Effective Service Delivery for TANF Clients in Rural Areas Setting the Context: Challenges Facing Rural Areas

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1 Effective Service Delivery for TANF Clients in Rural Areas Setting the Context: Challenges Facing Rural Areas Kathleen Miller Program Director Rural Policy Research Institute (RUPRI) May 23, 2007

2 Outline of Presentation Overview of the Rural Policy Research Institute (RUPRI) The Current Rural Context Challenges in Rural Policy Development Resources

3 RUPRI Mission Provide unbiased analysis and information on the challenges, needs and opportunities facing Rural America. Spur public dialogue and help policymakers understand the impacts of public policies and programs on rural people and places.

4 The RUPRI Family Core Programs National Policy State Policy Community Information Resource Center (CIRC) Centers Rural Health Policy Rural Entrepreneurship Rural Poverty Regional Competitiveness Collaborative Ventures Rural Assistance Center Rural Community College Alliance Panels & Networks Health, Human Services Telecommunications National Rural Network International Dialogue

5 The Current Rural Context The diversity of the rural economy Rural competitive disadvantages Changing demographic compositions Rural Poverty Rural health and human services challenges

6 The Rural Economy is Diverse: Rural does not mean Agriculture Today, only 1 percent of the total U.S. population reside on farms and less than 2 percent of employment is in farming. The majority of farms rely heavily on off-farm farm income. Agriculture is more dependent on the rural economy, than the rural economy is dependent on agriculture!

7 Nonmetropolitan Employment Farming Manufacturing 6.4 % 12.4 % Retail Trade Health Care and Social Assistance Accommodations and Food Services Local Government 11.8% 9.2% 6.6% 10.5% Source: Bureau of Economic Analysis, 2003

8 The Current Rural Context The diversity of the rural economy Rural competitive disadvantages Changing demographic compositions Rural Poverty Rural health and human services challenges

9 Rural Competitive Disadvantages: Educational Attainment The percent of population that has a B.S. degree or higher in the U.S.: 26.6% in metro areas 15.4% in nonmetro areas In Utah: 27.3% in metro areas 17.5% in nonmetro areas

10 Educational Attainment in the U.S., 2000 Graduate/Professional Degree Bachelor's Degree Metro Nonmetro Associate Degree Some college, no degree High school graduate 9th-12th grade, no diploma Less than 9th grade Source: U.S. Census Bureau 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% Percent of Population 25+

11 Rural Competitiveness Disadvantages: Federal Funding Flows FY2003 federal funding was nearly $550 less per capita in nonmetro areas than metro. A disproportionate share of federal assistance in nonmetro areas is in income security programs. 68% of nonmetro federal funding; 53% of metro Per capita funding for community resources represent a smaller share of nonmetro funding than metro. 9% nonmetro; 15% metro

12 Rural Competitiveness Disadvantages: Globalization Globalization rewards regions that have critical mass. Most rural regions still operate one county or one Main Street at a time. Regional strategies are needed to build sustainable rural economies and communities!

13 The Current Rural Context The diversity of the rural economy Rural competitive disadvantages Changing demographic compositions Rural Poverty Rural health and human services challenges

14 Changing Demographic Composition Hispanic Immigration During the 1990s, over a quarter of nonmetro population growth was accounted for by Hispanic immigration. Half of rural Hispanics live outside the Southwest. Hispanics in rural areas are often seeking employment in low skilled occupations (e.g. agricultural labor, meat packing, poultry processing). Many impacted rural areas have little or no infrastructure in place to support non-english speaking residents.

15 Changing Demographic Composition Aging Nonmetro areas have a larger share of older populations. (15% of nonmetro population is 65+; 11.7% of metro) Nonmetro elderly tend to be poorer, have lower educational attainment, and higher dependence on social security income. Rural areas as retirement destinations Depopulating areas Outmigration of youth ( Brain( Drain ) ) and an aging in place of residents

16 ERS Retirement Destination Counties 440 counties (63% are nonmetro)

17 ERS Population Loss Counties 601 counties (89% are nonmetro)

18 The Current Rural Context The diversity of the rural economy Rural competitive disadvantages Changing demographic compositions Rural Poverty Rural health and human services challenges

19 Rural Poverty Poverty rates in nonmetro areas are higher than in metro areas, and the gap has persisted over time Poverty Rates: 14.5% in nonmetro areas 12.2% in metro areas In Utah (Census 2000): 13.5% in nonmetro areas 8.9% in metro areas

20 Metro and Nonmetro Poverty Rates, Metro Nonmetro Source: Current Population Survey

21 Poverty rates are highest in the most remote rural counties Metro Counties Nonmetro Counties Rural Urban Continuum Code Source: U.S. Census Bureau and ERS, USDA

22 Persistent poverty is disproportionately rural 386 counties (88% are nonmetro)

23 Rural Poverty has Unique Characteristics Rural poor are likely to be working. Underemployment is prevalent in rural areas. Economic opportunities Vulnerability to business cycles Low wages

24 The Current Rural Context The diversity of the rural economy Rural competitive disadvantages Changing demographic compositions Rural Poverty Rural health and human services challenges

25 Health and Human Services Challenges Availability and Accessibility of services 10% of physicians practice in rural areas Medically underserved areas / health profession shortage areas Mental health services

26 Medically Underserved Areas in Utah Medically Underserved Area Medically Underserved Population Governor Defined Area Data Source: Health Resources and Services Administration, HHS Map created by RUPRI Community Information Resource Center Interactive Map Room:

27 Health Professional Shortage Areas in Utah: Mental Health Total Population Low Income Population Data Source: Health Resources and Services Administration, HHS Map created by RUPRI Community Information Resource Center Interactive Map Room:

28 Health and Human Services Challenges Substance Abuse Drugs, alcohol, tobacco use Methamphetamine production and usage Treatment programs Transition from welfare to work Opportunities, wages Access to information and services Barriers to work (transportation, child care)

29 Challenges in Rural Policy Development Ag policy is not sufficient rural policy Definitional issues

30 Ag Policy is not sufficient Rural Policy: Top 25% of counties dependent on Ag Payments Dependency determined by farm payments as a share of personal income, average Source: Bureau of Economic Analysis, REIS

31 Commodity Payments don t t Spur Growth: Employment Growth Negative Growth Zero to Average (19%) Above Average (19-463%) Source: Bureau of Economic Analysis, REIS

32 Defining Rural America The metro/nonmetro definitions used in most policy targeting are not the same as urban/rural definitions. Metropolitan counties contain rural places, and nonmetropolitan counties contain urban places. In fact, 51% of all rural residents (30 million people) live in metropolitan counties! Nearly 100 metropolitan counties have no urban population whatsoever.

33 Metro and Nonmetro Counties in Utah Metropolitan Nonmetropolitan Source: Office of Management and Budget and U.S. Census Bureau Map Prepared by RUPRI

34 46% of Utah s rural residents live in metro counties!

35 Morgan Co. 100% rural

36 Resources

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38 Available for all 50 states

39 RPRC s quarterly newsletter

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42 Thank you!