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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:
- Travis County Auditor’s Office October report
indicates that the local economy continues to struggle. September
City Sales Tax receipts were down 6% when compared with last
year. Retail sales for the first quarter of 2002 are down 4.4% from
last year. A couple of brighter spots: sales at Eat and Drink
Places remain steady as do Travis County building permits.
- The median price of homes dipped slightly
to $155,000 in September, down from $159,500 in August. Sales
of existing homes were down 2 percent when compared to 2001, in spite
of a 17 percent climb in the number of houses for sale--this reflects
an increase in the number of days it took for the average house to
sell from 49 days in 2001 to 64 this year (Austin American-Statesman).
- According to California-based PMI Mortgage Insurance
Co., Austin tops the list of U.S. cities at risk to see a decline
in home values. The company states that Austin has about a
20% chance of seeing a 10% decline in home values over the next two
years (Austin American-Statesman).
- Travis County experienced a 35% increase
in property foreclosures from 2001 to 2002. The bulk of the
foreclosures are single family homes valued at $100,000-150,000 (Austin
American-Statesman).
- Real estate agents in Central Texas sold 149 fewer house in July
compared with a year ago. Home sales declined 9% and the median
house price dropped 3%, according to the Austin Board of
Realtors. The median house price was $155,000 in July, down from $159,000
a year ago and from June’s record $164,000.
- A new study by the Boyd Company, a corporate-relocation firm, reports
that Austin is one of the least expensive places in the country
to run a business. Austin is less expensive for corporations
than either Houston or Dallas, as well as 23 other selected metropolitan
areas in the United States (Austin Chronicle).
EMPLOYMENT:
- The Travis County unemployment rate
dropped to 5.6% in September, down from 6.1% in July.
The September unemployment rate was better than the State’s
rate of 6.1%.
- 5,914 people were laid off in the greater Austin
area between January 1 and September 18, 2002 (WorkSource).
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- WorkSource Career Centers received 17,341
visits in August 2002, for an average of 774 visits a day. In
2002 there have been 123,297 customer visits to the centers, indicating
that demand for employment assistance remains high. WorkSource Career
Centers received 148,507 customer visits in 2001, averaging 12,376
visits per month (WorkSource).
- Economists are projecting national economic
growth at 3.2% next year, but are not anticipating that this
will translate into job growth -- the unemployment rate is
expected to remain close to 6% (Austin American-Statesman).
- The unemployment gap between blacks and
whites, which had been narrowing steadily through the nineties,
has expanded again with unemployment among blacks being 9.6%
compared with 5.1% for whites (Austin American-Statesman).
- According to a new study, Austin ranks
11th out of 61 major metropolitan areas in income inequality.
The wage gap is rising as a result of the change in the job market
– cities like Austin with higher percentages of creative class
jobs have wider gaps between high and low wage workers. As creative
jobs (authors, software developers, engineers, doctors) increase,
manufacturing jobs decrease and service industry jobs increase difficulties
arise for individuals wanting to move from one class of jobs (service)
to another (creative). The old structure created in traditional manufacturing
industries allowed workers to move up the ladder to higher paying
more skilled jobs – increasingly the new job market structure
doesn’t offer these types of opportunities (Austin American-Statesman).
- Between July 2001 and July 2002, Central Texas lost 11 percent
of its manufacturing jobs (Austin American-Statesman).
COST OF LIVING:
- The U.S. Census Bureau reported that national
poverty levels increased in 2001 for the first time in 8 years. From
2000 to 2001 the number of poor nationwide jumped from 31.6 million
to 32.9 million. Federal guidelines define poverty for a
family of four as having annual income of less than $18,104 (Austin
American-Statesman).
- The National Low Income Housing Coalition
found that an average US employee must earn $14.66/hour, nearly three
times the federal minimum wage, to afford a two-bedroom rental,
and still be able to meet other basic needs. In the Austin-San
Marcos Metropolitan Statistical Area (MSA) the hourly wage required
is even higher -- $17.52 per hour (Austin American-Statesman).
- 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.
DEMAND INDICATORS:
Housing, Homelessness, Basic Needs:
- The Capital Area Food Bank (CAFB) is
reporting an increase in demand and decrease in donations of food
this year. The number of pounds of food they will need to
distribute this holiday season is up 33% from last year to 16 million,
but the food bank reports that at current levels many people will
not be able to receive help. CAFB has expanded the Kids Café
program to 15 total sites in the Central Texas Area, feeding
more than 2,000 children (CAFB).
- Any Baby Can reports turning away approximately
100 requests for basic needs assistance weekly (Any Baby
Can).
- According to the United Way Capital Area’s
First Call for Help, requests for mortgage assistance increased
by 163% in the first eight months of 2002 (Austin American
Statesman).
- Milburn homes is currently building 1,050
affordable homes which will sell for between $88,300 and
$107,800. Only 2.8% of the 6,700 new houses sold in the Austin metropolitan
area so far this year were priced under $100,000. Milburn usually
builds houses costing in the mid $100,000’s and is developing
this affordable housing subdivision as a pilot project (Austin American
Statesman).
- After declining for several years, Food Stamp enrollment
has jumped sharply in the first ten months of FY02. In FY01,
the average monthly enrollment was 28,155 in Travis Co. as compared
to 37,936 in FY02.
- Travis County Health and Human Services has assisted 54%
more households with basic needs in the first 10 months of
FY02 when compared with the first ten months of FY01.
- Meals on Wheels and More is delivering meals to 200 more
clients per day than it did last year. The opening of the
new MOW kitchen on East 5th enables staff to cook four times more
meals than at the previous location (Austin American-Statesman).
Physical and Mental Health:
- As of October 24th, there were 11,849
Travis County children enrolled in the Children’s Health Insurance
Program (CHIP) (CHIP 10-24-02 Bulletin).
- The State of Texas may lose up to $285
million in federal funds for the Children's Health Insurance Program
(CHIP). The state would have to spend an additional $108
million to keep the $285 million. The federal money provides Texas
$72 for every $28 it spends on CHIP. The unspent funds are now in
danger of being distributed to other states. However, Congress is
currently considering legislation that would allow states to keep
this funding (Austin American-Statesman).
- The Texas Medicaid rolls are nearly as full as
they were before welfare reform in the early 1990’s, due, in
part, to the downturn in the economy and State efforts to expand access
to Medicaid benefits. 200,000 more people than expected are
currently in the Texas Medicaid system (Austin American-Statesman).
- The U.S. Census Bureau recently revised their
estimate of Uninsured Americans in 2000 from 38.7 million to 39.8
million and estimates that the number of uninsured in the
United States rose to 41.2 million in 2001 (Families USA).
- Employees in the Austin-San Marcos area are expected
to see a 15% rise ($800) in annual health care costs next
year--according to a report by Hewitt Associates. This increase
only takes into account employee contributions. The same report also
indicates that the cost of health care is likely to double over the
next five years, unless major reforms occur (Austin Business Journal).
- In recent months, a broad based coalition including
Austin City Councilmembers and Travis County Commissioners are
considering the development of a hospital district to assume
responsibility for providing indigent health care in Travis County.
Austin is the only major metro area in Texas without such as district.
- Seton Healthcare Network is proposing
to build a new Children's Hospital. While the current city-owned
facility is profitable for the Network, it is overcrowded. Doctors
say there are too many patients and not enough beds (Austin American-Statesman).
- ATCMHMR reports that prescription drug costs have increased
almost 170% since 1997. As a percentage of total expenses,
prescription costs have increased from 5.2% to 11.58%. New policies
being implemented to attempt to control the rise in prescription costs
will likely result in increased costs for clients.
Transportation:
- Just Transportation Alliances, a project of Texas
Citizen Fund, estimates that one in five adult Texans (approximately
3 million and primarily people with disabilities, people
over 65, and people living below poverty) does not have reliable
access to a car. A survey of the transportation disadvantaged
population identified needed solutions such as increasing
investment in pedestrian infrastructure, and improvements
in transit and paratransit (Auto Focus: How the Texas transportation
budget ignores people with disabilities, seniors, and low-income citizens).
- Respondents to a July survey of 750 people in
Travis, Williamson, Hays, Bastrop, and Caldwell counties by Envision
Central Texas indicated that the biggest problems in the Central
Texas region are traffic (40%), roads/highways/bridges (18%),
Education/schools (11%), jobs/unemployment (9%), and health care (9%)
(Austin American-Statesman).
Early Education and Care
- In Austin, 11,697 grandparents are living in households with one
or more grandchildren under the age of 18. 5,105 of those
grandparents are responsible for meeting the basic needs of their
grandchildren (http://www.grandsplace.com).
- Runzheimer International, a national relocation consulting firm,
reports that child care costs in 75 cities rose an average
of 6.4% last year, more than twice the consumer-price inflation rate.
According to the firm, child care costs are now higher than housing,
food, and even college education in many situations (Wall Street Journal).
Education:
- Thirty-five Austin schools have been recognized
under the Gold Performance Acknowledgment system of the Texas Education
Agency. The acknowledgment is based on high performance and
academic success (AISD E-News).
- In 2002, more Austin students scored high
on Advanced Placement exams, according to the College Board.
53.2% of test takers scored a three or better on the five-point scale
as compared to 47.8% in 2001 (AISD E-News).
- A new report from the National Center for Education Statistics (NCES)
shows that 5% of Texas high school students dropped out in
the 1999-2000 school year. Conflicting statistics from the Texas Education
Agency (TEA) report a dropout rate of 1.3%. NCES reports
that the dropout rate for AISD that year was 6.9%, while TEA reported
2.4%. State officials acknowledge problems with their methodology,
and say the system is being changed (Dallas Morning News).
- On average, Texas students who took the SAT scored lower
than last year. Student scores increased an average of 1
point on the math portion of the test and declined 2 points on the
verbal. Texas scores are slightly below the national average (Austin
American-Statesman).
Public Safety:
- Austin has had 23 murders so far this
year, which is up from 16 at this point last year. Of the
23 murders, nearly a third were domestic violence related (KEYE).
- For the period of January through July
of 2002, there were 100 alcohol-related referrals to Gardner-Betts
Juvenile Detention Center, compared to 62 in 2001 (Travis
County Alcohol Abuse Prevention Program).
- Austin police have broken up 12 methamphetamine
labs this year. The increase in labs discovered this year
has led officers to develop new education and drug abuse prevention
efforts. Methamphetamine has been a popular drug among white low-
to middle-class men, but is now spreading to other populations (Austin
American-Statesman).
- According to the 2001 Austin Police Department’s Preliminary
FBI Uniform Crime Report released in May of 2002, the Index
Crime rate for 2001 increased 5% compared to 2000. Violent
crimes are up 5% from last year and property crimes are up 13% from
2000. Auto theft (+24%), burglaries (+16%), robberies (+17%), and
property thefts (+11%) all increased in Austin from 2000.
RESOURCES
RESOURCE ISSUES IN THE COMMUNITY:
- The Capital Area Planning Council (CAPCO)
is expecting a 14% decrease in federal Victims of Crime Act funding.
The state allocation to the Central Texas region would decline by
$434,669 from last fiscal year. The cut would mean a loss
of $869,315 for direct services to victims over two years (Office
of the Governor training July 2002).
- Family Eldercare received $500,000 in
additional grant funding for its proposed low-income senior housing
project in East Austin. The $6.1 million, 61-unit project,
to be built across from the Rosewood-Zaragoza health center, has already
received $4.2 million in funding from public and private sources;
groundbreaking is anticipated for next spring (Austin Chronicle).
- The Family Violence Protection Team received
a $600,000 award from the Department of Justice's Violence Against
Women Office. The team helps victims of Domestic Violence
with legal and social advocates (Family Violence Protection Team).
- The Justice Department has awarded $16.2
Million to Texas police and firefighters to better prepare for terrorist
attacks. The money will go to equipment and training in the
counter-terrorism effort (Statesman).
- Austin Energy is receiving $1,000 to $2,000
more per month in contributions to the CAP Program (formerly PLUS
One) that is used to assist low-income individuals in paying
their utility bills. The average amount of donations received
per month is now $5,000 to $6,000 (Austin Energy).
- The Austin Independent School District
(AISD) will receive a $575,000 grant from the U.S. Department of Education
for the School Leadership Program. The money will help AISD
provide training and mentoring for principals at high-need schools
(AISD E-News).
- Disability Assistance of Central Texas,
Inc. (DACT) will receive approximately $219,000 each year for the
next three years from the U.S. Department of Education to
support “Projects With Industry” plans directed at the
development of job opportunities for people with disabilities
(DACT).
- In August, the Michael and Susan Dell Foundation announced
$1.8 million in grants to support all Austin students in their preparation
for college. This funding will support programs that promote
college-readiness, college preparation, and academic intervention
and support.
- Pflugerville school district received a $1 million gift
from an anonymous donor – funds will go to reward students and
teachers for high scores on Advanced Placement exams (Austin American-
Statesman).
- The new City of Austin budget tightens the belt by freezing unfilled
positions and making cuts in administration and operations. However,
spending for public safety increased to $256 million,
up from $213 million two years ago. Health and human services
will also get a slight increase for programs for homeless
and women’s shelters. The City of Austin will maintain
the $500,000 additional commitment for basic needs services (Austin
American-Statesman).
- Texas ranks lowest among the 50 states in providing community
based services to people with disabilities. Arc of Texas
and Advocacy, Inc. filed a lawsuit against the State of Texas alleging
that the State is taking too long to move people off of waiting lists
for community based services. The waiting list at TDMHMR increased
by one-third last year and the wait at DHS is 4 years (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, & Joseph Wiesenthal - Community
Action Network
Annette Gula, Frank Almarez, & Sherri Trebus - WorkSource
Gloria Souhami – Travis County Alcohol Abuse Prevention
Program
Lila Carl – Any Baby
Can
Ray Fernandez – Capital
Area Food Bank
David Storm - ATCMHMR
COMMUNITY ACTION NETWORK PARTNERS:
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November, 2002 |
