Transcripts For CSPAN Discussion On Community Development Efforts 20150524

We have on our panel today a community developer, in investment maker, a next general banker and another. They all have a complex role to play. Let me introduce each one quickly. First, bart harvey. He joined enterprise in 1984 shortly after james rouse. He ran the foundation from 1993 until 19 98. He help form the foundations and the Financial Institutions trying to scale capacity of around the country. Like jennifer, bart lives in baltimore and has been in integral part that we will hear about in a moment. Know was started as a small Housing Program in harlem in the late 1970s. Today, it is a program that has scaled. It is now in a 100 programs across 10 countries, helping disconnected youth to become leaders in rebuilding their own communities. And joel is one of those leaders. He is a graduate and now a director in the organization. On top of that, he is involved with my brothers keepers. Next to him is donald brown, the president of an investment firm. They are experts in financing revitalization, increasing the wealth and assets of people in communities. You will hear a lot about the neighborhood. Derek douglas, he is the Vice President for specific for pacific engagement at the university of chicago. He is working on partnerships around the south side chicago neighborhoods. Around urban Economic Development. The other hat he wears, he was special assistant to obama in the first administration, helping to lead domestic policy and metropolitan policy in the white house. And michael smith, the philanthropist i talked about. He is the special assistant to the president and helps run my brothers keepers. Before that, he oversaw the social Innovation Fund and others at the case foundation. We have a dynamic discussion. Just as a reminder, we will have this conversation for about 45 minutes. Think about your questions and we will open it up, again folks on the webcast are welcome to join the conversation. Let me start with bart. Bart went to help contribute with the cleanup, start with what you saw and experienced their there. Bart thank you. I was raised in baltimore and came back and settled there, i was heartbroken. When you saw that cvs on the loop that kept burning, i wondered what had really happened. The next day, i went to look for my self and to help clean up and it was a very different scene than you might have expected. There were about 200 people out from churches, from the community, they were cleaning up. And on north and pennsylvania avenue, where the cvs was and also in a couple of other areas, small stores had been impacted. I toured all of the investments that enterprise had made, homes that we had directly contributed to about 250 through habitat for humanity. They looked better than they would then they looked 20 years ago. The homeowners were there, they were in great shape. No Property Damage in any of them. There was a beating heart at the center of winchester. That was very positive and reassuring. And then yesterday, i was how does baltimore react to this . Basically, they surveyed everything that had been touched by the rioting. There were 350 different businesses, half of them with broken window something on the exterior. The serious ones you saw on the clips, and a very large shoe store, the cvs, one Senior Center that burned to the ground. If you take those 350 and look at the cost that is estimated about 12. 5 billion just from the initial estimate. A third of them have full insurance, third of them have partial insurance, and a third have none. So banks, philanthropists, community Financial Institutions, they are getting together a pool to try and put everyone back in business. So it is a hopeful situation more than what you might see or watch. I am sure jennifer has the same thing. I got 67 emails saying, are you ok baltimore is burning . So put it in perspective. It is a huge issue, and we should get into those issues. What were the original plans the effort made by enterprise, habitat for humanity, and all your partners . What is your reaction to the assumption that the money spent their did work there did work . Bart i will say at the outset that this was the view of a neighborhood transparent information transformation. What would happen if the schools, the housing, the employment, the health care and all these systems worked to really help people become productive, more productive and really integrate into part of the system so that there is a path upwards for them or their kids, going forward. We did undertake a major effort around that. We learned a lot. A part of it was successful and part of it was not successful. I was interested it said 130 million wasted. I went back and, and if you just take the housing and infrastructure as a major part of that expenditure, there were others, but that was the major part. 139 is a mix of private and public one to 39 million is a mix of private and public financing. If you if you took just what we know about ours, which is chicky grace and enterprise homes of the 524 units cost 58 million and its all there and its all owned by people that are working and a significant portion of thats being paid back to the state in mortgages over time. So and then if you look at the amount that was spent with habitat for humanity, thats being paid back, back into habitat that goes into other houses along the way. So thats all there. Now, let me just do one thing if i may on this. Not to avoid your question, but just put it into context. If you took 524 people and put them into starter houses in the county and in some of the wealthier metro areas at a 350,000 home over the same period with the same Interest Rate you would spend more in the mortgage Interest Deduction on them. They have their houses, the cost to the government would be more than it is in Sandtown Winchester if you do the math over the same period of time. So you have these houses almost 700 if you count ours and habitats together that are there, are effective, they are a heartbeat. What didnt happen . The connection to jobs was incredibly difficult. There is a large number of ex offenders in the area, they are an automatic exclude by law. We went round and round on that. That was a failure. Economic development did not occur. So you can see where sandtowns investment begins and ends. Where freddie gray lived was on the outskirts of the area that had been improved dramatically and had the strongest Home Ownership portion of all of Sandtown Winchester. And what didnt happen was there wasnt an economic driver that kept that redevelopment going past where the homeowners and were and past where the stability in Sandtown Winchester was. The employment did not occur. The Healthcare Systems we and im sorry im probably taking too long the Healthcare Systems, we organized all of the various Healthcare Providers all the Payment Systems changed, very hard thing to do, but we signed up every almost every kid this sandtown for the chips program, et cetera, so there is more healthcare available than when we started. The schools, we took on two Public Schools under an agreement and combined them into one from k through 6 to k through 8 and it went from one of the worst schools into the top half by all statistical measures along the way. So that improvement is still there. More needs to be done. So there are positives and negatives to this whole situation. Most of that investment is still there, its in and its amazing that its in better shape than it was when it was first done. Amy so i think that positive progress, the one outstanding issue was jobs. Bart jobs and Development Economic development. And which takes us really naturally to joel, and he and i talked a bit before this about how what we see is that despite some of this positive progress a lot of young people still very frustrated and so youth build works directly with those young people and its, by the way, it is not lost on me that we are having this conversation at an institution that is like the symbol of privilege. So i asked joelle to just get us out of our ivory tower and really make everyone in this room really uncomfortable. And tell a story about how youth build really works with kids who feel left out and how you get to a place of promise. Joel thank you, amy. So youth build, just to give you some background on youth build youth build is in its 36th year as a program, it started in 1978 in east harlem became a National Federally funded program in 1993 under the department of housing and urban development and is a federal funded program under the department of labor. As far as the numbers go, we went from this one tiny program in harlem to 268 programs nationwide which sounds great, right, but there are over 2000 communities have applied to have a Youth Build Program in their communities and only 368 are able to operate because of lack of funding. Here are the needs if in those communities, the young people who come to our programs they come to our programs, we dont have to do very much advertising, wordofmouth gets them in. They have a brother, a sister, and uncle who graduated from youth build and talks about this as a unique experience that helped them tap into their potential it. Theyre coming to us from fragmented homes, some of our young people were or are currently gang members, single parents, struggling with substance abuse, homelessness. I mean, theyre really feeling the sting of poverty every day and theyre feeling of sting of generations of poverty. So theyre coming to our programs sort of saying i need something to change. Theyre survivors. In the Youth Build Program theyre engaged by a loving and Supportive Community that believes in their innate and abundant potential and we provide economic enrichment, career redness skills, life skills development, Leadership Development, the opportunity to engage if Meaningful Service and we tap into that desire, right to want to change their communities. The story isnt all linear. I will give you an example. Myself. I dropped out of high school when i was 17 and i literally walked out in front of High School Officials and i remember at the moment feeling like i didnt want to go back but wondering why no one was coming after me. Wondering why no one was telling me to turn around. At the age of 17 when that happened and you feel disconnected from the rest of the world and see that some of the people who are supposed to be responsible for your education, for developing you arent doing that and dont bother to say, hey, wait. You believe that the world doesnt care. Young people who come to the program in addition to the many stings of poverty that theyre suffering theyre coming angry because they feel like theyve been disappointed. But when you come to the program we believe in them. They nurture them. We provide a place for them to heal, to develop real world skills, to tap into what i call, i compare this to the laws of energy which is that their ability is neither created more destroyed but transformed from one form to another and we take these amazing skills and talents that they bring and within the walls of our program we are that reactor and we tap into the leadership that they already have and we help them come out and find a sense of self efficacy, make better decisions about their lives. Theyre able to succeed if n career and post secondary education. We provide this ongoing love and support. We have this motto, this mantra amongst graduates that says once in youth build always in youth , build. So were a family. I have 140,000 brothers and sisters nationwide who have graduated from Youth Build Programs over the years. These 140,000 brothers and sisters have engaged in the building of 28,000 units of Affordable Housing. So not only are they building themselves, they are building their community. Those two things go hand in hand. So we take the young mother who is coming out of an abusive relationship and she comes to us and we provide the healing, we provide the real world skills. The young man who is suffering because he has been the victim of poverty but also has also been the aggressor of the many things that come with poverty, violence on others, violence on a partner, violent on himself. And so, we work with a group of young people that to many in society are not that attractive. I was having a conversation earlier with you, bart, about, you know, there are some programs that have scaled really quickly but theyre working with the people who are a little more attractive. Folks from more affluent communities, College Graduates theyre easier to talk to theyre easier to deal with theyre not going to blow up in your face the minute you confront them with some of the problems theyre facing. But these are young people that need us. We really are living in two americas. One that looks pretty and is pretty to talk about because were doing something about the problems that kpi in that that exist in america and one that were not really dealing with and one that we know is there because we saw the anger come out, right, in baltimore. And, you know, i think back, a colleague of mine pointed me to an interview on one of the news stations and i cant remember which one it is at the moment, but a young man, the reporter turned to the young man and the young man said, we are hurting. We are hurting. We are not being listened to. And at that moment the reporter turned away because he wanted to focus on the riots. So that is who we are working with. We are working with young people who are hurting and our goal is not only to them them heal but to become productive responsible citizens who are not just living in their communities and not just part of their families but they are building their families, building their communities, theyre becoming leaders. What i mentioned earlier thats who our young people were, today they are community leaders, they are police liaisons, they are working to go into the prison system and work with young people before theyre released to give them some hope, to let them know once they get on the other side there are opportunities for them. That was long, im sorry. Amy no. No. I dont want to ever cut you off. Tell us about youth builds experience in ferguson because i think you do have a chapter there or working in st. Louis, and in baltimore, too. Joel so youth build has a chapter in st. Louis and soon after the events in ferguson we got a call from the director in st. Louis and she said, you know Michael Browns uncle is actually a graduate of the st. Louis program. He needed some help for funeral costs, clothing related to the funeral, we provided that. And the young people at the st. Louis program and the staff at the st. Louis program said we are close by, we need to be doing something. They were going into the community, sort of just being there, being part of it and beginning conversations with officials approximate in the community. Its taken longer than anyone would have liked, but recently the mayor of ferguson actually gave youth build st. Louis two plots why they can begin to build homes, Affordable Housing units. And the hope is that this grows so that the young people in ferguson are then able to build Real Community assets. And, you know, where weve seen this work weve seen in the young people once theyre building these Community Assets they remember that for a lifetime. They drive by that house, that building that they helped build and they say, i built that. And, therefore, i am taking care of that. You cannot touch this. And so what we hope is that that is where we get into ferguson and we think were on our way there. You mentioned in the green room that for every student that come into youth build there are so many more. Joel for every young person that make it into the Youth Build Program we have at least five young people who cant because of lack of funding. So, you know we hope that the following year those young people come back. Many of them do. There are some times when they dont. And well go out into the community and search for them, but we worry about where they ended up. So if theyre not if were not able to capture them when theyre saying, hey, we want this, right, were going to lose them. Its the responsibility of everyone, right, its the responsibility of our government, our Corporate Partners of everyone in the community, it takes a village, right, and weve got to take a look at who is answering the call and most of them are. Amy thats great. Lots to cover, but, don, why dont we go to you and talk about your work in baltimore and how thats a reflection of your theory of change at trf. Donald sure. The Reinvestment Fund is both a cfi, Financial Institution thats a nonprofit but also weve founded a development company, very specifically for baltimore, but it is working across the midatlantic as well. Then we also are a data and Analytics Company and thats part of both the Development Entity and our data business are really reveal our theory of change. We were invited to baltimore by by an organization just after the dawson fire bombing, an event that today would spark a riot, but then it sparked a tremendous amount of despair. The neighborhood and all of it organized with builds assistant ce, and they wanted something positive to follow that horrible , heinous event and they invited us to come and help them develop a redevelopment strategy. Amy can you tell the audience what oliver is, where that is. Donald oliver is in east baltimore, it is where they film the wire. It is adjacent to the ebdi region around Johns Hopkins medical. It is between Johns Hopkins medical and amtrak station. And we work there near the station, station north through green mount down through Johnson Square and oliver. We have built about 230some units across that region and we have reduced vacancy from over 40 to 8 thus far, we believe we will reach 5 vacancy in a couple more years with a bit more effort. We have increased median incomes within that region which was pretty consistently homogenous impoverished population. Median income have raised 64 since weven investing there and we have been performing in the city a series of neighborhood iterations over time. I believe baltimore has done four different iterations. They have a time series of the market trajectories value trajectories of place and can then adjust their programs individual communities can adjust their strategies or make their case based on data for why they need resources and of what kind. The cities in this current environment of scarcity and ever diminishing resources need to be able to aim their resources. You know, equity 20 years ago was provide every service everywhere and then you provide it to the next person in line. Equity today in a sense of scarcity is you had better use your resources where they are most effective. One of our theories of change is around those data advised decision makings for efficient use of resources and amplification of resources. The others to go from strength. We specifically picked oliver not just because of the fire bombing and the organizing effort, we originally told the folks we cant guarantee you that thats the neighborhood we would pick. We scanned the whole region and found that the combination of factors around there presented an actionable development that over a number of years with a specific amount of money we believe we could reactivate the marketplace. A build from strength strategy around Community Development and the reason why that is our strategy is we want the private marketplace to scissor with us around market activities. So when we started our work in east baltimore we represented 80 or 90 of Building Permits over 50,000. Today we are a minority of the Building Permits over 50,000. When we started we were the majority of home sales over 150,000. Today we are a minority of the home sales over 150,000. The private market is drafting on our wind and that is what makes it manageable in terms of public subsidy in todays environment of shrinking budgets and it allows you to then shift your focus to the next neighborhood while the existing neighborhood is still being drafted with market activity and you can build a crescendo. It is planned change and, you know, the last topic we need to cover given the context is gentrification, but justification gentrification is just unmanaged change where the Public Sector is disengaged. What were trying to do is manage a joint effort to building value and opportunity for existing residents and new residents in a way thats managed change and self sustaining then once were able to move on to the next neighborhood. Amy we promised to get beyond baltimore, so the next is chicago. Im going to bring tark into the conversation. As you know university of chicago is on the south side of the city and since he has arrived at university of chicago in his role he has really reinvented , the role of an anchor institution in sort of economic opportunity. So can you talk about that particularly in the context of sort of distress and inequality because i think many of us who are observers of the news cycle know that the mayoral race in chicago was very much defined by the frustrations in some of these neighborhoods and the inequality in chicago. So talk about the conditions and your role. Thanks, amy, for inviting me, its good to be here and see so many people i havent seen in a long time. The issues that chicago faces are not dissimilar to the issues in baltimore and many of the cities in the United States and around the world. You have this phenomenon in chicago where you have a very growing and thriving downtown area and then when you get out to the neighborhoods particularly on the south and the west sides, you see the population, disinvestment, high unemployment. And in my estimation the main issue driving that is is that the neighborhoods are not connected at all to whats driving the economy. I think one of the big challenges that neighborhoods often face is this disconnection that needs to be spoken to. What you saw in the mayoral race was some of that feeling and some of that frustration. The mayor did a lot of positive things, but a lot of people still frustrated. They felt they werent listened to, they felt that things were not getting better. And so that was why it was such a contentious race and went to a runoff and all of that. What we have been doing at the university of chicago has been trying to reimagine what the role of an anchor institution is in the city and in the community. Looking at it not just as the traditional anchor things that a lot of institutions do which are very important, like our buy local, higher local, and those sorts of things, but trying to really look at what are all the things that universities do and how can we leverage those things to have an impact in the community and the city . And so its important to emphasize what are the things universities do. So we try to develop a Civic Engagement policy that doesnt have us trying to become the city, it doesnt have us trying to be a bank, doesnt have us trying to be a foundation, its be a university, but there are a lot of things universities do that can be leveraged for impact. The anchor stuff is very clear the amount of you know, the university of chicago is the largest employer on the south side, largest purchaser on the south side, largest developer on the south side. We run four Charter Schools, we have the largest medical provider on the south side. You can go down the list and so theres a lot of things and a lot of tools that we can use and have been using to try to reorient those to have an impact in the city, in the region, in the local community. But we also universities are also educators, thats what they do, so weve been trying to develop initiatives to support and provide more access to the Educational Resources of the university and the city. Things like college readiness, College Access types of programs. Weve been recently doing a lot more work around Leadership Development in the Public Sector, in the nonprofit sector. We created a new program to incubate and accelerate nonprofits kind of at an organizational level which is another big issue. Universities are also Research Discussion institutions, thats the core mission. So weve been thinking about ways in which we could try to encourage and incentivize more of our faculty as theyre doing their scholarship thats getting published in the best journals to do things that also can have an impact on policy evidencebased kinds of approaches and weve been seeing a lot more of that. I will give you an example in a second. And the last area weve been really focusing on is around invasion and entrepreneurship. A lot of chicagoans become high priority for the mayor and a lot of effort in the city around had and that, and universities are, you know, with the research that goes on, the ideas theyre a huge opportunity to create new companies, new commercialized research, new technologies, new products and so to correct those connect those into the neighborhoods and the community and we created new centers. The first one on the south side that ties kind of the neighborhood and the south side into the broader economy. A couple of examples, if i could just highlight that are focused on, one is this initiative called case, chicago anchors for a strong economy, where we at the university brought it to the World Business chicago, which is an organization in the city that leads a lot of its Economic Development, business attraction types of initiatives and the Polk Brothers Foundation was an instrumental partner. The idea was to leverage the procurement power not just of one anchor, but of multiple anchors. And also anchors in different sectors. A lot of times you will see educational institutions or medical institutions band together, but here we have the major universities, the Major Medical centers, the city is a partner as well as city agencies like cha and cta, the county is a partner, we have the private sector, banks, Health Providers and energy company, we have the all the largest museums in the city that are part of this consortium and the idea the motivation is really to think about ways in which these anchors can come together to pull their resources to connect the neighborhoods that are most in need on the south and west sides to the economy. So a big one big pillar of the work is around our purchasing and so we do both Capacity Building for businesses, which is a big issue, to how they can grow their businesses and get contracts with these institutions. We try to do Work Together to do big plays where we can go to one of our joint vendors and say we like you to set up an operation on the south side and we will give you a longterm contract and it creates jobs, we also are coming together to borrow from each others networks. So one of the big challenges we might have from local suppliers, this vendor doesnt know who we work with and so it helps in that regard. Were going to be building out a Work Force Development pillar as well. Another example of something that i think is relevant to the difficulty urban lab. It is a project that is focused on doing very Rigorous Research to inform policy. It is building on the success we have at the crime lab. It shows how being in the program would reduce youth violent arrests. The program got scaled. The president met with those young men. They went back. That helped his bond my brothers keeper initiative. There is one of poverty. One in the environment. It is a way in which we leverage what we do have an impact. Those are just a couple of the ways. Thanks. Michael, you have a lot of interest around what the administration will do in this moment. Lets start about my brothers keeper. It is a little over a year. Explain to people in the room cannot be familiar with it. What is the approach . Sure. Good morning. Not only restoring economic prosperity, making sure people have an opportunity to reach their full potential. That is what my brothers keeper is all about. I think many of you remember he shared some wrong emotion raw emotion. The has to be something that we can do about it. Six months after that, the president going it is about addressing these gaps in making sure that all young people could reach of their potential. Look at the data. The data is staggering. They are ready to learn. They are trailing behind their peers. High School Graduation rate over 80 graduation rate. Look at blacks and latinos and tribal boys. Just about three years ago their graduation is 90 . Look at the criminal Justice System. Look at homicide. More than half of the nations murder victims. We did two pies and ask what is going on here . He grade at my brothers keeper we have to ask, what is going on here . He created my brothers keeper. Come back with a strategy on a series of recommendations. They did that. Were looking at key milestones in their lives. You have seen in the past year from the my brothers Keeper Task Force all new Grant Programs and federal guidance. Everything from the department of labor and their partnership program. Nature we are looking make sure we are looking at guidance has come from the department of education. Kids of color being suspended at extraordinarily high rates. You get put in the corner from that for that sort of thing. It is exciting to see what is happening on the policy side. The president lunch something called my brothers Keeper Community launched something called my brothers Keeper Community challenge. We know that Real Progress begins and ends with you. Many of you have a working on this anyway. We have 227 mayors, tribal leaders, and county executives who have stepped up to the challenge. They have taken the president and have said able own they will do the county stance on what works and what doesnt work. We will release a local action plan. Until the community how to address these opportunity gaps. Philadelphia was a First Release its local plan. They have a bold gold to reduce juvenile arrests. They will that through a diversion program. Literacy specialist to work with the highest needs kids. They are expanding the Police Athletic league and doing pious training for all police officers. They might be a risk for crime and violence. What is exciting about my brothers keeper is your seen people be serious about this and planning for the longterm. Hopefully prevent challenges in the future. Lastly, the president called the private sector to action. What we have seen is more than 500 million in commitment. They launch the my brothers keeper alliance. They launched with a real commitments and will give grants and support to get behind these communities so these plans could be implemented. You name it. Many corporations have gone behind this work. There is good momentum here. Were really shine a spotlight on what is working. We will build off of that. I want to move to the next set of topics. I will do one last round of questions here. Start think about what you want to ask. Start sending your questions to the hash tag. Theres a lot of excitement and momentum here and energy are the leaders on the panel. We know work is unfinished. As we think about what is next, we had to build on what we have learned. I think there has been a lot of learning. We do want to make sure we dont replicate mistakes. Sort of tell us what you have learned that wroorks that we can build on. Being on the ground, what do you think is scaling at the National Level looks like given the reality on the ground. I think your work on social innovation leveraging i think that is where the dialogue is. What you are learning from that that we need to continue to hold onto. Lets run through that really quick. I think a lot has been learned. Part of it next to it is being done in east baltimore. The neighborhood cant exceed because just south of it you have john hopkins hospital. A lot of the Old Industrial cities they are now the major employer. You have got to connect the investment and employment that is going into those. It is because of politics it was elsewhere. It is community really basic organization out of the community that hold politicians accountable. What is happening it is absolutely right. The buying power and everything is in effect as well as the new school that hopkins is kneedeep into. The Economic Development and employment have to follow. It has to be connected. It just of really hard and difficult. Anna price doing similar kinds of efforts. And in other places that it is operating. The final thing i will say is you need patient longterm capital. They are trying to tap this longerterm capital that can come in and be a part of the effort. Have i think a lot of people would like to see that their capital can go to rebuild their city in a really constructive way. I think there are positive lessons to learn. The Biggest Issue is do we have an intentional jobs program that really gets down to the that is concentrated positively after the Great Recession in a major way i really threaten our city . This is not as much a race issue. The mayor, prosecutor, etc. It is a poverty issue. There is real anger. It is all over. Do you want to build off of that . Sure. If you simply stop and ask the young person what they would like to do for the community they will have many ideas. They need to listen. Ive seen it consistently. We ask them what they would like to see happen and the community . I love the Energy Behind a lot of the Research Going into finding what works. It really is about the instructions. Mentored chips mentorships. Everything happens in a vacuum. Practices, attitudes, and behaviors. It allows them to heal. This is a poverty issue. We had to confront that at some point. I have many latino friends and africanamerican brothers who think this doesnt exist. But they can all point to an example where they were treated differently because of who they were. I had many white friends who i would not label as racist, but there are things that we do that come from history. At some point we have to acknowledge and confront that. There is abundant energy. All we have to do is ask. Engage in decision making. Put energy and resources right . We want to make sure we are listening. On the list of attendees, i some registered. [laughter] lets bring everyone to the conversation. I want to follow up. This issue about leadership to jobs. Talk about this. When the recession hit construction stop. How did you build create demand, find a demand so that young people could get work ready and end up in a place of employment . We had to look at what other industries were in demand . Starting as a nurses assistant. Go to community college. Other is an rn program there there is an rn program. There is a need for people of color in the telemanagement. Engage in people to meet the needs of the community. We have something called construction plus. Build homes. We are looking at other kinds of industry. I think this is about capital integrated approaches. One thing i didnt emphasize as much was you definitely learn that our work is more impactful when we connect will organize data and will organized money to organized people. We can connect data and money to transactions all the long. Some of those transactions are selfsustaining and have a tier one kind of positive affect on people. Connecting to resources to organize people in executing on what they want to have happen is a different tier. It is much more likely to have value in the neighborhood. Its bonds affects it spawns affects. A series of successes led to a Grocery Store organized with build in other organizations. It led to the credibility that help for a billiondollar these things are not completely detached. Success builds upon success. It is the hardest money in the world to get. Organizing money. No one really wants these people to have an organized voice. There is a risk of what they will say or ask for . Silence is easier managed. They can manage decline quite well. They could manage silence will. Giving voice is threatening, but it is important. The places where we were are broken markets. It is disconnected from any particular pipeline. Taking it farther and trying to invest youre not just in a broken market. There is the other kind of market. The residents of these neighborhoods are given input to a false and upside down economy which is keeping them in poverty. It is fueled by the status quo. We see this in payday lending. We see it in abusive landlords not maintaining quality residences heard it just perpetuates itself. This builds up a level of cynicism and anger. We are giving equitable access. Were rescuing people from a bad economy that is using them as fuel. We listen to the radio and watch tv. We are the product. In portauprince, residents are being sold into an economy the poor economies, residents are sold into economy where the weight is on their shoulders. As we talk about jobs, we need to come together. Different motivations. Jobs are jobs. Jobs with suburban pickup trucks coming into the city. Have a new opportunities. Public health. A different profession. Another silo. It we could ring together the new world of Health Care Community in a fit and Public Health with the classic municipal county silo around Economic Development that is where the big opportunity is. He said something earlier about capital. It talked about scissors and how that is important to make sure that we have good leveraged investment before you move on. What is the lesson around capital now . Thoughts on that . We went out and raised about 10 million. That Patient Capital comes from a wide lens of civic and immunities stakeholders. They invested in our wealth. Providing a channel with the broadest audience could be involved it mitigates the risk down the road. Six degrees separation. If all of your money comes from one agency and you have no connection and youre not invested, that is a challenge. Sharing ownership over the transactions. I was reflecting on this panel. I had been working more in that community and on the ground. If i knew then what i know now it would be different. Tell me. [laughter] sounds like you are on the right track. But think that i think we do a lot in government that when you are on the ground it becomes an issue is that we need to do more doing unless planning. Not that planning is a problem but if you go into these communities, they have 50 plant and every year some group comes in with a plan. The city will announce a new plan. They feel that they are essentially planned, but nothing ever happens. It is negative from the communitys. It creates disillusionment. It is the new thing of what we are going to do, but nothing ever comes of it. The balance needs to be maybe make an investment. Apply research. That is one thing that i think is important. The second thing we did that i think he figured out is we spend a lot of time focusing on the cities for urban policy strategy and how to work with sydneys and resources. I dont think we did enough to get the institutions with resources involved. The reality is cities are broke for the most part. States are broke. The federal government is always struggling. If you dont the private sector or are or other places that have resources to see that investing in communities is in their interest, that it is good for the city and the economy, you are not going to make things happen. There are so many ideas, but theres no money to ever do this stuff. You have to bring them more into the game. The last thing i would say is were focused on the capacity of things, but not nearly enough on the capacities in the neighborhoods. You have some neighborhoods with strong leaderships and strong capacity. They get all the money and resources. Every foundation wants to give to them. You have some neighborhoods that dont have any of that. People want to get to places they if you dont have that fabric, you have neighborhoods and communities that are cut out. I think we should have that i would encourage them to focus on how to build up that capacity and infrastructure in the community so you have strong, will organized, and strategic organizations that can do stuff. Worked through them to make things happen. Im sure you have got a lot of lessons you want to do, but i want you to talk about scale. The one thing that folks experienced out of all of the proactive things they have done lots of pilots. You see a lot of programs. You walk into any city and there are five pilots. How do you get to scale . I think that is what theyre trying to figure out. How do you respond to that . It is about proving and approving and scaling what works. He had talk about what works. With the apple watches and trip advisor, when it comes to organization, the initiatives that most ring board and safety net, window at the window. We keep investing in them because our grandparents started it when we have an economy philanthropic Government Investment in to these organizations is flat at best. Weve got to do something differently. We realize that good is not good enough. They are not counting real meaningful impact. That is the first thing. Kept it on crowd the feel a little bit. Often times, we are making decisions with our hearts. It little money here. A little money there. We are not investing of the you the builds of the world. That is what we tried to do. What we do, we give real money. We make grants for foundations. There are fiveyear grants. Realizing that this work is not overnight. The grantmakers matched that. They helped us define nonprofits across the country who also matched up with corporate dollars. You are to clean the federal investment. They used the money to improve the model. 50 of the kids it may be a little bit more anecdotal. We let them spend a portion of their budget to really at the end of their funding, they could go to under funders and say we have causal connections that this works. At the same time, we are giving real money to scale. We have organizations that have gone from a handful of sites to dozens of sites across the country. They could use these real dollars. Those of the types of things that we think are important to scale. Scaling takes on a couple of different forms. As some think we will take this model and mcdonalds it. Sometimes scale is taking a model and sharing it. You take it. Run with it. The last thing i would say Everybody Loves spam bam. But they are really about smart growth. There are getting dozens of calls a day from all over the world. Bring bam he they smartly saidre. , we need to shore up bring bam here. They lisette, we need to shore up they smartly said, we need to shore up first. Teach for america, they created a whole separate unit. Teach for all. Bringing some of it to scale so wouldnt distract from the poor work. Their core work. Questions. Lots. Thank you. I would like to piggyback onto what they said on what keeps these communities down. I think he mentioned payday lenders. Credit card debt. Somebody could lose their house. I think policy needs to be implemented. I would call this cannibalistic capitalism. We are eating our own. I like making money, but not of somebody elses back. Can we talk about how policies could be changed . Thank you. I resonated with what they said. A couple of the issues health. Elevated blood levels over 20. How do we have interventions early on . Also older adults need resources in communities. [inaudible] is this on . I want to hear other examples. Lets keep common short so we could get lets keep comments short so we could get to other questions. First question, we worked with philadelphia. We found eight years later it turned out to be quite effective. I dont know if it is relevant. They may skirt that process. It was more about the bankers. There are policy recommendations that have been studied in a couple of places. Second question, you are absolutely right. A lot of people had elevated lead levels. There is a another unit that is working on a Healthy Housing Initiative that is doing terrific work. You will find it does not solve for the older cases but you will see that the incidence of led poisoning in kids is way down. Lead poisoning. That is one of the places where positive progress is being made. The model is being shared across the country will stop this is an elemental issue of led a lead paing. Lead paint lead poisoning. One thing that i have learned is people are coming to our program and they are already in debt. Why . Because energy costs are so high. Keeping the lights on, keeping the house warm, is hard. By the time these kids are 18 and adult, they are not able to. This is way more common than you would ring. A community that cannot afford to go green are going to face surcharges, and Higher Energy costs. It is another layer, another thing that adds to poverty. The role of caring adults. None of anything new that we try to implement is going to work if the young people do not believe we care about them. If they do not believe we are approaching this with a deep and profound respect for who they are. There is a role for caring adults. When people refer to me, they say my mentor, my case manager later on my friend. That is the impact we have on a loving adult. I realized that the day i started referring to them not as young people but my young people my mentees later on my friends. We have to have the courage to care. To engage. To value the diversity of their experience and let them know we care about them. That is why we are doing this. We are going to ask everyone to keep their questions tight. Good morning, thank you very much. I lived in baltimore with friends. On and off for almost one year. I took local buses. I saw the whole city. For the think tank people in the room and for the people appear first of all i would suggest that you know how much a quart of milk costs in some of this neighborhoods in how far you need to go to get it, into the Expiration Date and maybe a couple other products and rent. Because, there is this concept of their that people who live in poverty can live cheap. In my experience, particularly in baltimore, if you are poor and you are in a predominantly black neighborhood, your access to milk is going to have a low Expiration Date and it is going to be expensive because 711 and cvs are your Grocery Stores. So, i would like you to respond to the need for people to understand that that living in poverty is not cheap living. I am lawrence freeman, i work at [indiscernible]. My heart ached when i saw the places burning that night. They hit the nail right on the head will stop without jobs cannot development, these kids do not see the future. I see this in major parts of africa as well. Someone put it very directly, he said the conditions are so bad in these areas that it does not take much to set them off. Even though baltimore does not have that exact profile, it does have this economic profile. And when i ran for mayor in 1983, i fought for three and dictation of baltimore for. We need a National Federal credit program. Like Franklin Roosevelt had. We do not see this from bush or obama. The former governor raised these questions of building jobs, building cities. Separating banks. We have to answer the problem. Can we raise the Economic Conditions in the city . This is a question from the webcast. From twitter. From christina. Christina would like to hear the panelists thoughts on inequities in our school and how to improve k12 programs. First, we were able to perform a for the state of maryland a low Access Food Program and identify the food deserts with great specificity. Identify those neighborhoods and the state just appropriated 1 million toward creating a fresh food access program. We have financed to or three Grocery Stores in baltimore in there needs to be a lot more. I would add a point about how expensive it is to be poor. There is also, at least in chicago, a transportation issue as well. Because a lot of neighborhoods that are the poorest do not have the same access to public transportation. They have to travel further to get to their jobs and whatnot. It is another component of the cost that more folks race that people do not often think about. The food desert, the cities are focusing on that issue, we are trying to work with the city on infrastructure. Particularly holding. We found out were going to get the president ial Obama Library and we hope that will bring more investments into the community that we have not had in a while. We are going to go to another question after we answer this. This is validating your point on validation. These secretary and had our part of that. There is a lot of interesting work. We are starting to see cities try to have better transportation routes. There are neighborhoods where there used to be jobs. In the same neighborhoods were used to have folks from low income neighborhoods, now they have no weight to get there. The other thing we do not think about in cities like deep. C. For instance where you do not have gentrification, people are having to commute longer. That extends that itll doubt where kids are home alone for longer hours. This is an issue we are seeing city start to tackle and address. I know we talked about reforming and building Charter Schools in the neighborhoods where you are working. Are those inequitable . Are those higher performing in these low income neighborhoods . We need a lot more than just Charter Schools. We need a whole continuum of experimentation in education. The school that was build in the neighborhood where we are building, that was a contact school. It sits between a conventional school and a charter school. It took a heck of a lot of public and private resources to lift that off the ground. The bond issue that has come off the ground to refurbish Public Schools, it is essential money that often state and local jurisdictions lack. Baltimore could not have a forwarded that. There needs to be a whole continuum around this alternative models that reach the population. And in downtown winchester, we took Public Schools and had an agreement with the mirror as to what could and could not be done within the Union Structure and really moved the needle on them and brought in direct instruction and took the teachers invested in them. We showed examples of work and brought them back in. We ran afoul of the union transferring out our principles after we totally educated them. They both quit and went into the county and cousin was 247. There are lots of issues. Thankfully, there is a lot of experimentation going on right now in juice into in new york in juicy and and other places. New orleans is the biggest example. They blew everything up and started over again. There is hope there. But it is not easy. The final thing i will say on this is we watched go into high schools that we could not control. We lost a lot of that investment because they had been in a very nurturing environment and they ended up in something out of control. So, we had to go to alternative schools. Send them to alternative schools. So, it is a hard, longterm continuum you are dealing with. To the jobs issue, row quickly i often thought or has to be, if you take a real lead in the country of infrastructure, bridges and everything else, if you do that, you hopefully can do something that may not need the most efficient but that is the most affect if forgetting people to a practice aunt work in be able to be part of a program that is not shovelready but is longerterm, aimed at integrating jobs that go all the way down to our cities. So the kids that have been left out of it can be trained for. The problem with jobs training that we ran across, people got trained and there was not jobs. And, read jennifers report. It is terrific. She has done a report on how to connect to the new economy in baltimore. It is terrific. We have time for three more questions. We got a go with sandy, i think this gentleman has had his hand up and you have also. [laughter] lets do these three. Keep your questions tight. Andy . What are two or three gamechangers that is news can initiate at the local level and National Level that would actually have a major event in the problem . I am taking, for example, in chicago of the internal revolution of whole foods that they are going through to change the Business Model to enter tanglewood. Any like that . Right. Looking at the intersection, regarding jobs introduce yourself. We worked in the americas on these same issues. I am also chairman of the board of a company in essex, maryland, that hires youths. The issue is the reform of the penal system. What it does to create here air, isolation, and lack of trust. We talk a lot about the conductivity issue that we need, but they are always disconnected. My son hired 153, they show up and they all have offenses, they show up and he goes, dad, these are highrisk youth. Why would we take this risk . We have to. But, who was working on penal reform . Lets hold, i think there are a lot of comments on that question. This gentleman in the back into then one more. To quit questions, one is the connection between nutrition and Community Development. My wife works at hhs and she has been hammering at me on this for the last three years. I did not hear any discussion on community gardens. We are working in pittsburgh with a group of community gardeners. Kids not only grow and eat their own food, but sell their own food at farmers markets and learn business skills. The second issue is a leadership issue. Its poor, again, where he do a lot of of work, has a program modeled after the childrens village and as i said to the director of that comedy skits, if you get them to graduate from high school and you can get them into college, when they graduate they are not coming back to home one and hazlewood and some of these other communities. How do we keep the young leadership in those communities . Maam . Thanks, i am debbie goldberg. We have had a lot of of conversation about jobs, we have not talked at all about wealth. There is a huge racial wealth gap in this country. I saw some research recently that an africanamerican College Graduate has less wealth then a White High School dropout. That was the gist of it. We have decades worth of Government Policies that have helped to create this wealth gap. It needs to be changed to promote future prosperity economic security. How do we get over this huge gap . A lot of this conversation has been on systemic issues, but it is hard to connect back. Getting ready to put out a new regulation, furthering fair housing, does not necessarily seem like it might that into this conversation but it is time to connect some of these different structures and systems and streams of work at the neighborhood level. I am interested in whether you have thoughts on how this might be a tool to help address these problems at the neighborhood level. Man please remind you of the topics. Business models, criminal Justice Reform, Healthy Foods and farming, leadership retention, wealth gap housing and stickiness in neighborhoods. If you would all take two at the most to address those, then we will wrap up. I would like to speak to criminal justice. So i will give you the experience of me working in the program. Over 50 of the students were involved in the criminal Justice System from being on probation to misdemeanor felony offenses. Where the federal and state policies were employed, that was really hard to work around. At the National Level, we are bringing this to our programs. We convened a group, a number of groups, internal, of amazing students. Young leaders that are graduates of 11 of their National Youth Development Organizations Like National gateway to college. Many more. Jobs for the future. They put together a set of recommendations that i am kicking my head it myself in the head for not bringing with me. Recommendations for increasing opportunity and decreasing poverty and america. They are recommendations around criminal Justice Reform coming from the young people from a crosssection group of young people who are coming from all communities. Current and former use that are saying youth. I highly recommend you google this. To add onto that, Downtown West chester has a connection. It has a large number of expert figures. We ran into one problem after the automatic exclude by maryland law. We had to go all the way back into the parole and prison system, etc. , to try to find jobs. Very expensive, very longterm. One of our big issues, it remains a big issue. Getting it changed, which we attempted for many years is very very difficult because it is a sound bite for any politician. I would jump on two quick issues. On the crime, i want to say there is a no other issue that is very relevant. I did not know that much about it will stop you may. The cook county president , and aldermen for 20 years, when she got there, she looked at the budget in the jails. She looked at the data and it showed that, first, the vast majority of the offenses were not ireland. More surprising, 80 or Something Like that of the people in jail had not even been convict it. They were awaiting trial. And so, she said, you know, you have a huge number of people sitting there that maybe they did not do that they cannot afford to bond. They cannot afford to get out. Those with resources do not sit in jail. She is working with the state attorney to try to reduce the number of people who are awaiting trial sitting in prison where it is very costly and has a big impact on the family and community. It is a county jail. So, the game changer, you know, foods coming into inglewood and inglewood, as you know, is one of the most challenging communities in the city of chicago, that has been a game changer. Another game changer i think is one i talked about earlier, the coalition of institutions we formed in chicago that is now interested in neighborhoods. We have not got there yet, but we spoke to folks in cleveland. University circle or whatever they call it, they created a partnership that got a major facility in a neighborhood that has physical presence, creating a couple hundred jobs and the way they got to do it was to give them a 10 year contract. When you can get that kind of collective, between all the institutions you are talking about billions of dollars that we spent collectively. If you can use that influence on the people that service, i think it has potential and the mayor did this for quickly i think we have to realize there is an economic imperative here and we are beginning to see that shift in businesses across the country. There are 6 million kids disconnected from school and work. We cannot have that. We cannot be globally competitive. A couple Game Changing things we are saying, one thing is what the president talks about all the time, the mistakes of your youth should not come limiting factors for the rest of your life. One thing we are seeing around the country is the idea of handing the box. Every single job where you fill out an application, you have to fill that out on whether you have been arrested or had a felony connection. There are almost 6 million americans that would have to check that box. Data shows, there is no difference in these jobs. What we are seeing, Companies Like walmart are getting rid of that walks in the earliest phases so they at least release folks in and interview them. See if there is a skill set before they get to this background check. The other thing on these kids disconnected from school or work as we have to hire them. You are seeing organizations like jp chase making this a core part of their recruitment practice where they are bringing in young kids for their sophomore years and they are training them, giving the mentors, following them, working with them, getting them through college and bringing them back for summer experience said they are making sure they are preparing them for the work horse of the future. There has to be more forgiveness and Second Chances and affirmative action to make sure we are hiring niche mp all in giving them the skills they may not have learned to make sure they are going to be part of our workforce will stop part of our workforce. The wealth and income question pops up. I am not going to criticize the twodimensional picture for not being threeimaginal. We are talking about the needle. The needle, in a snapshot photographs is income and and another is wealth. There are programmatic limits in the silos which prohibit wealth. By not activating the market, by not letting neighbors share. Some do not participate in private marketplace. It wont build wealth in a spillover effect. There are a number of policies that need to change around wealth. Wealth is a very appropriate thing to study and needle to look at. But it is a time series, longitudinal. Nobody helps us be longitudinal. That is a real challenge. I want to go back on one quick one. Somebody who has taken an upon themselves in the Service Industry who to say you were going to get something extra by standing up and being there. It is about training and development. Starbucks is doing this. To provide barista training to young people. To get a certificate. They now have the skills to get a job at starbucks, work up into management. We know there is a great benefit of working for starbucks. College reimbursement. Starbucks is now committed to hiring low economic youth. Walmart is. We are working on Health Career exposure and training. J. P. Morgan is working with programs around very financial training. This is going to prepare young people for these jobs. So, we knew we could not while the entire ocean of poverty in a twohour session. I think what you heard as a lot of energy, commitment, and leadership in cities around the country to not give up. Please join me in thanking our leaders for a dynamic discussion. [applause] thank you again for joining us and please have a great day. Next, a Senate Hearing on the federal Aviation Administration. After that, relations between the u. S. And russia. Then, the former cia Deputy Director talks about combating isis and other terrorist groups. On newsmakers, georgia senator Johnny Isakson discusses efforts to reform the department of Veterans Affairs and other issues affecting americas veterans. Newsmakers, sunday at 10 00 a. M. And 6 00 p. M. Eastern on cspan. Tuesday, the Senate Commerce science, and Transportation Committee held a hearing on the reauthorization of the federal Aviation Administration. Faa administrator Michael Weber testified on efforts to modernize the system and next generation initiatives. This is just over two hours. [captions Copyright National cable satellite corp. 2015] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. Visit ncicap. Org] sen. Thune this hearing will come to order. Good morning. Today the Commerce Committee concludes its series of planned hearings on reauthorization of the federal Aviation Administration with an examination of the nations air Traffic Control system. Let me begin by thanking aviation subcommittee chair a out and make a member cap well for taking through several valuable hearings on the way to the School Committee hearing. Its been a busy work period and a great deal of progress has been made thanks to their efforts. U. S. Air Traffic Control or atc system involves thousands of dedicated air Traffic Controllers guiding tens of thousands of flights safely across the country on a daily basis. We can be proud of the systems safety record. The same time increasing demand the need to improve efficiency and changes in technology all underscore the need to modernize the system that is still radar base and operated using concepts and procedures developed decades ago. Cord. The same time increasing demand the need to improve efficiency and changes in Technology Efforts to modernize software and hardware have made progress but the long view negates modernization programs have often taken too much time and cost too much. Taken too much time and cost too much. We have sex or portion the deitys office of Inspector General the Government Accountability office detailing the implementation delays the cost overruns that have plagued these efforts for decades and stymied leadership for multiple administrations. The most recent visible initiative is the next generation it air Transportation System or nextgen. Before was given the name the original goal was something called free flight which was expected to result in a genuine transformation of the system away from air Traffic Control to air Traffic Management to taking advantage of gps for navigation and surveillance was at the heart of this idea. Faa would save money eliminating most radar and airspace operators would save time and money and fuel by choosing their own direct routes. With more than 15 years after the faa began talking about free flight we still seem to be more than a decade away from anything resembling it. In fact a recent study by the National Research council completed the nextgen currently seems to be more about increments of programs and improvements rather than a transformational change. Also airlines