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De Blasio's Record on Poverty and Inequality


de Blasio equality shaking hands crowd

Mayor de Blasio at an announcement (photo: Ed Reed/Mayor's Office)


This article is part of a series on Mayor de Blasio's first term record as he seeks reelection this fall, in partnership with WNYC radio and City Limits. Find all pieces of the series here.

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Bill de Blasio ran for Mayor in 2013 as an unabashed progressive, painting the image of a city cleaved in an even two by its wealth distribution. There existed, he explained, a relatively small class of New Yorkers at the top holding the majority of the city’s wealth and making immense sums of income each year. The rest, a large underclass of New Yorkers struggling to make ends meet, left behind during the boom of the Bloomberg years and decades of insufficient federal policy, especially on taxes and redistribution of wealth. De Blasio envisioned, with lofty rhetoric and ambitious policies, bridging that gap and pulling up those at the bottom while asking those doing very well to chip in a bit more.

He was elected overwhelmingly.

“New York has faced fiscal collapse, a crime epidemic, terrorist attacks, and natural disasters. But now, in our time, we face a different crisis – an inequality crisis,” de Blasio declared in his inaugural address as mayor on January 1, 2014. “It’s not often the stuff of banner headlines in our daily newspapers. It’s a quiet crisis, but one no less pernicious than those that have come before.”

Equity became the foundation of the de Blasio administration, enshrined in virtually every policy coming from City Hall and, more comprehensively, in the OneNYC roadmap for the city’s future, which sets poverty reduction and other goals to fulfill de Blasio’s promises.

Whether it’s affordable housing, sustainability, economic development, community infrastructure, or education, the administration has sought to build equity, though de Blasio has at times been accused of not going far enough by those who had immense expectations of him. Tellingly, under de Blasio, the annual Mayor’s Management Report, which is mandated by law and details the accomplishments of more than 40 city agencies on hundreds of performance indicators, included for the first time evaluations of agency efforts for their “focus on equity.”

With data showing an acute poverty problem in New York City, amid its immense wealth and gleaming towers, de Blasio sought to drastically increase opportunities available to poor, working class, and middle class people, and reduce the number of people in or near poverty, a rate that stood at roughly 21 percent -- or 1.74 million people -- when he took office.

De Blasio set the city on a path that he believes will reach the OneNYC goal of pulling 800,000 New Yorkers out of poverty or near poverty by 2025. And though the results of many of his policy actions cannot easily be gauged in the short term, there are a few clear indicators that the city’s approach is working. Notably, between 2014 and the end of 2017, about 281,000 New Yorkers will have left poverty or near-poverty simply due to an increase in the minimum wage to $11. That wage, set by state policy that de Blasio and his allies have helped influence, is set to jump to $13 at the start of 2018 and hit $15 per hour in New York City on December 31, 2018 for companies with 11 or more employees (the wages will be $12 then $14 for smaller companies).

According to five-year estimates from the American Community Survey for 2011-2015, about 20.6 percent of New York City residents lived below the federal poverty level. The latest one-year ACS supplemental estimates for 2016, released September 14, show improvement. People living under the poverty level in New York City, measured by the federal threshold, fell to 18.9 percent or 1.59 million New Yorkers, itself still an astonishingly large number. And, the number remained marginally higher than the pre-recession poverty level of 18.5 percent in 2008 and far higher than the national poverty level of 14 percent in 2016.

The federal measure only takes into account pre-tax cash income. New York City has its own poverty measure which also accounts for non-cash benefits, tax credits, and housing subsidies, and sets a threshold that includes housing costs to judge poverty more accurately. By city estimates, poverty in the city is at its lowest since the Great Recession, at 19.9 percent in 2015, down from 20.7 in 2013. The city’s data does not account for the latest ACS microdata yet.

Although the mayor has little control over the broad contours of the economy, he has been able to use the significant authority at the local level to enact a multi-faceted approach to lifting up wages, giving low-wage earners better opportunities, and enhancing access to city services for New York’s most disadvantaged residents.

In his first term, de Blasio has invested heavily in early childhood education and the universal pre-kindergarten program, his signature achievement, is serving nearly 70,000 children in 2017 (up from 20,000 prior to the UPK expansion) and is estimated by the city to have put $1.4 billion back in the pockets of New Yorkers who do not have to pay for child care. About 500,000 people were covered by the city’s expansion of paid sick leave in 2014, especially helping low-wage workers become more likely to keep their jobs if they get sick and need to miss work.

And though the city’s homelessness crisis continues to be blight on the mayor’s record, he has taken steps to stem the tide by funding free legal assistance for tenants in housing court and increasing rental subsidies for low-income families. In the lead up to Election Day, de Blasio announced an expansion of his affordable housing program, from a target of 200,000 affordable rental units over 10 years to 300,000 over 12.

On Tuesday, the mayor said he would also double the number of units planned for seniors from 15,000 to 30,000. This, after having adjusted his housing plan earlier this year to increase the number of deeply affordable units and those for seniors.

De Blasio has increased funding and attention to NYCHA, the public housing authority home to about half a million New Yorkers, while launching a community parks initiative and a variety of other programs aimed at equity across neighborhoods and demographics. IDNYC, the city’s municipal identity program with 863,464 card holders, allowed more New Yorkers, particularly undocumented immigrants, to avail of city services. These are among other initiatives, both large and small, that the administration has set in motion to increase opportunity, especially for those struggling.

Most significantly in terms of income inequality, de Blasio made a concerted effort in his first term to push for a higher minimum wage at the local and state level. The increase in the minimum wage from $7.25 in 2013 to $11 has had its intended consequences. Last year, the mayor approved an increase to a $15 minimum wage, by the end of 2018, for all city employees and nonprofit human services contractors, the groups for which he has discretion. He also instituted a paid family leave program for 20,000 city workers whose contracts are not part of labor union collective bargaining. New York State followed in the city’s footsteps by announcing its $15 minimum wage program, which is phased in faster in New York City than several other parts of the state, and a paid family leave program that begins its phase-in in 2018.

“De Blasio deserves a lot of credit for that, and it appears to be having a pronounced effect in reducing poverty,” said James Parrott, director of economic and fiscal policy at the New School’s Center for New York City Affairs, of the minimum wage efforts.

Other than the paid sick leave law and universal pre-kindergarten, according to Parrott, a chief accomplishment of the administration has been the settling of 99.1 percent of expired municipal union contracts, which gave many low- and moderate-income workers wage increases. Parrott also cited other positive developments, including new labor protections for freelancers and the creation of an Office of Labor Standards at the Department of Consumer Affairs. “I’m not gonna give [de Blasio] all the credit but the things he has done have led to some pretty remarkable improvements in wages and incomes of the bottom 30-40 percent of the income distribution since 2013,” Parrott said.

Parrott also noted that there are limitations in judging progress from the federal poverty measure or from the Gini coefficient, a statistical tool used by the U.S. Census to measure income inequality. Instead, Parrott prefers to use income tax data, which he said shows a more complete picture of wealth distribution, combined with other data measures on wages and family income. All these together, he said, have shown “the best improvements in the last 30 to 40 years, it could even be 50 years if we had comparable data to make a careful comparison.”

An encouraging trend, evinced from 2016 census data, is that median household income in 2016  was $58,856, up from $56,457 in 2015, and surpassing the pre-recession peak level of $56,982 in 2008, according to an analysis by the Citizens’ Committee for Children of New York. Median incomes for families with children grew at 10.4 percent between 2015-2016, outpacing overall household income growth. Black and Latino New Yorkers benefited from the largest decreases in poverty rates -- nearly 2 percentage points each -- and poverty fell across racial and ethnic groups. The report did point out some worrying trends. Poverty on Staten Island, for instance, was 3.2 points higher than pre-recession levels; income increases were concentrated in Manhattan and Brooklyn; and the gap in median household income for racial and ethnic groups, which expanded during the recession, has continued to grow.

Jennifer March, executive director of CCCNY, praised numerous policies enacted by the de Blasio administration that are “positioned as vehicles to combat income inequality,” including universal prekindergarten and its planned expansion to three-year-olds, the paid sick leave expansion, the minimum wage increase, the recent implementation of free universal school lunch and universal after-school programs for middle school students. She also commended initiatives such as the piloting of child savings accounts, and the overall efforts at creating affordable housing and rent freezes for rent-regulated tenants.

“Those things combined really suggest that he has an ambitious multi-pronged approach to help families and New Yorkers afford to live here and to reduce the gap between those that are earning more and those that are really struggling,” she said.

In 2015, de Blasio launched an ill-fated attempt to influence the national conversation around income inequality through a nonprofit organization that brought together progressive elected officials, leaders, and celebrities from across the country. The nonprofit, the Progressive Agenda Committee, fizzled out after an unsuccessful bid to host a presidential candidate forum in Iowa in late 2015, and de Blasio’s message about economic inequality and the need to put it at the forefront of the Democratic platform was largely subsumed by the candidacy of Senator Bernie Sanders of Vermont.

Since the election of President Donald Trump, de Blasio has doubled down on his agenda, pushing multiple proposed tax increases on wealthy New Yorkers -- which would require action by the State -- to fund items such as affordable housing for seniors and subsidized transit fares for low-income commuters. De Blasio has regularly criticized the Hillary Clinton campaign for not focusing on economic populism enough.

As he heads toward an expected second term, de Blasio has announced a shift to actively creating better paying jobs in burgeoning economic sectors and building talent pipelines to ensure that New York City residents are the beneficiaries of city-funded economic growth. He acknowledged, in a sobering State of the City speech this year, that “people are so fundamentally challenged by the affordability crisis that this city simply must do more and must do it quickly.”  

“So many people love this city. But here is a blunt truth,” he said. “They love it, but that doesn't mean it's easy to live here. Right? For a lot of seniors, this is not an easy place to live. For a lot of young people just starting out, it's not so easy. For folks struggling to make ends meet, this can be a punishing environment.”

De Blasio announced the broad contours of a plan to use city resources to spur the growth of 100,000 jobs paying at least $50,000 over a 10-year period. A few months later, he and his team unveiled a more detailed plan, which was met with snickers about a lack of detail and questions about its necessity, or whether it is more of an election year gimmick.

As many people evaluate the mayor in his reelection bid, the stubborn nature of income inequality and the fact that so many New Yorkers continue to struggle to live secure, decent lives raise questions about de Blasio’s ability to deliver on his core 2013 promises. The mayor has largely shifted his lens, at least when speaking publicly, from income inequality and toward efforts to lift up those at the bottom.

De Blasio is, in part, a victim of his own rhetoric, says Alex Armlovich, adjunct fellow at the Manhattan Institute, a conservative think tank. “That wasn’t a good promise to make on the mayoral level,” said Armlovich, of the mayor’s commitment to fight the “tale of two cities” that he evoked on the campaign trail. “Inequality is a national issue. At the local level, [population] displacement and retention effects are going to swamp your efforts to reduce inequality.”

In a report released earlier this month, Armlovich noted that income inequality as judged by the Gini coefficient has in fact remained flat under de Blasio and that changes in income inequality were affected by compensation trends in the financial sector rather than by the city’s policies. The Gini measures income distribution on a scale of 0 to 1, and the higher it is, the higher the inequality. The city’s Gini score in 2016 was about 0.55. Armlovich pointed out that city policies that help poor New Yorkers live in the city, such as more affordable housing, naturally increase the Gini, even though they are laudable policy goals, because they wind up keeping many low-income people from moving elsewhere.

Debate over the use of the Gini notwithstanding, Armlovich said the mayor should focus on providing equitable services across the five boroughs. “That’s what you can hold the mayor accountable for, because the mayor doesn’t control the economy,” he said. “His whole mistake in all of this was making himself politically accountable for a statistic that he doesn’t control.”

In an interview with The Daily News editorial board, the mayor insisted that the static Gini score was not reflective of a failure by his administration. “I'm very comfortable saying when I think something that I've done has not worked, or hasn't worked well enough,” he said. “But on this one, because we have seen job growth, we have seen wage growth, we have seen people getting out of poverty, we certainly have tangible evidence of reducing people's economic burdens. I think the central question is, were we going to give folks, low-income folks, working class people, middle class people, all of whom felt economically stuck, were we gonna give them more upward mobility? That's the central question in New York. It's also the central question in the country. Here we've been able to prove, not just because of public sector policies, but sustainability because of public sector policies, that we can increase upward mobility. That doesn't answer the question about the rich getting richer. Now, again, how do you address that? In my view, most notably, through tax policy.”

Indeed, income is one measure of inequality, and de Blasio has consistently sought to go further, whether in his attention to NYCHA or his parks or community schools efforts. He’s increased the city’s annual operating budget by about 18% since taking office, up to its current $85 billion, in large part to expand services and add to the public payroll, including thousands more early education teachers, police officers, and others. While some can aptly criticize this budget growth and others question how effective additional spending has been in certain areas, there is little question that de Blasio has heavily invested taxpayer money in building equity.

The CUNY Institute for State and Local Governance devised the NYC Equality Score, a tool for a more holistic view of inequality in the city, first published in 2015, with 95 indicators across six areas: economy, education, health, housing, justice, and services. Out of a possible 100, the city’s 2016 score was 46.01, up from 45.45 in 2015. “These scores suggest that NYC continues to be characterized by vast inequalities, and that when looking at the city as a whole, little has changed,” the report reads. “Generally speaking this score means that overall, the disadvantaged groups represented here are almost twice as likely as those not disadvantaged to experience negative outcomes in fundamental areas of life, as measured by the Equality Indicators.”

“It’s such a daunting challenge,” said City Council Member Stephen Levin, chair of the general welfare committee, which tackles with issues including poverty and homelessness (and was once chaired by de Blasio himself), “because you’re dealing with broader economic issues, you’re dealing with the persistent challenge of lack of affordable housing, and you’re dealing with the issues in Albany.” Levin was referring to state government, where Republicans hold power over the state Senate and often put the kibosh on progressive legislation floated by Democrats who control the Assembly and supported by de Blasio. Governor Andrew Cuomo, a Democrat who de Blasio often feuds with, is inconsistent in his support for policies backed by the mayor, regularly opposing any tax increases.

Levin, a fellow Brooklyn Democrat who has endorsed de Blasio for reelection, said the mayor’s dedication on equity is “indisputable.” “This mayor and administration are using every tool in their toolbox,” he said, lamenting their inability to affect larger trends that can be influenced much more strongly by either state or federal policy. “I expect that over the next four years, this continues to be a priority.”

De Blasio does face significant challenges ahead. Federal policy proposals on taxes and healthcare threaten to blow holes in the state and city budgets, and could shred the city’s social safety net. Large-scale budget cuts at a time when the city’s budget has ballooned by billions of dollars would put the mayor in a tough spot, despite the significant rainy day funds built up over the last four years.

“What remains to be fixed is the highly regressive nature of the local tax structure, and mainly the property tax system,” said Parrott, of the New School. “He has to really work on it to figure out how to build the alliance in Albany. And he’s gotta keep making tweaks to his policies on affordable housing, homelessness, and education.” De Blasio has promised to push property tax reform if he’s reelected but has not provided specific details for addressing a system that is seen as disadvantageous to many middle-class New Yorkers of color because of how assessments are made in part based on geography.

CCCNY’s March said the mayor should advocate for deepening the earned income tax credit and the child care tax credit, both of which bolster the finances of working families and would require the state to pass legislation. “I think the challenge he will face moving forward, assuming he’s reelected, is the federal context in which we’re working,” she said, noting for instance that 900,000 children in New York rely on some form of public health insurance, which face proposed federal cuts. She also stressed the need for increased investment in affordable housing and reducing family homelessness. “One of the biggest conundrums will be that incomes have not kept pace with rising rents in the city,” she said, pointing to a challenge frequently cited by de Blasio and his top aides, like social services Commissioner Steven Banks.

“Many of the things that he started in his first term, we will see the real benefits of years from now,” March added. “Whether that’s universal pre-K, universal school lunch, or universal after-school for middle school, all of those things. It’s the consistent access that populations have to programs that are designed to promote school preparedness or reduce hunger or promote a college-oriented identity, over time we will see the results of these things.”

Mayoral spokesperson Eric Phillips declined to comment for this article. Emails and messages to spokespersons for the Human Resources Administration/Department of Social Services went unanswered.

A Quinnipiac University Poll from July 31 showed that a majority of New Yorkers, 63 percent, disapproved of the way de Blasio has handled poverty and homelessness while only 29 percent approved. In eight polls conducted by Quinnipiac between 2015 and 2017, it was the worst appraisal the mayor received on the issue, likely due to the problems de Blasio has had in controlling and reducing homelessness.

Another particular issue related to poverty and inequality where de Blasio has disappointed advocates has been his lack of direct support for the “Fair Fares” proposal, which would provide half-price MetroCards to 800,000 low-income New Yorkers.

The proposal was created by two advocacy groups, the Community Service Society and Riders Alliance. De Blasio refused to fund the proposal in the city budget and wouldn’t support a pilot program floated by the City Council either, instead insisting the state-run MTA should provide the funds to those riding its services. Eventually, in his “Fair Fix” proposal for funding mass transit through a tax increase on the highest-earning New Yorkers -- which would need state-level approval -- the mayor included a set-aside for Fair Fares, which he called an “ultimate act of justice” despite his hesitance to identify the roughly $200 million to cover it annually. It’s unlikely that the state Senate, run by Republicans, or Governor Andrew Cuomo, a Democrat who largely opposes tax increases, would approve the so-called millionaires tax in 2018, which is a state-level election year.

“That would have a significant impact on low-income New Yorkers, first financially, but also by helping them access better jobs, training, things that would increase their upward mobility,” said Nancy Rankin, vice president for policy, research and advocacy, CSS. “It’s unfathomable to us why [Mayor de Blasio] wouldn’t want to do something that’s at the core of what he says his administration is about. That’s why people voted for him. That’s a practical step that would make an enormous difference in people’s lives.”

Council Member Levin holds out hope that the balance of the state Legislature would shift in next year’s election cycle towards Democrats who are friendlier to New York City and its progressive priorities. “Hopefully some of the dynamics shift and we can move the dial in a more accelerated way,” he said.

Jesse Laymon, director of policy and advocacy at the New York City Employment and Training Coalition, an organization comprised of more than 150 workforce providers, praised the de Blasio administration for leveraging economic growth into lifting wages at the bottom of the economic ladder, but nonetheless had pointed criticism for their policies. “It’s one thing to make it less terrible to be poor in New York, and I think they’ve done a good job of making it less terrible to be poor, but they have not done a great job of making it easier to get out of poverty,” he said. “And that’s really the goal that they should focus more attention on in the second term.”

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This article is part of a series on Mayor de Blasio's first term record as he seeks reelection this fall, in partnership with WNYC radio and City Limits. Find all pieces of the series here.

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by Samar Khurshid, City government reporter, Gotham Gazette
     

Read more by this writer.



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