United Way for Southeastern Michigan
Community Matters - your online United Way update
In This Issue
Thousands link to pathways to success
This campaign's about recruiting also
Agencies seize opportunity to pitch new plans
Volunteer Spotlight:
College student believes in power of collective action
Upcoming Events:
Improve money management skills through United Way
Kurt's Corner: The changing face of poverty in Southeastern Michigan
Take Action Now: Children would benefit from greater support of health program
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There is an old way and a United Way.

October 2007

Welcome to Leadership Next's community m@tters™, your online update of what matters to Leadership Next members in Wayne, Oakland and Macomb counties. This newsletter highlights United Way for Southeastern Michigan's Agenda for Change work along with upcoming events, Leadership Next volunteer opportunities and Kurt's Corner, UWSEM demographer Kurt Metzger's look at key regional trends.

Thousands link to pathways to success

For the third consecutive year, a massive regional effort is underway to match job seekers in metro Detroit with available jobs in hot or emerging industries, and the guidance and resources they need to thrive once hired.

Public and private stakeholders from across Wayne, Oakland and Macomb counties are working together to host the Southeast Michigan Employment and Family Resource Expo, Oct. 10, at the Michigan State Fairgrounds and Exposition Center in Detroit. The event is free, and will be held in the Joe Dumars Fieldhouse on the fairgrounds. Last year's Expo drew over 6,500 job seekers.

What makes the Expo unique is that, in addition to employment, the event offers participants an opportunity to address issues related to child care, adult care, family counseling, substance abuse, transportation, and other issues that prevent them from maintaining steady employment.

More than 100 employers will be on site and several dozen others will be participating in the Expo's virtual job fair.

The virtual job fair will be available Oct. 8 -12 at www.uwsem.org/expo. The Oct. 10 Expo will include a Technology Center with 75 computers and Internet access, printers and copiers. Volunteers will be on hand to assist participants with creating a resume, searching for jobs and applying online for jobs.

The Expo will also offer training and career development opportunities as well as organizations ready to address barriers to employment. This includes United Way 2-1-1, which will have an on-site resource center available for the second year, providing referrals to individuals who have human service needs.

The "Working Together" partnership has come together each year since 2005 to stage the event, and includes the Detroit Workforce Development Department, the Michigan Department of Human Services in Wayne, Oakland and Macomb counties, the Michigan Department of Information Technology, the Michigan Department of Labor and Economic Growth (Michigan Talent Bank), Michigan Works! in Oakland and Macomb counties, the Southeast Michigan Community Alliance, the Southeast Michigan Council of Governments and United Way for Southeastern Michigan.
 
Expo sponsors include BorgWarner, Comcast, the Detroit Free Press, Fifth Third Bank, Ricoh and United Way for Southeastern Michigan.

This campaign's about recruiting also

The 2007 fundraising campaign is in full gear and this year's focus is on attracting both contributors and contributions.
 
Troy Clarke, the current United Way for Southeastern Michigan campaign chair and General Motors' North America President and Group Vice President, Manufacturing, set his sights on increasing awareness and building community spirit.

During meetings of the UWSEM Campaign Cabinet, discussions regarding the 2007 goal frequently revolved around the rising need for human services across the region and the heightened importance of participation in the campaign. As a result, Clarke and the cabinet set a goal that includes attracting 50,000 new donors this year, in addition to raising $59 million. 

If each new donor committed to donating just $40, the campaign would generate an additional $2 million, and equal the $61 million raised in 2006. This would represent a substantial achievement given the tough times confronting many metro Detroiters.

As an added incentive to all new donors, Clarke said GM will match all new gifts to UWSEM, up to a total of $100,000. 

During a time when many more families are struggling, the need is greater than ever.  If everyone pitched in a bit, even $40, more individuals in our community will be able to get the help they need when they need it.

Contribute today, and maximize the impact of your gift with the GM match. Simply go to www.unitedwaysem.org, and encourage others you know to do the same.

Agencies seize opportunity to pitch new plans

For the first time in 10 years, United Way is opening up the funding process and encouraging area agencies to consider ways to better partner with the organization to make a stronger long-term impact on lives across the tri-county area.

The newly established process for 2008-2011 agency applications will allow unaffiliated organizations the opportunity to become United Way partners. This is part of United Way's overall effort to direct community resources in areas of the greatest need.

The new multi-year funding process will focus on programs, services, strategies and collaborations that will address short and long-term goals in three specific areas - educational preparedness, financial stability and basic needs, as outlined in the organization's Agenda for Change.

Current member agencies and those looking to form United Way partnerships based on programs that align with one or more of the priority areas were invited to complete a letter of intent in September. The review of those LOIs will conclude Oct. 5. Applicants will be notified during the week of Oct. 8 if their submissions made it to the next phase, during which they are asked to respond to a request for proposal.

Those current partners not selected for the RFP phase will be directed to the transitional funding process.

While United Way will continue to significantly invest in a wide array of agency programs and services, funding will primarily be focused on achieving Agenda outcomes. The funding system further supports the Agenda for Change, which serves as the United Way blueprint for creating sustained community change that measurably improves people's lives.

"The decision to realign our funding process was driven by our region's growing socioeconomic and human service needs," said Michael J. Brennan, President and CEO of United Way for Southeastern Michigan. "We know that today's issues are far too complex for any individual, group, or institution to tackle alone. We must work together and bring new groups into the fold. It is only through community building and regional collaboration that we will effect lasting change."

For more information about the LOI/Agenda for Change process (including guidelines, technical assistance sessions, and application deadlines), visit www.uwsem.org/partnertools.

Volunteer Spotlight
College student believes in power of collective action

Dearborn Heights resident Kawthar Ali, 22, saw the difference a small group of individuals can make after participating in United Way's Alternative Spring Break.

"I've been volunteering for so long, but I still see a lot that needs to be done," said Ali, a senior at University of Michigan-Dearborn. "I was beginning to feel like no one can make a difference."

When the opportunity came through the college to head to Louisiana in March for United Way's Alternative Spring Break, Ali took it, hoping to reinvigorate her own beliefs in volunteering. Once in Lake Charles, La., she and her team were assigned the task of rebuilding a home that had been severely damaged by Hurricane Rita.

"Seeing 160 college students and other volunteers work together to rebuild homes and clean up parks and schools, I realized what a difference we can make. It just takes patience, time and more people," Ali said.

She will graduate in December with a degree in Secondary Education, then plans to head off to Wayne State University to pursue a master's degree in special education, with a focus on Autism Spectrum Disorder.

Ali is a recipient of the UM-Dearborn's Distinguished Student Leader Scholarship and continues to volunteer in her community, giving her time to Habitat for Humanity, Gleaners Community Food Bank, the Muslim American Society and other programs.

Upcoming Events
Improve money management skills through United Way

United Way for Southeastern Michigan is hosting a series of workshops to help individuals and families of all ages improve their financial stability.

Topics include monitoring your credit scores, managing credit cards, establishing and maintaining checking accounts, determining which loans are right for you and responsible home ownership.

Upcoming Workshops

Seats to each of the events listed below are limited and pre-registration is required. Please call Monica Esquivel at (313) 226-9487 or e-mail monica.esquivel@uwsem.org, to reserve a space today.

Date/Time: Mon., Nov. 5, 6-8 p.m.
Location: Focus: HOPE, 1200 Oakman Blvd., Detroit, MI 48238

Date/Time: Tue., Nov. 6, 6-8 p.m.
Location: The International Institute, 111 East Kirby, Detroit, MI 48202

Date/Time: Wed., Nov. 7, 9:30-11:30 a.m.
Location: YWCA, 26279 Michigan Avenue, Inkster, MI 48141

Date/Time: Mon., Dec. 3, 6-8 p.m.
Location: Focus: HOPE, 1200 Oakman Blvd., Detroit, MI 48238

Date/Time: Tue., Dec. 4, 6-8 p.m.
Location: The International Institute, 111 East Kirby, Detroit, MI 48202

Date/Time: Wed., Dec. 5, 9:30-11:30 a.m.
Location: YWCA, 26279 Michigan Avenue, Inkster, MI 48141

The financial stability workshops are part of United Way's Agenda for Change work focusing on financial stability, educational preparedness and basic needs. United Way believes that by increasing financial literacy, increasing home ownership and providing access to supportive services, individuals and families of all ages can build assets necessary to achieve their educational and financial goals.

Kurt's Corner
The changing face of poverty in Southeastern Michigan

One out of every eight residents of the tri-county area live in poverty, and the numbers are split almost evenly between Detroit and surrounding suburbs, according to the just released 2006 American Community Survey.

There are 62,812 more poor residents living in tri-county suburbs today than in 1999,  according to an analysis by the UWSEM Research Department. Over that same period of time, the number of poor residents in the city of Detroit grew by 22,447. Our economic struggles are truly regionwide. 

The U.S. Census Bureau issues poverty thresholds, a statisical tool generally used to estimate the number of individuals in poverty nationwide each year. Residents are classified by type of residence, race, and other social, economic and demographic characteristics.

Local poverty thresholds for 2006 are shown in Table 1, below. The numbers reveal that an individual under 65 would need to earn $9,670 to exceed by $1 the poverty threshold, while a single mother with two children would need $16,243.

Based on these figures, the picture of poverty in Southeastern Michigan has experienced a significant enlargement coupled with a change in its composition. Table 2 details the picture of poverty in 1999, based on 2000 Census results, compared to that of 2006, as enumerated in the American Community Survey.

Poverty thresholds are the primary instrument the government uses to measure poverty, and poverty guidelines are the second most popular tool.

The Department of Health and Human Services issues poverty guidelines and uses them both for administrative purposes and to determine whether individuals or families are financially eligible for assistance or services provided through certain federal programs.

The poverty thresholds were originally developed in the early 1960's by Mollie Orshansky, an economist working for the Social Security Administration, or SSA. Orshansky actually developed two sets of poverty thresholds -- one derived from the U.S. Department of Agriculture's economy food plan and one taken from the department's somewhat less stringent low-cost plan. Based on previous surveys of household expenditures, it was determined that low-income households spent about  one third of their income on food.  As a result, the thresholds were calculated as three times the food expenditures.

The Economic Opportunity Act of 1964 created the Office of Economic Opportunity, or OEO, which adopted the lower of Orshansky's two sets of poverty thresholds in May 1965. The OEO uses the measure as a working definition of poverty for statistical, planning and budget purposes.

Certain aspects of the poverty thresholds were revised in August 1969 based on the recommendations of a federal interagency committee. That same month, the Bureau of the Budget designated the just-revised poverty thresholds as the federal government's official statistical definition of poverty.  Additional minor revisions in the poverty thresholds were made in 1981, and have remained the same, with annual revisions based on cost-of-living increases, ever since.

Table 1.  2006 Poverty Thresholds by Family Size
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Table 2.  Poverty Trends in Southeast Michigan, 1999 to 2006
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Detroit's poverty totals showed relatively small numerical growth across categories, with the "under 5 years of age" population even experiencing a slight decrease. However, the 2006 percentage figures (32.5 percent for the total population and 44.3 percent for children) represent a return to the conditions that existed before the economic boom of the 1990's.  In fact, all economic gains made by Detroiters during the 1990's were erased by 2006.  Household income data from the same sources, with 1999 income adjusted to 2006 dollars, show Detroiters' buying power declined more than 20 percent.

The picture in the suburbs has been one of increasing need. Whether reports come from the Oakland County Department of Human Services, the Macomb County Community Services Agency, or agencies such as the Guidance Center in Wayne County, the picture looks the same - increasing service requests, with people who have never sought assistance before showing up at their doors in desperate need.  Almost 63,000 suburban residents have seen their incomes fall below the poverty threshold over the last seven years, representing an increase of 31.6 percent.  Children represent almost 18,000 of this increase - up 27 percent over the period.

Self-sufficiency

While the poverty threshold has generally been recognized as the measure of household economic wellbeing, it is not differentiated geographically (one measure fits all states, cities, etc.), and it does not account for the differences in household spending patterns apparent since the concept was first developed.  For instance, today's families spend on average about one fifth, rather than one third, of their income on food.  In addition, we know that many families live above the poverty line, yet cannot meet their basic needs based on their wages alone.  As a result, increasing numbers of researchers and economists see thresholds as out of date, and not truly reflective of the expenses today's families struggle with on a regular basis.

While I recommend that you read the Michigan League for Human Services excellent report, "Economic Self-Sufficiency in Michigan: A Benchmark for Ensuring Family Well-Being," published in May 2007, for the details, the bottom line is that economic self-sufficiency requires an income that is at least twice that of poverty thresholds. 

Using the self-sufficiency definition, the League calculated the wage levels1 that follow as necessary for reaching the self-sufficiency level.

  • Single individual - $9.08 per hour;
  • Single parent family with two children under 6 - $19.35 per hour;
  • Two parent family with two children under 6 in which both parents work - $10.74 per hour each;
  • Two parent family with two children under 6 in which one parent works - $12.58 per hour

Table 3 looks at individuals who do not qualify as "in poverty," yet would be considered below the minimum requirement for self-sufficiency. While the number of Detroit residents in this category has dropped somewhat, they represent a larger portion of the total due to a decreasing overall population.  About 463,000 Detroit residents - 56.6 percent of the city's total population - fall below 200 percent of poverty, combined stats from tables two and three show.
 
Table 3.  The Population Between 100 and 199 Percent Poverty in Southeast Michigan, 1999 to 2006
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The same trend is being seen in suburban communities, with almost 84,000 additional residents falling into the 100-199 percent category -- a gain of 26.7 percent.  When combined with the previous poverty table, the suburbs are found to contain nearly 660,000 residents who fall below self-sufficiency standards.  The total for the region is 1.2 million individuals - more than one of every four southeast Michigan residents.

A final measure (beyond obvious job losses, foreclosures, etc.) that truly illustrates the growing need throughout southeast Michigan is the increasing number of individuals participating in the state food assistance2 program. Table 4 and Figure 1 illustrate the change in food assistance roles by county between September 2001 and September 2006.

The analysis found that all areas of the region are seeing a substantially larger number of households and individuals on food assistance.  Just over 95,000 tri-county households, representing almost 200,000 individuals, were added to the food assistance roles since 2001.  Many of these individuals represent the "working poor."  These are the individuals who may be working full-time, but are receiving minimum wage (or slightly more) and are not able to reach self-sufficiency. Food assistance helps. Unfortunately, the subsidies are often not enough and the recipients still must deal with the rising costs of housing, utilities, childcare, medical bills and much more.

While Wayne County added the largest number of individuals to its rolls over the period, Macomb County experienced the largest percentage increase - 148 percent.

Poverty and need know no boundaries - they are definitely regional issues. United Way has recognized Financial Stability as one of the core impact areas in the organization's Agenda for Change. Ultimately, we want to see that more individuals and families can build assets to achieve their educational and financial goals.  In order to achieve this outcome we have identified three priority outcomes:

  • Increase Financial Resources
  • Increase Financial Literacy
  • Increase and Sustain Home Ownership

We obviously have a lot of work ahead of us and we hope that residents across southeast Michigan, from all walks of life, join us in this vital effort. 

Table 4.  Food Assistance Roles in Southeast Michigan, 2001 to 2006
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Figure 1.  Persons Receiving Food Assistance by County, Sept. 2001 and Sept. 2006
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1. All self-sufficiency wage levels assume the worker works 40 hours per week, 52 weeks per year.

2. The Food Assistance Program supplements the food purchasing power of low-income individuals and families. The U.S. Department of Agriculture funds 100% of this program. The state and federal governments share administrative costs. The Department of Human Services (DHS) determines eligibility for food assistance.  Generally, eligibility for food assistance depends on the financial situation of all members of the household group. All persons who live together and purchase and prepare food together are considered to be members of the same food assistance group.  Based on income guidelines, the threshold for our family of three (single mother with 2 children) would be approximately $34,300 per year (very close to our 3 person family self-sufficiency income).

Take action now
Children would benefit from greater support of health program

The State Child Health Insurance Program, known as SCHIP, provides health coverage to low-income, uninsured children in southeast Michigan and across the country whose parents do not qualify for Medicaid and cannot afford private health insurance.  On July 19, the U.S. Senate finance committee voted to approve a bipartisan plan to renew and upgrade the SCHIP, including $200 million in grants for states to strengthen and improve access to dental coverage for children, and a requirement for states providing mental health services to also provide coverage on par with medical and surgical benefits covered under SCHIP.

SCHIP is vitally important to many grandparents raising their grandchildren, and is considered by many a wise use of tax dollars because of the substantial long-term benefits and relatively low cost. The legislation would allow states to cover millions of uninsured, low-income children who are currently eligible but not enrolled in the program, as well as make changes to help improve the quality of care. Those benefiting most are children in families with working parents who do not earn enough to afford health care coverage without assistance. They represent more than half of the estimated 9 million uninsured children across the country.

United Way for Southeastern Michigan supports the proposed funding increase to $35 billion in order for this program to cover more eligible children. We want this issue to maintain the bipartisan support it has enjoyed since its inception. Additionally, UWSEM supports streamlined enrollment to ease the process of getting children into the program, which means continuing to allow states the flexibility of setting terms and covering children without insurance who are not currently eligible. 

President George Bush vetoed the legislation Oct. 3. However, some members of Congress are mobilizing for an attempted override.  Residents can help in this important effort by contacting their federal and state legislators today. Urge them to support the drive to counter the presidential SCHIP veto, so that more poor children in our community and beyond receive the care they need to be strong, healthy and ready to succeed in school and in life.

Visit capwiz.com/uwsem/home/ now to find out how to contact your federal and state legislators about this important issue.