Biz Journals: Businesses take stock of diversity efforts

3M, U.S. Bank make progress in diversity efforts, reports Center for Economic Inclusion - Alyxandra Sego - Minneapolis/St. Paul Business Journal, September 13, 2023

“While pressures to abandon racial equity and inclusion efforts are loud and sometimes vicious, the case for accelerating efforts is even more compelling when considering the opportunity that inclusion presents businesses and our broader economy.”

3M Co. (NYSE: MMM) and U.S. Bancorp (NYSE: USB) are among Minnesota companies making progress in diversity, equity and inclusion efforts, according to this year’s racial-equity report from the Center for Economic Inclusion (Center).

The "2023 Racial Equity Dividends Index Report- Private Sector" is the second annual report from the St. Paul-based racial economics organization. Last year, 40 companies with large footprints in Minnesota participated in the racial-equity survey. For this year, 22 companies participated, making the total of unique companies participating for both years at 50, the Center reports.

The index was created as a tool to help businesses identify and monitor their actions for anti-racism, Tawanna Black, the Center’s founder and CEO wrote in the report’s opening statement. It also serves as a barometer for consumers, workers, shareholders and investors, she continued.

The index currently measures 43 racial-equity standards across seven equally-weighted categories (leadership; hiring; culture, retention and advancement; procurement; products and services; philanthropy and investment; and public policy). Some categories, if they were not applicable to a certain company, were excluded from that company’s total score. For example, if a company didn’t participate in lobbying, public policy may not be measured against their score.

According to the report, the average score for this year’s participants was 44 out of 100.

Both 3M and U.S. Bancorp met racial-equity standards within four of the seven categories, the highest in this index. Maplewood-based 3M scored at highly in initiatives related to leadership, hiring, procurement, as well as philanthropy and investment. Minneapolis-based U.S. Bank, meanwhile, scored highly in leadership, hiring, products and services, as well as philanthropy and investment. Both organizations last year met the report’s standards for the category measuring culture, retention and advancement, but did not do so in this year’s report. 

Click to read full article from BizJournals (paywall)

• Read the full 2023 Racial Equity Dividends Index for the private sector to learn more about the organizations that participated.

• Contact Nashan McKelton, director of sales and growth if you want to see how your organization measures up.

• Join us at our Oct. 5 #PoweringInclusion Forum (a virtual event) to understand how recent U.S. policy changes could undermine these efforts!

Making the Unseen Visible: The Racial Equity Dividends Index for the Public Sector

The 2023 Racial Equity Dividends Index registration period is open now through Friday, July 15. Register your organization today.

By Heather Worthington, Managing Consultant

In the last few years, local governments have begun to truly embrace the deeper work of changing policies and practices to address racial disparities in their communities. As they reckon with this, they have found limited tools available to truly measure progress in this area.

As John Dulles said, “The measure of success is not whether you have a tough problem to deal with, but whether it is the same problem you had last year.”

Dozens of organizations in the state are working to solve this dilemma through a unique new racial equity tool.

A Data-Driven Tool to Guide Racial Equity Action

The Racial Equity Dividends Index (Index) for the Public Sector helps public entities better understand their organization’s progress toward meeting their racial equity goals. Diversity, Equity and Inclusion work is important, but in order create and scale systemic change with results that matters to the communities local governments serve, adopting an anti-racist mindset and framework is key. The Racial Equity Dividends Index—Public Sector helps organizations establish a baseline that can be used year-over-year to:

• guide action on racial equity work

• enlist help from staff

• help prioritize resources, and

• experience the meaningful and measurable impact of achieving greater performance in areas like recruitment and retention of employees, procurement from Black, Indigenous, Asian or Latine-owned businesses, and development that addresses historic harms and catalyzes trust-based development in communities of color. 

 The Index also helps organizations understand how policies and practices impact the community in areas like housing, economic development, transportation, public safety, and human services.

Learning to Lead on Racial Equity

Public Sector leaders see the Racial Equity Dividends Index for the Public Sector as an important resource for local governments to use in establishing a baseline measurement of their racial equity work.

“This tool will empower our public organizations to build anti-racist policies,” says District 14 Metropolitan Council Commissioner Toni Carter. “With the help of the Center, and through this Index, our public institutions can truly focus their attention to using their results to uplift Black and Brown people in our communities who have been historically undervalued and underserved.”

Participating organizations receive a report of their results and peer rankings. The report also features peer-reviewed research and profiles of successful approaches to each focus area from the Center and our national partners like Brookings and Policy Link. These features offer supporting documentation for the standards for anti-racism that comprise the Index survey questions. The Report offers organizations a road map for taking action to accelerate areas of strength, and uproot systemic roadblocks to progress on the journey to racial equity and inclusion.

“We know that our communities are looking to us to take the lead on diversity, equity and inclusion,” Center Managing Consultant, Heather Worthington. “We also know that leadership needs data-rich resources like these to show residents, elected officials, and staff that this work is a necessary investment and will benefit everyone. The Racial Equity Dividends Index for the Public Sector is one of the most valuable tools in helping build that business case for investing heads, hearts, and budgets in building a stronger community.” 

Maximizing Action with Limited Resources

For many local governments, data collection is a heavy lift. Human and financial capital and resource restrictions are the source of analysis paralysis – leading to the ever-present question of, “where do we start?” The Racial Equity Index-Public Sector is an ideal tool to get started on measuring racial equity progress—and making sure the strategy aligns with the needs of residents, employers, and government entities.

Once the metrics are more widely understood, the Center can work with staff to address the findings from the Index to assist leaders in better utilizing their unique data with regard to policy and practices. Finally, while all data is anonymized, it is peer-reviewed with similar size local governments in Minnesota and comparable communities across nation. This benchmarking helps organizations establish racial equity goals that also facilitate inclusive economic growth and competitiveness, helping to ensure the community you are building is a community of choice for talent, employers, and investors. 

Getting started is often the hardest part of the work. We’re here to offer a tool that can help leaders take that first step toward becoming a more equitable and inclusive organization. And we’ll be there to guide you and your peers and elected leaders on the journey from increased awareness about what’s working and what’s not, to taking actions that will transform the community into one that is good for all people to live, work and play.

This is an investment that will pay great dividends for staff and ultimately for the community.

• To learn more about the Public Sector Index, email Center for Economic Inclusion Director of Sales & Growth, Nashan McKelton at activate@centerforeconomicinclusion.org.
  
  

Statewide Housing Amendment: An Innovative Solution to Close Racial Homeownership Gaps

Isaac Russell

By Isaac Russell Director of Policy

Across the country, many states and municipalities are facing critical housing challenges—shortages of affordable housing can lead to crises for low-income renters, which also means that potential first-time homeowners are priced out of the market.  

In Minnesota, these pains are felt acutely and disproportionately by Indigenous people and people of color. The Center’s Indicators for an Inclusive Regional Economy show racial homeownership gaps persist, even among households with similar incomes. This suggests that Black, Indigenous, Latine, and Asian families face additional burdens to homeownership beyond earned income. Among families earning between $50,000 to $100,000 annually, only 41% of Black households own their homes compared to 72% of White households. These racial disparities also exist among low-income renters. Low-income Korean American, White, and Black households are hit hardest, with more than 3 in 5 renters in these communities being disproportionately rent-burdened.  

Dedicated Affordable Housing Dollars: A Constitutional Approach 

To find solutions, policymakers and industry groups are looking for statewide solutions to address these housing crises. One innovative solution to move the needle is a proposal for a constitutional amendment that would dedicate revenue to the construction of affordable housing, rental assistance, and homeownership.  

While this solution alone will not solve racial inequities in housing, it does address one of the foundational problems, which is a shortage of affordable housing. If we define affordable housing as 30 percent of area median income, the metro area is short approximately 71,491 units. To build a single unit of affordable housing, including years-long subsidization of the unit, costs approximately $300,000. This comes out to an over $21 billion price tag to build these units. According to the Minnesota Housing Partnership, our state is short approximately 103,600 units with a price tag of $31 billion. 

Accessible Homeownership Builds Inclusive Regional Economies 

Across Minnesota, this crisis extends to families that wish to purchase a home. It is estimated that 27,000 families can afford homeownership but continue to rent due to the lack of available housing stock within their price range. To facilitate more home ownership among underrepresented communities, we must address stagnant funding to programs designed to help construct new housing. These include programs such as the HOME Investment Partnership Program and the Community Development Block Grant Program, which have helped to compound multi-year housing shortages. The urgency for such investments can be seen in the Metropolitan Council’s projections, which show the region will gain 367,000 new households by 2040. That means we will need nearly 13,000 new housing units of all types. The region has produced less than this number per year for the past decade! An inclusive economy makes the stability and wealth-building benefits of homeownership accessible to all households, regardless of their race or ethnicity. 

Systemic Solutions for Systemic Problems 

All of this goes to the heart of why the Center supports a constitutional amendment that dedicates three-eighths of a percent sales tax to the building of affordable housing, makes financial resources available for homeownership, and provides support for housing stability. Modeled after our very successful Legacy Amendment, this initiative creates three advisory committees that will provide recommendations for lawmakers when they decide how they will allocate resources.  

To make this happen, we need legislation that authorizes a referendum for voters. This referendum will require support from a wide array of stakeholders to let the public know of this initiative and also a show of support from constituents.  

We know this one amendment will not solve all our housing challenges, but it is one of the tools in the toolbox that will build the homes Minnesotans need.   

• Learn more about the amendment

• Contact your legislator, let them know what you think

• Explore the Indicators for an Inclusive Regional Economy 

• Read Our 2023 Policy Priorities 

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Are You A Racial Equity Navigator?

Tawanna Black

By Tawanna A. Black, Founder & CEO

Have you had to navigate any potholes lately? Perhaps you even took a drive down a winding road and had to navigate tree branches that had fallen after our early spring snow fall, while also looking above to ensure that low hanging branches were not scraping the roof of your car…WATCH OUT! Don’t swerve too far to the right or you’ll hit the car in the next lane, and don’t you see the officer sitting in the parking lot up the street, he’ll give you a ticket if you’re not careful!

Navigating the Potholes of Racism

As I drove to the office this week, and navigated the terrain, I was reminded not only of our work helping employers dismantle systemic racism, but of the experience of Black women, pushing hard to achieve our personal dreams, the dreams of our families, and the dreams of our communities, while navigating the visible and invisible pot holes of racism, sexism, conscious and unconscious bias rooted in capitalism that often jump up out of nowhere to force us into new lanes, vehicles, and opportunities.  

I continued the drive and thought about how important it is to have other drivers who are not only looking out for themselves, and the obstacles in their own lanes, but also watching my lane, and the obstacles that might cause me to slow down, speed up, pick up a passenger or two, or change lanes all together. As a large recycling truck who had much greater visibility than I did in my vehicle pulled alongside me, I began to consider how much I value those fellow drivers who have a heightened consciousness about the limited view their fellow drivers have of upcoming obstacles…how much I value those drivers who put their bright lights on so that others can see challenges up ahead, and those who bring their plows out to clear debris so that others can keep moving.

In this journey of building racially equitable and inclusive regional economies, we need each other, the same way we need each other as we navigate snowy, pothole, and tree branch filled roads and sidewalks. While policies and practices are important, dismantling systems of oppression and building anti-racist organizations require much, much more. 

Share Your Resources

If you have information, power, money, or assets, information, or knowledge it must be shared with people in a position to create change, who need those resources to accelerate progress. Relationships must be kindled, curated, and deepened across race, sector, neighborhood, and class in meaningful ways that transform our very way of being. Our formal and informal decision-making must begin to change to invite others to not only provide input, but to make the decisions, distributing power and accountability. And we must begin to interrogate our beliefs about one another that have undergirded generations of biased and racist policies and practices, actions, and inactions. We must ask ourselves what is true, and how know it’s true; why we believe what we believe about people who live, work, and play differently than we do, and how we can challenge our assumptions when making decisions that impact people’s lives, communities, and livelihoods. 

Stay on the Journey

These four conditions of systems change: Resource Flows, Relationships & Connections, Power Dynamics, and Mental Models, have a significantly greater impact on our everyday interactions than policies and practices, just as the fallen tree branches and the actions of our neighbors have on our ability to safely navigate sidewalks and roads after a winter storm on an early spring day. The potholes of racism won’t go away on their own. It’s going to take ALL OF US. I hope we can count on you to stay on the journey!

In solidarity~
Tawanna

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A Long Overdue Investment in Racial Justice: Raising Wages for Care Workers

Betsy Ohrn

By Betsy Ohrn Director of Research

At the Center for Economic Inclusion, we believe all workers should earn a family sustaining wage.

One racial equity priority that we were excited to see reflected in Governor Walz’s proposed budget is a major investment to increase the wages of direct care workers. The budget includes $300 million in this biennium and $500 million in the next to implement the tentative contract agreement between the State of Minnesota and SEIU Healthcare Minnesota and Iowa, providing a historic rate increase for more than 20,000 home care workers in Minnesota.  This is a critical opportunity to address a deep racial injustice that touches the lives of hundreds of thousands of Minnesotans. 

“As a woman of color who has chosen to make Homecare a career choice I cannot express how discouraging it is to find an occupation that you truly love and are made for, which also benefits the people you provide services to, but find that you can’t earn enough at to financially support your own household without some type of assistance or additional employment.”- Tavona Johnson 

Women make up 85% of the direct care workforce, 36% of these workers are people of color. Based on DEED data, almost 11% of working Black Minnesotans work as direct care workers (personal care workers, or nursing/home health aides.) This follows a national trend which also shows that Black women are deeply overrepresented in direct care occupations. This occupational segregation reflects a legacy of slavery and domestic servanthood that continues today. Where enslaved Black women were once charged with caring for White children, Black women were then sidelined into work as domestic servants and childcare workers, and now increasingly they are called to care for the growing elderly population. 

The injustice is not the work itself, but the fact that the work continues to be deeply underpaid, even though this work is essential to the well-being of hundreds of thousands of Minnesotans. In 2020, the average wage for all direct care workers in Minnesota was $14.72 per hour. Around 40% of direct care workers have insurance through Medicaid, Medicare, or another public source.1  

Further, these professions are critical to the future of Minnesota, especially as our population continues to age. Direct Care Workers, nursing assistants and personal care assistants, are two of the fastest growing professions in Minnesota. However, low wages and challenging working conditions are already resulting in large vacancy rates. According to the Minnesota Department of Employment and Economic Development, the last estimate at the end of 2021 showed more than 9,100 job openings — a vacancy rate of 8.4%. In 2022, Minnesota nursing homes reported the largest staffing shortages in the country. These staffing shortages make the work harder for the remaining care workers, place extreme stress on family members, and are creating burdens on our hospital system.  Having committed, well-trained, and experienced workers in these roles is critical to the dignity and well-being of Minnesotans needing care.  

While some employers may want to raise wages, market failures and policy hold back what is possible. Federal Medicaid and Medicare rules constrain how much states can reimburse for direct care services. For this reason, state level leadership is critical to this issue. The agreement between SEIU Healthcare and the State of Minnesota would increase starting wages from $15.25 to $20 per hour by 2025. The deal covers more than 20,000 caregivers, about a fifth of the total direct care workers across the state. If the legislature approves and funds this contract, it will be a significant step forward for many direct care workers.  

This is a historic investment in the wages of workers who are essential to Minnesota’s economy. Not only does this benefit our homecare workers, it also goes a long way to attract committed people to these important jobs. However, you do not need to be a member of SEIU to show your support.  

• Want to know more about how we do our research? Check out our Indicators for an Inclusive Regional Economy

• Take Action: Find and call your legislator. Let them know you support this opportunity to make a difference in the lives of our workers and of all Minnesotans that need dedicated people caring for them. 

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Previewing the Racial Equity Dividends Index for the Public Sector

Nathan Arnosti

By Nathan Arnosti, Director of Analytics

Racial Equity: The New Public Priority

Forward-thinking leaders in local governments across the country recognize that many existing practices and policies stand in the way of goals to build racially equitable, inclusive, and prosperous communities.

Studies show that status quo practices – outdated job requirements that exclude candidates of color, purchasing agreements with longstanding contractors that hinder their ability to diversify their supply chains and increase regional job growth among Black, Indigenous, Hispanic, and Asian entrepreneurs,  land use planning that fails to integrate the needs and perspectives of historically marginalized communities, economic development incentives that subsidize low-wage job creation –exacerbate racial wealth gaps and restrict regional economic growth.

​​​​​​​Meanwhile, emerging practices based on research and pilot demonstrations in local governments across the country offer paths to improved service delivery, community relations, livability, and shared economic prosperity.

Many local governments have established taskforces and committees, created new permanent roles and teams, and joined peer learning networks to make progress towards becoming more racially equitable and inclusive. Yet these efforts are too often piecemeal, siloed within specific departments, and lacking broader context and peer comparison. Based on conversations we’ve had with public sector leaders and partners in recent months, we believe that those looking to take their next steps towards building racially equitable governments would benefit from a new tool developed by the Center for Economic Inclusion, the Racial Equity Dividends Index for the Public Sector.

What Gets Measured, Gets Done

This analytical tool evaluates a local government’s internal and external-facing practices across ten dimensions, including Procurement, Community and Economic Development, and Budgets, identifying more than 60 racial equity standards that research and experience affirm to support more racially equitable and inclusive outcomes. Participating organizations receive a customized score report that provides a clear, concise, quantified picture of their government’s overall current state for supporting racial equity, benchmarks progress against peers, and identifies opportunities for further progress. High-scoring entities will also be publicly recognized in an annual Racial Equity Dividends Index for the Public Sector report. The Public Sector Index structure is modeled off of the Center’s Racial Equity Dividends Index for the Private Sector, which launched in 2022 for private sector employers.

How To Participate

Registration for the first annual Racial Equity Dividends Index for the Public Sector begins at the end of April and will be available to city and county governments in Minnesota and select jurisdictions across the United States. Email me at narnosti@centerforeconomicinclusion.org if you have questions, and stay tuned for more information about registration for the Public Sector Index in the coming weeks!

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Promoting Racial Equity Through a Child Tax Credit

Betsy Ohrn

By Betsy Ohrn, Director of Research

As tax season ends, we highlight the important work that is being done to build equity in the tax code. One critical piece of legislation is Child Tax Credit-- a benefit that would provide significant critical resources to Black and brown families.

We are extremely excited to see this policy included in Governor’s Walz’s budget proposal. This is a unique opportunity to invest in families and promote racial equity across Minnesota.  

In 2021, as part of the American Rescue Plan Act (ARPA), Congress established its first near-universal child benefit in the form of an expanded, monthly CTC. This CTC contributed to a decline in child poverty rates by over 40%. While there was hope the CTC would be made permanent, federal inaction has left it up to the states to continue this critical effort.  

The Governor's proposal follows a similar structure by providing a fully refundable tax credit for children younger than 18 years old and older kids with qualifying special needs. This proposal is estimated to benefit more than 360,000 families and would provide significant ongoing resources directly to families to help cover critical expenses and get their kids off to a strong start. The policy also boosts family income flexibility so families can spend the money where they most need it. 

Analyses find that a tax credit like this could impact 463,000 children, almost 38% of children in the state. It would cut child poverty in Minnesota by 25 percent and lift 22,500 children out of poverty. 

Furthermore, we know that a higher proportion of Minnesotan children are Black, Hispanic, Indigenous or Latino, about 33 percent, compared to 22 percent of all residents. For this reason, investing in Minnesota children, especially those with fewer economic means, is an investment in a racially equitable and inclusive economy.

In 2019, 11 percent of kids in Minnesota were living at or below the poverty line, but studies looked at that number by race and cultural community. The poverty rate for Somali children in Minnesota sits at around 57 percent, 58 percent for Burmese children, 31 percent for Mexican, 29 percent for Hmong, and at 32 percent for African American children. A CTC would make a significant impact on these communities.  

We are excited to learn more about the governor’s proposal and see the details discussed in the legislature. We encourage policymakers to follow the key design principles laid out by ITEP including making the credit fully inclusive, working to offer the credit as a monthly payment, and phasing it out by income.

Help make this historic investment a reality!  

Find and call your legislator and/or sign your organization on this letter to state policymakers coordinated by: Children’s Defense Fund-Minnesota, Legal Services Advocacy Project, Minnesota Budget Project, & Minnesota Catholic Conference, urging them to step up for our families and children by creating a state Child Tax Credit - modeled on the federal expanded CTC’s success – in 2023. 

The letter below will be shared with Governor Tim Walz and members of the Minnesota Legislature at key moments in the policy debate. 

Let them know you support this meaningful step in enhancing the economic inclusion and well-being of children in Minnesota! 

• Want to know more about "The Whiteness of Wealth?" Check out this important and powerful discussion with Dr. Dorothy A. Brown we held last January in partnership with the Minnesota Department of Revenue: "Unleashing the power of the tax code for equity."

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The Time is Now for Racial Equity Impact Notes in Minnesota

Betsy Ohrn

By Betsy Ohrn, Director of Reserch

At the Center for Economic Inclusion (the Center), we are committed to redesigning policies, practices, and structures that have not only extracted wealth from, but have also prohibited the building and passing on of wealth or assets for Black, Indigenous, Latine, and Asian communities. This commitment has led us to become an active leader at the state and local policy level.  

As different organizations and individuals propose and champion new bills, it is challenging to assess whether they will have a positive impact on economic inclusion and the lives of people across Minnesota.  

In order to better understand these impacts, the Center has developed Racial Equity Impact Notes (REIN). Similar to the fiscal notes that state legislators receive right now prior to voting on new bills (to understand the financial impact of any proposed legislation), these notes assess the potential impact of legislation on racial equity.  

What are Racial Equity Impact Notes? 

REIN employs a similar model to the fiscal notes—they assess the potential impact of legislation on racial equity. REIN will employ a methodology to evaluate the intended and unintended consequences of policies, investments, and programs. 

These notes could have had a great impact on certain rent control policies, for instance. Though well-intentioned, this legislation may have made racial inequities worse in some ways—may have even contributed to housing inequities due to the way income requirements and benefit expansions can lead to benefits cliffs which often leave families worse off. Racial Equity Impact Notes could have helped analyze rent control legislation to ensure that lawmakers find the right solutions to fix imbalances. 

REIN In Action 

So, what might these Racial Equity Notes look like in action? When assessing the impact of a Child Tax Credit (CTC) on Black, Indigenous, Latine and Asian families, for instance, lawmakers would be able to analyze the bill with a certain mindset specifically on racial equity. Such an analysis would show that a CTC could impact 463,000 children, almost 38% of children in the state. It would cut child poverty in Minnesota by 25 percent and lift 22,500 children out of poverty.i This would have an even larger impact on children that are Burmese, Mexican, Hmong, and African American. (add citations) 

Bipartisan National Support 

There are several states or localities across the political spectrum that have used some variation of REIN. For instance, Iowa, Colorado, Washington D.C., etc. are currently using impact notes. Iowa measures their criminal justice efforts, D.C. analyzes nearly all proposed legislation, and Colorado examines up to 20 bills per year all using some variation of racial equity impact notes. 

After being introduced in the 2021 legislative session but not moving forward, the Center seized the initiative and created an unofficial working group, comprised of representatives from racially diverse communities and the Legislative Budget Office. This group reviewed national research on impact notes and tested methodology in two case studies to produce data for impact notes. Through their work, REIN was re-introduced 2023 with a focus on economic and workforce development.  

Economic inclusion and prosperity require investing in Black, Indigenous, Latine and Asian owned businesses and workers, making this initial focus for REIN critical to Minnesota's economic growth and prosperity. 

Help make this legislation a reality!

Find and call your legislators. To make racial equity a systemic part of policymaking, we need Racial Equity Impact Notes. Let them know you support HF 2821 that enhances economic inclusion and racial equity in Minnesota! 

• Download the Center’s 2023 Policy Agenda

• Read the 2023 Racial Equity Impact Notes Proposal

• Steps to Racially Responsive Action

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Racial Justice Begins with a Transformational Bus Ride

Rebecca Toews

By Rebecca Toews, Communications Manager

When Jeanne Crain stepped onto the bus for the Reckoning for Truth, Trust, and Racial Justice Tour, organized by the Center for Economic Inclusion, she felt it would be a useful experience for her as President and CEO at Bremer Bank. What she didn’t realize before she joined a cross-sector cohort of peers in Selma, Alabama, was how truly transformational the experience would be both personally and professionally. 

“I was blind to so many aspects of how pervasive lynching was, and how many individuals it affected… how many individuals were unnamed, and also how [lynchings] were celebrated community events,” says Crain. 

Through a series of powerful yet intimate experiential opportunities spanning four days, Crain and 46 other executives leading Twin Cities-based organizations, immersed themselves in a small sampling of the history of Black people in the United States. They traversed the historic route between Montgomery and Selma, culminating in a reflective walk across the Edmund Pettis Bridge, scene of the now infamous events of Bloody Sunday.

“I was left speechless by this experience,” says Eve Onduru, VP of Marketing and Business Development with the Center for Economic Inclusion. “As a person from Kenya, I had obviously understood that my people were taken from their homes and forced into slavery, but I had not ever come so close to the places and stories. I could feel the presence of those whose backs this country was built on.” 

That is exactly the impact that Center Founder and CEO Tawanna A. Black and team had in mind when they evisioned the tours. “The tour is designed not only to share the history of racial exclusion and slavery in the United States, but more importantly, to help those in attendance to reckon with that history— to reflect with one another as a group and build accountability that will help them go back to their organizations and build truly equitable workplaces for their colleagues and employees,” says Black. 

Center staff member and tour facilitator Tiffany W. Worsley said the team wanted participants to sit in the truth of America from a physical and heart position. “We wanted to offer participants an opportunity to reckon with and ignite transformative antiracist change in Minnesota.” 

“We often hear, in Minnesota, that racism isn’t a problem because chattel slavery wasn’t allowed here, but racist acts and policy exist here in MN,” says Wilson-Worsley. “Participants told us about many light bulb moments of the role White supremacy plays in every aspect of their organizations. We know they left the tour truly understanding why they are responsible for creating equitable workplaces here in Minnesota.”

This experiential peer learning tour to Montgomery, Alabama invites participants to uncover a deeper understanding of the legacy of slavery and Jim Crow racism inherent in today’s racial disparities. The tour also sheds light on how the underpinnings of the Civil Rights movement must live on in our relationships, decisions, and investments today to catalyze new cross-sector anti-racist outcomes for the future.  

“Participants walk away from these tours understanding that although there is a shortage of opportunity in communities of color, there is no shortage of talent, innovation, or brilliance,” concludes Wilson-Worsley. “Investors and employers who join us have a unique opportunity to grow our region’s economy in measurable ways and to see an ROI by investing directly in Black communities.” 

• Learn more and register for a tour

Center Applauds City of Saint Paul Actions to Address Historic Legacy of Wealth Extraction

Suzanne P. Kelly

By Suzanne P. Kelly, Chief of Staff

Home ownership not only establishes a sense of place, community, and stability but multiple studies show it has been the most effective intergenerational wealth building strategy Americans have known.

Yet 2023 research published by the California Housing Finance Authority, suggests that discriminatory housing practices such as redlining, racial covenants, and predatory lending has disproportionately kept Black families from owning homes at the same rate as their white peers.

In Minnesota, 77.5 percent of whites own their own home, compared to just 30.5 percent of Blacks; the 5th worst homeownership gap in the United States. Not surprisingly, that gap corresponds to an equally abysmal wealth gap among Black and White Minnesotans. 

One need only look to St. Paul for a relevant example of legally sanctioned government actions that resulted in disproportionate harm to Black residents.

From 1956 to 1968, local and state leaders seized by eminent domain, land upon which  hundreds of Black-owned homes, and businesses in St. Paul’s Rondo neighborhood sat, in order to construct a new interstate corridor. At the time nearly 80 percent of St. Paul’s Black residents lived in the Rondo neighborhood.

Björgvin Sævarsson, founder and CEO of the Yorth Group, reports that “over 700 homes were lost to I-94. Along the way, the ecosystem for the previously thriving local [Black] economy was destroyed with many businesses closing as a result.”

Sævarsson determined that the intentional routing of I-94 through the heart of Rondo resulted in a loss of at least $157 million by 2018 in intergenerational wealth being passed down from homeowners to their children and grandchildren.

Rondo is just one local example of legally sanctioned, post-slavery actions taken across the United States that have left a legacy of Black exclusion educationally, socially and economically.

Efforts to repay Black Americans for their decades of loss have rarely gained traction. But on January 4, 2023, the Saint Paul City Council voted to establish the Saint Paul Recovery Act Community Reparations Commission. 

The ordinance, which takes effect on February 13, 2023, establishes a commission that will recommend ways for the city to make reparations to Black residents whose ancestors were enslaved.

The vote came two years after the City apologized, for its role in “systemic discrimination […] perpetrated through redlining and racial covenants, access to housing, environmental injustice and the removal of St. Paul’s Rondo neighborhood (Gray, 2023).”

These efforts also follow the adoption of the 2021 Ramsey County Inclusive Economic Competitiveness & Inclusion Plan, which endorsed significant local and county housing investments and acknowledged the historic policies that extracted wealth from Black families, necessitating courageous policies to catalyze systemic equity building.  

The Center commends the actions of policymakers to address the wealth, unity, and community taken from the residents of the Rondo community. The multi-generational effects of the United States highway system on Black communities can truly never be measured, but our actions to repair the harms must begin now.  

• Learn more about the Center for Economic Inclusion’s work with Ramsey County, the City of Saint Paul and others to disrupt and dismantle systemic racism and bias to construct and sustain an inclusive, equitable and growing regional economy for all here 

• Learn more about the Saint Paul Recovery Act Community Reparations Commission here. 

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2023 Legislature: Breakthrough Year for Racial Equity and Inclusion in Minnesota?

By Tawanna Black, Founder & CEO

Tawanna Black

When the 2023 Minnesota Legislature was called to order on January 3, lawmakers and advocates throughout the state turned their attention to top priorities, including allocation of the unprecedented $17.6 billion budget surplus and drafting a two-year budget.

Both the surplus and budget represent historic opportunities to drive economic growth through job creation and increased GDP by making substantive, structural, and equitable investments in Black, Indigenous, Latino, and Asian individuals and communities across our state.

At the Center for Economic Inclusion, we’re committed to closing racial employment, income, and wealth gaps, and building racially inclusive and equitable regional economies. The Center equips public- and private-sector employers and policy makers to dismantle systemic racism and institutionalize anti-racist policies in shared accountability and solidarity with Black, Indigenous, Latino, and Asian communities.

History proves that when racial equity and economic inclusion are not prioritized in policymaking, the result is often inequitable policies, loss in economic growth, and harmful impacts to Black, Indigenous, Latino, and Asian communities that can ripple for generations.

We are headed in the right direction. Over the last decade, Minnesota’s Legislature has increased the number of data-informed policies and investments focused on closing stagnant racial employment, income, and wealth gaps. The state Legislature is also more racially diverse now than at any point in its 174-year history. These policymakers are positioning Minnesota to win by leveraging their diverse lived experiences, perspectives, and that of their constituents as they legislate.

The future of Minnesota’s economic growth and competitiveness relies upon the willingness of policymakers to enact and invest in anti-racist policies and solutions. To support policy makers in building an equitable, just, and prosperous economy, this legislative session we are advocating for the following policies.

Policy: Racial Equity Impact Notes (Read More)

The Center and a coalition of partners will continue advocating for Racial Equity Impact Notes, a tool similar to a budget or environmental impact note, that empowers policy makers to assess the impacts of a proposed policy or investment on closing or widening racial disparities. In 2022, the Center conducted research on the results of similar impact notes in other states and partnered with leaders across the state to develop strategies we will recommend to Minnesota’s Legislature to actively engage Minnesotan’s in more data-informed, transparent, and consistent analysis of policies aimed at building the most inclusive, competitive, and prosperous state in the country.

Policy: $10M Direct Appropriation for Job Creation (Read More)

The Center is uniquely positioned and dedicated to create inclusive regional economies for Minnesotans of color. We have demonstrated our capacity and commitment to develop groundbreaking and actionable research, data-informed tools, and frameworks, including our Racial Equity Dividends Index, Vanguard Accelerator, Indicators for and Inclusive Regional Economy, Vanguard Research, Racial Equity Impact Notes Research and equity consulting services. With a track record of success, we are uniquely positioned to continue helping Minnesota employers take actions to build anti-racist and equitable workplaces, and helping state policymakers facilitate cross-sector, community-driven development.

After just five years, we’ve helped many Black-owned businesses create and grow jobs statewide and have created almost 30 jobs at the Center itself. An investment in the Center for Economic Inclusion’s job creation strategies will pay multi-generational dividends for all Minnesotans.

Policy: Increase State of Minnesota Procurement Preference and Equity Select Cap

We advocate for increasing the percentage when contracting with the State of Minnesota from 6% to 12% and raising the limit for non-competitive contracting from $25,000 to $100,000. The State of Minnesota currently allows the Commissioner of the Department of Administration to award a 6% preference to businesses owned by women, minorities, economically disadvantaged, and persons with substantial disabilities. These groups are also eligible for the Equity Select program which allows the state to directly contract with businesses up to $25,000.

While these goals have allowed for increased contracting with the groups identified, research shows there is more capacity to contract with these businesses. This is why we support the Department of Administration’s proposed policy to increase the preference to 12% and direct contracting amount to $100,000.

The legislative session is short. Minnesota’s problems are historic and systemic. We have to make the time count. We invite you to join us in partnership and collective action.

Let’s keep building!

For more information, read about our policy priorities.