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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 September
report indicates that parts of the economy are improving while others
still struggle. Housing is improving but industrial retail space market
is hard hit, for example. The Purchasing Managers Index, a nationally
watched economic measure, for August showed that the Austin economy
may be strengthening – the index was up from 40 to 50.5
a score indicating expansion rather than contraction. However,
the index has bounced up and down over the last year and experts
are unwilling to commit that recovery is indicated – only two
2 of the five indicators measured are over 50.
- 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).
- Austin’s sales tax receipts in August
were up $1 million over July but were below forecast and $1.1 million
less than August 2001. (Travis Co. Auditor’s Report).
- Rising property values mean tax bills are likely to increase,
even though the City of Austin is holding the tax rate in place for
next year. As a result, the owner of a $175,000 home is likely
to pay $77 more next year (Austin American-Statesman).
EMPLOYMENT:
- Between July 2001 and July 2002, Central
Texas lost 11 percent of its manufacturing jobs (Austin American-Statesman).
- Advanced Energy Industries, Inc.,
a Colorado-based maker of components for semiconductor manufacturing
equipment, said it will close its manufacturing center in Austin,
eliminating approximately 50 jobs within the next three months
(Austin American-Statesman).
- Brokerage firm Charles Schwab Corp.
closed its North Austin call center on August 12th, laying off about
300 people, representing about 10% of Schwab’s phone-service
staff. At its peak, the call center had 550 workers (Austin American-Statesman).
- According to the 2002-03 Workplace Forecast
by the national Society for Human Resource Management, total
U.S. employment is expected to grow by 15% between 2000 and 2010,
with service jobs increasing by 19%, and manufacturing jobs increasing
by 3%. All but two of the 50 highest-paying occupations will require
a college degree. Jobs requiring a bachelor’s degree will grow
by 21.6% between 2000 and 2010.
- For the first time in 15 years, the State
of Texas is borrowing money from the federal government to cover an
anticipated $500 million shortfall in unemployment insurance benefits.
Currently, the State is paying out $44 million per week in benefits
to one-third of laid off workers (those who qualify to receive assistance)
(Austin American-Statesman).
- Vignette Corp. announced on July 24th that it was
eliminating 209 jobs, 68 of which are in Austin.
(Austin American-Statesman).
- Although job creation has exceeded layoffs, Angelou Economic Advisors
reported 23,000 layoffs in 2001.
- The Travis County unemployment
rate dropped slightly to 6.1% in July from 6.2% in
June. The July Travis County unemployment rate was better than
the State’s July unemployment rate of 6.5%.
- Employment in Travis County declined
by 9,100 jobs in July.
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- Between January 1 and August 19,
2002, 5,201 people were laid off in the greater Austin area
(WorkSource).
- WorkSource Career Centers received
17,030 visits in July 2002, for an average of 763 visits a day.
In 2002 there have been 105,956 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).
COST OF LIVING:
- 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:
- 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).
- From October 2001 through June 2002, Caritas served an
average of 305 lunches per day. Caritas’ Community
Support Plus Program helped 111 people in July
with an average of $469/ per household.
- Texas ranks second out of 50 states for the highest percentage
of hungry families. It is estimated that 1.1 million,
or 32%, of all children in Texas are hungry or at risk of hunger.
Almost 13% of Texas households experience some level of food insecurity
and 5% suffer from outright hunger (Capital Area Food Bank).
- Of emergency food recipients, 62.8% have attained high
school diplomas or above. 38.9% of households seeking emergency
food assistance have one or more adults currently employed
(Capital Area Food Bank).
Physical and Mental Health:
- The Seton Healthcare Network will
start a $1.5 million expansion of the Children’s Hospital emergency
department in September. The expansion will add eight beds
to the existing 12 and increase the ER’s capacity by 67%. The
expansion is expected to be completed in December.
- Across the nation, hospitals are
cutting services, particularly in the area of Obstetrics.
A survey by the American Hospital Association found that 20% of member
organizations have cut or eliminated services recently. Many cite
the high cost of malpractice insurance for hospitals and physicians
as the cause – for example, premiums have doubled or tripled
to $200,000 for an obstetrician in Florida. Additionally, increased
competition and reduced payments from federal and private insurers
have further strained hospital resources (New York Times).
- ATCMHMR reports that prescription
drug costs have increased almost 170% since 1997. During
that same period, as a percentage of total expenses, prescription
costs increased from 5.2% to 11.58%. New policies being implemented
to
- The New Life Children’s Residential Treatment Center
in Canyon Lake, which typically serves 14 Travis County children
each month, serves severely abused and emotionally disturbed girls,
30% of which come from Central Texas (primarily Travis County). On
July 4, the Center sustained over $2 million in damage due to flooding
in the area, which led to the evacuation and relocation of all children
to the Austin State Hospital under the care of Lutheran Social Services
of the South.
- Brackenridge Hospital reports that it is seeing 120,000
patients each year in the emergency area, which was designed
for up to 60,000 patients (KXAN).
- According to an analysis of eight Austin area hospital emergency
rooms, an estimated 20,000 to 30,000 ER visits by uninsured
adults could have been prevented (Indigent Care Collaboration).
- In 2001, the City of Austin and Travis County’s 11
health clinics saw a 15% increase in the number of patient visits.
Those patients without any insurance coverage increased more
than 50% in an eight-month period (Austin American-Statesman).
- Seton Healthcare Network reports that 16% of its patients
at Brackenridge were from outside of Travis County and 25% of patients
at Children’s Hospital of Austin last year were from outside
of Travis County. Seton’s total indigent care
cost for Austin and the surrounding five-county area was
$27.5 million in 2001; 20% of that was for residents
outside of Travis County (Austin American-Statesman).
- Only 77% of Texans have health insurance, compared
to the national average of 82%. Only 57% of Hispanic Texans
have health insurance coverage, according to a new survey
by the University of Houston’s Center for Public Policy (Houston
Chronicle).
- According to a new report from the US Substance Abuse and Mental
Health Services Administration (SAMHSA), 3 million American
teens have thought seriously about or even attempted suicide. More
than 13% of young Americans between 14 and 17 years of age considered
suicide in 2000 and only 36% of them had received
mental health treatment and counseling (Reuters News).
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).
Education:
- 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).
- Forty-eight of Austin ISD’s
103 campuses received exemplary or recognized ratings
from the Texas Education Agency. Nearly a fourth of more than
300 schools in Central Texas improved their ratings in 2002
(Austin American-Statesman).
- According to a recent report by the Texas Higher Education
Coordinating Board, nearly two-thirds of more than 50,000
new students that enrolled in a Texas institution of higher education
last year were minorities. African American enrollment
at four-year institutions is up 21% since 1992 and a total
of 15,419 Hispanics entered college last fall (Austin
American-Statesman).
- Texas will get $397 million more in federal funding
for education next year, a 21% increase. Under the
No Child Left Behind Act, Texas will receive $2.3 billion for kindergarten
through 12th grade (Austin American-Statesman).
Public Safety:
- According to data from the Texas
Crime Victims’ Compensation Fund, the average award in cases
involving male victims exceeded those in which the victim was female.
Of the 36,119 claims paid in cases where women were
victims, the average compensation was $3,681. Of
the 49,070 claims paid where men were victims, the
average compensation was $6,434 (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.
Populations:
- From 1990 to 2000, the number of
college graduates in Austin jumped by more than 126,000 people,
an increase of 81%. From 1992 to 2000, those migrating to
Austin made an average of $2,503 more per year in family income
than those leaving. In 2000, that gap narrowed to $406 (Austin American-Statesman).
- According to recent Census data, a
rising share of children, particularly black children in cities, are
left with relatives, friends, or foster families. Among those
most affected by welfare changes, the share living without
their parents had more than doubled on average, from 7.5% in the late
1990s to 16.1% in 2001 (New York Times).
RESOURCES
RESOURCE ISSUES IN THE COMMUNITY:
- 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).
- Victim of Crime Act funds will be cut this funding
cycle by 14%, on top of last year’s cut of 12%. These
funds are used to provide direct services to victims.
- A new report by the Children’s Defense Fund found
that 6,000 less children from non-welfare families are expected to
receive child care assistance in 2003 as compared with 2001.
Additionally, CDBG funds allocated for increasing quality of care
is being diverted to licensing and regulatory activities and the child
care funding match required from local workforce boards has doubled,
leaving some boards unable to raise the necessary funds.
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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