American Idea Foundation

Measuring Results, Expanding Opportunity, Improving Lives.

Blog

Customizing Adult Learning and Career Development Models in Indiana

by

By: AIF Staff

More so than any other year in modern history, 2020 showed how important having a structurally sound education system capable of delivering quality instruction is for Americans of all ages. During the COVID-19 pandemic, teachers and administrators learned first-hand how challenging it can be to provide instruction to students who are facing turbulence and difficulties in their lives. And coming out of this turbulent time, educators and policymakers would be well-served to learn from this challenging year and expand flexible learning modalities to meet America’s students where they are.

Part of modernizing how America educates its population is by changing our perception: Too many in America view education in a linear fashion, believing that everyone generally proceeds from pre-K to high school to higher education programs in a straight-forward and uninterrupted way. The reality, however, is much different and for millions of Americans, obtaining and education is often more circuitous. Life often gets in the way of students achieving a full education, and the lack of a high school diploma can hold folks back from reaching their potential.

Given the correlation between educational attainment and lifetime earnings – to say nothing of other social outcomes that improve based on a person’s level of education, America needs educational programs and systems to help those who may not be able to take a linear schooling path.

One such educational program that is making a difference in the lives of adults around the country is The Excel Center, operated by Goodwill of Central and Southern Indiana. Since 2010, the Excel Center has been providing adults in Indiana with a cost-free high school education and a customized approach to learning that empowers people “to increase their independence and reach their potential through education, health and employment.”

The idea for the Excel Center started with a simple observation by the leaders of Goodwill of Central and Southern Indiana: Too many Indiana adults were not successfully completing high school and it was having cascading repercussions for the students, their families, and their communities.

So, working with local officials and the community, they developed a solution, starting with one school in 2010 and gradually expanding to 30 different Excel Centers: 18 of which are in Indiana and 12 across 5 different states.

In the past decade, Excel Centers have helped nearly 35,000 people improve their lives through the attainment of a high school diploma. The Excel Center uses an accelerated adult learning program, allowing student to earn high school degree within 12 months on average as well as industry-recognized certifications. Fox59 of Indianapolis reported on the Center’s unique approach:

“At first glance, it looks like an ordinary classroom. But at the Excel Center, these aren’t ordinary students. They’re all adults who have dropped out of high school the first time and are back and ready to graduate… The center also provides free childcare, transportation assistance and dual credit courses, which allows students to focus on completing their course work.”

Because of their customized model, the Excel Center is having a real impact and changing lives through education. As an Excel Center graduate told WISH TV: “I feel like I couldn’t have done it without them and my family. So I feel like I have accomplished one of my major goals in life.”

Beyond the anecdotal impacts, the Excel Center’s approach has been increasingly validated by data and evidence, thanks to a partnership with Notre Dame’s Laboratory for Economic Opportunities which has studied the program’s outcomes. A statistical summary from Goodwill showed the promise and the power of the Excel Centers:

  • 73% of graduates earned an industry certification and/or college credit;
  • 38% of Excel Center graduates enroll in post-secondary education within one year of graduating;
  • Recent state data suggests that 2017 Excel Center graduates that participate in the workforce saw a $14,000 increase in annualized wages compared to when those same students enrolled at The Excel Center.

According to a self-reported student profile produced by Goodwill, only 19% of enrollees had full time employment, 84% were unemployed and/or receiving public assistance, and 66% had been out of school for more than a year.By providing an accessible education model, coupled with assistance that meets students’ specific needs, Excel Centers are giving people a real chance at achieving a diploma and career certification and at realizing the benefits that come with it.

As Notre Dame noted:

“For adults who don’t graduate from high school, average weekly earnings hover around $520. Adults who have a high school diploma, on the other hand, earn an average of $712 per week…. And those with high school diplomas are also less likely to be unemployed. The unemployment rate for high school graduates is about 5%, compared with 7% for people without a diploma.”

An education can unlock opportunities to a better life, not just for the student but for their families and communities as well. By developing models that allow adults to obtain high school diplomas and to receive industry certifications, programs like the Excel Centers are giving thousands the chance to pursue their American Dreams and provide policymakers with an example of how an innovative model can be scaled to make a major impact.

Celebrating the Impactful Life of Urban Specialists’ Founder, Bishop Omar Jahwar

by

By: AIF Staff

On March 11, 2021, the people of Dallas lost a pillar of their community with the passing of Bishop Omar Jahwar. Few make such a big impact in such a short time as Bishop Omar and fewer still embody the awesome power of redemption better than he did.

Bishop Omar was one of the founders and leaders of Urban Specialists, a Texas-based organization dedicated to promoting positive change in inner-city communities and to reducing destructive and violent behavior. Bishop Omar’s life was a personal testament of transformation, as he went from a juvenile criminal offender to one of Texas’ first gang-interventionists to receiving the White House’s Achievement Against the Odds Award. As all those who knew Bishop Omar mourn, they should take comfort in the fact that he is undoubtedly looking down saying: “There is a time for grieving, but then the work must go on.”

Upon his passing, American Idea Foundation President and former Speaker of the House Paul Ryan, who struck up an unlikely friendship with Bishop Omar — one that spanned almost a decade and one that transcended race, socioeconomic status, and party affiliation, offered the following statement:

“At first glance, it wouldn’t seem that a Congressman from Janesville and a preacher from Dallas would have a lot in common, but I was honored to call Bishop Omar a friend. He taught me a lot about redemption and the power of community. I’ll miss his personality, his passion, and his unwavering belief in every person’s inherent goodness.

“Bishop Omar lived his work. He showed me, and the people of Dallas, that real change happens one person at a time. Bishop Omar’s legacy will live on through the ongoing work of Urban Specialists and through all the people he saved during the course of his ministry. The best way we can honor Bishop Omar’s life is to draw inspiration from his example and be a catalyst for positive change in our communities.”

In a Forbes column entitled The Gangster, the Preacher, & the Speaker of the House, Bishop Omar summarized his work succinctly: “This is my role. I tell these young men, ‘There are landmines in this field, this gang life, but if you allow me to lead you, brother if you take my hand, I can show the path around the mines, and you can cross unscathed.’”

He continued, “What we do in communities is we attempt to bring social change through individuals who are closest to the problem, those who can actually deliver help from a hand-to-hand point of view. I recruit guys who’ve lived that lifestyle in some of the roughest zip codes in the nation, and I’m asking them to become front-line soldiers fighting for one idea: that urban life does not have to be stunted by violence and a sub-culture of abuse.”

In 2016, the impact of Bishop Omar was made abundantly clear in a video entitled: Become a Hero, which was a part of the Comeback video series that focused on transformative efforts underway in our communities. 

Speaker Ryan first met Bishop Omar during his travels with Bob Woodson travels as he was looking for inspiring examples of individuals and organizations tackling pressing issues in our communities. Almost immediately, it became clear that Bishop Omar and the Urban Specialists were making a difference and developing a model that could be exported to other cities around the United States. In 2018, as Speaker of the House, Ryan continued to draw lessons and inspiration from Bishop Omar, visiting Urban Specialists to discuss their efforts to combat multi-generational poverty and reduce gang violence in Texas.

The efforts being undertaken by Bishop Omar and his organization were highlighted in National Review, which summarized their efforts in the following way: 

““Urban specialists” are Pastor Omar’s team of mentors, largely former gang members, who have returned to the neighborhoods they grew up in to try to steer the newest generation onto a better path. Pastor Omar insists that the best people to solve social problems such as gang violence or drug addiction are those who experienced those problems and overcame them….

“Pastor Omar’s urban-specialist model has proven itself in Dallas. The Dallas Independent School District works with Pastor Omar to get urban specialists into schools across the district, and he has an enthusiastic supporter in Dallas police chief David Brown. And he believes that the model can be applied anywhere — from schools to courtrooms to corporate America.”

Bishop Omar’s work was hands-on and sometimes, it was messy. But Bishop Omar lived a purpose-driven life. He created force-multipliers in communities, developing a network of mentors who could meet young people involved in gangs and criminal behavior and speak to them from a position of shared experiences. He saved lives. He prevented violence. He promoted hope and optimism. He made an impact that will reverberate for years to come.

Where others saw problems, Bishop Omar saw solutions. Where others saw dead-ends, Bishop Omar saw ways to turn around. The American Idea Foundation joins his family, his friends, and all those touched by Bishop Omar in grieving his passing and honoring his decades of service to others by drawing inspiration from his amazing work.  

Coalition recommends Federal Reserve detail eligibility for Opportunity Zone & Community Reinvestment Act credits

by

BY: AIF STAFF

Created as part of the 2017 Tax Cuts and Jobs Act, Opportunity Zones are a poverty-fighting tool designed to stimulate job creation, investment, and economic development in distressed neighborhoods. These nearly 8,800 census “zones” are found in all 50 states, ranging from very rural to very urban areas, and the law provides tax incentives for long-term investments that will ultimately benefit these communities and those residing there.

The American Idea Foundation has convened panel discussions with legislators, investors, and academics to discuss how Opportunity Zones can spur community development and help fight poverty as these projects begin to get off the ground. The Foundation has also profiled successful initiatives underway in Opportunity Zones like Erie, Pennsylvania, where private-sector investors have teamed with local leaders and businesses to reinvigorate some of the city’s poorest Zip Codes. Similar promise has been seen in communities as diverse from Provo, Utah to Baltimore, Maryland.

While the tax incentives provided through Opportunity Zones have started to bear fruit, former Speaker of the House Paul Ryan and the American Idea Foundation believe that additional reforms and changes should be made so the program meets legislators’ original intent.

As Speaker Ryan has said, because of reconciliation rules related to the consideration of the Tax Cuts and Jobs Act, lawmakers were unable to get all of the desired accountability and transparency tools, among other things, in the 2017 legislation. Thus, for Opportunity Zones to reach their full potential, it is imperative that the federal government continue to make modifications. As the Foundation works with policymakers to make legislative improvements to rules around Opportunity Zones, there are also regulations being promulgated of great importance to these areas and those interested in investing in these communities.

This is why the American Idea Foundation joined a diverse coalition of stakeholders in sending a letter to Ann Misback, the Secretary to the Board of Governors of the Federal Reserve, focused on expanding the access and eligibility of Community Reinvestment Act tax credits for those working in Opportunity Zones. 

The letter offers a series of comments in the hope that regulators will provide additional clarity and transparency about the activities and projects in low-and-moderate income communities that are potentially eligible for tax credits from both Opportunity Zone legislation and the Community Reinvestment Act. With greater clarity and information, more investors and financial institutions will hopefully be comfortable in providing capital to these areas of the country that badly need it.

The entire letter is available here and some of the comments are summarized below.

Natural Overlap between Community Reinvestment Act & Opportunity Zone Goals

As the letter notes, both the Opportunity Zone legislation and the Community Reinvestment Act are designed to benefit low-income communities and their residents. Both are intended to tackle persistent poverty, and as such, the impact of the Community Reinvestment Act and Opportunity Zones would be “maximized by providing eligibility for investments in both programs.”

Because of the similarities in how low-income communities are defined in Opportunity Zone legislation and the Community Reinvestment Act — not to mention that both are aimed at providing long-term, patient capital, the letter requests that regulators consider providing Community Reinvestment Act credits for additional Opportunity Zone investments that benefit low- and moderate-income communities.

Further, the letter calls for the Federal Reserve to explicitly include “examples of activities in low- and moderate-income communities that would qualify for credits under the revitalization and stabilization component of community development.” Given the logical overlap between Community Reinvestment Act and Opportunity Zones, the Federal Reserve should strive to identify activities that would allow investors, institutions, and community organizations to be eligible for both credits.

To Maximize Community Reinvestment Act & Opportunity Zone Activities, Provide Illustrative Examples

To ensure that only deserving investments in Opportunity Zones are eligible for potential Community Reinvestment Act credits, the Opportunity Zone Coalition letter calls on the Federal Reserve to provide an illustrative list of qualifying Opportunity Zone activities that may be eligible for the Community Reinvestment Act credits. Because there is uncertainty over what community development activities may qualify for Community Reinvestment Act credits, financial institutions and investors may be hesitant to engage in Opportunity Zone projects.

The letter suggests that when the Federal Reserve approves an activity for Community Reinvestment Act purposes for one institution, it should make this information public so other institutions and investors can determine (with full information) whether to undertake similar investment activities in other Opportunity Zones. The letter outlines a few examples of activities that could be presumed to benefit low- and moderate-income communities and also comply with Community Reinvestment Act requirements:

  • Qualified opportunity fund investment that finances construction of a grocery store in an LMI Opportunity Zone.
  • Qualified opportunity fund investment that finances construction of a new manufacturing facility that creates jobs for local residents in an Opportunity Zone that is also an LMI census tract.
  • Qualified opportunity fund investment that finances the construction or renovation of facilities oriented toward serving low-income children, such as charter schools, day care centers, and early childhood centers in LMI Opportunity Zones.
  • Qualified opportunity fund investment that finances the construction of affordable residential apartments in an Opportunity Zone that is an LMI census tract in which at least 20 percent of the units will be offered at median rents that do not exceed 30 percent of 100 percent of the area median income.

Providing examples that are eligible for additional credits, like the ones above, would provide investors and financial institutions with the certainty and confidence necessary to lend capital to projects in these low- and moderate-income areas that are hungry for economic growth.

The letter also calls for the Federal Reserve to develop a mechanism by which interested stakeholders can submit examples of potential activities that could qualify for Community Reinvestment Act credits in Opportunity Zones. This is a simple but important suggestion to ensure that those interested in investing in these areas are able to determine their eligibility for credits at the outset.  

Maintain Incentives for Community Development Investments

The final comments in the letter raise a concern with the proposed idea to “combine community development loans and investments under one subtest.” The Opportunity Zone Coalition believes this might decrease, not increase community development levels going forward. The letter notes that by “measuring loans and equity investments together, banks would be disincentivized to engage in equity investments to meet their Community Reinvestment Act requirements.” Because equity investments have higher capital requirements, banks may opt to just make loans.

This letter, which details the natural overlap between the aims of the Community Reinvestment Act and Opportunity Zone legislation, suggests a few common-sense ways that the Federal Reserve can provide clarity, transparency, and additional information to potential investors, community leaders, and financial institutions. These simple steps — of outlining examples of activities that would qualify for Community Reinvestment Act and Opportunity Zone credits, of providing illustrative examples, and of maintaining incentives for banks to pursue community development projects – will hopefully attract additional interest and investment in these areas. This increased interest and investment will then benefit the residents of these areas over the long-term.

This letter is just the latest example of stakeholders raising awareness and working to expand the potential impact of the tax benefits available through Opportunity Zones. At  a June 2020 event in Columbia, South Carolina, Senator Tim Scott and HUD Secretary Ben Carson met with local bankers and community leaders to discuss how some activities in Opportunity Zones may be eligible for credit under the Office of the Comptroller of the Currency’s (OCC) new Community Reinvestment Act (CRA) rule.

These types of events and the correspondence from the Opportunity Zone Coalition to the Federal Reserve will hopefully ensure that individuals in Opportunity Zones, particularly those who are low- and moderate- income, realize the benefits of this law and that it expands economic opportunities in areas that need it most.