Summit rallies support against dropout epidemic

The failure of high schools has taken a huge toll on our state. A recent Johns Hopkins University study revealed that 73 high schools in Michigan have graduated less than 60 percent of their freshmen class for three straight years.

The problem is serious and it's not just an "urban" issue. Only half of the schools identified as troubled are located in larger cities, including 22 in Detroit. Another 12 schools are in Detroit suburbs, and 40 others are scattered around the state in small towns, including districts with strong financial support.

Listen to the standard line and you would believe money is a central barrier to school transformation. The real issue is one of public will.

Changing public will

One D partners New Detroit, the Detroit Regional Chamber, and the United Way for Southeastern Michigan are working to change public will around the issue of dropout prevention. In April 2008 the group hosted its first Dropout Prevention Summit and Retreat, in partnership with the America’s Promise Alliance, Skillman Foundation and the Detroit Parent Network, to create a broad and deliberate response to the unacceptably high dropout rates at high schools around the region.

More than 300 people attended, including Turnaround Teams from each of the 35 high schools in Southeastern Michigan that had been identified as “dropout factories.” The teams were made up of parents, principals, union representatives, faculty members, students and school support staff, as well as corporate, community and faith-based partners. Interested business and foundation leaders were invited to the summit to explore opportunities to fund some of the better ideas that emerged.

Summit keynote speakers included Gov. Jennifer Granholm, Connie Calloway, superintendent of Detroit Public Schools, David Hecker, president of the American Federation of Teachers, Michigan Chapter, and Michael Flanagan, state superintendent of schools.

The first day of the summit featured school district and community leaders from Boston and New York who have successfully boosted student achievement and attendance in their high schools. The local school teams spent the second day of the summit developing their own turnaround solutions.

The Action Plan

Summit attendees are now working to solidify Turnaround Teams for each school. Turnaround Teams will be working throughout the summer of 2008 to develop funding strategies and secure national vendors to help execute Turnaround Plans for each of the region’s schools with unacceptably high dropout rates.

If you are interested in learning more about the work of the Turnaround Teams or becoming involved, please visit www.OneD.org for more information.

Pictures, PowerPoint presentations and podcasts from the Summit are posted on the Web site, along with information on how to sign up for weekly Turnaround Updates. A summit video will begin airing soon on Comcast channel 22 in Detroit.

Alliance event explores region's 'un-banked assets'

Several dozen people got together at the Detroit Branch of the Federal Reserve Bank of Chicago recently to learn more about a partnership aimed at helping under-served populations in our region become financially stable.

The event was the first CEO Breakfast held by the Alliance for Economic Inclusion, of which United Way for Southeastern Michigan is a partner, and it was intended to encourage more executives of area banks and credit unions to get involved in a coordinated effort to bring the un-banked and under-banked back into the financial mainstream. Representatives from 11 institutions attended, and they heard discussions on potential products and services for low- and moderate-income households. UWSEM President and CEO Michael Brennan opened the session by stressing that reaching out to these populations is the right thing to do. These consumers too frequently turn to payday lenders and check cashing outlets that charge high fees. In fact, the Center for Financial Services Innovation reports that Americans spend at least $10.9 billion on more than 324 million alternative financial transactions a year.

Brennan also asked the audience to look at the un-banked and under-banked from the asset -- rather than deficit -- perspective. With an estimated 28 million un-banked and 44.7 million under-banked people in the U.S. today, these markets represent a potential of 40 million households with little or no current relationship with a financial institution. Under-served consumers generate more than $1.1 trillion in annual income, of which un-banked consumers represent nearly $510 billion each year.

The keynote address was delivered by Michael Barr, a professor at the University of Michigan Law School and a Brookings Institution fellow, who shared highlights from his recent study on the access low- and moderate-income households in metro Detroit have to financial services. His findings revealed -- among other things -- that 70 percent of the un-banked previously had a bank account, 29 percent of low- and moderate-income consumers are un-banked, 75 percent of the un-banked want to open up accounts and 90 percent have some type of formal or informal assets.

The Alliance is currently conducting a pilot program targeting the Hispanic/Latino neighborhoods in Southwest Detroit, Pontiac and New Haven. The FDIC reports that the Hispanic/Latino community is currently 43 percent un-banked nationally. Hispanics make up about 4 percent of the state population, and represent the fastest growing ethnic community in Southeastern Michigan -- at a rate of 28 percent, since 2000. In March, six community organizations began offering financial education courses in Hispanic neighborhoods in southwest Detroit, Pontiac, Novi and New Haven. Staff from local banks and credit unions co-facilitated the sessions and offered clients on-site opportunities to open accounts.

Next, the Alliance expects to expand the pilot to include targeted African-American communities in the region, while continuing to reach out to Hispanic areas. Members are also developing plans to reach out into other under-served communities over the next three years as well.

In addition to United Way, Alliance steering committee members include the FDIC, the Federal Reserve Bank of Chicago and the National Credit Union Administration. The pilot project includes strong partnerships with the Mexican Consulate, Michigan Hispanic Chamber of Commerce, MATRIX Human Services and Catholic Social Services of Oakland County (Hispanic Outreach).

Volunteer Spotlight
United Way honors outstanding volunteers
Related: Event photos

Six individuals and two groups were honored with awards during United Way’s annual Volunteer Recognition Program May 20. The awards recognize volunteers from organized labor, youth, young adults, groups and companies who have made a difference in southeast Michigan.

The winners are:

• Bernie Firestone Labor Award
  Theresa Hawley-Pace and Terry Harden of UAW Local 594, for creation of the Caring and Sharing Program, which collects bicycles for children in need to enjoy
• Exemplary Group Service Award
  Chrysler Women’s Forum, for its work helping children get their basic needs met and preparing them to succeed in school
• Heart of Gold Award
  Terry Grahl, for helping women in transitional housing facilities enjoy a better living environment
• Heart of Gold Award
  Bob York, for helping families get their basic needs met after a devastating house fire
• Outstanding Business Award
  UPS, for numerous services provided to St. Francis Family Center in Southfield
• Outstanding Youth Award
  Lauren King, for helping individuals and families prepare their tax returns, and claim important refunds and credits in the process
• Young Adult Award of Excellence
  Adam Harris, for volunteer leadership during United Way’s Alternative Spring Break projects in both Louisiana and southeast Michigan

For the first time, all nominees had to submit a short video, in which they discuss their volunteer service and explain why they should be considered for an award. The nominations were narrowed down to two semi-finalists in each category and then featured on United Way’s Web site. The community was invited to view the videos and to help select winners. During National Volunteer Week, more than 3,500 votes were cast.

Upcoming Events
Seminars aim to help struggling homeowners

For most families, a home is the largest investment they have. But too many families are struggling in these tough times to make mortgage payments.

As part of our financial stability work, United Way is teaming up with a group of community partners to help local homeowners get some relief. We are hosting two seminars that deal with navigating credit and foreclosure issues in order to avoid falling into the trap of foreclosure.

Home owners will learn money management strategies to protect their home and gain financial independence, including smart budgeting, credit and debt management and steps needed to avoid mortgage delinquency and foreclosure. If you are struggling to make payments each month, the experts on hand will also help you locate options to make it more manageable for you.

You will not be required to share personal financial information at these seminars. At the conclusion of the seminar you will have the opportunity to discuss your individual situation with mortgage and money management professionals.

Both seminars are free and open to the public, but reservations are advised because space is limited. Please call Stephanie at 248.370.9440 to reserve your spot today.

Join us:

Thursday, May 22, 6 p.m.
Oakland County Credit Union
1375 N. Oakland Blvd.
Waterford, MI

This seminar is hosted by T&C Federal Credit Union, GreenPath Debt Solutions, Oakland County Housing Counseling and United Way for Southeastern Michigan.

Wednesday, June 11, 6:30 p.m.
Auburn Hills Community Center
1827 N. Squirrel Rd.
Auburn Hills, MI

This seminar is hosted by Cornerstone Community Financial, GreenPath Debt Solutions, Oakland County Housing Counseling, United Way for Southeastern Michigan and the City of Auburn Hills.

Kurt's Corner
Another look at dropouts

The issue of dropout prevention has moved to the forefront of the educational component of United Way for Southeastern Michigan's Agenda for Change. This is not a signal that we value early childhood education any less or that our grade-level reading initiative, Operation ABC has taken a back seat. In fact, graduation rates are clearly tied to the availability and quality of early childhood education opportunities and Operation ABC is alive and well as grade-level reading is a predictor of high school completion and post-secondary education success.

I have chosen not to get into the conflicting measures of graduation and dropout rates. Such discussions tend to end up as arguments around the actual number and the methodology used, thus avoiding an honest discussion of the real issue – we have a problem with children not completing high school. While we know that a high school degree is not all one needs to succeed in the new knowledge-based economy, it certainly opens possibilities that will never be there without the degree.

This column looks at several sources of data to provide additional context to the issue.

The first represents a different take on dropouts. The Census Bureau, in both their Decennial Census and the new American Community Survey, provides a special tabulation for 16-19 year olds. Combining answers to questions on current enrollment and educational attainment, they are able to describe their current educational situation.

Data from the 2006 American Community Survey provides a good news/bad news scenario. While the number and percent of 16-19 year olds not enrolled in school, and not having graduated, decreased between 2000 and 2006 across the region and in each county, the numbers remain much too high. While we would like to see the number reduced to zero, we know that will most likely not occur. Nevertheless, we can certainly lower the numbers in our region – 13,763 or 6.1 percent of all 16-19 year olds.

Table 1. Enrollment / Graduation Status of 16-19 Year Olds in Southeast Michigan, 2006

Several points are clearly made by the data in Table 1.

• While each of the four UWSEM regions has more than 2,000 youth in this situation, the share of total youth varies from a low of 3.6 percent in Oakland County to a high of 10.7 percent in Detroit.
• Current enrollment shows the same trend in reverse – the highest rate (90.2 percent) is in Oakland County, while the lowest (80.1%) is in Detroit.
• Non-completion rates are shown to differ by gender, though the pattern is not consistent. While Oakland County has similar male/female rates, the share of non-graduates in Macomb and Out-Wayne counties is higher for females. Detroit reverses this trend as 12.4 percent of males, and 8.9 percent of females, 16-19 years of age have not completed high school and are not enrolled.

These results drive home the need to invest in our urban school districts. We must assume that the vast majority of non-graduates in Detroit are African American, and Latino. The plight of the African-American male has been documented annually in the National Urban League’s State of Black America report. They are underrepresented in colleges and overrepresented in the judicial system. The same case may be made for Latino males. While we recognize many of the social and policy factors that drive these discrepancies, we also know that education is a significant factor in reducing them. Access to quality education – from pre-school through high school – is essential for success. We must invest in our poor, urban neighborhoods where disinvestment has led children to see little hope; where education is not seen as a path to success.

UWSEM, through its funding priorities in educational preparedness, seeks to solve complex social issues. There is no more complex an issue than that of changing the culture around education and seeing to it that every child in southeast Michigan has equal access to high quality education, and each neighborhood provides the parental and community supports to ensure success.

Take Action Now
Be smart with your stimulus check

Economic stimulus checks began hitting bank accounts this month and many families are deciding how to best use the added bump to their incomes. We’ve come up with 10 options for spending your rebate check.

The options that follow could help you and your family move closer to financial independence by getting rid of debt, paying for an education or meeting vital basic needs.

1. Pay down debt. Debt is one of the biggest obstacles to financial independence. Give serious consideration to paying down credit card or student loan debt. Americans have doubled their debt over the past decade to $2.5 trillion (this excludes mortgage-related debt). The sooner you eradicate your debt, the sooner you can build assets, which will put you on the road to financial stability.
2. Apply toward mortgage principal. Consider making an extra payment to your principal. Although the short-term benefit may seem small the impact over 30 years could result in noticeable mortgage interest savings.
3. Avoid fees and get your whole check. If you don’t have a bank account, avoid cashing your rebate check at check cashing outlets that aren’t affiliated with a financial institution because they will charge high fees that eat into your rebate. Wal-Mart is offering the opportunity to cash your check for free at their stores and no purchase is necessary. Once you do this, you should also consider our next option...
4. Get banked. More than 28 million Americans do not have a bank account and an additional 44.7 million are under-banked, hindering them from becoming financially stable. If you are one of millions without a bank account, consider starting a savings account with your rebate. If you have a bank account, consider directing some or all of your rebate toward beefing up your rainy day fund.
5. Start (or add to) your child’s college fund. Individuals who are college educated are likely to make $1 million more in their lifetime than those with only a high school diploma. Help your child attain a full education and be better prepared to succeed in life.
6. Build you retirement nest egg. If you plan to stop working at some point you need to put money away. The money you invest in your retirement today is going to carry you even further down the road when the interest in your investment grows. Consider a Roth IRA or other investment vehicle.
7. Further your education. Have you been thinking about finishing a degree or receiving training in a different career field? Use your rebate toward that goal and in turn you can increase your employability.
8. Support others in need. If you have all you need, consider helping others thrive by donating some of your rebate to United Way.
9. Update your home. A home is a person’s greatest financial asset, so it’s important to keep it in good condition. Many home improvement stores are offering discounts if you use your rebate check toward merchandise.
10. Take advantage of retail savings. Once you have carefully covered all of your savings, investing and charitable giving bases consider taking advantage of discounts retailers are currently offering to consumers in hopes of getting some of their stimulus cash. National and local retailers are offering discounts, gift cards and other incentives to get you to shop. Now may not be a bad time to take advantage of the extra buying power to get clothes for the children or an item you really need.