Research, Innovation and Cities: The Year in Review

Throughout 2016, NLC’s Center for City Solutions and Applied Research presented and spoke on a wide range of city topics to audiences from San Francisco to Shanghai and everywhere in between – making sure that, wherever possible, city voices are elevated and heard.

Photo by Jason Dixson Photography. www.jasondixson.com

NLC continues to shape the national dialogue on cities, work with city leaders on the ground, and help local officials lead. Pictured here at City Summit 2016 discussing the future of autonomous vehicles in cities: Jon Shieber, senior editor at TechCrunch; Debra Lam, chief innovation & performance officer of Pittsburgh; Justin Holmes, director of corporate communications and public policy at Zipcar; Brooks Rainwater, senior executive and director of Center for City Solutions and Applied Research. (Jason Dixson)

This year has been one of growth and success for NLC’s Center for City Solutions and Applied Research (CSAR). Throughout 2016, we released impactful research across a range of focus areas – from the nuts and bolts of governing to future transportation and workforce shifts, innovation districts, and what cities need to know about drones.

We published familiar annual titles including our State of the Cities report, which analyzes the top issues for our nation’s mayors. We released the 31st edition of our City Fiscal Conditions report, which found that cities’ fiscal positions are strengthening as they continue to recover from the great recession. We finished out the year with our City of the Future research focusing on the critical role that automation and other disruptive changes are having on the workforce. At the core of each of these research products, our primary focus is analyzing how major, timely issues will impact cities.

Coinciding with our broad research agenda, CSAR experts have been on the ground in cities across the country working hand in hand with mayors, councilmembers, and city officials to build equitable, sustainable, financially sound communities that are prepared for future opportunities and challenges. And, in response to the growing opioid crisis, CSAR worked across NLC and together with the National Association of Counties (NACo) to convene the City-County Task Force on the Opioid Epidemic, which recently published recommendations to help local officials to put an end to the epidemic.

Our Rose Center for Public Leadership continued its leading work on local land use challenges with the 2016 class of Daniel Rose Fellows. Those cities included Denver, Rochester, N.Y., Long Beach, Calif., and Birmingham, Ala. The Rose Center also launched the first-ever Equitable Economic Development Fellowship, selecting six cities to participate in its inaugural year: Boston, Houston, Memphis, Milwaukee, Minneapolis, and Charlotte, N.C. This fellowship builds the capacity of America’s cities to ensure that prosperity is shared across their communities.

CSAR’s Sustainable Cities Institute (SCI) launched new programs in 2016 that support and recognize NLC members’ efforts to preserve a clean environment, promote green jobs, and tackle climate change. The SolSmart program was launched in April to help cities make it easier for their residents and businesses to go solar. SCI also announced Leadership in Community Resilience, which is working with 10 cities from around the country to help local officials, city staff, and community partners share their experiences and advance local resilience efforts.

This year our team also incorporated NLC University into the Center, working to provide more focused programming and expanded capacity for city leaders. One example of this shift can be seen in this year’s City Summit attendance in Pittsburgh, where we had a 60 percent increase over last year. Additionally, with the hiring of new staff, we are looking to expand online learning and enhance the annual Leadership Summit.

NLC continues its work to end veteran homelessness, encouraging local leaders to make a permanent commitment to make homelessness rare, brief and non-recurring. Through our leadership on the Mayors Challenge to End Veterans Homelessness, we facilitated on-the-ground engagement and assistance to city officials nationwide. We also continue to work together with the State Municipal Leagues on an annual research project focused on the critical intersections between city and state policy. This year we published Paying for Local Infrastructure in a new Era of Federalism, offering a state-by-state analysis of infrastructure financing tools.

CSAR also hosted a number of large events across the country. In the spring, we held the third annual Big Ideas for Cities event with a range of compelling stories from our nation’s mayors, expertly facilitated by the Atlantic’s James Fallows. In the fall we hosted the Big Ideas for Small Business Summit with economic development officials from 25 cities sharing strategies for building local small business and entrepreneurial ecosystems. Most recently, we hosted the second annual Resilient Cities Summit with the Urban Land Institute and U.S. Green Building Council, which brought together mayors from 15 cities across the country to focus on critical resilience strategies. These annual events allow NLC to elevate the voice of city leaders on issues that matter to communities across America.

Through our work on these important issues, we solidified partnerships with agencies across the federal government and worked with them on key programming, ensuring we are effectively communicating the voice of cities at every level. Some of these included: Small Business Administration for Startup in a Day, the Department of Veterans Affairs on veterans homelessness, the Department of Housing and Urban Development on the Prosperity Playbook, and Department of Energy on Net Zero Energy.

Throughout the year, our team presented and spoke on a wide range of city topics to audiences local, national, and global – from San Francisco to Shanghai and everything in between – making sure that, wherever possible, city voices are elevated and heard. We continue to help shape the national dialogue on cities, work with city leaders on the ground, and help mayors and councilmembers learn and lead – and we look forward to our work in 2017.

Read our 2016 publications:

About the author: Brooks Rainwater is Senior Executive and Director of the Center for City Solutions and Applied Research at the National League of Cities. Follow Brooks on Twitter @BrooksRainwater.

 

8 Ways Cities Can Prepare for the Future of Work

We know that automation and artificial intelligence will have a great impact on the future of work, play, and life – but we shouldn’t jump to the assumption that this will be a net negative.

(Getty Images)

Advocates from the tech world tout a basic income as a way to counteract the economic blow of automation replacing jobs currently occupied by humans. (Getty Images)

This post originally appeared on Business Insider. The post was republished with permission.

Fundamental shifts in society are upending the current nature of work. With automation and artificial intelligence already permeating nearly every sector of the economy, disruption is happening at an accelerated pace.

Our recent presidential election made clear that workforce shifts are felt by a broad swath of the American public. People are looking to elected officials at every level of government for a new response to these changes.

We have to move the policy discussion away from job retraining towards job rethinking.

NLC’s latest report, The Future of Work in Cities, examines the rapid changes occurring in today’s workforce. Here are eight suggestions from that report on how city leaders — the most responsive government leaders — can approach the rapidly shifting future of work.

Rethink education and workforce training programs.

The strength of cities comes from the people that live in them. As cities prepare for the future of work, they must address talent development by collaborating with business leaders, educational institutions, and community-based organizations to ensure education and training programs match workforce needs.

Update policies to reflect the changing composition of the workforce.

Tomorrow’s workforce will be significantly more diverse. Women will continue to make up a larger portion of the workforce, and the racial and ethnic makeup of the workforce will change. The workforce is also getting older, as many elderly workers delay retirement and younger people delay working. These changes shift the fundamental needs of employees and, subsequently, the way employers should respond. Flexibility will be critical.

Support entrepreneurs and startups as a core workforce development strategy.

Innovation is the lifeblood of city economic growth. Local leaders need to create a strong startup culture through low tax and regulatory barriers, and strong regional networks with access to capital that allow startups to scale. As cities continue to lower barriers of entry for small businesses and support local startups, innovation will flourish.

Build equitable business development programs.

Equity is critical to building a strong workforce. Policies that promote equity in areas such as health and education often have positive effects on economic growth. Likewise, policies that address marginalized groups reduce political conflict and strengthen public institutions and social organizations, feeding into a virtuous cycle of growth.

Invest in digital and physical infrastructure that supports the workforce of tomorrow.

Investment in reliable, high-speed internet and expanded broadband services is critical to supporting a competitive workforce. In addition to digital infrastructure, cities must also invest in roads, bridges and transit systems.

In cities, people like to walk, bike, and take public transit, while single occupancy vehicle use continues to decline. This preference, combined with a move toward autonomous vehicles, means that cities will need to rethink investment priorities while considering new uses for car-oriented infrastructure like parking garages.

Ensure access to paid leave for families.

The United States is one of few developed countries that doesn’t offer some type of guaranteed paid leave for new parents. Yet companies that offer these policies retain more employees and avoid lengthy talent searches. Cities are leading in this space. The San Francisco Board of Supervisors, for example, mandates six weeks of paid parental leave for workers. This long overdue policy benefits everyone, giving parents the opportunity to maintain their careers, helping organizations retain employees, and bringing stability to the city’s workforce and economy.

Consider offering portable benefit systems.

As workers change jobs more frequently and contract work becomes more common, the policy environment around benefits needs to shift. Benefits that once accompanied most employment situations are becoming more elusive, and portable benefits, which are tied to individuals rather than employers, represent one potential solution.

These typically wrap together some form of paid leave, health insurance, worker’s compensation/unemployment, and retirement fund matching. Proposals for this type of system vary.

Some suggest that it should be universal and administered by government or a public/private institution created for such a purpose. Others think it should be administered by non-governmental community-based groups. Either way, portable benefits have the potential to support those who work outside the realm of the traditional nine-to-five economy.

Explore basic income and other broad-based social support systems.

Basic income, which guarantees every citizen a regular, unconditional sum of money, is gaining support in policy conversations. This is intended to serve the same function as a living wage by bringing all individuals up to an economic baseline. In some ways, this proposal resembles existing welfare systems, with the major exception that the benefit goes to everyone, regardless of age, ability, class status, or participation in the workforce.

Advocates from the tech world tout it as a way to counteract the economic blow of automation replacing jobs currently occupied by humans. Other supporters argue that basic income is more streamlined, efficient, and transparent than current social welfare systems. Finally, there are others who argue that a basic income might allow individuals to pursue more creative, enjoyable interests. A full-scale of examination of the cultural and financial implications of basic income will be key to implementing such a system.

We know that automation and artificial intelligence will have a great impact on the future of work, play, and life. However, we shouldn’t jump to the assumption that this will be a net negative.

Despite the evolving nature of the economy, people are still working, the economy is still growing, and indicators show that life has gotten better for the majority of the world’s workers. To stay on that path, these and other such ideas should be higher on the agenda of policymakers. Cities are the place where new ideas and opportunities happen first, so we should prepare for the technological shifts to come and usher in a future that works for everyone.

About the author: Brooks Rainwater is the Director of the Center for City Solutions and Applied Research at the National League of Cities. Follow Brooks on Twitter @BrooksRainwater.

Seven Ways Cities Can Support Small Businesses During the Holidays

Efforts to shop small and shop locally are especially critical because they bolster the local economy – and since local sales taxes are often not collected for online purchases, encouraging residents to support local merchants is also a fiscal win for many cities.

In Roanoke, Virginia, the city's Dickens of a Christmas events on Friday evenings in December include a tree lighting, pet costume parade, and local vendors selling food and gifts. (Getty Images)

In Roanoke, Virginia, the city’s Christmas events on Friday evenings in December include local vendors selling food and gifts. (Getty Images)

‘Tis the season for spending money. The latest National Retail Federation survey estimates that the average American consumer will spend $935.58 during the holidays on gifts, food, and other seasonal items. The majority of holiday shoppers plan to spend their cash at large department stores, big-name discount shops, or online. Unfortunately, only 23 percent of respondents said they planned to shop at a local or small business.

With the holidays now in full swing, there are several strategies your city should implement to ensure local businesses are reaping the benefits of this season of gift-giving and celebrating. Efforts to shop small and shop locally are especially critical because they bolster the local economy. Since local sales taxes are often not collected for online purchases, encouraging residents to shop at local brick-and-mortar establishments is also a fiscal win for many cities.

Here are seven ways you can ensure your city’s local businesses enjoy a holiday season that is merry and bright:

Convene your local business owners and follow their creative lead. Use your role as a convener to help local businesses connect, collaborate, and feel empowered to establish creative marketing tactics to attract holiday shoppers. As a case in point, small business owners in Edmond, Oklahoma, developed a small business passport that offers incentives and prizes to shoppers that receive a “stamp” at multiple stores.

Develop a “Made In” branding campaign. Shoppers are increasingly looking for unique, hand-made items from their hometowns to purchase for themselves and as gifts. One way to indicate to shoppers that an item is made locally is to create a branding campaign for locally-made goods. New Haven, Connecticut, Mayor Toni Harp recently collaborated with local artists and businesses to develop a “Made in New Haven” logo to “showcase New Haven as a home of people with great ideas.”

Host a holiday event with pop-up shops featuring local retailers. A holiday-themed market or event in your city’s downtown area is a wonderful placemaking strategy, and also gives local retailers the chance to share their goods and services with the community. In Roanoke, Virginia, the city comes together for “The Dickens of a Christmas” events on Friday evenings in December. The city’s events include a tree lighting, pet costume parade, and local vendors selling food and gifts.

Share resources for businesses about the holiday shopping season. The holiday season usually means a surge in new customers, and particularly for newer businesses, it’s important to make sure this isn’t a missed opportunity. As a way to help local shops prepare for the season, New York City’s Small Business Services office shares holiday tips for business owners, including how to recruit and hire seasonal help and how to participate in holiday markets and events.

Market local businesses through an online store or social media. Join forces with other cities in your region or state to build an online site where local businesses can advertise and sell their items. Celebrate Local is an organization and online shop for artisans and makers from all across the state of Ohio. Holiday shoppers have access to over 300 local shops selling everything from salsa to soap to stickers made with homegrown products and ingredients. Social media is also a great way to help market local businesses. Shops in West Hollywood, California, are encouraged to submit photos of their decorated storefronts to the local chamber of commerce’s Instagram account as a way to spread holiday cheer, and attract customers.

Donate items from local small businesses. If your office is hosting a charity drive during the holidays, encourage your colleagues to purchase clothing and food from small shops. Donating items from local stores is a win-win for the local economy and for helping neighbors in need.

Buy local, celebrate local. What would the holidays be without an office holiday celebration? If you’re reading this, you’re also undoubtedly planning to attend an office lunch or gathering at some point in December. Show support for your local small businesses by serving your favorite local coffee and placing a catering order with a local food truck.

From all of us at NLC, wishing you a happy and healthy local economy (and holiday season)!

About the Author: Emily Robbins is Principal Associate for Economic Development at NLC. Follow Emily on Twitter @robbins617.

Unpredictable Work Schedules Can Lead to an Unstable Family Life. Here’s How Cities Can Help.

Many workers in hourly, low-wage jobs struggle to manage their lives while navigating difficult work schedules, but several cities have taken action recently to address the challenge and promote a healthier workforce.

(Getty Images)

A predictable schedule is something that many nine-to-five workers take for granted; it allows people to balance school, work, and family. Basic protections from cities can make this possible for all workers. (Getty Images)

Two days each week, Andrea R. is usually scheduled to work what her fellow employees call the “clopen” shift. She closes the doors of the large retail store where she works, gets home around midnight, prepares school lunches for her children, gets a few hours of sleep, and has to be back at work by 6 a.m. to open the store.

Her schedule changes every week, so Andrea does not know in advance which days she has to work this shift. Her employer’s policy claims that workers will know their schedules two weeks in advance – but Andrea, a single mom, often gets less than a week’s notice, making it difficult to arrange child care. Her unreliable schedule means that she must often ask family members to take care of her children, but she worries that providing such short notice strains her family relationships. Making only $9 per hour, it is often less costly for Andrea to not work a shift than to find and pay for child care. “If I could rely on a reasonable set of hours of work without having to pick up shifts, I could work on going back to school,” Andrea says.

Many workers in hourly, low-wage jobs struggle to manage their lives while navigating unpredictable work schedules. A recent study by the Economic Policy Institute found that 17 percent of workers in the labor force experienced unstable work shifts, and that the lowest income workers (those earning less than $22,500 per year) were most likely to experience this scheduling unpredictability. The study links instability of shift schedules to lower levels of job satisfaction and higher levels of family stress. Further research finds that shift work is associated with diminished cognition and physical health.

Additionally, studies find African Americans and families who speak Spanish at home are disproportionally affected by these challenges. The City of Seattle conducted a survey of approximately 700 local workers and 350 local managers to assess the scheduling challenges faced by city workers. The survey found that scheduling issues caused difficulties in the lives of roughly one third of workers overall, compared to 40 percent of workers who speak Spanish at home and 40 percent of African Americans, who said scheduling posed challenges for taking classes.

Retail, hospitality, and warehouse work all respond to demand that can fluctuate throughout the day, week, or season: a coffee shop may need more baristas during the morning hours; and an online retailer may need more shipping employees in November and December. But as traditional methods of scheduling are replaced by more precise forecasting technologies, workers have faced even more unpredictability with their schedules. The increasing use of scheduling software by businesses has led to widely fluctuating hours, impractical commutes, and convoluted childcare arrangements for many.

City leaders are recognizing the importance of balancing worker quality of life with business interests; several cities have taken action recently to address these challenges, and more are quickly joining the movement. In September, the Seattle City Council passed an ordinance that requires retailers and large chains to give their employees two weeks’ notice of shift scheduling. Employers who do not provide the advance notice will be required to provide additional pay, which includes:

  • One additional hour of “predictability pay” if an employer adds hours to the employee’s schedule after it is posted
  • Pay for half of the hours not worked if an employee is scheduled for a shift and then sent home early
  • Half-time pay for any shift employees who are “on-call” for but do not get called into work

In addition, the law requires a minimum of 10 hours between shifts – which would protect workers from “clopening” shifts.

Other cities are taking action as well. Portland, Oregon, and Emeryville, California, recently passed ordinances like Seattle’s, and New York City officials have voiced support for a similar measure that applies only to fast food workers.

City leaders know that low-wage, hourly workers struggle to balance the needs of their jobs with family obligations. Measures that require employers to provide advance knowledge of shift scheduling can help workers achieve that balance, maintain their employment, and advance in their careers – all of which results in healthier and more productive cities.

Lily Roberts photoAbout the author: Lily Roberts is an Intern with the NLC YEF Institute’s Economic Opportunity and Financial Empowerment team.

The Midwest is No Longer the Rust Belt – It’s the “Production Belt”

Mayors Bill Peduto and Virg Bernero explain why now is the time to invest in America’s infrastructure and make a national commitment to advanced manufacturing.

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For every $1.00 spent in manufacturing, another $1.81 is added to our economy – the highest multiplier effect of any economic sector. (Getty Images)

This is a guest post by Mayor Bill Peduto and Mayor Virg Bernero.

Advanced manufacturing is the engine powering our nation’s economy and driving today’s innovation, which is why it is time for a national blueprint for manufacturing. We implore President-elect Trump and the 115th Congress to make a Marshall Plan-style commitment to advanced manufacturing, starting with rebuilding the infrastructure that makes American manufacturing possible.

As mayors and as co-chairs of the National League of Cities’ new Manufacturing Initiative, we recognize that this must be a bipartisan mission, as the success of our manufacturing sector will benefit communities from Connecticut to California.

We also endeavor to dispel several myths about manufacturing. First and foremost: the Midwest is no longer the “Rust Belt” of shuttered factories, but rather the “Production Belt” of advanced manufacturing that accounts for 10 percent of our workforce. In 2015, the manufacturing sector contributed $2.17 trillion to the U.S. economy, representing a growth of nearly one half-trillion dollars since 2009.

Another myth is that manufacturing is a relic, that we’ve become a “service” economy. The truth is, the manufacturing sector is more advanced and growing stronger than it has in decades, and it’s re-invigorating technological innovation and entrepreneurship.

America is home to the world’s most productive workers, with manufacturers accounting for 75 percent of our nation’s R&D and 90 percent of our patents. The “magic of manufacturing” is the spinoff activity that supports transportation, supply chains and more. For every $1.00 spent in manufacturing, another $1.81 is added to our economy – the highest multiplier effect of any economic sector. And, despite the myth that manufacturing jobs don’t pay well, the truth is that the compensation of the typical U.S. manufacturing worker is $81,289 annually, including pay and benefits.

Today’s manufacturing is a wholesale improvement over our grandparents’ dirty, monotonous production jobs. Today’s jobs offer a creative opportunity to innovate, using state-of-the-art equipment in diverse fields like aerospace, semi-conduction, robotics, biotechnology and engineering. Many manufacturers even offer a “learn and earn” model of apprenticeship training that pays workers to learn their trade. Yet these advanced jobs require a talent pipeline to connect them with skilled workers. Experts project that the U.S. will have over two million jobs go unfilled due to the skills gap.

The fact is, American manufacturing is also a matter of national security. Retired U.S. Army Brigadier General John Adams wrote a report detailing the ways domestic manufacturing keeps us safe. A strong domestic manufacturing base supports the Arsenal of Democracy.

Advanced manufacturing can also pave the way for a “green” industrial revolution that reduces our carbon footprint – not only by producing alternative energy products like solar panels, wind turbines and fuel cells, but also by standardizing sustainable production methods for everyday commodities.

There are several national policies that can help shape a national blueprint, including Senator Kirsten Gillibrand’s efforts to codify the Investing in Manufacturing Communities Partnership – which has already invested $23 million to support 49 IMCP projects across 26 states. These projects will create or save more than 1,080 jobs, and generate nearly $855 million in private investment. We also support resurrecting the COMPETE Act (S. 2715) to incentivize more research and development, because R&D tax credits are really job credits. Another important win would be establishing a National Infrastructure Bank so we could fund economically-viable infrastructure projects nationwide and incentivize private investment.

The only way to reverse the overly-fragmented model of manufacturing is to establish “production ecosystems” that connect Main Street manufacturers, universities, and inventors into local networks. By strengthening these collaborations with coordinated local, state and federal policies, we can create a lasting national blueprint for advanced manufacturing.

In the international marketplace, we have an unprecedented opportunity to produce the most competitive brand of manufactured goods – those marked proudly as “Made in America.” Let’s get to work to make it happen.

About the authors: Pittsburgh, Pennsylvania, Mayor Bill Peduto and Lansing, Michigan, Mayor Virg Bernero are co-chairs of the National League of Cities Manufacturing Initiative.

Four Ways City Leaders Can Boost Entrepreneurship and Propel Economic Growth

This is a guest post by Josh Russell and Jason Wiens. This post is the fourth installment in a series focused on NLC’s 2015 Cities and Unequal Recovery report, which highlights the findings of our 2015 Local Economic Conditions survey.

Startup density varies from city to city across the United States. (Kauffman Index of Startup Activity)

City leaders across America understand that entrepreneurship is key to the success of their economies. That is the message from the 2015 Local Economic Conditions Survey conducted by the National League of Cities.

In that survey, 47 percent of cities said the “number of new business starts” was a positive driver of local economic conditions. New business creation was viewed by more city leaders as source of local economic improvement than any other factor.

These perceptions of chief elected officials are in line with decades of data that show new and young businesses are the primary source of net new job creation. When it comes to job creation, age matters more than size.

But how do these perceptions reflect the reality of entrepreneurial growth in these cities? Is entrepreneurship flourishing in cities where leaders viewed it to be an important contributor to economic growth?

To answer these questions, we looked at a sample of cities linked to their metropolitan statistical areas from 2002 to 2012. Here is what we found:

  • Over the last decade, average startup rates are consistent among cities regardless of their views on new business creation.
  • Startup rates converged in 2012 to 6.9 percent for cities that believed startup rates were an impactful economic factor and to 6.8 percent for cities that did not.

While there is little difference between startup rates in cities that viewed new business creation as an impactful economic factor, the real story is found when we look at employment in startup firms.

The percent of employment in startups has diverged among cities that believe startups are and are not an important economic factor. In those cities that viewed startups’ impact positively, new businesses were adding more jobs than in cities where leaders did not view them to have a positive impact. In 2012, on average, firms in cities that viewed new businesses as having a positive impact started with 15 percent more employees.

2011 marked the first year of an increase in new business creation since the start of the Great Recession. To further boost entrepreneurship and propel economic growth, local leaders have a menu of tools available to them.

  1. Build connections. While capital constraints represent one of the primary challenges to entrepreneurs, research has shown that public venture funds and local incubation centers result in little to no benefit to entrepreneurs. Instead, cities should focus on fostering local connections among entrepreneurs and businesses. These local connections, as opposed to national or global contacts, are vital to an entrepreneur’s success. Focus should be put on events that cause entrepreneurs to think and act together, building a robust local ecosystem. Examples of early-stage entrepreneurship programs that can be implemented in cities include Startup Weekend and 1 Million Cups.
  2. Welcome Immigrants. Immigrants are twice as likely as native-born Americans to become entrepreneurs. These entrepreneurial gains are not limited to low-skill sectors, but include high-skill and high-tech sectors as well. Immigrants and children of immigrants represented 52 percent of key founders of high tech firms in Silicon Valley and over 40 percent of Fortune 500 founders. While legal barriers to immigrant entrepreneurship result in missed opportunities for U.S. economic growth, cities can capture the benefits by welcoming immigrants and supporting their entrepreneurial ambitions.
  3. Support Women. Women face many unique challenges to starting a business and are half as likely to start businesses as their male counterparts. Among the top challenges are financial capital, mentorship, and work-life balance. Women are one-third as likely to access equity financing through angel investments or venture capitalists as men and begin companies with nearly half as much capital. Mentorship plays an important role in developing successful entrepreneurs, yet nearly half of female entrepreneurs say a lack of available mentors is a major challenge facing their businesses. Parenting balanced with work also results in lower rates of entrepreneurship among women. Women with STEM Ph.Ds are significantly less likely to engage in entrepreneurship if they have a child under two, while there is no statistical difference in entrepreneurial rates of comparable men. Local policies that support women in entrepreneurship can create positive economic growth in cities.
  4. Develop Human Capital. Higher levels of education are associated with increased entrepreneurial activity. While a high ratio of college graduates means more entrepreneurial firms, a substantial high school completion rate can further increase a city’s startup activity. Developing a strong school pipeline can help promote human capital and develop a strong, local entrepreneurial ecosystem.

Stated simply, these policies are all about investing in people.

As entrepreneurship rates grow, entrepreneurs are reviving local economies across the nation. The role of city leaders in this arena is to create conditions that allow more entrepreneurs to start businesses and nurture that environment so that those businesses can grow. Cities that invest in people should see entrepreneurial benefits.

About the Authors:

Josh Russell is a research assistant at the Ewing Marion Kauffman Foundation.

 

 

Jason Wiens is Policy Director at the Ewing Marion Kauffman Foundation.

Three Ways Your City Can Prosper by Embracing Equity

This is a guest post by Sarah Treuhaft. This post is the third installment in a series focused on NLC’s 2015 Cities and Unequal Recovery report, which highlights the findings of our 2015 Local Economic Conditions survey.

Participants in the SySTEMic Solutions program in Fairfax County make a presentation on robotics. As part of an overall strategic plan for economic growth, cities can create programs like this one, in partnership with universities and area businesses, to funnel students into STEM-related professions. (photo: Northern Virginia Community College)

NLC’s 2015 survey of local economic conditions paints a clear picture of unequal growth in America’s cities, underscoring the need for bold, focused strategies to firmly link low-income communities and communities of color with regional (and global) economic opportunities.

Two years ago, New York City mayor Bill DeBlasio captivated voters with his “tale of two cities” narrative summarizing the dynamics of rising inequality in America’s largest metropolis. NLC’s 2015 survey of chief elected officials reveals how uneven growth is not isolated to high-tech boomtowns, but widespread among the nation’s cities.

The survey illustrates the challenge of poverty amidst plenty: While 92 percent of city mayors said economic conditions improved in the past year, 50 percent reported an increase in demand for survival services like food and shelter, 36 percent saw an increase in homelessness, and 24 percent reported a decrease in housing affordability.

Urban economies are coming back, but the rising economic tide is not translating into good jobs, rising wages, and ownership opportunities for low-income residents and communities of color. Our analyses of the Bay Area and Fairfax County, Va., revealed the persistence of racial inequities in these booming economies. A new report on New Orleans finds that although the region has “staged an unlikely economic comeback,” 41 percent of families are struggling to get by on less than a living wage — up from 35 percent in 2006 — and those families are disproportionately made up of women and people of color. And Alan Mallach’s research on older industrial cities shows how growth is isolated to a few high-density, walkable neighborhoods while income, wealth, and home values are stagnant or declining everywhere else, with African American communities losing the most ground.

Unequal growth is socially and economically unsustainable. Research shows that more equitable regions experience stronger and longer-lasting growth. Demographic changes are also magnifying the costs of racial economic exclusion and upping the value proposition of inclusion. As Baby Boomers retire, their jobs will need to be filled by a much more diverse generation.

Small business owners Al and Marie Pronko benefitted from a $10,000 cash award as part of Detroit's NEIdeas program, which helps local businesses as part of a larger strategy to spur economic growth in the city. (photo: NEIdeasDetroit.org)

Small business owners Al and Marie Pronko benefitted from a $10,000 cash award as part of Detroit’s NEIdeas program, which helps local businesses as part of a larger strategy to spur economic growth in the city. (photo: NEIdeasDetroit.org)

In the face of these trends, cities should embrace equity as their path to prosperity and take steps to foster inclusive growth: growing new jobs and new businesses while ensuring that low-income people and people of color fully participate in generating that growth and fully share in its benefits. Here are three ways forward:

Bake racial economic inclusion into growth strategies.

Getting to equitable growth requires an intentional and strategic focus on removing barriers and building pathways for struggling workers and entrepreneurs to connect to jobs and business opportunities. Many cities are tackling this challenge and implementing new approaches to fuse growth and opportunity. Portland’s economic development agency just launched an Inclusive Startup Fund to provide capital, mentoring, and business advising to startups founded by underrepresented groups. Recognizing the importance of neighborhood businesses to Detroit’s renaissance, the New Economy Initiative held NEIdeas contests in 2014 and 2015 to provide financial and technical support to help neighborhood businesses grow. And in Pittsburgh, Urban Innovation 21 is connecting the city’s low-income African American communities with its knowledge-economy revival by placing youth in internships at area tech companies, supporting local entrepreneurs, and running a new Citizen Science Lab that offers hands-on life sciences trainings.

Implement a homegrown talent development plan.

City leaders recognize that workforce preparedness is central to their economic success, but often focus on attracting young, mobile, college grads from other states. To shift to equitable growth, cities need to cultivate their homegrown talent. Universal pre-K is a winning strategy and San Antonio’s groundbreaking program is already showing results for low-income, predominantly-Latino four-year olds. “Cradle-to-career” partnerships like Promise Neighborhoods are working to ensure children in low-income neighborhoods have the educational, health, and community supports they need to succeed. NLC’s survey reveals there is a great deal of room for cities to adopt targeted and sectoral workforce development strategies. One promising effort is New Orleans’s Economic Opportunity Strategy, which aims to recruit, train, and connect many of the city’s 35,000 jobless black men with jobs coming online at its major anchor institutions. Cities can also unleash talent by knocking down hurdles to employment. Passing “ban the box” policies that remove questions about prior convictions from job applications and creating municipal ID cards that help immigrants access financial and other services are key strategies.

Leverage public spending, investment, and planning as a force for inclusive growth.

While cities do not control all of the policy levers needed to move toward equitable growth, they can leverage their land use planning and zoning powers, procurement, and infrastructure investments to connect unemployed and underemployed residents to good jobs and transform disinvested neighborhoods into resilient “communities of opportunity.” The upturn in market activity presents cities with opportunities to implement classic equitable development tools — local hiring, community benefits agreements, permanently affordable housing, living wages, etc. — to ensure long-term residents benefit from publicly-subsidized development and can stay in their neighborhoods as they improve. Cities must also innovate new tools — like San Francisco’s new Retail Workers Bill of Rights — to turn low-wage jobs into jobs that support strong families and strong communities.

Now is the time for cities to lead on inclusive growth. Please join us at the 2015 Equity Summit October 27-29 in Los Angeles to explore these and other strategies for building “All-In Cities,” and sign up for our newsletter for regular stories about what works for equitable growth.

About the Author: Sarah Treuhaft is Director of Equitable Growth Initiatives at PolicyLink. She leads the organization’s work to advance racial and economic inclusion as an economic imperative and coordinates the development of the National Equity Atlas. You can connect with Sarah on Twitter @streuhaft.

How LinkedIn Can Help Your City Match Jobs with Trained Workers

This is a guest post by Nicole Isaac. This post is the second installment in a series focused on NLC’s 2015 Cities and Unequal Recovery report, which highlights the findings of our 2015 Local Economic Conditions survey.

Skilled workers, like this engineer maintaining the gas turbine of a power plant generator, are in high demand - but cities need more effective ways of connecting with them. (Getty Images)

Skilled workers, like this engineer maintaining the gas turbine of a power plant generator, are in high demand – but cities need more effective ways of connecting with them. (Getty Images)

While some contend that the United States economy may be impacted by a skills gap, at minimum, researchers have found that there is a skills mismatch between the available jobs and the majority of the trained workforce to fill these jobs.

According to a recent McKinsey Global Institute report, in countries around the world, 30 to 45 percent of the working-age population is unemployed, inactive in the workforce, or working only part-time. In the United States, the United Kingdom, Germany, Japan, India, Brazil and China, this equates to 850 million people. In the United States alone, there are approximately 20 million people who are unemployed, underemployed, or marginally attached to the workforce, yet there are 5.4 million available jobs just waiting to be filled by people with the right skills.

We’re seeing these skills mismatch trends across American cities today. For example, the National League of Cities’ Cities and Unequal Recovery report suggests that the “skills gap” is the most common concern facing local economies, with 21 percent of cities reporting an increase in the gap over the past year, and exacerbated by the lack of coordination across leading partners for the respective components of workforce development.

This is a real challenge – and, given the number of available jobs and a recovering economy, a significant opportunity for cities across the country. As the report notes, “cities are rising to the challenge and embracing the opportunity by creating collaborative, systemic workforce development approaches to not only improve the local talent pipeline, but also to open communications with employers about assessing needs and improving hiring practices.”

Working with local, state, and international levels to address the challenges around skills, both in supply and demand, is strongly aligned with LinkedIn’s vision to create economic opportunity for every member of the global workforce. We work towards this objective each and every day through partnerships with cities to address workforce issues with LinkedIn’s technology and insights from our Economic Graph. We know firsthand that online connectivity allows for faster, better job matching; smarter labor and educational policy making; more efficient hiring and skills assessments at companies; and overall economic improvement in developed and emerging countries.

That is why, in February, we worked on New York City’s Tech Talent Pipeline program, a $10 million initiative meant to train New Yorkers for high-tech jobs. Together, we analyzed aggregate LinkedIn data from more than three million LinkedIn members in the New York City region and 150,000 NYC-based businesses to provide Tech Talent Pipeline with insights on the current state of the city’s tech industry. Using the data, the city can determine how to strategically invest their resources to create the greatest economic impact.

In June, we announced a partnership with the Markle Foundation called Rework America Connected. This partnership will provide an online destination that connects every sector of the labor force within Colorado and Phoenix, leveraging the job seeking and skills matching capabilities of LinkedIn. Through greater transparency among employers, educators, and job seekers, we’re aiming to create greater economic opportunity for the middle-skilled workers of Colorado and Phoenix.

We’ve been working with the National League of Cities and local governments and other stakeholders to identify and support workforce strategies for the jobs of today and tomorrow. Specifically, three of the cities recognized by the NLC – Philadelphia, Salt Lake City, and Nashville – were recently highlighted as part of the TechHire initiative for their focus on training workers for today’s in-demand tech jobs. LinkedIn is partnering with Philadelphia employers, city officials and non- profits to assist with skills alignment in the city. In Nashville, we are working with the Nashville Technology Council to better prepare their curriculum with business needs. Finally, in Salt Lake City, we have been working with the local economic development teams on providing individuals with access in-demand jobs.

Our overall goal in working with cities is to provide individuals with greater economic opportunity, and we’re planning to take the lessons learned from these current initiatives and apply them more broadly in other cities and regions. These public private partnership models are one mechanism by which cities can utilize innovative approaches to age-old problems– through creating more efficient data-sharing models and leveraging the resources of private sector partners to impact communities now.

About the Author: Nicole Isaac is the Head of Economic Graph Policy Partnerships at LinkedIn.

How to Build a New Type of Urban Practice: Analyzing NLC’s Economic Indicators Report

This is a guest post by Ben Hecht. This post is the first installment in a series focused on NLC’s 2015 Cities and Unequal Recovery report, which highlights the findings of our 2015 Local Economic Conditions survey.

If we want to see dramatically better results, we need new ways of solving the complex problems facing American cities. The findings from NLC’s 2015 Local Economic Conditions survey highlight three opportunity areas where we can focus our attention to catalyze lasting change.

(photo: Bill Dickinson)

Many findings in the 2015 Local Economic Conditions report, recently published by the National League of Cities (NLC), mirrored what we at Living Cities are seeing in the field. We believe that the following three areas, highlighted in the report and below, are particularly important to understand and harness if we are going to build a new type of urban practice that gets dramatically better results for low-income people in cities:

Entrepreneurs, Small Business, and the Rise of ‘Urban Serving Businesses’

The NLC’s finding that “new business startups and business expansions are driving improved economic health in cities” couldn’t be more true. And it’s different than in other recoveries. For example, in our Integration Initiative sites in Albuquerque, N.M. and New Orleans, civic leaders are intentionally tapping into the potential of local entrepreneurs of color and unique contracting opportunities to build growth businesses and to get low-income people and people of color into jobs, especially at a sustainable, living wage. Encouragingly, the Kauffman Foundation recently selected Albuquerque as part of a new project to learn about and identify the best ways to build a local ecosystem to support these emerging entrepreneurs.

Relatedly, we’re seeing the rise of what we’ve termed ‘Urban Serving Businesses,’ structured as social enterprises and otherwise, that are building their businesses in cities, creating jobs and often delivering products and services that are improving the lives of low income people and the communities in which they live. Accelerators like Tumml and participants in efforts like Code for America and Venture for America are great examples of this trend. This is an area of opportunity for cities, and one that Living Cities and our partners are exploring on the job creation front. We’re about to undertake a landscape scan, in partnership with Deutsche Bank, to understand the state of that emerging sector, the ecosystems that currently exists to support them, and the gaps that inhibit their growth and long term success. We’re also interested in learning if a collaborative like Living Cities can play a role in that ecosystem, and what that role could look like.

Addressing the “Skills Gap” Problem from Cradle to Career

Yet, even as businesses grow, we’re still seeing that educational attainment and workforce preparation remain a challenge. As the NLC study found, the misalignment between skills available in the community and the needs of businesses is worsening. This reality is part of why we are a big supporter of the StriveTogether Network, where we’re learning about and testing promising solutions to fixing the skills gap permanently by re-engineering the systems that are failing our kids, from cradle to career. We’re particularly encouraged by the recent announcement of the six sites selected for funding from Strive’s Cradle-to-Career Accelerator Fund. In each site, leaders from the public, private, philanthropic and nonprofit sectors have come together to achieve needle-moving change across the cradle to career continuum, from readiness for Kindergarten to college completion and securing of a good job. They are using data for continuous improvement, disaggregating by race and income, and working to re-direct dollars from approaches that aren’t getting results to those that do. More than two dozen other sites are primed to learn from them and follow in their footsteps.

Innovative Affordable Housing Solutions: Looking the Problem with Fresh Eyes

Finally, the NLC’s study confirms what we are reading about in the papers and on social media every day. Despite “rising residential property values,” the “lack of affordable housing is a major concern facing cities.” We’re seeing communities across the country realize that the tried-and-tested tools that they’ve long relied on to attack the problem are grossly insufficient to address current conditions. That has catalyzed places like San Francisco and Boston to develop new approaches to building market-rate, mixed income, and affordable housing for their residents. In Boston, for example, the Mayor’s Innovation Team (i-team) is tackling the city’s affordable housing challenge in new and creative ways by helping agency leaders and staff through a data-driven process to assess problems, generate responsive new interventions, develop partnerships and deliver measurable results.

NLC’s new report highlights exactly the areas where we need to focus our attention. It provides further fuel for the argument that we need new ways of solving many of these old problems if we want to get dramatically better results. There are many promising solutions out there — in Albuquerque, Boston, Cincinnati and beyond. We all need to help them to succeed and to move them from the periphery of practice to the mainstream.

About the Author: Ben Hecht  was appointed President & CEO of Living Cities in July 2007. Since that time, the organization has adopted a broad, integrative agenda that harnesses the collective knowledge of its 22 member foundations and financial institutions to benefit low income people and the cities where they live. You can reach Ben on Twitter @BenHecht.

 

An Interview with NLC Executive Director Clarence Anthony on Race, Equity & Leadership

Clarence AnthonyNational League of Cities CEO & Executive Director Clarence Anthony, seen here speaking at NLC’s Congressional City Conference in March. (Jason Dixson)

The tragedies that have occurred in Ferguson, New York City, Baltimore, and other communities throughout America have rightly sparked conversation about the social, cultural, racial and economic factors that affect the everyday lives of city residents – particularly minorities, at-risk youth, and the poor. What can cities do to promote equality and economic opportunity for people of all races, ethnicities, ages and economic backgrounds?

When tragedies like this occur, it not only erodes the relationship between the police and the community, it highlights the fact that there is a growing economic disparity that city leaders in America must recognize and address. High unemployment rates and low graduation rates among citizens in cities, towns and villages shows that certain neighborhoods have prospered while others have not. It’s important that city leaders understand that you have to engage with, and design initiatives for, all constituents in every neighborhood.

For example, city leaders must focus on creating vibrant downtowns while developing inclusive and affordable housing in neighborhoods. This type of approach to public policy will create more engaging cities where citizens can live, work and raise their families within the community that they call home. One way we can accomplish this is to create incentives so that the private sector will hire from within the community. When city leaders promote this type of growth, cities benefit and residents become vested in their community.

Cities should also examine the appointment process for city advisory boards and councils. For example, a planning and zoning commission that doesn’t reflect the ethnic, racial or gender diversity of the city is not truly representative of that city. From parks and recreation departments and advisory councils to tourist development councils and workforce boards, every policy board that advises the elected leadership should represent the diversity of that city. It can be done, but you’ve got to be very strategic and intentional, and have a real commitment to making sure that every segment of the population is represented.

These are just a few of the concrete steps that cities can take to ensure that their communities are equally represented in government. If a community is under-represented, and its needs are not served, then its residents will not be vested in the city as a whole. They won’t feel like the city is their home. And then you’ll see the tragic events that have happened in countless cities across the nation continue to occur. All of these cities have people who feel that they are not part of a community; that they are not “real” citizens with a voice in government. And they will find other ways to make their voices heard.

So there can’t be a disconnect between municipal authority and the people it represents.

You have to have that connection. You have to include them in the governance process, in the community process. I was just at a conference in Philly – Cities United – and it had a panel of young African American men, and their message was “Don’t talk at us; talk to us, and with us.” Many of them were in their mid-twenties, and public policy and programs are being designed for them – but without their input. That has to change. You have to include them in the development of the community in which they live.

The root causes of the recent tragedies are complex and nuanced. Two distinct events consistently stand out, however: the death of a young black male as a result of an interaction with police, and the violent public response that subsequently occurred. What steps can city leaders and local elected officials take to address the potential for these tragedies to occur in their cities?

There has to be an acknowledgement that there are still challenges in communities throughout America when it comes to race relations – specifically, race relations with police departments. Something must occur to strengthen trust between the minority community and police in cities throughout America. At this point, unfortunately, we are starting to see police being targeted in reprisal; community trust continues to erode. We must start a conversation of understanding and partnership – and that conversation must be led by city leaders. The elected officials who are members of the National League of Cities are exactly that type of group; they’re city leaders who strive to create a bridge between police and communities, so that real conversations can occur.

In addition, I think city leaders should start to re-examine – and implement, wherever possible – community policing policies that provide for a real understanding of the communities they serve; there must be understanding to have a relationship with the community. Once you have that relationship, you’ll be able to engage. So city leaders must be able to look at how they’re investing their resources and what kind of progress is being made throughout the community as a whole. When city leaders acknowledge that they have diversity in the community, and they create opportunities to bring people throughout the community together, that creates relationships and real conversations.

This is happening in some communities, but we need it to happen everywhere. The questions involving black males in America focus on more than just police relations – they take into consideration the high unemployment rate, the low high school graduation rate, and the level of poverty that exists in cities throughout America, among other factors. The takeaway is this: city leaders have to focus on improving engagement and relations in their communities. We have to look at how we provide creative and innovative techniques to reach the African American community so that we can achieve our goal of making true connections that are lasting and productive. It will take hard work and partnerships with our educational system and the private sector – and on the law enforcement side, those same partnerships need to develop, focusing on education and training on how to value diversity and how to communicate across cultures.

The change we need will not occur overnight; it will take patience and time to build the trust that our cities deserve. We need to spur conversation, in an effort to reach a certain level of trust and understanding between police and communities. The National League of Cities is quickly becoming a nexus of conversation about race, equity and leadership in American cities. That conversation is long overdue.

Do you see the Cities United event in Philadelphia as one of the forums for that conversation?

Yes. I think Cities United is not only a forum for that conversation, but an excellent tool to help elected officials get the technical expertise they need to deal with the larger issues involved. For example, Cities United provides consultants that help city leaders respond to the challenges faced by American cities that we’ve discussed today.

How does the National League of Cities’ lead that conversation?

Our REAL initiative is a very important tool and resource for city leaders. It’s designed to help them address racial tensions in their communities and create meaningful conversations around racial diversity and equity issues. REAL stands for Race, Equity And Leadership – and the piece that we really have to elevate is the piece on leadership, because our members are the ones who are responsible for governance in American cities.

Earlier, you posed the question, “What should city leaders do if something like this happens?” The challenges we’ve spoken about today are especially difficult challenges for any city leader to face, and it’s the responsibility of the National League of Cities to develop best practices around these issues, give city leaders the space to discuss the challenges they face with a network of peers, and then provide them with the tools they need to manage the situation if something like what happened in Baltimore or Ferguson occurs in their community.

I wish I could sit here and tell you that this will be the last time that tragedies like these will occur. But the reality is that, until a systematic strategy is in place to bring about full economic participation as well as improved relations between police and the communities they serve, these tragedies could happen in any city in America. City leaders are standing up and saying, “we need to fix these issues before something like this occurs in our community.” That’s a conversation that needs to be had. We’re going to start seeing city leaders begin to deal with the injustices, the inequality, and the creation of opportunities for all of their citizens.

And that’s what we have to do: we have to build a city in which everyone is a participant, where all citizens feel like they can raise their kids, and live and work and play in a safe and vibrant environment. You don’t call a place home when you don’t have a system of governance that supports you. Right now, I think that’s one of the biggest challenges American cities face. But if we can rise to that challenge, I think we’ll have more people out on the streets saying “Hey, this is our neighborhood; we own this.” We have to create cities that all citizens can call home.

Paul Konz headshotAbout the Author: Paul Konz is the Senior Editor at the National League of Cities.