Overall Community Development Environment
Scott Turner, Community Affairs Department, Federal Reserve Bank of
with contributions from Anne McDonough-Hughes
and Ethan Jennings
the division of the United States into
12 relatively-equal Federal Reserve districts in 1913, the countrys
relentless move west has raised the Twelfth Districts share of the
nations population to more than one fifth. Moreover, the district
continues to lead the nation in population growth. Nevada and Arizona
were first and second in the nation, respectively, in population growth
between 2000 and 2003, and all nine district states were in the top
twenty in the nation in population growth over the same period.
terms of race and ethnicity, the Twelfth District is distinct from
the country as a whole. The district has lower proportions than the
nation of White residents (66.8% in the district vs. 75.1% nationally)
and Black/African American residents (5.2% vs. 12.3% nationally). At
the same time, the district has roughly double the population shares
of Asian residents (8.8% versus 3.6% nationally) and Hispanic/Latino
residents (24.8% versus 12.5% nationally). Hawaii and Idaho particularly
stand out for their racial and ethnic compositions. Only 24% of Hawaiis
population identify as White, while 42% identify as Asian. In contrast,
91% of Idahos
population identify as White. California and Arizona are
also notable in that more than one quarter of their populations is
of Hispanic or Latino origin.
terms of educational attainment, the district is on par with the U.S. on
high school completion (of the nine states, only California is
below average on this measure, while Alaska Utah,
and Washington are
well above average). However, Twelfth District residents overall are
slightly more likely to have a college degree (25.9% versus 24.4%),
though the opposite is true in a number of states, including Idaho, Nevada,
economic performance, the districts economy has been growing in line
with the nation. Job growth in district states has lagged that of the
nation in the past couple of years, but recent data has shown an increase
in jobs in the district. Currently,
seven of the nine district states are adding jobs, and unemployment
in the district is virtually the same as for the nation (5.6% vs. 5.5%
nationally in October, 2004). Of special importance to the district,
after several years of sharp declines, employment in information technology
is finally growing at a solid pace. Overall, the economic outlook for
the district appears to be improving, with sizable shares of district
businesses surveyed by the Federal Reserve Bank of San Francisco indicating
that they already have, or will soon, increase their capital spending.
On a local level,
there are pockets of true dynamism in
the district, with the nine states containing roughly a third of
the top-20 best performing cities in the nation, including the Las
Vegas, NV metropolitan area (2nd ranked) and the Phoenix, AZ area (3rd
ranked). At the same time, however, there are pockets
of real economic weakness in our district, such as 35 counties with
resource extraction-based economies in Idaho, or parts
of Californias Central Valley, where unemployment reaches as high
as 18.9% (Colusa County) and poverty as high as 23.9%
banking systems in district states range from extensive (329 separately-chartered
insured depository institutions in California) to limited (only ten
institutions in Hawaii). In virtually every state, there
has been significant consolidation of banking institutions in recent
years, with a notable concentration of assets in just a few institutions
in many states. For example, in Arizona, just three banks
controlled more than two thirds of FDIC-insured deposits as of June
2004. At the same time, contrary to expectations just
a few years ago, there has been an explosion of branching in many of
the states in recent years (Nevada in particular). Industrial
banks in Utah are a unique type of financial organization wielding
formidable financial resources, representing more than 50% of Utahs
banking assets in 2004. Credit unions are also an important
source of financial services in states such as Idaho and Oregon, where
they control one third of the combined bank/credit union assets versus
Finally, while specific
information on nonprofit organizations in each state was sometimes
difficult to find, it is clear that the capacity of the not-for-profit
community development sector is straining to keep up with the districts
rapid growth. In one key nonprofit sector, there are nearly 130 Community
Development Financial Institutions in the district that,
as of the end of FY 2002, had more than $677 million in critical community
development finance outstanding to more than 67,000 customers.
On a local level, there are pockets of true dynamism in the
district . . . At the same time, however,
there are pockets of real economic weakness . . .
U.S. Census Bureau, Statistical Abstract
of the United States: 2003, http://www.census.gov/statab/www/ranks.html.
U.S. Census Bureau, Census 2000 Data.
Bureau of Economic
Analysis (BEA), 2003 Gross State Product, http://www.bea.doc.gov/bea/regional/data.htm.
Federal Reserve Bank
of San Francisco (FRBSF), Annual Profile of the Twelfth District, 2004,
Economy.com, Nevada State Profile,
The Oregon Blue
Book, Manufacturing, http://bluebook.state.or.us/facts/economy/economy09.htm.
Progressive Policy Institute, The 2002 State New Economy Index, June
2002, and BEA, Regional Economic
U.S. Census Bureau, Origin of Movement, http://ita.doc.gov/td/industry/otea/state
FRBSF, Twelfth Federal Reserve District,
Regional Economic Briefing, November 2004. For ongoing information
about the Twelfth
Districts economic performance, visit the FRBSFs Economic
Research Departments website at: http://www.frbsf.org/economics
Milken Institute, Best Performing Cities:2004, http://bestcities.milkeninstitute.org/.
Governors Task Force
on Rural Development, Idaho Department of Commerce, Findings and Recommendations,
2000, p. 2
California Employment Development Department, Monthly Labor
Force Data for Counties, 2003 Average, http://www.calmis.ca.gov/file/lfhist/03aacou.txt.
U.S. Census Bureau, Census 2000 Data.
of Business, Economic Development, and Tourism (DBEDT), State of Hawaii,
Facts and Figures - State of Hawaii, p. 3.
Alaska Department of Community and Economic Development,
Local Government in Alaska, http://www.dced.state.ak.us/dca/lbc
University of Alaska Justice Center, Alaska Local and Borough Government,
U.S. Census Bureau, Statistical Abstract of the United States: 2003.
Revenue Office, 2003 Oregon Public Finance: Basic Facts, p. A2.
FDIC, State Profiles, Fall 2004,
Deposit Market Share Report: Arizona, June 2004.
Banker, Nevada Branch Showdown: As Taxes Kick In Banks Threaten Pullback, June
FDIC, Utah State Profile Fall
2004. More information on industrial banks is available from the Utah
Department of Financial Institutions, http://dfi.utah.gov.
Oregon Credit Union League, Credit Union Fact Sheet, http://www.cuna.org/download/oregon_fs.pdf;
and Idaho Credit Union League, Credit Union Fact Sheet, http://www.cuna.org/download/idaho_fs.pdf.
CDFI Fund, U.S. Department of the Treasury,
Certified CDFIs Alphabetical
by State and County, November 2004.
Coalition, 2004 CDFI State Profiles, http://www.cdfi.org/stateprof.asp.