Archive for the ‘Governance’ Category

What we’re reading: Broke USA

Friday, July 9th, 2010

Can you believe that any lender would charge 400 percent interest for a loan? Who would pay that – and why? These questions came to mind after I attended a Payday Lending Reform Coalition Meeting last month.

To learn more about what author Gary Rivlin calls “the $33 billion a year poverty industry,” I picked up his book Broke USA – From Pawnshops to Poverty, Inc: How the Working Poor Became Big Business.

The author describes a perfect storm in which stagnant wages and rising living expenses make payday loans deceptively convenient. Rivlin spoke about his book on the NPR program Fresh Air last month. Listen to the full interview here. One excerpt:

On why payday loan operations exist in poorer neighborhoods:

“[Payday loan operations] are there because banks have fled certain neighborhoods — it’s working-class neighborhoods, inner-city neighborhoods, some rural neighborhoods. Where can you get your loan? You go to a payday lender, you go to a consumer finance shop [or] you go to a pawnbroker. To me, the real reason payday has grown like it has is more of an economic reason than a geographic reason. There’s been stagnating wages among the lowest 40 percent [of wage earners] in this country, and so they’re not earning anymore real dollars. At the same time, rent is going up, health care is going up [and] other expenses are going up, and it just becomes harder and harder and harder for these people who are making $20,000 [or] $25,000 [or] $30,000 a year to make ends meet. And the pay lenders are really convenient. Between going home from work and going shopping, you can stop at one of these stores and get instant cash in five minutes.”

Posted by Robyn Hyden

Share your story with the State Commission to Reduce Poverty

Tuesday, June 29th, 2010

Last Thursday, June 24th, the Alabama Commission to Reduce Poverty met at the YWCA Interfaith Hospitality House in Birmingham.

Jennifer Clarke, Chief Housing Officer at the YWCA, talked about the YWCA’s work revitalizing Birmingham’s historic Woodlawn neighborhood.

Larry Lee, Director of the Alabama Department of Agriculture and Industries’ Center for Rural Alabama, talked with commission members about the work he has done identifying successful rural schools. His report, Lessons Learned From Rural Schools, highlights ten schools in low-income communities that have been successful by creating a positive culture and finding creative ways to work together.

Above: Larry Lee, Director of the Center for Rural Alabama. Photo via The Daily Yonder.

Commission members discussed strategies to involve community members across the state in conversations about how Alabama can be a healthier, more prosperous state.  These conversations will help the commission set goals for its work.

There’s no time like the present to get the conversation started. So tell us – what’s a way you and your neighbors can get involved in making Alabama a healthier, more prosperous state? Let us know by emailing the vice chair of the commission, Kristina Scott, with “Poverty Commission” as the subject.

Posted by Will Thomas

State Commission to Meet, and You’re Invited

Tuesday, June 22nd, 2010

The State Commission to Reduce Poverty is set to meet Thursday June 24, 2010, at 11 AM, at the YWCA Interfaith Hospitality House, 5916 First Avenue South, Birmingham.

The commission’s agenda includes a discussion of how to engage those living in poverty in identifying the barriers to opportunity that they face and what can be done to remove those barriers.  Larry Lee, Director of the Center for Rural Alabama, will also talk with commission members and attendees about his work identifying common traits of successful rural public schools.  The meeting is open to the public.

The state legislature created the State Commission to Reduce Poverty in 2009 to study and evaluate state-supported programs, policies and services and make recommendations on proposed legislation that serves or affects those who live in poverty. It is comprised of state senators, representatives and members of the nonprofit community. Individuals from faith communities and those living in poverty are encouraged to apply for a Gubernatorial appointment to the commission by completing the application at http://governor.alabama.gov/yourgov/upcoming_appointments.aspx.

Alabama is the tenth poorest state in the nation, with nearly 1 in 6 Alabamians and 1 in 4 children living below the federal poverty line.

“Especially in these hard economic times, it is imperative that we bring the issues and realities of poverty to the forefront so we can develop public policies that are effective, innovative and equitable,” says Commission Chair Representative Patricia Todd.

Kristina Scott, executive director of the Alabama Poverty Project and the commission’s vice chair, said, “We are all impacted by our state’s perennial high poverty rate, and we value public input in the commission’s work. The people of Alabama understand both their communities’ assets and barriers to opportunity.  They also have great ideas regarding possible solutions to remove those barriers through legislation, state and local policy changes and community development efforts.  We hope they will share those ideas with us.”

The Alabama Poverty Project recently received a $14,000 challenge grant from the Community Foundation of Greater Birmingham to coordinate the Commission’s work and mobilize public support to eradicate poverty.

“Our board of directors designated this grant to raise awareness and attract more donors to the Alabama Poverty Project and the Alabama State Commission to Reduce Poverty. By focusing on our priority of advocacy for the poor and underserved through this grant, we hope to inspire a broader base of support for this important work,” said Community Foundation Senior Program Office James McCrary.

Freedom to Thrive: fighting slavery in AL

Friday, April 30th, 2010

Sara Jane speaks at the JustUs human trafficking rally earlier this month

APP couldn’t be prouder of our very own Sara Jane Camacho, who led the effort to outlaw human trafficking in Alabama.  Sara Jane is a member of our Emerging Faith Leaders Advisory Group and founder of Freedom to Thrive.  She helped secure passage of HB432, which criminalizes human trafficking and exploitation – or, in less euphemistic termsslavery. Trafficking is defined as “coercion or deception causing a person to work or to perform services…or to perform certain sexual activities… having financial value.”

Alabama was previously one of only seven states that had no formal law recognizing human trafficking. This bill protects victims of trafficking who might actually be punished for coming forward – undocumented laborers who are exploited, or women who are forced into prostitution, for example. Victims of human trafficking are often coerced, controlled, and made powerless by their captors. Instead of being further victimized by facing arrest or (in the case of undocumented workers) deportation if they come forward, these groups will now have the power to seek justice against their captors. And the state will now have a criminal basis to prosecute employers who exploit and traffic human beings.

“It’s a very progressive and comprehensive bill, and we’re just thrilled the legislature viewed it as important and passed it the first year it was introduced. That is huge, and it speaks to the bill itself,” Sara Jane explains. She notes the many who worked hard to create and pass the law, including the District Attorneys Association, The Alabama Coalition Against Domestic Violence, the Polaris Project in DC who helped draft the legislation, Barry Maston, State Representatives Jack Williams and Merika Coleman, and State Senators Wendell Mitchell and Steve French.

In mid-May, Sara Jane and others will celebrate the bill’s passage with a signing event rally for all of the lobbyists, advocates, and organizers who fought hard to get this bill through the legislature. Freedom to Thrive will also train law enforcement, prosecutors, social workers and community members to recognize the indicators of human trafficking and develop system protocols at the state level to process and prosecute human trafficking cases.

Do you know the potential red flags for human trafficking? Here are some warning signs:

Strange behavior

  • Someone who seems fearful, anxious, depressed, submissive, tense, or nervous
  • Someone who avoids eye contact
  • Someone who shows signs of physical, emotional, or sexual abuse
  • Someone who has an inconsistent story or appears to be lying

Employment irregularities

  • Someone who doesn’t leave his or her place of employment or only leaves at odd hours
  • Someone whose boss “holds” or “invests” his or her money for him or her
  • Someone with a boss or manager in prostitution, stripping, or an escort service
  • Someone who hasn’t been paid, has been paid very little, or is paid only in tips
  • Someone who has a very large debt
  • Someone who did not understand the terms or conditions of his or her employment when he or she was recruited

Lack of Control

  • Someone who doesn’t have control of his or her own identification papers
  • Someone who has few or no possessions
  • Someone who is not allowed or able to speak for himself or herself or is made to speak through a translator
  • Someone who is unsure of where he or she is or lives or has no sense of time

Posted by Robyn Hyden

Millennials: not “the chump generation”

Wednesday, March 31st, 2010

Robert J. Samuelson recently penned a column titled “Will Millennials become the chump generation?” speculating that our generation, aged 18-29, would suffer the effects of the recession and the national debt for years to come – but according to Samuelson, we’re too clueless to know it.

Reports from the Pew Research Center show that more than any other generation, we are optimistic about the future. Over 40% of Millennials surveyed are satisfied with the direction our country is headed, compared to only 26% of the over-30 crowd.

It is true that Millennials are feeling the effects of the recession the most, and we do know it. Research from Demos shows that we’re the first generation likely to be less well-off than our parents, we have high rates of unemployment, and many of us are uninsured and in debt.

But our optimism doesn’t mean we are naive. Health care reform expands our access to health insurance and education in ways that will help us and future generations achieve a higher quality of life, while reducing our overall spending.

Part of the new healthcare reform legislation is the student loan overhaul signed into law yesterday, which makes the federal government the primary administrator of student loans. By cutting commercial banks out of the student loan industry, the government will be able to channel more money into the federal Pell grant program, which offers subsidized loans to low-income college students. They will also be able to cap repayment rates at ten percent of the loan recipient’s income.

This will allow more low-income students to afford college, especially at a time when tuition rates are increasing at twice the rate of inflation. It will enable college students to graduate with manageable levels of debt.

Our optimism still may seem misplaced at a time when many Millennials find ourselves unemployed or out of the labor force, according to the Pew research center. Those of us who do find work may feel the effects of the recession in lower wages for decades to come, according to a study by Lisa Kahn at the Yale School of Management.

Despite these bleak statistics for college graduates, students without a college degree are hit the hardest by the recession. It is therefore encouraging to see such a high percentage of Millenials – 63% – saying they plan to get a college degree, or already have one. We know that higher educational attainment draws economic development and raises low-income families out of poverty.

The student loan overhaul may not make college any cheaper, but it will allow more low-income students to finance higher education.  It will enable more students to avoid crippling post-grad debt. To this Millennial, at least, that looks like a pretty great reason to be optimistic about the future.

Posted by Robyn Hyden

What we’re reading: The Legacy of a Cotton Culture

Tuesday, March 30th, 2010

Larry Lee is the director of the Center for Rural Alabama and a good friend to APP.  He can always be counted on to give me feedback on our APP newsletter, and I appreciate his honesty.

That honesty is readily apparent in his must-read account of Alabama’s economic development history, The Legacy of a Cotton Culture.  He has a great deal of insight into why Alabama has the second greatest job loss in the country.

During the first half of the 1900s, Alabama tried to join the “New South” by looking at New England and chanting, “Cheap labor, cheap land, low taxes.”  And for awhile, we were awash in cotton and garment industry jobs.  But those days are gone.

In 1949 the good citizens of Andalusia thought the factory whistle would blow until Gabriel blew his horn.  But it fell silent 20 years ago.  Today across Alabama, buildings where workers once breathed cotton dust and risked arms and hands, stand empty only to be visited by the occasional school boy hurling rocks to break out another window.  And low-slung buildings where sewing machines once whirred watch as kudzu creeps across empty parking lots.

Today there are 23 counties where unemployment is 14 percent or higher.  All are rural.

They had 19,000 textile jobs in 1950 and 334,300 acres of cotton.

For decades, the future was no farther than getting to the end of the next cotton row or putting the mule in the barn as sun set.  The children of sharecroppers were far more likely to hear the rasp of a cotton pick sack being dragged on sandy soil than the ringing of a school bell.

This is the first part of a three-part series.  I can’t wait to read the next installment.

Posted by Kristina Scott