Growing the Providence Economy

Presented to: Mayor David N. Cicilline’s

Working Group on Growing the Providence Economy

February 12, 2003

Today’s Goals

1. Share information about what we know Jobs

Tax Base

People and Neighborhoods

What’s Already in Place

2. Set the stage for making recommendations

• The issues…

Jobs

Tax Base

People and Neighborhoods

We are in a High Wage Region

• phenomenal decade of growth in high skill industries

• increased income polarization

Providence is still an employment hub, but not adding jobs like the region

• 121,000 jobs• 101,000 private sector jobs• 68,000 resident labor force

• From 1994 to 2001, only 1 in 5 new jobs in RI were located in Providence

80%

90%

100%

110%

120%

130%

1990

1992

1994

1996

1998

2000

% c

han

ge

in jo

bs

Indexed Job Growth

US

MA

RI

Providence

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1990 2000

nu

mb

er o

f jo

bs

Providence is losing middle and high wage industries

• Providence has lost large numbers of jobs in – financial services – mfg traditional products– metals mfg*The loss of manufacturing means

the loss of middle wage jobs with low barriers to entry

• Job gains:– professional services– medical and social serv– temp agencies– hospitality– eating & drinking– retail

Middle wage

Low wage

High Wage

Providence Jobs by Industry

• Providence’s big non-profit institutions, the colleges and hospitals, have been an anchor in the economy.

• Three sectors dominate the city’s economy with 44,000 jobs – Local Health Services– Education & Knowledge Creation– Local Commercial Services

• Providence is gaining jobs fast in the emerging medical technology cluster

• In key industries where wages are rising, the city is losing employment while gains are being made in the metro area– Business Services -- Publishing & Printing– Metal Manufacturing -- Information Technology

Providence still is a center for high-wage jobs, but resident earnings are low

• Providence industry wages are the same or higher than the state in almost all industries.

• The average wage for jobs in Providence was 10% higher than the state

• The average Providence male working full-time earns 23% less than RI average

• Providence median HH income is 36% less

Average Wages by Location of Job and Worker Residence

Sources: 2000 Census per capita income of male full-time, year-round workers; 2000 ES202 Private Covered Employment, Mean Earnings

28,894

34,450

37,587

31,209

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Workers by Residence Jobs by Location

Providence

RI

Inter-related factors contributing to declining earnings by Providence residents

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

Population

Labor force

Employed residents

Providence Population • Declining ratio of workers to population = lower incomes

• Brain drain

• Concentration of adults without HS literacy and English proficiency

• Loss of jobs that can be performed without a college education

• Declining earnings for workers without some college education

• All places are losing old economy jobs, Providence is not replacing them

• Multiple factors contributing to Providence’s poor performance in gaining new jobs

• Importance of colleges & hospitals as economic anchors

• Multiple factors contributing to falling personal income

Discussion Points:Jobs

• The issues…

Jobs

Tax Base

People and Neighborhoods

Providence Property Tax Base

• Market value of taxable real estate in FY2002: $7.1 billion

Providence Tax Base:

Residential: 57.6 %

Commercial: 30.4 %

Industrial: 4.6 %

Other: 7.0 %

• 24.5% decline in market value since FY1992 ($2.3 billion)*

• $4.1 billion in statutory exemptions (in addition to $7.1 billion)

• Providence property tax levy significantly higher than state

* Adjusted for inflation

Share of Property Value - Commercial Only

1970

26%

18%6%

50%

Core Ring Suburban Rural

2000

32%

31%

26%

11%

Core Ring Suburban Rural

Providence and the rest of the core now account for less than 1/3 of the state’s commercial land value

• Comparable changes occurred in distribution of industrial values

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Abandoned Building- Residential, Commercial, or Industrial

Vacant Lot- Residential, Commercial, or Industrial

Vacant and Abandoned Properties in South Side

• Make better use of underutilized properties

• Deal with challenges of developing urban properties: Brownfields Building Codes Land Assembly Revenue / cost gaps

• Grow taxable private industries

• Open dialogue with tax-exempts

• Long-range planning

• Comprehensive property inventory

Discussion Points:Tax Base

• The issues…

Jobs

Tax Base

People and Neighborhoods

Median Family Income in Providence

Numbers on map indicate median family income for block groups rounded to nearest $1,000.

Source: Census 2000 SF3

68

31

69

47

33

42

41

21

118

40

54

58

38

35

12

2432

52

83

29

94

77

32

58

35

73

11

83

21

42

3065

22

25

26

54

22

1125

53

18

23

26

16

58

27

43

11

49

45

40

23

40

54

32

28

22

27

37

16

60 54

40

20

20

39

16

21

25

41

28

33

49

51

99

22

2385

30

22

89

91

20

62

22

17

16

36

19

41

28

52

17

35

15

11

28

32

46

14

27

22

18

37

3319

26

27

15

68

35

2118

27

35

43

46

33

18

46

30

48

57

21

15

25

102

21

33

15

29

35

11

21

22

58

36

108

24

19

21

12

103

112

19

36

17

24

23

34

24

32

29

29106

US Prov.

Washington Park

South Elmwood

ElmwoodReservoir

West End

Silver Lake

HartfordOlneyville

Valley

Smith

Hill

Down-town

Blackstone

Hope

Mount Hope

Charles

Wanskuck

Elmhurst

Mt. PleasantManton

LS Prov.

Federal Hill

Wayland

Fox Point

College

Hill

148

128200

129

131 139

139

Median Family Income, 2000

$10,000 - 25,000$25,000 - 45,000$45,000 - 70,000$70,000 - 118,000$118,000 - 200,000

Providence has the largest concentration of both low-income and high-income families in RI.

40% of children in the city live in poverty (3rd highest in the nation). Child poverty rate in RI is 17%.

Incomes in Providence grew 2.5 times slower than the state rate.

City: $32, 058 State: $54,781

When adjusted for inflation, median family income in the city actually decreased by 13%.

$13,659

$9,799

$9,149

$7,382

$5,006

$4,070

$653

$436

$31,691

($13,134)

($11,640)

($8,151)

($6,343)

($5,026)

($4,918)

($4,918)

($4,811)

($5,800)

($722)

($2,164)

($2,316)

($2,697)

($3,236)

($4,153)

($4,668)

$13,995

Wayland

Blackstone

College Hill

Hope

Upper S. Providence

Fox Point

S. Elmwood

Mount Hope

Federal Hill

Elmhurst

Elmwood

West End

Olneyville

Charles

Reservoir

Washington Park

Lower S. Providence

Manton

Wanskuck

Citywide

Smith Hill

Mount Pleasant

Downtown

Silver Lake

Hartford

Valley

Blackstone

Elmhurst

Charles

West End

Hope

Mount Pleasant

Valley

Silver Lake

Elmwood

Mount Hope

Reservoir

College Hill

Smith Hill

Olneyville

South Elmwood

Manton

Downtown

Fox Point

Wayland

Upper South Providence

Lower SouthProvidence

1%

14%

-8%

2%

-7%

-12%

-10%

-3%

14%

-15%

-7%

60%

13%

-19%

-30%15%-11%

20%

-14%

48%-34%

-14%

Blackstone

Elmhurst

WanskuckHope

Hartford

Elmwood

Mount Hope

Washington Park

Federal Hill

-23%

13%

-19%

Change in Adjusted Family Income 1990-2000

-19% to -34% -.01% to -19%

Decline

1% to 20%20% to 60%

Growth

Change in Median Family Income, 1990-2000

Providence: -13%Rhode Island: +3.3%

Source: Census 1990 and 2000 SF3

Numbers on map indicate the percentage change in family income when adjusted for inflation.

1990 $ adjusted

Unemployment in Providence

Numbers on map indicate percent of civilian labor force unemployed for block groups.Source: Census 2000 SF3

Half the city’s neighborhoods have areas of unemployment 20% or higher.

Blackstone

Elmhurst

Wanskuck Charles

MountPleasant

WestEnd

Hope

Valley

Hartford

Elmwood

Mount Hope

Silver Lake

Reservoir Washington Park

College Hill

Smith Hill

South Elmwood

Olneyville

Manton

Upper S. Prov.

Federal Hill Fox Point

Down-town

Lower S.Prov.

Wayland

0

0

2

8

2

2

06

0

43

13

7

6

6

6

22

3

0

11

3

5

64

9

9

0

8

3

1

5

7

4

2

11

6

2

2

5

4

1 4

3

10

3

4

2

5

0

52

27

2

0

3

5

9

6

0

5

6

3

5

13

8

8

9

83

2

9

8

1

8

9

0

3

5

12

0

75

10

10

0

2

2

5

15

13

14

14

10

9

7

10

5

12

11

1114

10

14

15

11

14

12

117

11

14

14

11

1310

10

11

12

11

11

15

12

1110

21

22

1616

15

16

22

22 27

17

16

25

25

29

25

1915

17

21

27

2419

17

16 15 20

19

19171923

1820

18

2825

Unemployment, 20000 - 3.5%3.5 - 7.5%7.5 - 10%10 - 15%15- 28.9%

City rate: 9.3% State rate: 5.6%

Barriers to Employment

• Educational attainment

• Literacy

• High school dropout

• Language

• Single parent households (e.g., child care, transportation)

Wanskuck Charles

Mount Hope

Hope

Blackstone

College

Hill

Wayland

Fox Point

Down-town

Upper South Prov.

Lower South Prov.

Washington Park

South Elmwood

ElmwoodReservoir

West EndSilver Lake

Hartford

Olneyville

Valley

Smith Hill

ElmhurstMount Pleasant

Manton

Federal Hill

High School Graduate or Higher, 2000

28 - 35%35 - 50%50 - 70%70 - 85%> 85%

96.5%

94.0%

91.2%

91.1%

78.8%

77.6%

77.5%

75.4%

74.6%

69.9%

68.0%

67.0%

65.8%

64.6%

64.4%

59.3%

57.8%

56.6%

56.5%

56.4%

55.3%

54.6%

51.1%

48.7%

48.2%

47.7%

Blackstone

Wayland

Hope

College Hill

Fox Point

Elmhurst

Downtown

Mount Hope

South Elmwood

Mount Pleasant

Charles

Reservoir

Citywide

Manton

Wanskuck

Federal Hill

Silver Lake

Hartford

Smith Hill

Washington Park

Valley

Elmwood

Lower S. Prov.

West End

Upper S. Prov.

Olneyville

High School Graduate or Higher, 2000

Providence, RI Neighborhoods

Source: Census 2000 SF3

Universe: Population over 25 years.

City rate: 65.8% State rate: 78.0%

Adult Literacy• 47% of state’s adult population is functionally illiterate

– highest in New England

– Providence is even higher

Dropouts•36% of Providence students drop out

– range from < 3% at Classical to > 56% at Hope

• Providence rate is two times the state rate

– RI is highest in the region

27.9%

25.4%

24.4%

21.9%

19.2%

18.5%

15.6%

15.4%

14.7%

14.5%

13.2%

11.5%

11.5%

11.2%

10.7%

8.6%

7.3%

6.7%

6.4%

4.5%

3.9%

3.8%

2.8%

2.7%

2.4%

27.4%

Elmwood

Olneyville

West End

Lower S. Providence

Smith Hill

Washington Park

Upper S. Providence

Hartford

Valley

Silver Lake

Federal Hill

Citywide

S. Elmwood

Reservoir

Downtown

Mount Hope

Wanskuck

Mount Pleasant

Fox Point

Charles

College Hill

Elmhurst

Manton

Hope

Wayland

Blackstone

Linguistic Isolation, 2000

Blackstone

Elmhurst

Wanskuck

Charles

MountPleasant

WestEnd

Hope

Valley

Hartford

Elmwood

Mount Hope

Silver Lake

Reservoir Washington Park

College Hill

Smith Hill

South Elmwood

Olneyville

Manton

Upper S. Prov.

Federal Hill Fox Point

Down-town

Lower S.Prov.

Wayland

4

0

4

04

0

8

2

34

5

0

0

2

0

0

0

0

10

4

1

74

5

2

0

90

6

0

5

0

8

8

78

5

7

0 5

5

0

3

3

0

8

2

9

37

0

7

3

6

10

9

2

0

5

00

7 8

2

9

10

3

4

6

5

0

6

7

2

7310

19

26

12

14

12

18

21

34

25

14

23

27 28

17

18

34

44

19 17

23

12

22

34

15

22

12

16

22

20

31

26

12

30

13

12

13

15

1112

22

26

21

1925

42

21

30

35

13

14

14

45

38

29

24

19

17

3622

26

1634

16

21

13

11

13

37

29

26

45

12

41

22

13

28

28

32

11

3324

20

18

40

1534

Linguistic Isolation, 2000Under 5%5 - 10%10 - 20%20 - 30%30 - 45.3%

Source: Census 2000 SF3Rhode Island – 8.5%

Numbers on map indicate percent of linguistically isolated households per block group.

Discussion Points:People and Neighborhoods

• Make more effective investments in adult literacy

• Need strategies for employing linguistically isolated

• Need realistic strategies to engage youth who are dropping out of school

• Examine barriers to employment that are not skills-related– Transportation– Child care

Discussion

• Refer back to discussion points: Jobs

Tax Base

People and Neighborhoods

• What’s Already in Place Refer to matrix from ICIC presentation, plus…

Cities Count – RI Foundation and RIPEC

Creative Economy – Providence Foundation

Urban Revitalization Fund – The Providence Plan

• All places are losing old economy jobs, Providence is not replacing them

• Multiple factors contributing to Providence’s poor performance in gaining new jobs

(business climate; land/space availability; neighborhood issues; absence of proactive recruitment and retention)

• Importance of colleges & hospitals as economic anchors

• Multiple factors contributing to falling personal income (brain drain; literacy, language, and skill levels; loss of jobs for workers with limited skills, education, and language; declining real earnings for workers without some college; declining ratio

of workers to population)

Discussion Points:Jobs

• Make better use of underutilized properties

• Deal with challenges of developing urban properties: Brownfields Building Codes Land Assembly Revenue / cost gaps

• Grow taxable private industries

• Open dialogue with tax-exempts

• Long-range planning

• Systems (e.g., parcel-based GIS) integrating values, ownership, and potential assembly options

Discussion Points:Tax Base

Discussion Points:People and Neighborhoods

• Make more effective investments in adult literacy

• Need strategies for employing linguistically isolated

• Need realistic strategies to engage youth who are dropping out of school

• Examine barriers to employment that are not skills-related– Transportation– Child care

Growing the Providence Economy:

What’s Already in Place

Refer to matrix from ICIC presentation (attached)

Plus…

• Cities Count – RI Foundation and RIPEC

• Creative Economy – Providence Foundation

• Urban Revitalization Fund – The Providence Plan

• (Use discussion to add to list)

Research / Strategic Planning

Reg

ion

/Sta

teC

ity

Industry/Cluster-Specific Advocacy and Support

Entrepreneurship Training & Support

Small Business Advisory Services

Small Business Finance

Business Attraction Business Retention

Workforce Development Minority Business Development

Business Environment

Nb

rhd

Reg

ion

/Sta

teC

ity

Nb

rhd

•Verizon Foundation•RIEDC•National Grid USA grants•RITEC•RI Manufacturing Partnerhsip

•Rhode Island EDC•Greater Prov. Chamber

•Rhode Island EDC•RISBA•Greater Prov Chamber

•Rhode Island Small Business Loan Fund Corporation

•RIEDC - Procurement Assistance Center•Mill Building Revitalization Act•RIEDC Smart Building Initiative•RIPEC

•Rhode Island EDC•mass-exodus.com•Greater Prov. Chamber

•RIEDC - Minority Business Enterprise Program•Rhode Island Coalition for Minority Investment•Charles Newton - state• office of Minority Bus. Dev.

•RI Urban Enterprise Equity Fund•First Stop Business Information Center•Slater Centers

•netWORKri•HRIC•Workforce Partnership of Greater Rhode Island•Providence/Cranston Workforce Development Office

•Workforce Partnership of Greater Rhode Island•Rhode Island Economic Policy Council•Grow Smart RI

•Greater Elmwood Neighborhood Services - Micro Business Peer Group Lending Program

•Greater Elmwood Neighborhood Services - Micro Business Peer Group Lending Program•The Algonquin House•S. Prov. Development Corp.

•Department of Planning and DevelopmentProvidence Plan

•PEDC Revolving Loan fund •PEDC Revolving Loan fund•Prov. Planning & Dev’t

•City PR Storefront Program•City PR Business Liaison Program

•City PR Business Liaison Program•Urban Ventures

•Neighborhood Improvement Program•Southside Investment Partnership•Main Streets

•RIEDC - Urban Ventures

•NetWORKri•SWAP mentoring program for neighborhood contractors

•Jewelry District Association

•Center to Advance Minority Participation in the Building Trades

•DownCity Partnership•Enterprise Community

•Urban Revitalization Fund

What’s Already in Place: Inventory From ICIC Report

Page 1 of 2

Strategic Planning

Reg

ion

/Sta

teC

ity

Industry/Cluster-Specific Advocacy and Support

Entrepreneurship Training & Support

Small Business Advisory Services

Small Business Finance

Business Attraction Business Retention

Workforce Development Minority Business Development

Business Environment

Nb

rhd

Reg

ion

/Sta

teC

ity

Nb

rhd

•Manufacturing Jewelers and Suppliers of America•Rhode Island Printing Industry Coalition•Prov. Warwick Conv’n & Visitors Bureau

Greater Prov. Chamber

•South Providence Development Corporation•LISC

•OSHEAN•RI Foundation&Clean Land Fund

Page 2 of 2

What’s Already in Place: Inventory From ICIC Report