Explore the creation of the Economic Resilience Action Team (USAU0006)

Commitment ID

USAU0006

Commitment Title

Explore the creation of the Economic Resilience Action Team. This cross-departmental team would convene essential stakeholders to implement priority actions, influence policy, and harness data for better, more informed decision-making.

Problem

Within the City of Austin, persistent income disparities divide certain neighborhoods from others citywide. Economic prosperity is not felt equally, with communities across the Eastern Crescent of Austin falling below average on key prosperity indicators (median household income, earnings, employment, and net worth). As the City of Austin continues to grow, economic pressures are resulting in barriers for local, small businesses, including lack of access to affordable space leading to increased displacement risk, lack of access to equitable capital, and difficulty in navigating a complex permitting and regulatory landscape. While Austin is growing, the benefits of this growth are not shared equally among its residents. Only 27% of Austinites of color, and 29% of Austin women, hold future-ready jobs that pay a living wage. 72% of Latina women and 77% of Black women in Central Texas earn less than $75,000 – considered a livable household income.

Status quo

By many citywide indicators, Austin’s economy is in a position of strength. The unemployment rate is 3.5%, the job growth rate is 4.1%, average hourly earnings are $34.45, and the year-over-year average hourly earnings growth is 3.5%. A more detailed analysis, however, paints a complex picture of economic realities for many Austinites as barriers related to affordability and equity manifest in various ways. Current disparities can be examined closer to show consistent patterns based on geography. Patterns of income and access to resources fall on a clear east/west axis, which also places most residents facing income insecurity in geographic areas of Austin more vulnerable to the impacts of climate change. Current landscapes for entrepreneurs also show rapidly increasing rent, a lack of start-up capital, and an arduous permitting process for new businesses leading to almost 10% of all small businesses exiting Austin in 2020. Current business permitting was analyzed and found almost 1,500 steps and more than 700 hours of dedicated time were required for each permit. This status quo has led to some initial planning and development of the Economic Resilience Lab, which has conducted multiple workshops and design sprints with City departments and community organizations to develop a preliminary list of opportunities for action.

Action

Exploring the creation of the Economic Resilience Action Team is a primary goal of this commitment. The ERAT would act as a cross-departmental team that would convene essential stakeholders to implement priority actions, influence policy, and harness data for informed decision-making. By bringing together diverse partners to accelerate action, the ERAT would aim to create a more resilient and equitable economic landscape in Austin. Additionally, the commitment would work to operationalize an action prioritization screening tool that uses specific criteria to support shortlisting a final approach with recommended actions, building upon the preliminary opportunities for action surfaced by stakeholders. Developed by the Economic Resilience Lab team, the screening tool will guide the creation of actions toward addressing income disparities in certain neighborhoods and retaining local, small businesses.

How will the commitment contribute to solving the public problem described above?

The commitment would address the problem directly by collaborating with place-based community organizations and departments across the City of Austin to focus on opportunities for action most ripe for implementation. Using metrics in the City’s proposed FY25 strategic plan, identified goals include increasing:

• The amount of funding distributed to the community through economic development efforts;
• The percent of trainees who successfully complete a workforce development program and earn a self-sustaining wage;
• The number of small businesses supported by City of Austin programs;
• The number of community engagement activities with City of Austin participation held citywide;
• The percentage of people using City funded programs and services that reported having a better financial outlook; and
• The percent of participants reporting an increase in wealth after accessing a City-sponsored program or service focused on economic mobility.

These measurable outputs and outcomes will reflect whether the commitment activities impact other programs and residents throughout Austin. 

What long-term goal as identified in your Open Government Strategy does this commitment relate to?

The long-term vision for open government at the City of Austin is centered on a model that is not only transparent, accountable, and participatory but also highly adaptable, inclusive, and future-ready. Exploring the creation of the Economic Resilience Action will advance our specific long-term goal of fostering co-creation through collaborative ecosystems. The ERAT would act as a cross-departmental team that would convene essential stakeholders to implement priority actions, influence policy, and harness data for informed decision-making. By bringing together diverse partners to accelerate action, the ERAT would aim to create a more resilient and equitable economic landscape in Austin.

Primary Policy Area

Inclusion, Safety Nets & Economic Inclusion

Primary Sector

Cross-sectoral, Justice

What OGP value is this commitment relevant to?