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"A Tale
of Two Cities" Recently, ReliaStar Financial Corp. of Minneapolis published a financial security index, ranking the 100 largest metropolitan areas of the United States. This is the first year of publication of this index. The purpose of the ranking is to identify the factors that affect individual and community financial security. The index is based upon factual indices provided by both public and private sources. It is intended to be a snapshot of each metropolitan area to establish a baseline that can be monitored over time. Combining all scores, Sarasota-Bradenton ranks 10th in the country as the most financially secure community. The Argus Foundation believes that an examination of the component parts is necessary for its members, and elected officials to understand that there are two entirely different communities that make up the Sarasota-Bradenton area—one that goes to work every day, and one that is retired. Analyzing the components that were weighted in the rankings tells the tale of these two different economic communities - "a tale of two cities." For the purpose of the study, ReliaStar defines financial security as "the financial means and opportunities, regardless of source, needed to support oneself and dependents at an acceptable standard throughout one’s lifetime." The 100 largest metropolitan areas are evaluated against criteria that range "from the capacity to earn income to the safety net and community infrastructure that supports individuals and households during times of prosperity and adversity." Four general categories (earnings and wealth potential, safety net, personal threats, and community economic vitality), with fifteen subsets, are used to determine financial security. Each component subset is weighted to determine the overall ranking. "Household income" has the greatest weight with 14 percent of the overall index, while "income support programs" have the least weight with 2 percent of the total. Each subset score may effect the ranking either positively or negatively. For example, a high "Household Income" score will raise the score of a metropolitan area, while an increase in the "Lack of Health Insurance" will lower the overall score. Analyzing the components of the overall score provides a specter of an economic dichotomy of Sarasota-Bradenton of a magnitude that is startling. Keeping in mind that roughly 30 percent of the population in the Sarasota-Bradenton area is over 65 years of age, we have the 16th highest level of average household income, adjusted for cost of living differences, at $60,329. In terms of absolute wealth, defined as median net assets of households (including real estate) the Sarasota-Bradenton area is the wealthiest metropolitan area in the United States. Median net assets include assets accumulated through savings and investments. Though we have had the greatest increase in new jobs of any metropolitan area in the U.S.A., our job quality is very low. "Job Quality" is based on average earnings adjusted for cost of living differences, and at $21,954 per average job, Sarasota Bradenton ranks 94th in the nation. Though unemployment is low at 3.4 percent, 14 percent of all households earn the equivalent of $15,000 or less. At this level, households are not financially secure, and make significant financial demands on the local economy. To compound the dilemma, 25 percent of the non-elderly working population is without health insurance, ranking us 80th in the country of the 100 areas ranked. As a frame of reference, only 9 percent of workers in Madison, Milwaukee and Racine go without health insurance, while in the lowest ranked, Tulsa, 29 percent have no coverage. When one considers the percentage of working households in our area who have neither term life insurance (70 percent, ranking us 79th), nor retirement savings products such as an IRA, 401(K) or Keogh Plan, (51 percent, ranking us 92nd nationally), it is clear how divided our community is economically. Many of the "working poor" in the Sarasota-Bradenton area work without accessing public welfare. Despite ranking 53rd in "Low Income Households" with 14 percent of households making under $15,000 (the worst market is Shreveport-Bossier City LA with 20 percent), income received from income support programs such as SSI, Aid for Dependent Children, or food stamps per low-income household is the lowest of any of the 100 metropolitan areas in the United States at $1,227 per household. On the bright side, we have created more new jobs in our area over the past two years (5.1 percent ) than any place in America. And despite our feeling that we are overtaxed by government, our per capita expense for all forms of government, including income taxes, sales taxes, fees and license costs of $968, makes us the 3rd lowest taxed metropolitan area in the country, of the 100 areas ranked. The heaviest per capita costs for government, $3,342, are in New York, North Jersey, and Long Island. Yet in spite of the good news, we cannot lose sight of our strong dependence upon retirees, and the tenuous balance imposed upon our community by the "two cities." The ReliaStar survey conclusively points to the economic schism that exists in the Sarasota-Bradenton area. Clearly it points to a political and social agenda that screams out for attracting better employment for the working households in our community. The lack of employment benefits for so many suggests that many working families, after working a lifetime to contribute to the betterment of this area, will not be able to enjoy their retirement here. If we do not work together as a community to actively increase good paying employment opportunities, what message do we send to our 30,000 school age children? The message is, you can grow up here, go to work someplace else, and return for your retirement. This problem has persisted for more than one generation in our community. It has been discussed over many a lunch and dinner without statistical comparison that demonstrably shows how underdeveloped our business community is compared to that of our retired population. The ReliaStar survey has provided us with that benchmark. Now it is up to us as a community to encourage economic investment that provides more jobs, better paying jobs, and economic security for our working population. If we are able to succeed, we will break the chains of our current overreliance on retirees and provide for the future economic health of everyone.
ReliaStar Rankings of Financial Security in the Nation's Top 100 Metropolitan Areas - 1996 SARASOTA-BRADENTON AREA Overall Ranking in U.S. (10th) Earnings and Wealth Potential Household Income
(16th) Safety Net Lack of Health
Insurance (80th) Personal Threats Unemployment
Rate (21st) Community and Economic Vitality Cost of Community
Services (3rd)
Sarasota-Bradenton Boasts a High Level of Financial Security . . . Average Household
Income, Adjusted for Cost of Living $ 60,329 That Is Still Elusive to Many Average Salary,
Adjusted for Cost of Living $ 21,954
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