The State and Local Budget Crisis: Developing Strategies for Fair Housing Success in Difficult Economic Times

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• The State and Local Budget Crisis Developing
  Strategies for Fair Housing Success in Difficult
  Economic Times

Presented by Derick Daniel, Executive
Director Florida Commission on Human
Relations Workshop 4 U.S. HUD 2010 National
Fair Housing Policy Conference July 23, 2010
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A state employee and the new reality
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The new housing market
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State Budget Environment

• Scarce resources available
• Competing interest for limited budget dollars
• Public safety (prisons and law enforcement)
• Education
• Social Services
• Environment
• Health Care

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State Budget Environment

• Civil rights not seen as priority
• Often seen as a nuisance for businesses
• Scarcity of state funds viewed as opportunity to
  reduce civil rights budgets or even abolish civil
  rights agencies

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Under Attack

• During 2010 Legislative Session, legislators
  compiled a Priority List of general government
  programs to be funded
• Of about 150 programs, FCHR was 2nd from bottom

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Under Attack

• Excessive audits and reviews
• Frequently asked If HUD/EEOC exists, why do we
  need state civil rights agencies?
• Main focus Reduce General Revenue budget dollars
  (FCHR is 73 General Revenue funded)

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Under Attack

• State employees suffer
• No pay raises or bonuses
• Increased workloads (doing more with less)
• Stressful work environment (nature of job)
• Benefits under scrutiny and either eliminated or
  contributions for benefits assessed
• Difficult to keep morale and productivity up
  increased employee burnout
• Hard to attract and retain qualified staff with
  low pay and increased demands of job

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Under Attack

• Florida Legislature has required 10-15 in cuts
  from state agencies for several years
• FCHR annual budget has been cut by 1.6 million
  dollars (27 reduction) to date
• FCHR has lost 18.5 positions (26 reduction)
  from 72 to 53.5

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Under Attack

• Florida Statutes require 10-year sunset reviews
  of state agencies reenact, modify or abolish
• PRIORITY IS ON FUNDING THOSE AGENCIES THAT EITHER
  SAVE THE STATE MONEY OR CREATE JOBS

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FCHR Efficiency Measures

• Reduce office space/increase number of employees
  telecommuting
• Timely resolution of cases cost savings for
  businesses and state
• Risk management training (loss prevention) for
  state agencies - reduce state employee
  discrimination claims
• More equitable funding allocation and costs for
  administrative hearing services

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FCHR Efficiency Measures

• Mediations conducted by telephone or paid by
  parties (reduce travel costs)
• Commission meetings also conducted telephonically
• Document scanning (decrease paper usage and
  storage/archival costs)
• Modify notification methods (reduce postage
  costs)
• Reduce technology costs (e-mail services, fewer
  wireless devices and cell phones)

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FCHR Efficiency Measures

• Eliminate management positions by combining
  responsibilities and duties
• Negotiate less expensive copier leases with
  vendor
• Develop online case filing system Paper
  reduction e mail printing, etc
• Reduce printing costs In-house printing of
  letterhead and business cards publications
  posted on website

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Other StrategiesLessons Learnt

• Identify and inform key policy makers not just
  those who are sympathetic to civil rights, but
  members in leadership, substantive committees,
  Rules, Appropriations
• Counter any opposition against civil rights
  agencies with direct arguments talk their
  talk

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Other StrategiesLessons Learnt

• Training for businesses
• Education is the best form of prevention
• If you think education is expensive, try
  ignorance
• Businesses can help make your case (operating
  savings, employee productivity and morale, less
  litigation costs) - case studies, best practices
• Get lobbyists representing businesses to show
  support and show legislators why your agency is
  vital to their members

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Other StrategiesLessons Learnt

• Walk the tightrope Must balance justice and
  business sides
• Civil rights is NOT just about race show
  statistics for other bases (disability, familial
  status, national origin, etc.)
• Identify and implement efficiency measures in
  anticipation of future budget cuts show them
  you are proactive in saving dollars

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Other StrategiesLessons Learnt

• Keep managers and staff apprised of political
  environment and potential impact on agency
• Solicit ideas on cutting costs from your staff
  from the ground up
• Develop and nurture management team support to
  get through the tough times

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Where Do We Go From Here?

• Build a business case for civil rights
• Develop strong metrics
• Risk management savings
• Education savings (increased employee
  productivity work with businesses)
• Reduction in litigation and associated costs
• Anecdotal still important, but metrics need to be
  strong!

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Where Do We Go From Here?

• Civil rights must be seen as solution for
  economic and social growth to attract and retain
  the best and brightest to your state
• Work with human capital organizations how does
  your state measure up in attracting high quality
  individuals

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Where Do We Go From Here?

• Build nationwide database through IAOHRA/NAHWR
• Deliver services through partners and alliances
  at all levels - national, state and local,
  private and public
• Webinars/webcasting If you cant go to the
  people, have the people come to you

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In Summary

• Rally support from other civil rights agencies,
  partners, alliances, local communities,
  organizations and lobbyists who represent your
  customer base
• Talk in terms of avings and potential cost
  avoidance for the state and for businesses
• Convince policy makers it will cost more to
  abolish your agency

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• NEVER believe the last cut is the final cut
• Stay ahead of the curve ANTICIPATE
• Stay abreast of all legislation, economics and
  circumstances that MAY impact your agency
• Be Proactive and creative- always think outside
  the box
• In order to get past it, you will have to go
  through it

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And the answer is ..
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The PAIN INDEX

• Created by Rick Newman, US News
• The economic stimulus sent 250 billion to states
  to fund schools, roads, Medicaid, welfare and
  local services
• States have still had to cut spending by 50
  billion, and have raised taxes by another 30
  billion

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PAIN

• Higher taxes and fewer services affects the
  quality of life
• Economics could get worse as stimulus money runs
  out and the federal government deals with the gap
  between spending and revenue

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PAIN- all figures are per person based on FY
2009

• State new taxes spending cuts
  PAIN
• Florida 30 237 267
• Georgia 15 344 359
• Alabama -3 338 335
• Mississippi 28 218 246
• Louisiana -16 358 342
• Alaska -3 1268 1265
• N. Dakota -301 -700 -1001