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�SPECIAL ANALYSIS
The Economic Status ofHispanics
Recent press reports have highlighted a deterioration in the economic weU~being of
Hispanics over the past decade or so~ob skilh; appear to be an im~t.
- explanatory factor.
Trends in relative earnings. The attention-grabbing statistic was a decline in
median household income for Hispanics between. 1994 and 1995, when other
Unadjusted Male Wage Ratios
demographic groups were experiencing
1.00
increases. But not much should be read
into a single year's income data. What is
0.90
'more disturbing is the longer-term trend
0.80
in earnings. While black men who work
full-time, year-round have held their own
~ 0.70
a:
or even gained ground relative to their.
'0.60
white counterparts, Hispanic men have
0.50
experienced a marked deterioration in
their, relative earnings (see upper chart);
0.401980 1982 1984 1986 1988 1990 1992 1994
Analysis. T1:te..fact that Hispanic workers
tend. on average, to be younger and less
Adjusted Male Wage Ratios
skilled than white (or black) workers
1.00 ..-~-~--------'--,
explains a significant part of the relative
0.90
... ~ .... /
deterioration in their earnings. The lower
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0.80
chart, based' on a statistical analysis,
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shows that the ratio of the earnings of
BIad<IWhIte
'il 0.70
a:
Hispanic workers to those of white
0.60
workers of similar age with similar
education is' substantially higher and
0.50
shows less decline .pan the unadjusted
0.401U.980~1...J..98-2~19..':.84~'1986:'-'"-19J...88--19'-90~1....J992'-'-1""'994--'-'
ratio. The serious deterioration in the
unadjusted earnings data therefore
implies that either the proportion of Hispanic workers who are low-skilled has
increased or the relative earnings of low-skilled workers has declined. Two
developments may be important:
-
I
• Immigration. The proportion ofunskilled Hispanic workers coWd have increased
because of immigration. The annual flow of Hispanic immigrants has been about
a half million per year for the past decade (about 2.5 percent ofthe U.S.. Hispanic
population). If these immigrants were quickly assimilated into the workforce,
this flow would be too small to have much impact on average wages. But some
studies suggest that the earnings disadvantage of immigrants persists over time,
creating a growing pool of low~skilled workers.
Weekly Economic Briefing
3
March 14, 1997
�..• The skill premium. Whether or not the proportion of low-skilled Hispanics has
increased, we know that the relative earnings of low-skilled workers generally
have declined over the past decade or two. Hispanics as a group have relatively
low skill levels when measured by conventional indicators like education. For
example, onl~57 percent of Hispanics betwetm the ase.s.. of 25 anJ!J9 have
- graduated from high school, compared wjth87 percent for both blS!cks and
_ whit~ During a period when the relative earnings of low-skilled workers have
deteriorated, groups With a disproportionate number of low-skilled workers are·
likely to experi~nce relative earnings declines.
Conclusion. Some of the decline in Hispanic earnings remains unexplained. But
low educational achievement and therefore low skills are clearly an important reason.
for the decline. Whether it is through overcoming language difficulties oro.ther
barriers, one route to improving the economic prospects of Hispanics almost surely
involves raising educational attainment.
Weekly Economic Briefing
4
March 14. 1997
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WHITE HOUSE STAFFING MEMORANDUM C e
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'97 APR 15PM9:03
TH E WH ITE HOI)SE
WASH INGTON
April 15, 1997
MEMORANDUM FOR THE PRESIDENT
FROM:
SUBJECT:
GENE SPERLING
Actions to Address Hispanic Needsl
. Meeting with Hispanic Congressional Caucus
You recently asked me to look into what more we· could be doing to combat
Hispanic poverty, and to address the related education issues, including the high dropout
rate. I held an initial brainstorming session with Secretary Henry Cisneros, Congressman
Xavier Becerra (Chairman of the Congressional Hispanic Caucus), Administrator Aida
Alvarez, Maria Echaveste, Janet Murguia, Alicia Munnell, Ed Montgomery (DOL) and
Ken Apfel (OMB).We have since held internal meetings with OPL, OMB and DPC, and
follow-up meetings with Delia Pompa at the Education Department, staffof the Advisory
Commission on Educational Excellence for Hispanic Americans, as well as
representatives of the Hispanic Association of Colleges and Universities (HACU), the
League of United Latin American Citizens (LULAC), the National HEP,;,CAMP'
. Association, and the National Association of Farmworker Opportunities Programs. In
addition, we have continued to work with Rep. Becerra and his staff (see letter, attached).
While the process of developing an· action plan is not yet complete, in preparation
for your meeting with the Hisparuc Caucus you should be aware of some of the steps that
we are considering. We have focused on:
(1)
Making sure that we are aware of which currentprograms have a strong
Hispanic focus, so that those programs are protected and promoted as
budget issues are Q.egotiated.
(2)
Identifying what steps can be taken now -,. either administratively or in the
design of new programs and reauthorization proposals -- to improve
education for Hispanic students.
(3)
Identifying new proposals we should be developing for the long-term,
including next year's budget.
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Your FY 1998 Budget
While Hispanic students benefit from the general inves~ment in education that is
represented by your budget, there are particular programs that especially important in
addressing the needs of the Hispanic population. Your proposed budget for 1998
increases the funds, at a rate higher than inflation, for all of the education programs that
are of particular interest to the Hispanic community: bilingual and immigrant education,
adult education, migrant education, and aid to Hispanic-Serving colleges.
Bilingual Education.: The Department of Education estimates that approximately
2.8 million elementarY and secondary students in the United States are limited-English
proficient. The number of limited-English students has nearly doubled in the past decade
and that growth is expected to continue. Your budget proposes a 27 percent increase for
bilingual education, $42 million. over last year's enacted budget. Approximately 75
percent of bilingual funds serve Hispanic students.
Immigrant Education: lI;nmigrant Education support provides funds to school
districts to support programs for recent immigrants. Your budget proposes a 50 percent
increase in this program, from $100 to $150 million.
Adult Education State Grants: Adult education is very important for a growing
community that encounters language and educational barriers as it tries to move up in the
workforce. Approximately 34 percent of Hispanic participants in adult education are
enrolled in English-as-a-Second-Language classes. Your i,Judget proposes a 12 percent
increase, $38 million over last year's budget (which was an increase of38 percent over
FY 1996).
Migrant Education: Of students who frequently move betweeQ. school districts,
74 percent are Hispanic. Y()ur budget proposes about a five percent increase for migrant
education support. (It is, however, less than your proposed budget in FY 1997).
"HEP" and "CAMP": The Administration's reversal on the High School
Equivalency and College Assistance Migrant Programs (HEP/CAMP) is parti~ularly
important to Congressman Becerra and the Caucus members -- and they would like you
to do more. The previous two budgets had eliminated the programs, iIi part because of
their small size. But this year your Budget calls for the programs to be continued, with an
inflation adjustment (2.6 percent). They are popular with the Hispanic groups, partly
because they provide for concentrated assistance,albeit for a small number of people.
•
High School Equivalency Program (HEP): The HEP program will serve
approximately 3;600 persons in FY 1997. Your budget proposes funding at
$7.634 million. Citing the success ofthe HEP program, Congressman Becerra
has encouraged the Administration to fund it at maximum levels, and to use it as a
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model in developing new-prograins to ~sist individuals in obtaining their high
s~hool diploma.
.
•
.College Assistance Migrant Program (CAMP): .Your budget proposes funding
this program at $2.081 million. Only 375 people will be served by this program
in FY 1997. Part of the reason for the smaIl enrollment, however, is the lack of
funding. Congressman Becerra states that, on average, sites for CAMP funding
receive 200 applications for every 40 slots available; although he does-not suggest
a funding level, Congressman Becerra would recommend increasing funding for
CAMP.
Hispanic-Serving Institutions (HSIs): HSls are colleges with Hispanic
populations of at least 25 percent. Congressman Becerra has recommended that the
number of institutions designated as HSls should be mcreased. Your budget proposes an
11 percent increase for HSls, to $12 million.
. .
New Actions
The Administration is currently in the process of finalizing the details on a
number ofnew proposals and reauthorizations of current programs. We are using this
process to identify opportunities to ensure that programs are addressing the needs ofthe
Hispanic population. Working with DPC, OPL, and OMB, our activities include:
Head Start: Even before they reach school age, Hispanic children tend to have
fewer school-related skills. Approximately 17 percent of Hispanic students attend
preschool, compared to 34 percet:lt of non-Hispanic students. And while Hispanic
children are 28 percent of all poor children, they are only 15 percent of Head Start. This
leaves Hispanic children less prepared to begin sCllool, and thus they fall farther behind.
Congressman Becerra states that "[ilt is critical for the Administration to make a
coriunitment to improving access for Hispanic children." We are working with the
Department of Health and Human Services to devise a strategy for increasing
Hispanic enrollment in Head Start.
Read,ing Tutors and Parent Training: Early learning strategy also points to the
need of greater parental involvement in the development of children. Low literacy of the
care giver can contribute to this problem. The Education Department is providing us
with options for ensuring that the America Reads effort -- including Parents as First
Teachers -- is designed to reach the limited-English proficient (LEP) population..
Adult Education Act reauthorization: Even though LEP adults are a large part of
the adult education population, the funding fOImulas do not take into consideration their
special needs. At our request, the Department of Education will add an LEP factor
to its proposed funding formula to target funds to meet the needs of Hispanic and
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immigrant students.
Higher Education Act reauthorization: Funding fonnulas for some campus
based student aid programs tend to favor older colleges in the northeast and midwest over
growing colleges in the southwest -- where many of the Hispanic-Serving Institutions are,
Hispanic organizations have also expressed concern that TRIO (college preparation and
support services). is not sufficiently serving Hispanics. Your proposed 1998 budget
increases by TRIO by 5 percent. We will work with the Department of Education to
address these needs in its proposal for reauthorization.
Teacher Training: While the number of limited.,.English proficient (LEP) students
has nearly q.oubled in the past decade. only one in five teachers of LEP children have had
the appropriate training: The Education Department has aggressively sought pennission
from Congress to use a portion of the bilingual education funds for teacher training
efforts. with limited success. You can take the opportunity in your meeting with the
Caucus to reaffirm the Administration's commitment to teacher training.
. Pell Grant promise for sixth graders: One cause ofthe high dropout rate for
Hispanics is the lack of hope for the future. Therefore. we are developing proposals that
would encourage students to stay in school and aspire to a higher education. As I
mentioned to you previously, we are currently considering how to implement a
program much like Congressman Fattah's proposal to provide students in·
elementary school where poverty exceeds 75 percent with a legally binding promise
to a full Pell Grant for college. If we move forward with this proposal, the promised aid
combined with early intervention/mentoring will help prevent dropouts. The focus on
high-poverty schools helps to target the program to Hispanics (19 percent of the· students
in high-poverty schools are limited-English proficient).
P",hlic Service Announcements: We are exploring the possibility of
producing a series of public service announcements (PSAs), both in English and
. Spanish, which would encourage children to stay in school and parents to become
more involved, at an early age, in their. children.'s education. We are planning togo
back to Henry Cisneros with some of the ideas for the Public Service Announcements.
Some possible topics for these PSAs include: Read to Your Children; Stay in School;
Financial Aid is Available for College; and Become a: Tutor and a Mentor.
NEC staffwill continue to work with DPe, OMB and the Education Department to
explore these issues, as well as a number ofother suggestions that have come from
Hispanic organizations and Members of Congress. '
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.CAPITOL ·,FRCE
1119 LONGW )RTf! HOG
wASHINGTOI . DC 20515
PHONE: (202 225-6235
fAX: (:ro~) : 25-2202
OISTI'ICT )F'Flce
2435 COLORAD- , BLVO.• 11200
LOS ANGELE: '. CA 90041
PHONE: (al:! .550-8962
CHAIRMAN.
•
CONGRESSIONAl ~ISPANIC CAUCUS
([ongress of tbe Wniteb
f~(213', 5O-1~O
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~tates
of .i\.cprCi)entatitJei)
XAVIER BECERRA
30TH DISTRICT. CALIFORNIA
April 10, 1997
Ana Gomez
Deputy Chief of Staff
National Economic Council
The White House
. 2nd Floor, West Wing
Washington, DC 20502
Dear Ana:
..
As promised, the: following may be helpful to you as you consider ways to address Hispanic
income inequality. It is an issuethat is of great concern to Congressman Becerra at:ld he asked that
. I relay some st:!ggestions to you. I believe it was made clear both in the discussion on March 13
and in the literature: poverty in (he Hispanic community ~hould not be intractable. There i~ one
factor which accounts for up to' 70% of income inequhlity:education. Fortunately, the low
educational attainment rate in the Hispanic community is a problem which can·be addressed. While
there are obviously additional problems faced by Latino fainilies, including housing affordability
and the low r.ate of health insurance coverage, in this letter I would like to focu.~ on education and
just suggest a few avenues for consideration.
While the recornmenda~ons which follow are not new or revolutionary, they are proven,
, successful programs which encourage and enable Latinos to find success in theirear1y years of
education, complete high school and go on to college.
• Hisparucs are underserved by Head Start. Although Hispanic children are 28% of aU. poor
children, they are only 15% ofchildren participating in Head Start. It is critical for the
Administtation to make a commitment to improving access for Hispanic children. Using .
discretionary spending, the Department could initiate pilot projects? support Latino leadership
development within the Head Start bureaucmcy,. and provide curriculum development guidance
for service populations currently underserved in Head Start~ Further expansion of Head Start
should focus on applicantc; who state a corrunitment to serving populations currently
llnderserved.
• Hispanics are undersetved by TRIO. As you know, in many. communities, theTRIO
.
program!; are the only programs that help students to overcome class, social, academic. and
cultum1 barriers to higher education. We applaud the President's commitment to TRIO, as
evidenced by an increase of$37 miUion in his 1997 budget request and a 5% increase in his
1998.budgerrequest. Some advocates have suggested that one way to improve Hispanic
participation, which is low. would be to reduce the number of pointe; an application for a TRIO
grant receives for prior experience and to give programs serving underrepresented. populations
.
and areas special consi.dec:ation.
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• lIPA 402 is woefully underfunded. At 1,350.000 eligible clients. the $69.000,000 in 1996
appropriations provides onl y $29 per farrnworker.
.
• The HighSs,;honl EQuivalency Pm~'1-a1Jl , (Ilrgeted to migf(mL"~ helps persons 16 yCtl.fS of age or
old~r who nre not currently enroiied in school obtain a high school diploma and go on lO·
college or non-migmtory employment. Evaluations have consistently shown srrongly positive
rc~u[t!\. HEP shoutd be funded al maximum levels nod should he used us a model in
-,~veloping new progr"'m~ to a<;sist iridividl:ai<; ~n obtaining their GED.•
• Col1ege Assjstance Migrant Progmm funding is inadequatc. Funding for CAMP has remained
relatively constan($ince 1984.in current dollars, but dle co!-t of higher education has increased
rapidly. As a consequcllce, the number of student" s~rved through CAMP funding ha.~
decreased by approximately one-half since 1984. On average. sites receive 20:0 applications
tor every 40 SIOL~. A longitudinal ~tudy found that 92% of CAMP participants succes~ful1y
completed their first ycar of college.
.
'
• The number of institutions de.cdgnated as Hispanic Serving Institutions needs to be increased
nod they should be accorded many of the same benefitS provided to Hi~toricaUy Black Colleges
and Universities. This jncJudes greater ac(."eSs to Library and Infomlation grant~ under TItle t,
increased funding. new grant~ for graduate and professional programs, and increased
pruticipation in federal student financial :lid programs.
'.
.
• The reauthorization nfLhe Higher Eciucalion Act presents an opportunity to drarnatically ,
increa.~e participation of community based organizations in efforts to enroll and graduate
studentS from disadvantaged backgrounds. These organi7.ation.~ are able to bring in volunteers.
~uccessful rolc£ models from similar bnckgrounds. and parents to motivare students and help
them make the connection between academic performarice and a successful and sausfying
career.
F nally • let me make one more important, point. As you consider changes in programs arid
d· :vetopment of new program.~ it is vital that you include representatives of the Latino community
a1 the table. There arc many people and 'organizations across the country who have successfully' .'
a<:complished on a SlDall scale the goals we would like to see nationally in the Hispanic community:
h'gh lileracy rri.tes.high school completion. college completion. and employment. For.example•.
L ULAC operateS a six-week summcr recreation reading program at 16 sites acro~.; the,countl:)'
" hi~h provides first. second. and third gmders an opponunity to read and to experi~ncc enjoyable
a :tivities that promote reading. I would hope char LULAC would be .tapped as a resource a..; you
h :gin implementation of President Ointon's '~America Reads" initiative. to ensure that both we are .'
n )t reinvenling I:he wheel and we are including limited-:-Bnglish proficient youth in this national .
ir itiati ve.
1 hope this is. helpful. Ptca.c;e feel free to calion me, ac; I look forward to working with you on this·
a ld other matters of importance to the Latino community and to the Nalion.
S incerety,
[lCirdre Martinez
legislative Direct{)r
1:
�'.
April 15, 1997
STATISTICS ON HISPANIC INCOME
Over the past decade, Hispanics' economic well-being has deteriorated relative to
other groups:
•
In 1985, the Hispanic poverty rate was 29.0 percent -- slightly below the African
American poverty rate of31.3 percent. By 1995, however, the Hispanic poverty
rate had risen to 30.3 percent, while the African-American rate had fallen to 29.3
percent. (Over the same period, the poverty rate for all Americans fell from 14.0
percent to 13.8 percent.) ,
•
Median household income for Hispanicsfoll by 8 percent in real terms between
1985 and 1995, while median household income for African-Americans rose by 7
percent. (Over the same period, median household income for all Americans rose
by 2 percent.)
Some recent indicators suggest sniall improvements: The Hispanic poverty rate,
even though it is higher than a decade ago, fell from 30.7 percent in 1994 to 30.3 percent
in 1995. And the Hispanic unemployment rate has declined from 11.6 percent in 1992 to
8.9 percent in 1996 and 8.3 percent in the first quarter of 1997. Nonetheless, it is clear
that Hispanics are lagging behind other groups --especially over the past decade or so.
�
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Bruce Reed - Education Series
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Domestic Policy Council
Bruce Reed
Education Series
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<a href="http://clinton.presidentiallibraries.us/items/show/36312" target="_blank">Collection Finding Aid</a>
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Bruce Reed's Education Series include material pertaining to national standards and testing; the Elementary and Secondary Education Act (ESEA) and the 1999 efforts to reauthorize the Act; 100,000 teachers and class size; charter schools and vouchers; education events and forums; social promotion; Goals 2000; HOPE Scholarships; Pell Grants; the Education Flexibility Partnership Act of 1999 (Ed-flex); education funding and budgets; and various school and teacher issues. The files contain correspondence, reports and articles, memos, polls, handwritten notes, hard copies of emails, schedules, printed material, and memos to the President.
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Hispanic Education
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Domestic Policy Council
Bruce Reed
Education Series
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Box 91
<a href="http://clintonlibrary.gov/assets/Documents/Finding-Aids/Systematic/Reed-Education-finding-aid.pdf" target="_blank">Collection Finding Aid</a>
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