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Workforce Development and Smart Growth:

Opportunities for Linking Movements


This second edition was commissioned by the Funders’ Network for Smart Growth and Livable
Communities.* It was first written in 2000 by our collaborating authors, Greg LeRoy and Sara
Hinkley of Good Jobs First (GJF), and updated in 2005 by GJF’s Greg LeRoy 1 and Mafruza
Translation Paper Khan2 of the Pratt Institute Center for Community and Environmental Development.** It is the
#2
second updated edition in a series of papers sponsored by the Funders’ Network to translate the
impact of sprawling patterns of development and urban disinvestment on our communities and
Edition environment and to highlight the opportunities that could be created by smarter growth policies
#2
and practices. Other issues addressed in the translation papers include regional equity, air quality,
energy, water, community development, arts, health, biodiversity, children and families,
education, aging, transportation, agriculture, civic participation, and open space.

Abstract
The paper also details the widely varying
* The Funders’ Network works T his paper describes the implications of
sprawling patterns of development from
the perspective of workforce development
economic forces that are shaping the
geography of individual industries. For
to inspire, strengthen, and
expand philanthropic leadership and organized labor and articulates why example, the same “big box” retailers that
and funders’ abilities to support funders who seek to help workers gain draw opposition from rural conservationists
organizations working to family-supporting skills and jobs should also are also the nemesis of unionized grocery
improve communities through consider becoming involved in the emerging and warehouse workers. Much subtler are
better development decisions movement for smarter growth policies and the migrations of manufacturing and health
and growth policies. For more practices. The paper care work, but both
information, visit details how sprawling fuel sprawling
www.fundersnetwork.org. development and
patterns of
development reduce reduce job quality.
** Good Jobs First (GJF) is a
opportunity for low- Each sector presents
national resource center
promoting corporate and skill workers and unique opportunities
government accountability in contribute to the and challenges, but
economic development and geographic many of the same
smart growth for working concentration of forces arrayed against
families; it provides research, poverty. Indeed, it job development also
training, consulting and argues that unchecked, contribute to sprawl.
communications. Good Jobs sprawl will continue to Also explored is a new
First is based in Washington, undermine the basic lens on the geography
D.C., with project offices in systems necessary for
New York and Chicago. For
of work created by
residents of inner disclosure of
more information, visit
cities and suburbs to company-specific
www.goodjobsfirst.org.
gain skills and jobs. economic
The Pratt Institute Center for Conversely, it development
Community and Economic describes how smarter growth policies incentives, complementing existing
Development (PICCED) works and practices can help keep jobs, education, scholarship on public goods such as roads
for a more just, equitable, and and training accessible to core-area workers. and sewers. Such information allows the
sustainable city for all New For purposes of this paper, “core area” refers public to track job relocation and assess the
Yorkers, by empowering not only to central cities but also to inner- resulting impact on job access and
communities to plan for and ring suburbs and other mature urban areas commuting patterns. Today’s “business
realize their futures. For more experiencing employment stagnation or climate,” with its premium on skilled labor,
information, visit job flight.
www.picced.org.
clearly argues for a massive reallocation of

© Copyright 2005 by the Funders’ Network for Smart Growth and Livable Communities
resources to improve adult-worker skills, to see a union density/urban density
which would disproportionately benefit connection. The national AFL-CIO adopted
core-area workers and create an incentive a resolution at its December 2001 convention
for employers to reinvest there. condemning sprawl and urging its affiliated
unions to weigh-in on the smart growth
The paper also posits that organized
debate. As active partners in both regional
labor has a very large stake in the sprawl
workforce investment boards and myriad
debate, and that unions are increasingly aware
workforce development projects, unions are
of that fact. (For a map of unions’ self-
in a key position to facilitate metropolitan
interests in smart growth, see Talking
alliances for equitable urban revitalization.
to Union Leaders About Smart Growth, at
www.goodjobsfirst.org/pdf/talking.pdf. Finally, this paper observes that a
For an analysis of how labor federations work “community-based regionalism” is emerging
for urban reinvestment, see Labor Leaders as and involves new coalitions, some including
Smart Growth Advocates, at organized labor. It argues that funders have a
www.goodjobsfirst.org/clc_release.htm). critical role to play in linking the smart
While unions such as the United Food and growth and workforce development
Commercial Workers have long opposed “big movements. Navigating the difficult waters of
box” retail projects, and the Amalgamated “new tricks” and “old dogs,” funders should
Transit Union has long advocated for better be looking for promising new approaches as
public transit, many other unions are starting well as proven coalition players.

What is Sprawl?

Sprawl is the result of public decisions that sectors, moving work further from
cause land use patterns to be characterized by concentrations of low-skilled, unemployed
low-density development, strict separation of workers. Incentivized by public funding of
residential and non-residential property, high new highways, employer decisions to locate
spatial separation between jobs and housing, on the fringe of metro areas, often away
and auto-oriented land use that from public transit, are a key cause of the
denies commuters a choice about problem. The lack of affordable suburban
For the geography of work, sprawl how to get to work. These housing and adequate public transportation
means the decentralization of entry- phenomena make most new jobs in the suburbs effectively cuts central city
level jobs in the manufacturing, inaccessible to workers who rely residents off from regional labor markets.3
wholesale, and retail sectors, moving on public transit; hence, sprawl is Public agencies seek to address this spatial
work further from concentrations of associated with increased mismatch with transportation and housing
low-skilled, unemployed workers. concentrations of poverty in older programs. Examples include the Job Access
areas. For workers who do have and Reverse Commute Program (JARC),
cars, sprawl increases their established under the Transportation Equity
dependence on automobiles and Act for the 21st Century Act (“TEA-21”),
average driving times. Sprawl is also which specifically provided missing
associated with tax base decline in core areas transportation services for Temporary
and resulting neglect of central city Assistance for Needy Families (TANF)
infrastructure and services, as well as fiscal recipients and low-income workers to get to
strains produced by rapid growth in newly
work. The JARC Program includes transit
developing fringe suburbs.
options to suburban jobs and extended
For the geography of work, sprawl means service in the evenings and weekends for
the decentralization of entry-level jobs in urban locations as well. During the
the manufacturing, wholesale, and retail reauthorization process of the federal

2 Funders’ Network for Smart Growth and Livable Communities


Introduction: What Does The Need for Better
transporation bill, transit advocates urged

Workforce Development Jobs Analysis


the continuation of the JARC program,

Have to Do With
with higher funding levels, and sought
opportunities to replicate the program’s
Smart Growth?
To date, environment/open space
innovative features on a wider basis. In the and transportation advocates have
new SAFETEA legislation (signed by largely driven the smart growth
President Bush in August 2005), Congress debate. Although the changing
provided $852 million over six years for the Ensuring that urban residents have geography of work in America is
JARC program, but allocated the funds to fair access to good jobs—and the integral to the proliferation of
states for distribution to areas within the ability to qualify for them—is the urban sprawl, the issue of jobs and
state (i.e., areas over 200,000 in population; goal of the workforce development workforce development is an under-
areas with 50,000 to 200,000 in movement. Advocates for smarter developed aspect of the sprawl
population; and rural areas), rather than growth, especially those coming from analysis.
through a federal discretionary program. an urban equity perspective, also see
New requirements were added to encourage The movement for smarter growth
workforce development as a central
more coordination among public, private, policies and practices would be
issue in stabilizing neighborhoods
and nonprofit transportation providers and strengthened by a better jobs
and stemming urban flight. But
with certain other federal transit programs. analysis and leadership from those
despite these common interests, the
In addition, the federal matching share was who understand current trends in
two movements seldom organize
raised to 80 percent, up from the TEA-21 workforce development. Left alone,
together on these deep systemic links.
share of 50 percent. Other efforts to provide environmentalists and other
access to jobs for low-income workers At stake is nothing less than the stakeholders might define the jobs
include requiring TANF coordination plans future of American cities, and recent agenda in ways that are not in the
to include transportation and considering trends do not bode well. The best interests of those who have
transportation issues in funding for projects decentralization of manufacturing been isolated from new
under the Workforce Investment Act. and retail employment is a decades- opportunities created by growth. For
long trend, but for the last two example, strategies driven only by a
Scholars see sprawling patterns of decades, about half of U.S. desire to limit suburban growth and
development as the cumulative result of many metropolitan areas have also seen save open space could actually harm
contributing factors, including: some “edge cities” capture jobs in value- core-area residents by fueling
people’s preference for large-lot/low-density added services such as finance, gentrification and displacement.
housing; white flight from urban areas with insurance, and real estate—the Similarly, unions that still view
minority residents; lack of regional planning; traditional “agglomeration “smart growth” as “no growth in
cities competing for development instead of economies” of the Central Business sheep’s clothing” need to review new
cooperating; redlining (or geographic and District (CBD).4 evidence that indicates that smarter
racial discrimination by lenders and insurance growth real estate development
companies); crime or perceptions of it; Now, research suggests that new
policies actually create more
contaminated land or “brownfields” in core technology will further favor
construction jobs than sprawling
areas; restrictive suburban zoning that exurbs and small cities close to
patterns of development. On the
effectively excludes multi-unit dwellings and major metro areas.5 As one survey
other hand, if development
mixed-use development; federal capital gains concluded: “[T]rends suggest that
strategies include explicit ways to
tax rules that used to encourage people to buy non-central business district
target and link skills-development
ever-larger homes; decades of low gasoline portions of many central cities and
and job creation to workers who
prices; declining quality of central-city their inner suburbs will continue
need them most, inner-city
schools; and massive federal highway to be the weakest part of
neighborhoods can be stabilized,
spending coupled with comparatively little metropolitan economies for at least
the tax base for schools can be
funding for public transportation. the next two decades and that their
preserved, and transit can remain a
relative competitive position will
viable commuting choice—a pro-
get worse without economic
worker, pro-environment solution.
development policies.”6

Workforce Development and Smart Growth 3


That pessimistic outlook is driven by the Healthy public schools are the primary
spatial mismatch between jobs and foundation of successful workforce
unemployment and increasingly by the development. But because schools are typically
growing skills mismatch. With 40 percent of the service that needs the most dollars from
jobs created between 1998 and 2008 local tax revenues, core-area schools suffer
projected to require at least an associate’s disproportionately when sprawling patterns of
degree, and low-skill jobs continuing to development erode the core-area tax base. As a
suffer long-term wage declines, core-area result, the most fundamental work preparation
workers with insufficient skills become ever program, kindergarten through 12th grade, is
less able to obtain family-wage incomes.7 the public service most vulnerable to sprawl.
The cumulative result is a long-term trend When core communities are disinvested and
towards greater concentration of poverty in suffer tax-base erosion, schools suffer in
core areas, disproportionately affecting many ways: class sizes grow; amenities are
families of color, as the growth of good jobs eliminated; teacher salaries lag behind
moves ever further away from the workers regional averages (making it hard to attract
who need them most. Especially for low- teaching talent); and capital improvements
skill workers and those leaving welfare, and maintenance are deferred. Families that
proximity to jobs matters.8 are able to leave (disproportionately white)
then respond rationally (in economic terms)
Unless this flight of jobs, residents, and tax
and move to higher tax-base suburbs with
base is reversed, urban workforce
healthier schools.
development efforts can only
amount to swimming upstream. The loss of such families causes further
Without the tax base for adequate
Without the tax base for harm to core schools: it makes the student
education and training, and without
adequate education and training, body less diverse; it may cost schools
access to a healthy, growing jobs base,
and without access to a healthy, privately-initiated activity such as in-class
core-area families will remain trapped
growing jobs base, core-area enhancements or extracurricular activities;
in poverty.
families will remain trapped in and it harms home values, which in turn
poverty. Efforts to facilitate means either less property tax revenue or
reverse commuting, such as higher rates for families that stay. The
JARC, are important, but such resulting degradation of education leaves
projects can hardly match the sheer scale of core-area graduates less attractive to
the sprawl trend. employers and becomes one more “push”

How Sprawl Undermines


for companies to leave, often relocating in a

Basic Workforce
sprawling way.

Development Systems
A declining tax base creates a systemic web of
problems for city governments that harm
In the same way that foundation grants every kind of remedial adult workforce
cannot take the place of America’s social development strategy. It creates pressure to
welfare system, philanthropy likewise cannot reduce public services and defer infrastructure
replace the basic public systems that prepare maintenance; it lowers the municipal credit
workers to compete for good jobs. But by rating and raises borrowing costs; and it
promoting smarter growth policies and forces tax rates to go up, which in turn drives
practices, funders can address those systemic more businesses and homeowners away.
problems by shoring-up the tax base for Higher transportation costs caused by the
public schools, community colleges, resulting spatial mismatch divert more
vocational education, and other adult resources from other household needs,
education programs such as the Graduate making transportation the second highest
Equivalency Degree (GED), English as a cost item for the average household, after
Second Language (ESL), and adult literacy. housing. Auto dependence disproportionately
affects the poor and the working poor. It is

4 Funders’ Network for Smart Growth and Livable Communities


estimated that households in the lowest most labor-intensive manufacturing has
income quintile spend 40 percent of their been relocated to low-wage foreign
budgets on transportation.9 countries. Much of the remaining
production has been automated with the
Fewer businesses mean fewer local job
proliferation of microprocessing
opportunities for workers, fewer employers
technologies such as computer numerically
to which training programs can be attached,
fewer role models for young workers, and controlled machine tools. The result: unit
greater segregation by income. Even though labor costs in U.S. manufacturing are
most funding for adult training programs is virtually flat since the mid-1980s11 and skills
not reliant on the local tax base, when matter more than ever for workers seeking
training occurs in a neighborhood that lacks factory jobs.
job growth, the new connections to work Besides migrations within regions, some
actually happen somewhere else. manufacturing sectors are undergoing

The Jobs and


massive geographic realignments, such as

Geography Challenge
the new auto belt with more than 450 parts
and assembly plants built since the mid-
1980s, mostly in rural Kentucky, Tennessee,
The challenges faced by job practitioners southern Indiana and Ohio, Alabama,
are daunting. In many cases, the flight of Mississippi, and South Carolina. Such
workplaces to suburban, exurban and even plants are overwhelmingly located in areas
rural areas is a major obstacle—the same without public transit access. Many have
problem opponents of sprawling been found to have workforces in which
development face. The following sections minorities are underrepresented, and a few
detail how the geography of work is of the foreign-owned “transplant” auto
changing in selected sectors of the assembly plants have been charged with
U.S. economy. employment discrimination, such as
Manufacturing defining recruitment territories that
Factory employment has dropped sharply excluded urban areas with
since 2000, from more than 18 million to a minority populations.12
little more than 14 million as of mid-2005, The mobility of manufacturing capital is a
or barely 10 percent of the overall U.S. strong argument for strategies that build
workforce, as trade liberalization has taken and reinforce a company’s loyalty to the
effect and the U.S. trade deficit has ballooned community. Examples include the “cluster”
to record levels. Besides migrating offshore, strategy now pursued in many regions,
manufacturers migrate to suburbs and exurbs emulating the northern Italian model
for the same “push” reasons as other popularized in the 1980s. This strategy
businesses (e.g., crime, taxes, and services), seeks to build regional linkages by helping
and for industry-specific reasons such as all firms in a given sector get better at non-
production processes which favor “large competitive activities such as training,
footprint” single-story plants, lack of available quality control, or export promotion.
urban space due to development and/or land Chances for success are improved by
contamination, union avoidance, and access targeting industries that tend to remain
to younger workers with lower benefit costs. close to cities, such as printing and
But U.S. manufacturing jobs continue to publishing, some food processing, and some
generate weekly earnings about 20 percent
high-tech sectors (such as the medical
higher than non-manufacturing private-
instruments sector in the Twin Cities) that
sector jobs.10
have close ties to research and development
Factory labor costs can be higher in the facilities. Two of the most active employer
suburbs, but they are of declining groups promoting regional policies for jobs,
importance. Due to trade liberalization, housing, and transit are the Silicon Valley

Workforce Development and Smart Growth 5


Manufacturing Group in Santa Clara concessions because Wal-Mart had announced
County, Calif., and Chicago Metropolis its intention of aggressively entering the
2020 (which includes many of the region’s region’s market. The pattern is similar
largest manufacturers). elsewhere; most unionized grocery jobs are in
urban chains, facing market-share loss as big-
There have been numerous efforts since the
box chains penetrate metro areas from the
1980s for industrial retention; labor-
exurbs inward.
management training projects such as the
Wisconsin Regional Training Partnership Retail jobs—union or not—merit the
also reinforce geographic ties. Yet the sharp attention of urban activists because of their
decline in factory employment is a serious disproportionate role as a source of jobs for
impediment to such partnerships, as layoffs low-skill workers. The loss of core-area retail
force unions and communities to cope with jobs may correlate more directly with
dislocated workers instead of planning for increases in poverty than the decline in other
future skills needs. kinds of jobs.15 Because of their importance to
Retail/Wholesale low-skill workers, retail jobs’ quality is of
particular significance. In a recent analysis of
Anti-sprawl campaigns focusing on Wal-
several major retail projects subsidized by the
Mart and other “big box” retailers have
city of Los Angeles, the Los Angeles Alliance
received extensive media attention and are a
for a New Economy (LAANE) and the
strong example of the potential for coalition
University of California, Los Angeles (UCLA)
work between unions and advocates for
found that more than half of the jobs paid
smarter growth. These retailers can threaten
wages too low to keep a family of three off of
rural lands and small-town merchants.
public assistance.16
Typically accessible only by auto, they
increase congestion and replace shops Developments in wholesaling also present
accessible by transit, reducing shopping an opportunity for coalition building.
opportunities for people without cars. Although it provides only a third as many
jobs (5.7 million) as retailing, wholesaling
Labor activists have opposed such retailers
has substantial unionization and better
because they undermine unionized jobs.
wages, averaging $686 per week. Generally
Many grocery chains are at least partly
tied to urban areas but able to locate on the
unionized, making food retailing a bright spot
fringe, warehouses locate for cheap land and
in a notoriously low-wage sector. The retail
interstate access.
sector employs more than 15 million workers,
but the average retail job is part-time (average In recent years, a hyper-efficient method of
workweek at 29 hours), with very low average grocery-warehousing known as “cross-
weekly earnings of $381.13 Unionized grocery docking” has arrived from Europe. Based
workers (about one in five) earn almost a third upon a system of huge regional warehouses,
more than their non-unionized counterparts. located in exurban areas close to interstate
Unionized workers also receive an even bigger highways, cross-docking allegedly favors
fringe-benefit premium; the average suburban stores (which are able to purchase
contribution to employee health insurance large shipments with the lowest shipping
premiums is 150 percent higher for union costs) and harms inner-city stores and their
members than for retail food industry workers shoppers.17 In a model campaign in the
who are not.14 Indeed, the issue of health care Buffalo, N.Y., area in 1996, a Teamsters
costs provoked a very long strike by the local formed a coalition with inner-city
United Food and Commercial Workers at churches, civic leaders, and merchants to
three grocery chains in Southern California win a “code of conduct” with a major
over the winter of 2003-2004, and the grocery holding company. The agreement
settlement there is affecting grocery contracts reduced the impact of cross-docking on
nationwide. The chains claimed they needed both workers and consumers.

6 Funders’ Network for Smart Growth and Livable Communities


Health Care unionized, which is only in some urban
Health care employs more than 12 million cores, airport areas, gaming centers, and
workers, and access to hospitals and clinics amusement parks. Unionization rates and
is critical to a viable neighborhood. In some therefore job quality in these sectors have
core areas, health care becomes the largest suffered with the proliferation of edge cities
employer by default. But inner cities have and suburban office parks and hotels.
been disproportionately affected by hospital In a few cities, such as San Francisco and
closures. Those shutdowns are driven by Las Vegas, the Hotel Employees and
families lacking insurance coverage (who are Restaurant Employees union has forged
more heavily concentrated in core areas), very successful joint training programs with
and by managed care and Medicaid employers that enable workers to develop
reimbursement cutbacks. Indeed, some lifelong skills and enable hotels to provide
hospitals reduce their intake of uninsured premium service. In both cities, the union
emergency patients when they relocate off has a high rate of density. The Service
of the public transit grid. Combined with Employees International Union’s “Justice
outsourcing of many support services, the for Janitors” campaign has newly enabled
effect has been to drive more health care workers in cities such as Denver,
dollars—and good job opportunities—away Washington, D.C., and Sacramento, Calif.,
from urban cores. to gain better wages and benefits, and it is
One of the most promising sectoral projects also organizing workers in some suburbs.
is in home care and other “direct care” Nevertheless, the big picture is that the
services that primarily benefit elderly and dispersion of the hospitality industry and
disabled persons who lack mobility and office building work means that these jobs
whose geographic density makes it possible are both less accessible to inner-city
for one provider to serve several clients. residents and less likely to be unionized.
Bronx-based Cooperative Home Care Construction
Associates, a worker-owned cooperative, The construction industry and its unions
currently employs more than 780 women of are often, like developers, conservative
color, more than 98 percent of whom were players in land use debates. They are also
formerly dependent on public assistance or politically active about public infrastructure
unemployed. Medicare reimbursement funding, including highway projects. So
cutbacks and Medicaid constraints, although it employs only 7.2 million people
however, continue to constrain job quality. (with high average weekly wages of $752),
The model has been replicated by the the construction industry and its unions
nonprofit Paraprofessional Healthcare have a disproportionately large role to
Institute (PHI) in urban Philadelphia and play in addressing both sprawl and
suburban New Hampshire. The workforce development.
Paraprofessional Healthcare Institute has
worked with related health care training Advocates for smarter growth have
programs in urban Detroit and rural historically failed to woo the building
Arkansas, and is working with home care industry and trades with a positive jobs
agencies in New York City and nursing argument for better decisions about growth
homes in New England, North Carolina, and development. Yet a new study by Good
Jobs First provides evidence that smart
Pennsylvania, and New York.18
growth development actually increases the
Hotel, Restaurant, Gaming, Security number of construction jobs. For example,
and Janitorial more compact building styles (townhouses
Home to some of the nation’s fastest- instead of single-family homes, multi-story
growing job titles, these sectors are retail instead of single-story) use more labor
overwhelmingly low-wage except when than sprawling forms. Metropolitan areas

Workforce Development and Smart Growth 7


with growth management policies in place for 1998-2003, TEA-21, grants cities
show much higher rates of construction greater flexibility on spending for transit
activity per new residents than “business as and highways, but if job growth is not on
usual” areas, especially due to higher levels the grid, transit systems cannot capture
of rehabilitation work. And a “fix it first” economies of scale needed for reinvestment
agenda for infrastructure such as roads uses and expansion. A recent 50-state survey of
more labor, especially because it does not economic development subsidy programs
involve buying land and surveying it and by Good Jobs First found that not one
engineering it for new rights of way.19 single state effectively coordinates its
The embryonic “back to the city” economic development spending with
construction trend in some core areas transportation planning.21 That is, even
threatens to gentrify inner-city though the average state today has 30
neighborhoods and dislocate current different economic development incentive
residents. Therefore, efforts to recruit more programs, not one even encourages—much
people of color and women into the less requires—that the jobs being subsidized
building trades merit attention and support. are accessible to workers who cannot afford
Positive examples include the to own a car.
Apprenticeship Opportunities Project As businesses struggle to attract workers in
(AOP) in Seattle20 and the Good Jobs! congested metro areas, some are voting with
Partnership in Connecticut. their feet. BellSouth’s decision in 2000 to
Education and Other Public Services relocate 1,500 Atlanta-area jobs to three
MARTA stations received significant media
Government accounts for 21.7 million jobs
attention.22 In 2001, Chicago Metropolis
(including 14 million city and county
2020, a business-civic association created by
workers) and it has historically been a source
the elite Commercial Club, organized 104
of less-discriminatory work opportunity and
skills development for urban workers. But by area businesses to endorse the “Metropolis
many measures, sprawling development also Principles.” These principles state that when
is undermining these jobs in core areas. relocating or expanding new facilities,
signatory companies will avoid suburbs that
The erosion of property tax revenues, as practice exclusionary zoning or have poor
outlined above, undermines teaching jobs. public transit access.23 The Metropolis
The result is regional inequities in teacher Principles are, in effect, reverse redlining.
salaries, class size and student performance. Signatories include: Allstate Corporation;
All of the other public service jobs that make Bank One Corporation; Bank of America,
cities attractive places to live—park Illinois; BP Amoco; Goldman Sachs Group,
maintenance, public safety, fire protection, LP; Loyola University Medical Center;
sanitation, and infrastructure maintenance— McDonald’s Corporation; McKinsey and
become subject to cutbacks and job Company; Northwestern Memorial
degradation when sprawling development Hospital; Deloitte & Touche; and Ernst &
erodes the urban tax base. The results: service Young LLP.
cutbacks, deferred maintenance, and pressure
Economic Development
for privatization. Sometimes, the media

Subsidies: A New Lens on the


spotlight hot-button examples such as

Geography of Jobs
perilous 911 emergency-response times.
These reports, in turn, fuel the urban exodus.
Transit jobs are undermined as most new Most scholarship linking public dollars to
job growth occurs off the transit grid, sprawl focuses on public goods such as
reducing ridership and forcing cities to cut roads, schools, and sewers. Now, thanks to
service, reduce crew sizes, and consider grassroots reform efforts by the Minnesota
privatization. The federal transportation act Alliance for Progressive Action, Maine

8 Funders’ Network for Smart Growth and Livable Communities


Citizens Leadership Fund, and Citizens for few “pull” factors usually cited are suburban
Economic Opportunity in Connecticut, economic development incentives (e.g.,
and to bipartisan reforms in Ohio, those land write-downs, property tax abatements,
states have disclosure systems that are tax increment financing, or low-interest
beginning to provide data on the industrial development bonds).
geographic distribution of company-specific
Yet the role of such subsidies has been little
economic development subsidies, including
studied by either academics or the media.
corporate relocations within metro regions.
What evidence does exist is disturbing, such
Minnesota’s economic development subsidy as an analysis of Small Business
disclosure system asks companies to report Administration loans in the Chicago area
when a deal involves a corporate relocation; that found wealthier, outlying areas getting
dozens of relocations have been recorded. But a disproportionate share of loan guarantees,
the state’s legislature has never asked the and a Kansas City Star exposé
Department of Economic Development to that found wealthy suburbs
A 2003 Good Jobs First study, the most
analyze the data to see if subsidies are fueling using incentives to pirate
recent on the subject, found that laws
sprawl. (A forthcoming Good Jobs First study employers from core areas.
governing economic development
will examine several dozen subsidized Gopher “Created to combat sprawl, tax
incentive programs, such as state
State relocations). Maine’s disclosure form breaks now subsidize it,” the
enterprise zones and tax increment
simply asks if the deal involves a relocation. Star concluded. 26

financing, have been weakened in


But the state’s data appear less meaningful A 2003 Good Jobs First study,
many states and no longer meet their
(when translating their results to other the most recent on the subject,
original goals of reducing poverty and
regions), since the state has only one found that laws governing
blight.27 In many cases, in fact, they
medium-sized metro area. Connecticut’s three economic development
end up subsidizing economic
state agencies involved with providing incentive programs, such as
development in affluent areas.28
incentives to businesses write annual reports state enterprise zones and tax
that include relocation data. The reports can increment financing, have been
be obtained by filing a Freedom of weakened in many states and no
Information request. longer meet their original goals
Ohio’s Enterprise Zone Reports provide of reducing poverty and blight.27 In many
company and location-specific data for deals cases, in fact, they end up subsidizing
involving relocation and gives the status of economic development in affluent areas.28
the request as well.24 Although the state of Another 2000 study from Good Jobs First
Ohio has never analyzed the relocation data, found that the Twin Cities suburb of Anoka,
a nonprofit research group, Policy Matters Minn., has made aggressive use of tax
Ohio, has looked at the Zone program increment financing in a way that has fueled
generally and its findings are very disturbing sprawl. Anoka offered free land to lure 29
from the perspective of sprawl and inner-city companies to relocate or expand there; all
revitalization. It found that jobs and came from within the Twin Cities region,
investment attributed to Ohio’s zones are and nearly all from closer to the core. Fifteen
more likely to go to higher-income school came from Minneapolis and its inner-ring
districts than lower-income districts. Indeed, suburbs. Altogether, about 1,600 jobs were
five times as much real property investment relocated, and the net effect was to make the
and twice as many jobs have gone to the jobs less accessible to people of color, low-
highest-income districts, compared to the income households, and families receiving
lowest-income districts in the program.25 public assistance. More than 70 percent of
Surveys that ask employers why they the relocated jobs had been accessible by
migrate from core areas to suburbs typically public transit, but in Anoka, the jobs are no
find that “push” factors dominate the list, longer transit-accessible.29 Policy solutions
such as crime, taxes, declining city services, include “location-efficient incentives,” or a
or lack of land for expansion. Among the rule that to get a development subsidy in the

Workforce Development and Smart Growth 9


future, a project site would have to be equitable access to good jobs.32 First, as a
transit-accessible. That could steer more jobs base-constituency builder, both movements
onto the transit grid and increase suburban need more research on job creation
support for better transit. generated by smart growth policies. The Jobs
are Back In Town by Good Jobs First, is to
For funders who support inner-city access
the authors’ knowledge the first study that
to good jobs, this sprawl analysis offers a
begins to provide evidence that smarter
new organizing blueprint: follow the
growth policies and practices do not reduce
(economic development) money.
the number of construction jobs—that it is
After a Good Jobs First study, A
All too often, public dollars follow
not “no growth in sheep’s clothing.”
Better Deal for Illinois, detailed
Intuitively, many advocates agree that urban
private investment, rather than leverage
two huge cases of state-
revitalization can be a terrific job-generator.
it; a fuller documentation of that history
subsidized sprawl, advocates
But there are precious few numbers.
would help build a consensus for
there—including Chicago
smarter geographic targeting of
Metropolis 2020 and Citizen Also needed is more analysis of subsidized jobs
incentive dollars.
Action/Illinois—began and sprawl. Using state open records laws,
advocating for proposed scholars could create a fuller picture of the
legislation that would target historical geography of economic
development subsidies to areas development spending. For example, one
with an adequate supply of affordable study in the late 1980s found that fully one-
housing and job access via public transit. fourth of a New York state program’s low-
interest loans went to just one county on Long
There is also growing synergy between the
Island, one of the state’s most prosperous
movement for smarter growth and local
areas.33 All too often, public dollars follow
organizing campaigns for living wages and
private investment, rather than leverage it; a
Community Benefits Agreements (CBAs).
fuller documentation of that history would
More than 40 living wage ordinances extend
help build a consensus for smarter geographic
beyond private contractors performing public
targeting of incentive dollars.
services to employers receiving development
subsidies.30 And LAANE, after winning that Policies
city’s living wage law, has pioneered the use of Policies are needed within the economic
Community Benefits Agreements to hold development profession that mirror
developers accountable for specific benefits emerging smart growth best practices on
such as first-source hiring with living wages, land use and transportation. For example,
affordable housing, and open space. The “location-efficient incentives” would grant a
organizing model has since been replicated in development subsidy to companies only
San Jose, Calif., Milwaukee, Wis., when they locate on a public transit grid.
and Denver.31 Such a rule would boost transit-oriented
development and generate new political
support for transit in suburbs; both
Opportunities for Funders
outcomes would make more employers
accessible as workforce
development partners.34
Policies and Research to
Deter Sprawl and Promote
Finally, there is a major emerging issue that
favors both smart growth and workforce
Urban Workforce Development development: the rapidly-shifting “business
climate” debate. Due to the aging of the
Research Baby Boom generation, the growth rate of
There are several promising policy and the U.S. labor force is plummeting. The
research initiatives that would promote growth rate this decade (0.8 percent) is
smarter growth policies and practices and already about half the rate of population
growth and less than a third that of the

10 Funders’ Network for Smart Growth and Livable Communities


gross domestic product. That is, far fewer access to a new supply of qualified labor. By
net new workers are competing for jobs making this “business climate” issue-link,
than in previous decades, and the number is foundations can promote joint work
projected to continue to decline for two between the workforce development and
more decades and then flat line at just 0.2 smart growth movements that will buttress
percent a year. This explains why the 2001- school reform efforts as well.
2004 jobless recovery has not resulted in a New Approaches and Proven Players
much higher unemployment rate, and in
the long run, it means chronically tight The most successful efforts to build regional
labor markets. From an economic movements for smarter growth policies and
development viewpoint, those regions with practices will combine new approaches and
plenty of skilled labor will be the winners. proven players. By new approaches, we
mean that traditional, “turf-based”
This new reality is a strong argument for a community organizing that confines itself
massive reallocation of resources away from to set neighborhood boundaries cannot
subsidies such as corporate income tax convene regional dialogues. Nor can
credits and property tax abatements (which regional organizations such as planning
do nothing to create more skilled labor but councils play such a role if they do not
do harm school funding) and toward move beyond their narrow traditional
workforce development programs that will public-sector audiences.
produce more skilled labor: K-12,
Graduate Equivalency Degrees, English as a The challenge is to build regional organizing
Second Language, adult literacy, and more models that identify the full range of
intensive assistance for workers leaving necessary players in a metro coalition and
welfare. It also strongly suggests that states then challenge those players to escape their
and cities ought to use all non-training historical balkanization by geography, race,
incentives as “carrots” by adopting job class, and sector. Such models require a
quality standards to encourage companies regional analysis of the sprawl problem
to adopt “high road” practices such as informed by the specific self-interests of the
dedicating at least 2 percent of payroll to various groups, which explains how sprawling
life-long skills training and career ladders. development harms them and how smarter
growth policies and practices could help
Many foundations support school reform them. It is more than casting an image of
and training projects targeted to sprawl like a Rorschach ink blot into which
disadvantaged areas. If a massive each viewer sees her own demon; it means
reallocation of public resources occurs, detailing the many aspects of sprawl and
targeted to the neediest workers, it would concretely connecting them to specific
disproportionately benefit core-area constituencies’ self-interests.
workers. That would create a substantial
incentive for employers to reinvest or Yet a good analysis is hardly enough. When
relocate in or near the core area to gain considering support, funders should look

“Cool Cities” in Michigan


In September 2003, Michigan Gov. Jennifer Granholm asked more than 250 of the
state’s mayors to identify ways to make Michigan’s cities more attractive by convening
local “cool cities” advisory groups. The announcement came after the U.S. Census
Bureau announced that more than 33,000 young adults left southeast Michigan
between 2000 and 2002.35 The state’s population of 25 to 34-year olds dropped by
200,000 or 13.5 percent in the 1990s, twice the national average.36

Workforce Development and Smart Growth 11


for organizations that have an established percent have lobbied state or local
record of successful collaboration. That legislatures to preserve or expand mass
means groups that have a history of being transit operating budgets; 66 percent have
inclusive, generous, flexible, and focused on lobbied to increase funding for the
outcomes rather than aggrandizement. rebuilding of aging infrastructure; 42
Groups that do not practice such habits will percent have lobbied for more funding to
not be able to co-convene a broad regional clean up brownfields; and 48 percent have
coalition, no matter how insightful they are. sponsored or participated in affordable
Because regionalism implies new housing construction.37
relationships between players who often
Under John Sweeney, the AFL-CIO has made
have not actively coalesced before, funding
genuine strides towards increasing labor’s
regional efforts implies tensions between
presence in economic development, including
those players. By knowing who has a
reshaping the AFL-CIO Working for
successful history of collaboration and by
America Institute to promote “high-road”
sending signals to others that an obligatory
regional partnerships among unions,
element of any work plan is a deliberate
employers, community groups, and the
effort to break down past barriers, funders
public sector. Several of these partnerships
can help to shape the metropolitan culture
have received significant foundation support.
necessary to win smart growth victories.
At its December 2001 convention, the
Finally, funders should consider organized
AFL-CIO adopted a resolution denouncing
labor as a potential partner in the smart
sprawl and urging union leaders to get
growth debate. A 2003 survey of labor
involved in coalitions for smarter growth.
federation leaders (mostly heads
The resolution is consistent with the AFL-
of metro labor councils) by Good
CIO’s push to shed its traditional insularity.
Unions are urban institutions, and smart injustices and environmental
Jobs First finds that they all see
Central labor councils and local unions
growth—when it focuses on social equity harm from sprawl and they have across the country are becoming more
and access to good jobs—is right in sync all advocated for urban involved in economic development issues,
with labor’s historical mission.38
living wage campaigns, and coalitions with
reinvestment policies that have
community and religious organizations that
cumulatively come to be called
address such diverse issues as affordable
smart growth. For example: 82
housing and immigrants’ rights.
percent believe there is a
mismatch between where most of the new On the foundation side, the Neighborhood
jobs are being created and where most Funders Group’s Working Group on
affordable housing is located; 80 percent Organized Labor and Community has an
believe that air pollution is a growing public ongoing dialogue with labor and many of
health problem; 80 percent believe that some its members support projects initiated by or
suburbs in their metro area use exclusionary associated with unions. Unions are urban
zoning; 76 percent believe that their regional institutions, and smart growth—when it
infrastructure systems do not treat older areas focuses on social equity and access to good
fairly compared to newer areas; and 74 jobs—is right in sync with labor’s historical
percent believe that the property tax system is mission.38
not fair to all cities in the region.
Acting on their beliefs, the surveyed labor
leaders have advocated for smarter growth
policies they deem good for their members:
88 percent have lobbied for more funding
to repair and rehabilitate existing schools;
82 percent have helped fight a “big box”
retail project such as a Wal-Mart; 66

12 Funders’ Network for Smart Growth and Livable Communities


Conclusion
Metropolitan decentralization, as this paper incentives also serve to fuel sprawling
shows, undermines basic workforce development and reduce access to jobs by
development systems when core communities taking jobs away from the core to
are disinvested by the flight of jobs, residents, outlying areas.
and tax base to the fringe. Without the tax
The paper shows how smarter growth
base for adequate education and training and
policies that help keep jobs, education, and
without access to jobs, core-area families will
training accessible to core-area workers can
continue to be trapped in geographically-
be instrumental in combating sprawling
concentrated areas of poverty without
patterns of development that undermine
adequate opportunities.
basic workforce development systems and
By drawing on trends that are shaping the working families. Funders can play a critical
geography of selected industries, this paper role in linking the movement for smarter
also highlights that the same forces that growth with the workforce development
contribute to sprawling patterns of movement and ensuring that stakeholders
development also work against job such as organized labor are also included in
development. Similarly, new scholarship these new coalitions.
indicates that economic development

Endnotes
1
Greg LeRoy is executive director of Good Jobs First and co-author, with Sara Hinkley, of the first
edition of this paper, Opportunities for Linking Movements: Workforce Development and Smart
Growth, released by the Funders’ Network in June 2000. He can be reached by e-mail at
goodjobs@goodjobsfirst.org.
2
Mafruza Khan is associate director of the Pratt Institute Center for Community and Environmental
Development. She was formerly associate director of the corporate research project and senior
analyst at Good Jobs First. She can be reached by e-mail at mkhan@pratt.edu.
3
Bruce Katz and Katherine Allen, Help Wanted: Connecting Inner-City Job Seekers with Suburban Jobs,
Brookings Institution, Fall 1999.
4
Elvin K. Wyly, Norman J. Glickman, and Michael L. Lahr, “A Top 10 List of Things to Know
About American Cities,” Cityscape: A Journal of Policy Development and Research, Vol. 3, No. 3,
1998 (U.S. Department of Housing and Urban Development).
5
An exurb is defined as a region or settlement that lies outside a city and usually beyond its suburbs
that often is inhabited chiefly by well-to-do families and/or famers.
6
Robert D. Atkinson, “Technological Change and Cities,” Cityscape, op cit, p. 154.
7
Douglas Braddock, “Occupational employment projections to 2008,” Monthly Labor Review,
November 1999, pp. 51-77.
8
Paul Ong and Evelyn Blumenberg, “Job access, commute and travel burden among welfare
recipients,” Urban Studies, January 1995. Ong and Blumenberg found that among Los Angeles
welfare recipients, new-job wages actually declined with longer commutes, contrary to the pattern of
other workers. W.W. Goldsmith and E.J. Blakely, “Separate Places: The Changing Shape of the
American Metropolis,” Chapter 4 of Separate Societies, 1992, Temple. Christopher J. Mayer, “Does
Location Matter?” New England Economic Review, May/June 1996, pp. 26-40.
9
Alliance for a New Transportation Charter/Surface Transportation Policy Project, Moving Towards a
New Transportation Charter, 2002.

Workforce Development and Smart Growth 13


Endnotes (cont’d)
10
Calculated from data from the Quarterly Census of Employment and Wages, Bureau of Labor
Statistics. Data analyzed by Jeff Chapman, Economic Analyst, Economic Policy Institute,
Washington, D.C.
11
Bureau of Labor Statistics, “Unit Labor Costs in Manufacturing, National Currency Basis in 14
Countries or Areas, 1950-1998.” Labor-intensive production that needs to remain proximate to
markets, such as meat and poultry, remains in rural and small-city areas for cheaper labor.
12
A 1988 study by University of Michigan professors Robert Cole and Donald Deskins of three early
transplants—Honda, Nissan, and Mazda—along with 51 Japanese auto parts plants, found that African
American workers were under-represented at virtually every one of the 54 plants. For example, at Honda’s
Marysville, Ohio, plant, they found that blacks comprised 10.5 percent of the available workforce, but
only 2.8 percent of those employed. Various plants of these and other such firms have agreed to
settlements on race and/or sex discrimination allegations, most recently Mitsubishi’s plant in
Bloomington, Ill. “Honda to pay 377 women and blacks for hiring bias,” Los Angeles Times, March 24,
1988. “Japanese rapped on black jobs; Transplant hiring called below par,” Automotive News, August 29,
1988.
13
All employment and wage statistics cited here and below are from the Bureau of Labor Statistics, at
www.bls.gov as accessed in June 2005.
14
Vicky Lovell et al, The Benefits of Unionization for Workers in the Retail Food Industry, Institute for
Women’s Policy Research, 2002.
15
See, for example, Devajyoti Deka, “Job decentralization and central-city well-being: an empirical
study with sectoral data,” Urban Affairs Review, November 1998.
16
Paul More et al, Who Benefits from Redevelopment in Los Angeles? An Evaluation of Commercial
Redevelopment Activities in the 1990s, UCLA Center for Labor Research and Education and Los
Angeles Alliance for a New Economy, March 1999, p. iii.
17
Gordon McClelland, Royal Ahold and Cross-Docking: A Study of the True Cost of Supermarket
Industry Restructuring, Cornell University, School of Industrial and Labor Relations, December
1995.
18
Data provided by Steven L. Dawson, PHI. For more information see www.paraprofessional.org and
www.directcareclearinghouse.org.
19
Philip Mattera and Greg LeRoy, The Jobs are Back in Town: Urban Smart Growth and Construction
Employment, Good Jobs First, November 2003.
20
The AOP is a partnership of the Trades Mentor Network of the King County AFL-CIO’s Worker
Center and Apprenticeship & Nontraditional Employment for Women (ANEW) funded by Office
of Port Jobs.
21
Mafruza Khan and Greg LeRoy, Missing the Bus: How States Fail to Connect Economic Development
with Public Transit, Good Jobs First, September 2003.
22
MARTA stands for the Metropolitan Atlanta Rapid Transit Authority, the city of Atlanta’s public
transportation system.
23
A zoning ordinance may be exclusionary in its effect either because it excludes a use from a
municipality or makes only a token allocation of land available for the use
(www.lgc.state.pa.us/deskbook03/Issues24.pdf ). Exclusionary zoning is a technique that effectively
drives up the cost of housing, excluding lower-income households from the community.
24
Missing the Bus, op cit.
25
Mark Cassell, Zoned Out: Distribution and Benefits in Ohio's Enterprise Zone Program, Policy Matters
Ohio, October 2003.

14 Funders’ Network for Smart Growth and Livable Communities


Endnotes (cont’d)
26
For a discussion of relevant literature, see Greg LeRoy, Sara Hinkley, and Katie Tallman, Another
Way Sprawl Happens: Economic Development Subsidies in a Twin Cities Suburb, pp. 10-12, Good Jobs
First, January 2000. Chris Lester and Steve Nicely, “Giveaways set the stage for a loss,” Kansas City
Star, December 20, 1995.
27
The purpose of state enterprise zone programs is to encourage job creation and capital investment
in areas of economic distress. Such programs provide communities with an economic development
tool to offer state and local incentives and program priority to new or expanding businesses in these
designated areas. Tax increment financing is used to publicly finance needed public improvements
and enhanced infrastructure in a defined area. The idea is that newly developed and redeveloped
property will increase tax revenues and thereby pay for the needed public improvements.
28
Alyssa Talanker et al, Straying from Good Intentions: How States are Weakening Enterprise Zone and
Tax Increment Financing Programs, Good Jobs First, July 2003.
29
Another Way Sprawl Happens, op cit. A summary of the literature on subsidized relocations can be
found in Greg LeRoy’s The Great American Jobs Scam: Corporate Tax Dodging and the Myth of Job
Creation, pp. 133-136 (2005, Berrett-Koehler).
30
A living wage ordinance requires employers to pay wages that are above federal or state minimum
wage levels. Only a specific set of workers are covered by living wage ordinances, usually those
employed by businesses that have a contract with city or county government or those who receive
economic development subsidies from the locality (www.epi.org).
31
For more on this and other such agreements, see Community Benefits Agreements: Making
Development Projects Accountable, co-published by Good Jobs First, the Los Angeles Alliance for a
New Economy, and three other California groups, at www.goodjobsfirst.org/cbarelease.htm.
32
This paper deliberately omits housing solutions to job access while in no way diminishing their
significance or effectiveness. Housing and sprawl are the subject of other Funders’ Network
translation papers that cover the issue in detail.
33
Edward V. Regan, Government, Inc.: Creating Accountability for Economic Development Programs,
Government Finance Officers Association, April 1988, pp. 27-28.
34
Transit-oriented development (TOD) refers to residential and commercial areas designed to
maximize access by transit and non-motorized transportation and with other features to encourage
transit ridership. A TOD neighborhood has a center with a rail or bus station, surrounded by
relatively high-density development, with progressively lower-density development
spreading outwards.
35
Press Release, Governor Partners with Local Communities to Develop “Cool Cities,” Spur Economic
Growth, September 19, 2003, see http://www.michigan.gov/gov/0,1607,7-168--75516--,00.html.
36
Rick Haglund, Deterioration of cities cited for Michigan’s loss of young skilled workers, Booth
Newspapers, September 13, 2002.
37
Labor Leaders as Smart Growth Advocates: How Union Leaders See Suburban Sprawl and Work for
Smart Growth Solutions, Good Jobs First, August 2003.
38
For more information on emerging labor-philanthropy ties, see Organizing Better Links to Labor, in
The Chronicle of Philanthropy, March 25, 1999 lead article.

Workforce Development and Smart Growth 15


Translation Papers
The Funders’ Network’s series of translation papers are designed to assist funders and other
interested parties to better understand the connection between sprawling patterns of
development and urban disinvestment and specific issue areas and to articulate opportunities for
progress that would be created by smarter growth policies and practices. Two updated second
editions of the first papers in the series, including this one, have been published to date. Sixteen
topics were covered by first editions in the series. Visit www.fundersnetwork.org to download
electronic copies or request printed versions.

2nd Editions
#2 Workforce Development and Smart Growth: Opportunities for Linking Movements.
September 2005.
#1 Regional Equity and Smart Growth: Opportunities for Advancing Social and Economic
Justice in America. December 2004.

1st Editions
#16 Air Quality and Smart Growth: Planning for Cleaner Air. January 2005.
#15 Energy and Smart Growth: It’s About How and Where We Build. June 2004.
#14 Water and Smart Growth: The Impacts of Sprawl on Aquatic Ecosystems. February 2004.
#13 Community Development and Smart Growth: Stopping Sprawl at its Source. Jointly
commissioned by the Funders’ Network and the Local Initiatives Support Corporation
(LISC). August 2003.
#12 The Arts and Smart Growth: The Role of Arts in Placemaking. Jointly commissioned
by the Funders’ Network and Grantmakers in the Arts. April 2003.
#11 Health and Smart Growth: Building Health, Promoting Active Communities.
February 2003.
#10 Biodiversity and Smart Growth: Sprawl Threatens Our Natural Heritage. October 2002.
#9 Children, Youth and Families and Smart Growth: Building Family Friendly Communities.
August 2002.
#8 Education and Smart Growth: Reversing School Sprawl for Better Schools and
Communities. March 2002.
#7 Aging and Smart Growth: Building Aging-Sensitive Communities. December 2001.
#6 Transportation Reform and Smart Growth: A Nation at the Tipping Point. August 2001.
#5 Agricultural Sustainability and Smart Growth: Saving Urban Influenced Farmland.
April 2001.
#4 Civic Participation and Smart Growth: Transforming Sprawl into a Broader Sense of
Citizenship. April 2001.
#3 Opportunities for Smarter Growth: Parks, Greenspace and Land Conservation. June 2000.
#2 Opportunities for Linking Movements: Workforce Development and Smart Growth.
June 2000.
#1 Opportunities for Smarter Growth: Social Equity and the Smart Growth Movement. 1500 San Remo Avenue, Suite 249
December 1999. Coral Gables, FL 33146
(305) 667-6350 phone
(305) 667-6355 fax
info@fundersnetwork.org
www.fundersnetwork.org

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