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HomeMy WebLinkAboutMINUTES - 12061988 - FC.1 BOARD OF SUPERVISORS FC. f FROM Finance Committee Contra Costa DATE: December 1 , 1988 CO * SUBJECT: Gap Between Rich and Poor Update v� SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION INTRODUCTION The Board of Supervisors in April 1988, at the request of Supervisor Powers, referred to the Finance Committee the increasing concerns over the widening gap between the rich and poor in Contra Costa County, and asking what government and the private sector might do to address this issue. RECOMMENDATIONS 1 . Expand the core group of key county departments to include the Private Industry Council, Area Agency on Aging, and Career Development Program in order to look specifically at more good paying and meaningful jobs for low-income youth and seniors. 2. Direct Finance Committee to pursue the concept of a county citizens corps funded perhaps by private and public sources, but . focused on peolke committing time in public service in exchange for publicly funded education in the future. 3 . Consider strategies to look at a regional approach to housing that would encourage cities to provide more affordable housing in their communities and expand opportunities for low- and middle-income persons and first-time home buyers. 4 . Develop a legislative agenda that would help in dealing with the problem. 5 . Accept report and authorize Finance Committee to continue consideration of a regional strategy aimed at empowering the individual to reduce the widening gap between the rich and poor in Contra Costa County. 6 . Direct Finance Committee to report back to the Board on its progress in the first quarter of 1989 . CONTINUED ON ATTACHMENT: X YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF COM ITTEE APPR OTHER SIGNATURE(s : S erviso)N. C. Fanden S perrvisor T. Powers ACTION OF BOARD ON December 6 , 1988 APPROVED S RECOMMENDED X _ OTHER VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS (ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES. AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. CC: County Adminstrator ATTESTED './)» Private Industry Council PHIL BATCHELOR, CLERK OF THE BOARD OF office on Aging SUPERVISORS AND COUNTY ADMINISTRATOR Personnel Director Health Services Director Social Services Director By ,DEPUTY M382/7-83 Community Services Director Community Development Director Housing Authority -2- BACKGROUND To begin to address the broad issues encompassed in this referral, the Finance Committee invited several key county department heads to make presentations �'and provide perspectives that would establish a foundation upon which additional steps could be taken to reduce the gap and what other agencies and organizations should be involved in the process. Department heads included at the first meeting were the Director of Health "Services Mark Finucane, Director of Social Services Jim Rydingsword, Director of Community Services Ida Berk, Director of Community Development, .represented by Jim Kennedy, and the Executive Director of the County Housing Authority Perfecto Villarreal. Each department presented their perspective on what were the. causes of the gap and what ideas they had for exploring strategies to reduce the gap. The meeting produced the following consensus on causes and effects of the gap 'and what can be done to reduce it. CAUSES AND .EFFECTS ' ♦ No increase in minimum wage of $3 . 35 since 1981; minimum wage finally increased in 1988 to $4. 25. ♦ Many new jobs available to low income persons are with fast food outlets or service-connected jobs that pay minimum wage, provide work for less,; than 40 hours per week, and do not pay fringe benefits. ♦ Almost all of,' the new housing that is being constructed in Contra Costa is middle to high-income housing - average price is close to $150,000. This type of housing attracts higher income families who can afford the high cost of housing. ♦ Middle income families who choose to buy a house in Contra Costa are forced tolhave their spouses go to work so that their income will be sufficient to pay the housing costs, resulting in an increase in two wage-earner households. ♦ Cutbacks in federal housing funds. ♦ The high school drop-out rate is increasing. This leads to a larger group of low-income persons who cannot obtain good paying jobs because of a lack of education. ♦ Teenage pregnancy forces many young women to go on welfare and to remain in poverty status. ♦. One of the first casualties that results from this gap is health care insurance. ♦ Any discussion of this topic must take into account the importance of' child care. Today many schools report that in nine out of 10 households, both parents work. Eleven years ago, it was one out of 10 . ♦ Not just the homeless, but our aging population must be considered as victims of the gap. ♦ Dysfunctional families have increased though as a result of substance abuse, teenage suicide and .family violence. ♦ Appears to be a shrinking middle-class with more lower paying jobs in the service area and fewer in traditional blue collar heavy industry. -3- ♦ Most public dollars and private donations are spent on crisis intervention and' not enough spent on prevention and support during the retraining and rehabilitation process. WHAT CAN BE DONE 1 . Job Training and Housing Areas ♦ Provide more good paying jobs for low-income persons in Contra Costa. ♦ Provide job training and job placement services for low-income persons. ♦ Expand education and training opportunities for low-income persons. ♦ Encourage..and provide opportunities for low-income persons to go to college so they will eventually be eligible to compete and obtain higher paying jobs. 4 Provide more affordable housing - home. ownership and rental to house low-income and middle-income persons in Contra Costa. ♦ Provide more assistance programs to first-time home buyers in Contra Costa. ♦ Encourage cities to provide more affordable housing in their communities instead of wanting to construct upper-scale or higher cost housing. Upper-scale housing, which only high-income people can afford, is the preferred housing of almost every city in Contra Costa. 2 . Social Service Area ♦ Increase case management services for families and individuals. ♦ Implementation of the GAIN Program and the new Federal Welfare Reform Program. ♦ Linkages with the private sector such as the "Just one" Program. 3 . Health Education ♦ From a health standpoint, a job not only helps people financially, but physically. A good job is often the best medicine. ♦ Consider development of a county peace corps funded, perhaps, by private and public sources targeted to doing work with a common good giving individuals ,a sense of empowerment. Something like the California conservation Corps is an example.