesman).
- The Central Texas job market added about 3,000 jobs
in March - 1,000 of which were temporary positions at stores and restaurants
for South by Southwest, the Star of Texas rodeo, and sporting events.
In addition, the Internal Revenue Service hired 400 workers for tax
season, and about 300 construction jobs were added (Austin American-Statesman).
- § WorkSource Career Centers
received 15,300 visits in April 2002, for an average of 685 visits
a day. In 2002 there have been 59,175 customer visits to
the centers, indicating that demand for employment assistance remains
high (Worksource). WorkSource Career Centers received 148,507 customer
visits in 2001, averaging 12,376 visits per month.
- The struggling economy has forced the Greater Austin Chamber
of Commerce to reduce expenses by cutting 20% of
its staff and requiring remaining employees to take days off without
pay. The Chamber is also moving its offices from Congress
Avenue this fall to cut expenses.
- The University of Texas at Austin's College of Engineering and
the McCombs School of Business, which account for about a fourth of
all UT graduates, experienced a 35% decrease in the number
of combined on-site recruiters this year. In the College
of Natural Sciences, the total number of job interviews plummeted
54% to 1,210 (Austin American-Statesman). Nationally, hiring
out of college has declined more than 36% in the last year (National
Association of Colleges and Employers). Exceptions to the labor market
decline are teachers and nurses, occupations which continue to be
in great demand.
COST OF LIVING:
- § According to the National Low Income
Housing Coalition, the hourly wage (at 40 hours per week) needed to
afford a two-bedroom apartment at the current Fair Market Rent is
$17.06 in Travis County.
- § The Travis Central Appraisal District
reported that property appraisals in East Austin rose faster than
in any other part of town. On average, valuations of single-family
homes in Travis County rose 8% to $212,798 during 2001 (Austin American-Statesman).
- Despite legislative approval of a pay raise for state employees,
a slow economy is keeping the raises from occurring.
The state would need an additional $191 million by September to make
the raises possible.
- In the Austin-San Marcos Metropolitan Statistical Area (MSA), 28.8%
of the jobs (186,360) have a median hourly wage of less than $10.
The Center for Public Policy Priorities indicates that a single adult
with no children needs to earn at least $10/hour in order to secure
basic necessities. However, a single parent with one child
needs to earn a minimum of $17/hour ($33,819/yr). For a family
of two parents and two children, the Austin-San Marcos MSA is the
most expensive metropolitan area in the state in which to live.
- Results of a first-quarter survey by PMI Mortgage Insurance Company
indicate that the Austin-San Marcos region tops a national ranking
of areas most likely to see home values decline more
than 10% in the next two years. PMI's analysts said Austin has about
a 15% chance of experiencing such a drop. However, local economist
Jon Hockenyos predicts that the median home price will, at most, level
off after rising steadily for more than a decade.
- The Center for Community Change conducted a study showing that
lower-income black people are 2.4 times more likely to receive high-cost/subprime
loans than lower-income white people. Upper-income black people
are three times more likely to receive subprime loans than their white
counterparts. Austin was ranked ninth nationally with 63%
of all black loan takers receiving subprime loans (Austin American-Statesman).
DEMAND INDICATORS:
Housing, Homelessness, Basic Needs:
- § 2000 Census data shows that the Austin
area has the highest median rent ($721) of any metropolitan area in
the state. 41% of Travis County renters spend more than 30%
of their gross income on rent. In comparison, 20.6% of homeowners
spend more than 30% of their gross income on monthly owner costs.
According to HUD, housing costing more than 30% of gross income is
unaffordable.
- § Census data also shows that 1,590
households lack complete plumbing facilities, 2,317 lack complete
kitchen facilities, and 6,426 do not have telephone service.
- § On May 13th, President Bush signed
the 2002 Farm Bill, which includes significant improvements
in the Food Stamp Program. The Bill simplifies enrollment
in the Food Stamp Program, increases benefits for larger families,
restores benefits to many legal immigrants, reforms the Quality Control
system by which state performance is evaluated, and authorizes an
increase in funding for the Emergency Food Assistance Program (Center
for Public Policy Priorities).
- In 2001, Family Eldercare experienced a 31% increase in
bill payer cases; a 35% increase in Case Management cases; a 48% increase
in general calls for assistance (central intake services);
a 30% increase in In-home Care cases; and a 16%
increase in Eloise's House Day Respite clients. The average
wait for Bill Payer services is 3 months and 24 people are currently
on the waiting list. Similarly, the average wait for Guardianship
services is 11 months, and 34 people are on the waiting list. In addition,
it is estimated that 20 older adults are turned away per year from
the Elder Shelter due to lack of space.
- In the first quarter of 2002, the Housing Authority of the City
of Austin (HACA) had a waiting list of 2,117 families for
Public Housing and 6,026 families for Section 8 Housing.
Compared to the first quarter of 2001, the waiting list for Public
Housing decreased by 16%, but the waiting list for Section 8 Housing
increased by 823%. The wait for Public Housing is 6 to 18 months depending
upon the number of bedrooms required. The wait for Section 8 Housing
may be a year or longer. HACA will not accept applications for the
Section 8 Waiting List after May 31, 2002.
- A recent Supreme Court ruling upheld the right of public
housing authorities to evict families for drug-related criminal activity
even when the leaseholders may be unaware of the criminal actions
of household members or guests. Among those expressing concern over
the ruling were advocates against domestic violence who are wary of
placing the burden of controlling the behavior of household members
and guests on those who may be victims of domestic violence.
- Austin Area Interreligious Ministries' Hands on Housing program
gathered almost 500 volunteers to work on 30 homes in the
Rosewood neighborhood during the weekend of April 20th.
- The majority of states have seen welfare caseloads increase
since the beginning of the recession and September 11th (Center for
Law and Social Policy). For the first time since TANF was implemented,
the average annual change in states' caseloads reflected an increase.
TANF caseloads increased between September and December, 2001 in 40
of 50 states, rising over 4% in one quarter on average.
- A recent report released by The Sentencing Project estimated that
92,000 women in 23 states were denied TANF assistance and
services due to a prior drug felony conviction.
Physical and Mental Health:
- § Survey results released on May 14th
show that Americans are much more likely to report problems
securing access to healthcare due to cost, in comparison to four other
industrialized nations, including the UK, New Zealand, Canada,
and Australia (Reuters).
- A new study from the Centers for Disease Control and Prevention
reports that emergency room visits in the US increased by
14% from 1997 to 2000, emergency room waiting times
for patients with less urgent problems increased by 33%,
and 90% of emergency rooms at large hospitals are at or above
capacity for treating patients. Possible causes include nursing
shortages, a lack of on-call specialists, a shortage of inpatient
beds resulting from workplace shortages, and inadequate reimbursement
from Medicare and private insurers. Emergency room closings also contributed
to crowding pressures.
- § In the first three months of 2002,
Travis County emergency rooms were closed 1,447 hours to at
least some ambulance patients – an increase of more
than 100% from 2001 and the worst year on record. At the area’s
only level 2 Trauma Center, the Brackenridge ER, about 20%
of patients come from outside Travis County. Brackenridge Emergency
serves an average of 350 patients a day. Since 1995, the
number of patients being served by the ER has gone up about
80% (KXAN-TV).
- A nationwide shortage of nurses
that has existed since the late 1990s is expected to worsen
over the next 20 years (Austin American-Statesman). While
Texas is growing more than twice as fast as the rest of the nation.
We rank 46th in the nation in registered nurses per 100,000 residents,
making the shortage especially problematic.
- Urgent Care Plus, an "immediate care" clinic with
10 treatment rooms, is set to open May 6th in far Northwest
Austin. Urgent Care Plus hired between 15 and20 employees to staff
the facility.
- 152,709 people in Travis County do not have health insurance,
approximately 23.6% of the total population. Nationally, 14% of the
population does not have health insurance. 21.4% of the Texas population
does not have health insurance, tying with New Mexico as the states
with the highest percentage of uninsured people in the nation (U.S.
Census Bureau, September 2001). According to the Austin/ Travis County
Health and Human Services, Indigent Care Collaboration CHIP Outreach
Coalition, Travis County has 20,081 children under age 19
who are uninsured.
- A study by the World Health Organization (WHO) showed that one
in three countries spend less than 1% of their national health budgets
on mental health. According to the report, the US spends
between 5% and 10% of their total health budget on mental health.
Transportation:
- § According to new Census figures, 3.7%
of Travis County residents use public transportation, fewer
than in Harris County where 4.1% use public transportation, but higher
than the Texas average of 1.9%. 13.6% of Travis County residents
carpool, remaining relatively unchanged since the 1990 census.
The average commute time in Travis County was 23.6 minutes,
the third longest time in the State, only surpassed by Houston and
Dallas.
- § In Travis County there are 21,840
(6.8%) households where no vehicles are available (U.S. Census
Bureau).
Education:
- § 2000 Census data shows that 37%
of Austin area residents age 25 and older hold bachelor’s degrees,
tying with Bryan-College Station for the greatest proportion
in the state. The Austin area also has the greatest proportion
(85%) of high school graduates among those age 25 and older, compared
with 76% statewide.
- § Although the teacher shortage
appears to be worsening statewide, the Austin and Round Rock
school districts say that except for special and bilingual education
teachers, they have plenty of applicants this year (Austin American-Statesman).
- § Lamar Middle School earned
the National Blue Ribbon Award, an honor shared by only 25
schools in Texas and 172 campuses nationwide.
- § Nationwide, about 31% of special
education students 14 or older drop out each year. In Texas, about
6% drop out, 5% drop out in the Round Rock Independent School District,
and 14% drop out annually in the Austin Independent School District
(Education Department’s Office of Special Education and Rehabilitative
Services).
- § Blackshear Elementary School
showed favorable state test results, with 80% of its students
passing this spring’s Texas Assessment of Academic
Skills. Passing rates increased from 15 to 46 percentage points in
reading, writing, and math (Austin American-Statesman).
- The Board of the Austin Independent School District recently approved
a blueprint to improve six schools (Blackshear, Harris,
Oak Springs, and Sims Elementaries and Pearce and Dobie Middle Schools)
in East and Northeast Austin. The plan includes replacing
five of the six principals, changing the reading curriculum, adding
money and resources to the schools, providing more training for teachers,
and using only certified, experienced teachers. The plan has startup
costs of about $1 million.
- Texas Assessment of Academic Skills (TAAS) test scores
are up. A record 85% of 10th graders in Texas passed the
test this year.
Childcare:
- § The 2000 Census shows that there are
6,230 households in Travis County where a grandparent is responsible
for caring for their grandchildren.
- The Fund for Child Care Excellence has been established, and will
recruit and train workers in the childcare field for free,
providing them with five times the amount of training required by
the state. Training is scheduled begin in August. The Dell Foundation
has committed $3 million over the next three years toward this effort
(Austin American-Statesman).
Public Safety:
- According to a January 23rd Austin American-Statesman article,
the total number of indexed crimes were 23% higher
in December of 2001 than they were in December of 2000. Auto theft
(+50%), burglaries (+35%), robberies (+24%), and property thefts (+19%)
all increased in Austin over the past year. At the same time, the
number of arrests fell 6%. There were five murders in Austin in December
of 2001 compared to three in December of 2000.
- In late September 2001, the Austin Police Department created a
separate patrol area for downtown, which doubled the number of officers
on duty during peak crime periods (usually weekend nights). In the
six months since the change, arrests and reports of crime
downtown have decreased, even as the crime rate in Austin has increased.
- The Child Advocacy Center released its 2001 Child Fatality Review
Report on April 29th. The report shows that 124 children between
the ages of 0 to 17 died in 2001, compared to 122 in 2000.
Of the 124 children who died, 92 were from natural causes, 22 were
accidental deaths, 6 were homicides, two were suicides, and two were
undetermined. The leading cause of accidental childhood deaths
in Travis County was auto accidents. Nine of the 12 children
who died in cars were not wearing seat belts.
Projections:
- According to Census Bureau estimates released on April 29th, Travis
County's population increased by 2.6% (from 812,280 to 833,797) from
April 2000 to July 2001. Williamson County was the fifth fastest-growing
county in the nation, jumping 11.2% in the same time frame.
RESOURCES
RESPONSES TO COMMUNITY CONDITIONS:
- As a result of the additional $1 million allocated to the basic
needs crisis, in April, Any Baby Can provided basic needs
assistance to 27 families with children who have special
needs, the majority of which went toward utility, rent, and mortgage
assistance. Meals on Wheels is providing an additional daily
meal to 400 homebound clients whose only nourishment is the
lunchtime meal delivered by Meals on Wheels volunteers.
- Responding to recommendations emanating from CAN's January retreat,
a Grants Clearinghouse is being hosted by Austin
Community College's Grants Development Department and its Center for
Community-Based & Nonprofit Organizations in a collaborative effort
with the Grants Clearinghouse Steering Committee and the CAN. The
site at http://www2.austin.cc.tx.us/npo/grantwebsites.htm
contains information on grant opportunities and grant-related web
sites.
- § As part of SETON’s Centennial
year, 786 employees in 51 teams took part in “March
Mission Madness,” implementing projects to benefit clients
and agencies with specific needs. 58% of participants worked
on basic needs projects, 14% on public safety, and the remainder on
various education, health, environmental, and homeless projects.
RESOURCE ISSUES IN THE COMMUNITY:
- § The Austin Travis County MHMR Hotline,
reports that in the first quarter of calendar year 2002, the
Language Line interpreter service has been used 286 times
to translate Spanish, Vietnamese and Croatian. Since ATCMHMR first
contracted with Language Line in August of 1999, the Center has used
the service 1801 times and the interpreters for 12 languages.
- Casis Elementary will be establishing a State Licensed Child
Care Facility in response to the need for quality on-site
care for children of employees of Austin ISD. The facility will open
in August.
- The Morton and Angela Topfer Family Foundation pledged
$500,000 to Family Eldercare for an independent living facility.
The 53-unit housing development will be built on 2 ½ acres
in Central East Austin near the Conley-Guerrero Senior Center and
the Rosewood Zaragosa Medical Clinic.
- People's Community Clinic received a $1 million gift
from Bettye and Bill Nowlin, the Clinic's largest individual gift
ever. The donation will help the Clinic take care of many of the 2,000
people it turns away every month (Austin American-Statesman).
- In April, Austin's sales tax revenue continued to decline
for the 11th month in a row - falling 11% from the same period
in 2001. By the end of the year, it is anticipated that the City will
have $7.6 million less than anticipated sales tax revenues. In response,
the City Council unanimously approved a tax anticipation note for
$2.8 million that could raise property taxes by one cent per $100
valuation this fall. Additionally, the City will freeze 189 vacant
positions, bringing the number of positions that will remain unfilled
this year to 337. In order for the City to meet its budget for the
year, sales tax revenue would have to increase an average of 6% through
September (Austin American-Statesman).
WHAT CAN YOU DO TO HELP?
- Choose a local social services agency to support financially.
- 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 2001 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
Joy Stollings, Charlotte Brooks, Judy Cortez, Sheila Hughes, Lawrence
Lyman, Susan Mathis, &
Ellen Richards
CONTRIBUTORS:
Fred Butler & Sam Woollard - Community
Action Network
Annette Gula & Frank Almarez & Sherri Trebus - WorkSource
Mildred Vuris – ATCMHMR
Susan Andersen – Seton
COMMUNITY ACTION NETWORK PARTNERS:
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June, 2002 |
