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Distributing the Benefits and Burdens of Growth: Metropolitan Equity in the Portland Region

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Sprawl, Segregation, Growth and Fiscal Equity in the Portland Metropolitan Area ... Fiscal inequality (Gini coefficient for local tax base per capita) ... – PowerPoint PPT presentation

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Title: Distributing the Benefits and Burdens of Growth: Metropolitan Equity in the Portland Region


1
Distributing the Benefits and Burdens of Growth
Metropolitan Equity in the Portland Region
2
Sprawl, Segregation, Growth and Fiscal Equity in
the Portland Metropolitan Area
3
Regional institutions like Portland Metro can
help to mitigate the effects of local government
fragmentation by coordinating land use,
transportation, housing and environmental policy
on a metropolitan scale.
4
Portland and the Twin Cities have the strongest
regional governance institutions in the country.
Their performance on various indicators of
social and economic health reflects this.
5
Sprawl
Portland sprawled less than expected between 1970
and 2000 (given its degree of local government
fragmentation).
6
The amount of urbanized land in the region
actually grew less rapidly than population,
making it one of only four metropolitan areas
among the 25 largest where this was true.
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Recent growth remains relatively balanced with
the highest growth rates occurring (for the most
part) in already-developed incorporated areas.
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The region is well-known for coordinating new
housing with targeted growth corridors determined
by the regions urban growth boundary (UGB) and
transportation infrastructure.
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14
However, Measures 37 and 49 have threatened this
record. Existing Measure 37 claims outside the
regions UGB could, if acted upon, lead to much
more sprawling development than the region has
seen in the past.
15
Measure 37 Claims
16
Segregation
The region was less segregated in 2000 than
expected, given its degree of local government
fragmentation.
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However, more current data for schools shows that
the regions schools are becoming more and more
segregated by race and income.
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The number of non-white segregated schools is
increasing rapidly.In 1998, there were only 14
elementary schools in the 5-county region with
non-white shares above 50 percent. Just 10 years
later, in 2008, the number was 67. More than half
(36) were in the suburbs
22
Similarly, there were only 5 elementary schools
in the 5-county region with non-white shares
above 67 percent in 1998. Just 10 years later, in
2008, the number was 32. 13 were in the suburbs.
23
More than a quarter of elementary schools open in
both 1998 and 2008 experienced an increase of
more than 25 percentage points in the share of
non-white students. Most were in the suburbs.
24
Non-white segregated schools are among the
poorest schools in the region.56 of the 67
schools with non-white shares above 50 percent
also had poverty rates above 50 percent.
25
51 of the 65 schools going through rapid racial
transition (non-white share increases of more
than 25 percentage points) had poverty rates
above 50 percent.
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Research shows that high-poverty, segregated
schools undermine opportunity for their students
in many ways, including
  • Lower test scores
  • Higher dropout rates
  • Lower college attendance rates
  • Lower earnings later in life
  • Greater risk of being poor as adults

29
Research also shows the academic and social
benefits of integrated schools for students of
all races, including
  • Greater academic achievement
  • Higher expectations
  • Narrower inter-racial achievement gaps
  • Greater cultural competence, preparing students
    of all races for our increasingly diverse
    workforce and society

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Affordable housing policies can be used to
provide greater educational opportunities for
poor kids and children of color, while also
promoting more integrated neighborhoods.
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Job Growth
The region has grown more rapidly than expected
givens its degree of local government
fragmentation.
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And job growth has been relatively balanced
between urban and suburban locations, with
relatively dense job centers capturing much of
the growth.
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38
However, the regions growth advantage relative
to the rest of the country is narrowing. Regional
growth was 9 points greater between 1990 and
1995, but only 1 point greater between 2000 and
2006.
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Fiscal Equity
Local tax base was distributed more equally
across the region than expected given its degree
of local government fragmentation.
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42
Unlike many metropolitan areas, the fully
developed core of the region shows tax bases and
growth roughly commensurate with most suburban
areas.
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45
Regional Policy-making for the futureSegregation
Segregation in schools and neighborhoods are
closely related. Neighborhood characteristics
shape schools and school characteristics factor
into neighborhood choices by parents. School
transitions can accelerate neighborhood
transition stably integrated schools can help
stabilize neighborhoods.
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48
  • Regional/statewide approaches to school and
    neighborhood integration
  • Financial incentives to school districts
  • Intra-district choicee.g. magnets
  • Inter-district choicee.g. Choice is Yours
    Program
  • Multi-district collaborations
  • Targeting LIHTC, Section 8 and other affordable
    housing programs in pro-integrative ways

49
Regional Policy-making for the futureFiscal
Equity
  • Regional tax-base sharing systems like the Fiscal
    Disparities Program in the Twin Cities
  • Place a portion of growth in tax base into a
    regional pool
  • Distribute the tax base back to participating
    municipalities and school districts based on tax
    base, population or other local characteristics

50
Tax Base Sharing
  • Reduces incentives for inefficient competition
    for tax base (the ratables chase)
  • Encourages joint economic development efforts,
    enhancing long-run regional growth
  • Complements regional land-use planning
  • Provides insurance against future changes in
    growth patterns few parts of a region can count
    on being a regional growth leader forever
  • Reduces inequalities in tax rates and services

51
Twin Cities Fiscal Disparities Program
  • Each year, each location contributes 40 of the
    growth in its commercial-industrial tax base to a
    regional pool.
  • Tax-base in the pool is then be re-distributed
    back to each location based on total local tax
    base and population.
  • The re-distributed tax-base is then taxed by each
    location at its own tax rate.
  • The program covers the seven core Minnesota
    counties in the Twin Cities Metropolitan Area.
  • It benefits most residents. In 2004, 64 of
    households in the region lived in areas that
    received more from the pool than they contributed.

52
Twin Cities Fiscal Disparities Program
  • In 2004, 32 of regional commercial-industrial
    tax base and 10 of total tax base was in the
    pool.
  • In St. Paul, one of the largest beneficiaries,
    the average homestead tax was 8.8 lower than it
    would have been without Fiscal Disparities.
  • Minneapolis has had periods where it contributes
    and other when it benefits.

53
Twin Cities Fiscal Disparities Program
  • Reduces overall property tax base inequality in
    the region by about 20 (as measured by the Gini
    coefficient).
  • Reduces the ratio of the highest to lowest tax
    base per household from 25 to 8.
  • Reduces the ratio of the second highest to second
    lowest tax base per household from 10 to 4.

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Regional Policy-making for the futureLand Use
Planning
Strategic use of the UGB expansions to complement
other policy objectives, such as targeting to
communities pursuing pro-integrative school or
neighborhood policies
56
Regional Policy-making for the future
Accountability
  • Set measurable performance standards for Portland
    Metro.
  • Growth in urbanized land compared to population
    growth.
  • Segregation in schools racial transition in
    schools.
  • Job growth compared to other large metros.
  • Fiscal inequality (Gini coefficient for local tax
    base per capita)
  • Percentage of affordable housing in
    high-opportunity communities.

57
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