Weathering the Economic Storm

Scripture Systemic response to crisis Nehemiah 4: After I looked these things over, I stood up and said…”Do not be afraid of them. Remember the LORD, who is great and awesome, and fight for your kin, your sons, your daughters, your wives and your homes.” Exodus 14:13-14 But Moses said to the people, “Do not be afraid, stand firm, and see the deliverance that the LORD will accomplish for you today; for the Egyptians whom you see today you shall never see again. The LORD will fight for you, and you have only to keep still.” Genesis 41:25-45 Let them gather all the food of these good years that are coming, and lay up grain under the authority of Pharaoh for food in the cities, and them keep it. That food shall be a reserve for the land against the seven years of famine…so that the land may not perish through the famine. [INSERT]

2008… JOBS: 2.6 million jobs lost (worst since 1945) 1 HOUSING: 2.3 million foreclosures 2 HEALTH CARE: 5.9 million people estimated to have lost employer coverage 3 Sources 1 Bureau of Labor Statistics 2 RealtyTrac Inc. 3 John Holahan & A. Bowen Garrett, Rising Unemployment, Medicaid and the Uninsured, The Urban Institute, Jan. 2009

[Insert LOCAL and or State data] [Unemployment] [Foreclosures] [Uninsured]

Jobs, housing and health care are interconnected Job loss Rising tide of foreclosures More people uninsured

The trends if we don’t take action to make the economy work for families….

Unemployment is expected to increase in 2009

Projected number of foreclosures over the next four years with or without action to stop preventable foreclosures Source: Credit Suisse, Foreclosure Update: over 8 million foreclosures expected, December 4, million preventable foreclosures!

The impact of foreclosures is nationwide but concentrated

If unemployment reaches 10% 13.2 million people could lose their Employer-Sponsored Health Insurance (ESI) Source: John Holahan & A. Bowen Garrett, Rising Unemployment, Medicaid and the Uninsured, The Urban Institute, Jan. 2009

How is the economic crisis impacting you and your family? What are you hearing from your friends, neighbors and others in your congregation?

Where can people go for help in our community? What resources are available?

What can we do together?

Falling Property Values Credit Crisis Job cuts People stop spending Local and state tax revenues fall Foreclosures Breaking the cycle! Irresponsible Lending (one of many factors…)

Why breaking the cycle is harder now Increased income inequality Financial deregulation Weaker safety net

Cities cut their budgets in recessions States cut their budgets in recessions Only the Feds can spend to stimulate the economy

Some of the things in the proposed economic stimulus bill… Community Development Block Grants Renovation of vacant foreclosure homes Community Health Centers Community Policing Green jobs Improving teacher quality Job training Home weatherization

We can help break the cycle and come out stronger at the end, if we work together in our cities and counties, states and nationally.

PICO’s Equitable Economic Recovery Strategy Jobs and Job Training Foreclosure Prevention Health reform

What can our cities and counties do? Adopt foreclosure diversion and counseling programs Channel new federal funds to communities that need them the most Community input into which projects get funded and local hiring Avoid cuts to programs that serve those hardest hit by the economic crisis

Big local question What big project would your organization like to see funded in your city?

What can our states do? With federal help on the way, strengthen rather than cut safety net programs In deciding which projects get federal funds, prioritize low-income communities that have been hardest hit by the crisis Require that contractors getting stimulus money hire people facing barriers to employment and offer good pay and benefits

What can the federal government do? Dedicate at least $40b in bailout funds to a massive loan modification program to help 2.7 million families stay in their homes Put string on stimulus funds so they reach communities hardest hit, provide job training and create jobs for people facing barriers to employment Immediate action on SCHIP and increased Medicaid funding ($100b) and move forward on health reform to fix the economy

Key next steps Listen within congregations for the pain – listening sabbaths, house meetings, 1:1’s Research with local officials their priorities for economic stimulus funds and ideas for connecting people to work Contact with Members of Congress to discuss recovery legislation and how it can best benefit our community; share PICO ideas.

Together our faith communities can be powerful bridges to jobs, housing, health care and other important needs at a time of crisis.

If we do this we can not only ease the pain, but we can end up on the path to rebuilding the middle class in the United States