If your neighbors are struggling, you will feel it, see it in your back yard.
If your family members are struggling, you will feel it, see it at the dinner table.
If your school is struggling, you will feel it, see it on your child’s face.
You get my point. Our fate as community members is linked. We do not live in two separate economies, our economy is interdependent. When communities face hardship, it has a ripple effect. Broad economic prosperity looks and feels good because not only do we enjoy a quality life, so does everyone else around us.
Unfortunately, communities of color have historically faced structural barriers to broad economic prosperity compared to their white counterparts. Past and present policy decisions systematically created these structural inequities, putting the entire economy at risk. It’s too easy to disassociate, assume that there is nothing that can be done around the vast inequities we see, read about, and hear across the state and all over the nation.
Yet, the opposite is true—there is something that can be done. The state budget can level the playing field and create equitable access to opportunity for all Michigan residents. Recent budget cuts, however, have done the opposite.
Targeted policies and programs can increase or decrease racial equity. No one has to be left at the bottom because the economy is not a zero sum game, where if someone wins, another must lose. Everyone can win. Everyone can have equitable access to public structures including a quality education, affordable health care and living wage job opportunities. Equity means providing opportunity that meets people where they are, versus equality, which implies everyone receives the same opportunities the same way.
As noted in the League’s new paper, How the Budget Can Create Economic Opportunity, targeted policy changes to advance equity in the state are imperative to a successful economy. In Michigan, almost a quarter of the state’s population is a person of color. The rate is higher for children, with children of color making up over 31 percent of all children in Michigan. Over the last 10 years, the population of children of Asian descent grew by more than 29 percent and Hispanic and Latino children close to 40 percent. The population of white children declined by more than 14 percent.
Unfortunately, communities of color are disproportionately represented in areas of educational attainment, the uninsured, infant mortality rates, wealth gaps and unemployment across economic status.
Take for example:
• In 2010, more than half of African American children under the age of 5 lived in poverty compared with 19.4 percent of white children.
• The infant mortality rate among African American infants is almost triple that of white infants, 15.5 deaths per 1,000 live births compared with 5.4 deaths.
• Children of color make up 31 percent of all children in Michigan, yet accounted for more than 44 percent of children in the foster care system in 2010.
• In 2011, 92 percent of African American fourth-graders in Michigan were not considered proficient in reading compared with 63 percent of white fourth-graders and 52 percent of Asian fourth-graders.
• Michigan currently ranks 2nd highest in African American unemployment among the 50 states.
Yet programs that reduced poverty, offered preventative and reproductive health care, supported children, and provided job training faced budget cuts in FY 12:
• The state Earned Income Tax Credit, an annual refundable credit, was reduced by 70 percent, on average a $294 per family loss for working families. Almost 800,000 families receive this credit every year.
• The Healthy Michigan Fund, which provides several preventive programs, including reproductive health care was cut by $5.9 million.
• The annual back-to-school clothing allowance, providing children with new clothing at the start of the school year, was cut by $10 million.
• Per pupil funding was cut by $300, following a $170 cut in FY 11, for a total reduction of $470 over the two-year period in the FY 12 School Aid Budget.
• JET Plus, a program intended to provide specialized training programs and subsidized employment opportunities, was eliminated and employment and training for participants receiving cash assistance was reduced by $4.8 million in the Department of Human Services FY 12 budget.
Reducing income inequities, health disparities, and closing racial gaps in graduation and achievement all benefit the state by creating a stronger, healthier, more educated workforce, supporting the next generation of leaders—who are increasingly people of color.
This was best said by the words of Martin Luther King Jr.: “All men are caught in an inescapable network of mutuality, tied in a single garment of destiny. Whatever affects one directly affects all indirectly.”
– Anika Fassia