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COVID-19 RESOURCES AND INFORMATION: See the Atlanta Fed's list of publications, information, and resources; listen to our Pandemic Response webinar series. ECONOMY MATTERS ANNUAL REPORT One Region. Many Economies. March 25, 2019 One Region. Many Economies. One of the most impoverished places in the Southeast lies less than a mile-and-a-half from Atlanta's historic Grant Park, a prosperous neighborhood of 120-year-old Victorians, tidy bungalows, and the city's zoo. That small distance, however, represents a socioeconomic gulf. In Thomasville Heights, weedy lots scattered with trash sit alongside low-slung apartment buildings surrounded by iron fences. In 2013, the neighborhood's median household income was under $8,000, and only one in 10 homes was owner-occupied, according to U.S. Census Bureau data. Up the street, Grant Park's median household income that year was $91,250, and owners live in two-thirds of homes. "Most people don't experience the same economy." President Raphael Bostic Comprehensive data such as employment and gross domestic product (GDP) growth describe a strong U.S. economy. In fact, 2018 was the nation's best year for economic expansion since the Great Recession. By many measures, the Southeast economy has been equally robust. (The Southeast in this report refers to the six states that make up the Sixth Federal Reserve District.) In fact, led by Florida and Georgia, the six states combined surpassed the national pace of job growth in 2018. Yet many people, like those in Thomasville Heights, do not live the national or regional norms, points out Federal Reserve Bank of Atlanta president Raphael Bostic. Bostic traveled the region in 2018, his first full year as Atlanta Fed chief executive. He visited more than a dozen places, from bustling metros to smaller cities fighting for footing in a changing economy, such as "the Shoals" area of Florence-Muscle Shoals, Alabama, and Albany, Georgia. He also visited the Thomasville neighborhood. "There are many economies, not just one," Bostic said. "Depending on where you are, people are having very different experiences in terms of prosperity, in terms of hope, and in terms of access to opportunity." Median Household Income Export 1997 <$15,000 $15,000-30,000 $30,000-45,000 $45,000-60,000 $60,000-75,000 $75,000-90,000 >$90,000 + Note: In 2012 dollars, adjusted for in ation based on Personal Consumption Expenditures index. Source: U.S. Census Bureau; Moody's Analytics estimated View data for: 1997 2007 2017 Visiting places across the Southeast offered Bostic a multifaceted view that numbers alone simply can't match. "When I talk to people, look in their eyes, and get a feel for their hopes and concerns, it creates a different and in many ways a more lasting impression than I get from the data," Bostic said. "I've found the experience incredibly rich." The Atlanta Fed's annual report and three subsequent quarterly special reports will explore in text, video, and images the Sixth District's varied economies, in part by visiting some of the cities on Bostic's 2018 travels. Through statistics and interviews with people struggling to overcome economic challenges and people working to help others improve their economic mobility and resilience, the report will examine socioeconomic gaps, including differences in economic mobility and resilience. "There are some places...that are booming and you see a lot of growth. But there are other places where the economy is not nearly as robust." — Bostic Economic mobility is a challenge People are moving in droves to cities like Nashville and Orlando for high-paying jobs. However, the children growing up there in modest means are not necessarily reaping much benefit from the economic boom, Harvard University economist Raj Chetty pointed out during an October 2018 visit to the Atlanta Fed. Among 381 U.S. metro areas, the Southeast's major metropolitan statistical areas, or MSAs, consistently ranked near the bottom of the list in terms of children's ability to move up from the bottom of the socioeconomic ladder: Ranking of Major Southeast MSAs Rank MSA 236 Miami 272 Orlando Note: To see a map with the household income for adult children of low-income parents for all U.S. cities, go to The Opportunity Atlas. Source: The Opportunity Atlas 275 Tampa 306 Nashville 307 New Orleans 326 Birmingham 330 Jacksonville 360 Atlanta Note: To see a map with the household income for adult children of low-income parents for all U.S. cities, go to The Opportunity Atlas. Source: The Opportunity Atlas One of Chetty and his colleagues' more intriguing findings is that proximity to large numbers of jobs is not highly correlated with robust economic mobility. What appears to matter more for children is living among large numbers of employed adults in their own neighborhood, Chetty said. Access to role models, strong family structures, and other elements of "social capital" are critical. Two primary factors are to blame for diminished economic mobility: slowing economic growth over the past 30 years, and most income gains accruing to people at the top of the income scale, according to Chetty. Also importantly, his research shows that much of the stagnation in mobility results from how we provide opportunities for kids from disadvantaged families. In particular, Chetty cites factors including access to higher education, the uneven quality of elementary schools, and the rise of both income and racial segregation. "When people are unstable in their housing...they do worse in the workplace." — Bostic Persistently poor counties are further evidence of constrained economic mobility. The South has long encompassed more persistentpoverty counties than any region in the country. A band across central Mississippi, Alabama, and Georgia includes many of the nation's counties where 20 percent or more of the population has lived in poverty as measured by each census since 1980. (See this map on the U.S. Department of Agriculture's website.) Hope and promise amid challenges Bostic saw plenty of challenges during his visits across the region. Albany and the Shoals, for example, both lost population between 2010 and 2017. In the Albany metro area, two counties sitting side by side tell a tale of differing economies. In the city of Albany's Dougherty County, vital signs such as labor force participation, the proportion of the population on food stamps, and the share earning income below poverty level all worsened between 2010 and 2017, according to American Community Survey data from the Census Bureau. Median Household Income Export <$15,000 $15,000 - 30,000 $30,000 - 45,000 $45,000 - 60,000 $60,000 - 75,000 $75,000 - 90,000 >$90,000 + Note: The U.S. median household income is $57,652. Source: U.S. Census Bureau, 2013-17 American Community Survey 5-Year Estimates © USA Census Bureau View data for: Household income College education Internet service Poverty Labor force participation Just across the border, most of those measures trended upward in Lee County. That area north of Albany has seen clear growth: 65 percent of housing units have been built since 1990, census data show. The population climbed 4 percent from 2010 to 2017. In Dougherty, by contrast, only a quarter of the existing housing units have been constructed since 1990, and the population shrank by 3 percent from 2010 to 2017. The Color of Money: Median Household Income by Race White alone Latino or Hispanic Export Black alone American Indian Asian 80k 70k 60k Dollars 50k 40k 30k 20k 10k 0 Alabama Florida Georgia Louisiana Mississippi Tennessee Source: U.S. Census Bureau, 2013-17 American Community Survey 5-Year Estimates Despite witnessing widespread challenges, Bostic came away from his travels with hope. A big reason: people care and are working together to try to overcome the challenges. Among many southerners who see their hometowns at risk, he sensed a deep commitment to do something about it. "People are trying really hard," he said. "The passion they have for their communities is clear. That says the fight hasn't been lost, and that's very inspiring." In Birmingham, Alabama, for example, Antiqua Cleggett, director of the workforce development agency Central Six AlabamaWorks!, helps prepare people facing hurdles to employment to fill openings at local construction firms. (The special report scheduled for release in June 2019 will include a video featuring Cleggett and AlabamaWorks.) AlabamaWorks is meant to unify the state's training, education, job placement, and business support services into a cohesive network. The organization offers services targeted to various types of employers and potential employees, including veterans, older workers, students, and the unemployed. Why does the Fed care? Generally speaking, monetary policy, which is the Federal Reserve's core work, is not a tool that is targeted at aiding specific groups. Rather, it is a blunt instrument designed to create a general environment conducive to prosperity. But variations in economic circumstances and opportunity matter greatly to the Fed because achieving its mandate of maximizing employment—alongside fostering stable prices—depends on broad access to economic opportunity. "It all fits together. And so if you have things that break down in any of those dimensions, it can all break down." — Bostic Labor market success will vary depending on individuals' actions and abilities. Yet these outcomes should not be predetermined by a person's ZIP code at birth, socioeconomic background, gender, or race. Without equal access to opportunity, Bostic emphasized, the country squanders economic potential and limits the possibilities of its people. Southeast Labor Force Participation Rate Export MSA Non-MSA 68 66 64 Percent 62 60 58 56 54 52 19 98 19 98 19 99 20 00 20 01 20 01 20 02 20 03 20 04 20 04 20 05 20 06 20 07 20 07 20 08 20 09 20 10 20 10 20 11 20 12 20 13 20 13 20 14 20 15 20 16 20 16 20 17 20 18 50 Source: Current Population Survey from the Bureau of Labor Statistics In states like Alabama, for example, effective workforce development and improved public health could bring thousands more into the productive workforce and help alleviate what figure to be serious labor shortages in the coming years. "When I talk to employers, they tell me there are a lot of challenges they have in trying to find workers to fill positions." — Bostic In addition, no discussion about employment and economic mobility should take place without also addressing the need for stable, affordable housing. At the most basic level, for someone without stable housing, finding and keeping employment presents an enormous challenge. Atlanta Fed explores numerous aspects of mobility, resilience Several Atlanta Fed economists and researchers are exploring topics that influence economic mobility and resilience. Senior adviser Ann Carpenter of the Atlanta Fed's Community and Economic Development (CED) team studies affordable housing. Carpenter most recently published a paper on rental housing affordability in the Southeast. She found that more than two-thirds of low-income renter households in the region pay more than 30 percent of their income for housing, making them "cost burdened" and often forcing them to make difficult choices about their other needs, including food, health care, and education. Atlanta Fed experts are also deeply involved in researching workforce development and advising practitioners in the field. Stuart Andreason directs the Reserve Bank's Center for Workforce and Economic Opportunity, which focuses on employment policies and labor market issues that affect low- and moderate-income individuals. The center has convened thought leaders on many topics and collaborated on a three-volume compendium of resources aimed at helping policymakers and practitioners prepare as many people for the workforce as possible, in particular those who face big hurdles to employment. In this way, the book conveys the message that workforce development is not a cost, but an investment in long-term economic growth and productivity. "When we have as many people gainfully employed as possible, that means our economy is performing at a very high...productive level." — Bostic Still, finding a job is not the end of the struggle for low earners. Atlanta Fed research director Dave Altig is examining disincentives to work that are built into aspects of the U.S. tax code and some public benefits programs. The essential issue centers on so-called benefit cliffs—meaning that means-tested public support can disappear quickly as recipients earn more income by working more hours, acquiring skills, or getting promotions. Basically, Altig and Boston University's Lawrence Kotikoff have found that these benefit cliffs result in relatively high penalties for working. They are, in effect, high "tax" rates for the least wealthy. As a consequence, when low earners' pay inches up, they may wind up worse off. (See Altig’s March 2019 macroblog post on marginal tax rates and benefits cliffs.) In addition, CED's Mels de Zeeuw collaborated with Federal Reserve colleagues to examine the credit experiences of minority small-business owners. They found that black-owned firms are less likely to obtain financing compared with similar white-owned small businesses. Those are but a few examples of the Atlanta Fed's work to understand the forces that shape economic mobility and resilience and to help explain why the region and nation are a collection of many economies. In the coming quarterly special reports, we will explore this work in more detail. First, we will delve into the region's formidable challenges in workforce development, especially in assisting those with serious barriers to employment, including veterans, formerly incarcerated people, and those with disabilities. Then we will examine the Southeast's affordable housing crisis and efforts to address it. Finally, we'll take a look at the challenges facing small businesses and the critical role they can play in advancing mobility and resilience in southeastern communities. MORE ANNUAL REPORT PAGES COVID-19 RESOURCES AND INFORMATION: See the Atlanta Fed's list of publications, information, and resources; listen to our Pandemic Response webinar series. ECONOMY MATTERS COMMUNITY & ECONOMIC DEVELOPMENT One Region. Many Economies. Special Report on Workforce Development July 9, 2019 Atlanta Fed Special Report on Workforce… Workforce… Despite a generally robust economy, skills training is critical amid long-term and cyclical labor force challenges For years, Goodwill of North Georgia ran a successful program training unemployed and underemployed people in highway construction. That made sense: during the 1980s and '90s, metropolitan Atlanta added about 1,000 lane-miles of freeways. When highway construction slowed, Goodwill shifted its training efforts toward general construction trades such as carpentry and electrical work. Again, that suited a market need until the number of housing units built in the metro area plummeted from about 75,000 a year to fewer than 7,500 amid the Great Recession. So, heeding advice from its business advisory council, Goodwill again adjusted, funneling clients into learning air-conditioning maintenance and other skills needed at apartment complexes, which after the recession increased as a share of the total number of housing units being built. "By focusing on what was going on in the market, we were able to pivot," explained Jenny Taylor, vice president of career services at Goodwill of North Georgia. "Employers told us what was happening." The experience of Goodwill underscores the rapidly changing demand for skills in the U.S. labor market and the related pressure those changing demands put on a fragmented network meant to prepare people for jobs. This special report, part two of a four-part examination of issues surrounding economic mobility, focuses on workforce development: why it concerns the Federal Reserve and why it's important for everyone. This article explores the challenges involved in building an effective, cohesive system that improves economic opportunity, particularly for those who face the greatest difficulties in the labor market. We use cookies on our website to give you the best online experience. Please know that if you continue to browse on our site, you agree to this use. You can always block or disable cookies using your browser settings. To find out more, please review our privacy policy. For an introduction to the series, see the Atlanta Fed's 2018 annual report, One Region. Many Economies. Atlanta Fed's workforce work The Atlanta Fed devotes considerable research and outreach to workforce development. Its Center for Workforce and Economic Opportunity focuses on labor market issues that affect low- and moderate-income individuals. The center serves as a hub for workforce information produced by the entire Federal Reserve System and regularly convenes experts and advises training practitioners. (See the accompanying video for stories of people who have benefited from workforce development, and for more on why the Fed cares about the subject.) In some ways, it has rarely been easier to land a job in the United States. And yet it has perhaps never been more important to better prepare those seeking so-called middle-skill jobs. Middle-skill jobs are those that typically don't require a college degree but pay enough to support a family, roughly in the $35,000- to $60,000-a-year range. About 60 percent of all jobs in today's economy require some training or education beyond high school, compared to less than half that share in the middle 1970s, according to the Georgetown University Center on Education and the Workforce. Skills shortages and a slow-growing labor force are big challenges Two related features of the labor market pose increasing concerns for employers and job seekers. First, fewer unemployed people means fewer job seekers chasing open positions (see chart 1). Since 2014, southeastern executives have reported trouble finding skilled workers in certain occupations, according to the Federal Reserve Bank of Atlanta's Beige Book reports of economic conditions. In some fields, worker shortages could intensify. Between 2018 and 2028, 2.4 million manufacturing jobs could go unfilled, predicts a 2018 study from the consulting firm Deloitte and The Manufacturing Institute. We use cookies on our website to give you the best online experience. Please know that if you continue to browse on our site, you agree to this use. You can always block or disable cookies using your browser settings. To find out more, please review our privacy policy. Labor Force Growth in Long-Term Decline Export Percentage growth in civilian labor force by decade 30% 26.8% 25% 20% 16.0% 15.8% 15% 10.8% 9.9% 10% 8.1% 5.3% 5% 0% 1950s 1960s 1970s 1980s 1990s 2000s 2010-2018 Source: U.S. Bureau of Labor Statistics Second, the labor force participation rate has fallen from its 2000 peak. This decrease is associated with long-term structural changes in the labor market such as the aging population, the number of women joining the workforce leveling off, automation, and more people going to college rather than seeking jobs right out of high school. Those factors mean slow labor force growth. Between 2010 and 2018, the U.S. civilian labor force added 8.2 million people, significantly smaller than the number added in any decade since the 1950s despite a steadily growing population, according to the U.S. Bureau of Labor Statistics (see chart 2). More Jobs, Fewer Job Seekers Export Job openings Unemployed 20,000 15,000 10,000 5,000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Note: Annual average in thousands. Sources: U.S. Bureau of Labor Statistics Job Openings and Labor Turnover Survey, Current Population Survey Talent shortages and long-term declines in labor force participation mean that policymakers need to look beyond the traditional labor market pipeline to increase the supply of skilled workers—which is where workforce development comes in. "Our 21st-century workforce development system must both improve economic opportunity, especially for those who face the greatest difficulties in the labor market, and meet the needs of businesses and society for a highly skilled and competitive workforce," said Raphael Bostic, president and chief executive officer of the Federal Reserve Bank of Atlanta. Workforce development challenges include lack of cohesion, funding There's room to improve the workforce development system, which suffers from a lack of cohesion among training and education providers. In the metropolitan Atlanta area alone, for instance, a 2014 survey found more than 300 physical locations that play some role in workforce development. Many of the agencies reported little coordination with peers. These times of economic and labor market upheaval, Bostic emphasized, demand a truly institutionalized workforce development We use cookies on our website to give you the best online experience. Please know that if you continue to browse on our site, you agree to system. this use. You can always block or disable cookies using your browser settings. To find out more, please review our privacy policy. What's more, the financing of workforce development and training has changed. In 2017, the United States spent a smaller proportion of GDP on job training than all of its industrialized peers except Mexico, according to the Organisation for Economic Co-operation and Development. The federal government invested almost 0.25 percent of GDP on workforce development. By comparison, Germany spent 1.5 percent. While federal spending on job training has declined, other sources of funding have increased. Pell Grants have expanded significantly and individuals, through loans and savings, invest heavily in their own education, sometimes taking on heavy debt. At the state level, efforts to make community college free, such as the Tennessee Promise, have closed some gaps in workforce system funding, though others remain, Bostic noted. To be sure, employers spend billions of dollars annually on training, but most of that money goes to high-skilled workers with fouryear college degrees. Moreover, employee participation in employer-sponsored training has been declining since 1996. On top of the funding challenges, the return on investment could improve. A Cornell University study of 15 government-funded job training programs found that while the programs raised trainees' incomes, the gains averaged just $2,000 a year, still leaving many in economic hardship. The workforce development community has spent years debating these challenges and done a lot of work to improve workforce development programs. "But the existing funding mechanisms, investment opportunities, and incentives in the workforce system are not truly supporting economic mobility, especially for low- and moderate-income populations," Bostic said. Reaching those with barriers to boost economic mobility Clearly, the reasons behind uneven labor market success are numerous and complicated. But these outcomes should not be predetermined by a person's socioeconomic background, gender, or race. As Bostic has expressed, "There are many people in this country who really want to do great things. We should help them do it." Just as important as helping individuals, perhaps, is the fact that bringing more people into the labor market benefits the macroeconomy and society as a whole, noted Paula Tkac, associate director of research at the Atlanta Fed. "When people go from unemployed to employed, we're all going to be better off," said Tkac. "They bring their technical skills, ideas, and talent to the marketplace, so there's more economic output being created." Yet for some, bringing their talents to the marketplace is difficult. Barriers to the labor market include poor transportation, a lack of childcare, disability, military service, and past incarceration. For example, more than two-thirds of formerly incarcerated people were still unemployed or underemployed five years after their release, according to research from the Ella Baker Center for Human Rights in Oakland, California, cited in Investing in America's Workforce, a 2018 book of workforce research published by the Federal Reserve System, the W.E. Upjohn Institute for Employment Research, and research centers at Rutgers University and the University of Texas. One of the reasons Tkac serves on Goodwill of North Georgia's board of directors is because she values the organization's programs tailored to particular groups facing employment barriers. The same obstacles to working can also thwart access to training programs. Bostic and Ann Carpenter of the Atlanta Fed's Community and Economic Development group have noted a serious problem in sprawling metropolitan areas with limited transportation options: the long distance that often separates affordable housing and the middle-skill jobs and training that low- and moderate-income people need. In a chapter in Investing in America's Workforce, Bostic and Carpenter pointed out that in metropolitan Atlanta, 70 percent of training providers and coordinators say transportation is a barrier. "If many lower-income and lower-wage families have very limited access to both jobs and training to make them competitive for jobs, then the possibility of economic mobility must be quite small," Bostic and Carpenter wrote. Career pathways are key Another key to addressing economic mobility concerns is to set job seekers on a path to a career, not simply to prepare them for an entry-level position. Up until the early 2000s, in fact, Goodwill of North Georgia focused mostly on placing people in jobs in "the four F's": food, folding, filth, and flowers—that is food service, laundry, cleaning, and landscaping. Taylor explained that Goodwill does not want simply to create lots of working poor. To that end, the organization tracks the percentage of workers it places in working- to middle-class jobs. Over the past five years, that share has climbed from 14 percent to 25 percent, We use cookies on our website to give you the best online experience. Please know that if you continue to browse on our site, you agree to this use. You can always block or disable cookies using your browser settings. To find out more, please review our privacy policy. Taylor said. Health care services is a good example of a field that offers career pathways. Certification as a nursing assistant requires six to eight weeks of training, and the work pays about $12 an hour. From there, the pathway goes to licensed practical nurse, which requires another several weeks of training. Median pay for a licensed practical nurse was $46,240 in 2018, nearly $20,000 more than the median for a certified nursing assistant, according to the U.S. Bureau of Labor Statistics. Registered nurses, who must have at least a two-year associate's degree, earn substantially more. One of the obstacles to career pathways are "benefits cliffs," the scenario when means-tested public supports fall sharply, or off a cliff, as recipients earn more by working more hours or securing promotions by learning new skills. Basically, these benefits cliffs result in penalties that are, effectively, high marginal tax rates for the least wealthy: when low earners' pay inches up, they may wind up worse off. Understanding benefits cliffs, and thus informing policies and programs to confront them, is a major focus of the Atlanta Fed's workforce development efforts. Birmingham faces up to workforce challenges In Birmingham, Alabama, both the problems and the promise of workforce development are evident. Anoop Mishra is the regional executive at the Atlanta Fed's Birmingham Branch. A Birmingham native whose job is to stay in touch with the state's business and community decision makers, Mishra said the city has yet to establish a singular economic identity decades removed from the dominance of the steel industry. Although health care has helped fill the void left by the decline of iron and steel, that sector is challenging, Mishra noted, not least from a workforce perspective as the industry faces continual shortages of nurses and other workers. While health care and, to a lesser degree, finance have boosted Birmingham, employment and economic growth remain disproportionately linked to low-skilled jobs and localized industries that don't attract talent or dollars from outside, according to Building It Together, a 2018 report on aligning education and jobs in greater Birmingham. Birmingham, with its scattered workforce development efforts, has lagged most southeastern metros in key economic growth metrics in recent decades. However, the Building It Together report demonstrates that Birmingham is facing its challenges, Mishra said. Local leaders are formulating programs to address workforce development concerns, including efforts to train workers for the nearby automotive assembly and supply plants and to educate parents and teachers about the opportunities for middle-class wages in advanced manufacturing. "We have a lot of potential," Mishra said. "There is a clear goal, and strategies and infrastructure are starting to come together to think through these efforts." Aligning training with industry needs is crucial Central Six AlabamaWorks is a key part of those efforts. Aligning training with employers' current and future needs is essential to crafting effective programs. The Birmingham-based Central Six assembles clusters of companies and training providers focused on particular occupational sectors or industries, explained Antiqua Cleggett, executive director of Central Six AlabamaWorks. (You can see Cleggett discussing Central Six's work in the accompanying video.) These "sector partnerships" have recently gained favor in the workforce field. Central Six's manufacturing partnership, for example, includes 38 companies. Central Six regularly surveys those firms to learn their most pressing workforce needs, information passed We use cookies on our website to give you the best online experience. Please know that if you continue to browse on our site, you agree to this use. You can always block or disable cookies using your browser settings. To find out more, please review our privacy policy. along to training agencies to help them tailor programs to meet manufacturers' talent gaps. Recently, for example, the manufacturing partnership noted that several employers needed to train existing employees in hydraulics to operate industrial robots. So Central Six helped devise a five-week hydraulics and pneumatics curriculum. "With sector partnerships, you've got a more unified voice that's going after very specific challenges," Cleggett said. "It's an advantage all the way around." That type of thinking can shape workforce development systems to meet the stiff challenges of the 21st-century economy. After all, two of the basic ingredients of economic expansion are increasing both the number of workers and their productivity. Effective workforce development can help accomplish both. Charles Davidson Staff writer for Economy Matters RELATED LINKS: 2018 Annual Report: One Region. Many Economies. • "Over the Cliff's Edge? Incentives Hurting Low-Wage Workers" (Economy Matters) • "Untangling the Complex Causes of Inequality" (Economy Matters) • Labor Force Participation Dynamics (Atlanta Fed tool) • "A Different Type of Tax Reform" (macroblog) • Opportunity Occupations Monitor (Atlanta Fed tool) We use cookies on our website to give you the best online experience. Please know that if you continue to browse on our site, you agree to this use. You can always block or disable cookies using your browser settings. To find out more, please review our privacy policy. COVID-19 RESOURCES AND INFORMATION: See the Atlanta Fed's list of publications, information, and resources; listen to our Pandemic Response webinar series. ECONOMY MATTERS COMMUNITY & ECONOMIC DEVELOPMENT One Region. Many Economies. Special Report on the Affordable Housing Crisis October 1, 2019 "The instability that arises when we have a lack of affordable housing— it's a hit to our economic potential in a very direct way." Raphael Bostic, president and CEO, Federal Reserve Bank of Atlanta Listen to this special Economy Matters podcast to hear from people who help create opportunities for stable, affordable housing, and to follow one person’s journey from housing instability to homeownership. 00:00 17:04 Podcast produced by Charles Davidson, Jason Palmer, and Jordan Stockton. Read the transcript. A home is not just a place to lay your head at night. For many, it's a sanctuary, an anchor, a sign of permanency and strength. A way to build wealth for owners. Across the Southeast, many individuals are struggling to find and afford a place they can call home. A 2018 discussion paper from We use cookies on our website to give you the best online experience. Please know that if you continue to browse on our site, you agree to this use. You can always block or disable cookies using your browser settings. To find out more, please review our privacy policy. the Federal Reserve Bank of Atlanta and the Shimberg Center for Housing Studies at the University of Florida reports that about three million renter households in the Atlanta Fed's district, or 47 percent, are housing-cost-burdened, based on U.S. Census Bureau data. (Households that are cost-burdened devote more than 30 percent of their income to housing.) The paper includes both rural renter households and those in urban areas. Among low-income renter households, the figure is much more significant. More than two-thirds, or 69 percent, are cost burdened, the paper indicates. It cites a shortage of more than 1.2 million units of affordable housing for people who earn 50 percent or less of the median income in the Atlanta Fed's district, which includes the states of Alabama, Georgia, and Florida, and parts of Louisiana, Mississippi, and Tennessee. (See the chart to learn the percentages of cost-burdened households in the four most and four leastcost-burdened areas in each state in the district.) View data for: Alabama Florida Georgia Louisiana Mississippi Tennessee Percent of All Renter Households That Are Cost Burdened: Alabama Export Rent is more than 30 percent of household income FOUR MOST COST-BURDENDED AREAS 51% Auburn-Opelika (MSA) Anniston-Oxford-Jacksonville (MSA) 47% 47% Mobile (MSA) 46% Montgomery (MSA) FOUR LEAST COST-BURDENDED AREAS Atmore (µSA) plus Choctaw, Clarke, Conecuh, Monroe, … 17% Cullman (µSA) plus Winston County 28% 28% Fort Payne (µSA) plus Scottsboro (µSA) Decatur (MSA) 25% 0 10 20 30 40 50 60 Percent Note: To view the full set of areas (metropolitan statistical areas (MSA), micropolitan statistical areas (µSA), and nonmetro geographies) in the six southeastern states, see "Rental Housing Affordability in the Southeast," Appendix B. Sources: Current Population Survey/Housing Vacancy Survey, U.S. Census Bureau Having stable housing is important not only because shelter is a basic need, but also because it affects other aspects of one's life. "Housing is fundamental to everything," said Marguerite Oestreicher, executive director at the New Orleans area Habitat for Humanity. Those other aspects include the ability to access a job, educational opportunities, and physical and mental health. If any of these is out of kilter, people's ability to improve their financial standing and operate at their potential is impaired. "The lack of affordable housing is a constraint on people's ability to get more economic mobility, when we think about mobility as moving from a certain level of economic comfort to a higher one," said Atlanta Fed president Raphael Bostic. Affordability issue has many faces Throughout the six states that make up the Sixth Federal Reserve District, housing is becoming more difficult to afford, for renters and buyers alike. No area—big city or small town, urban or rural—seems to be immune to the affordable housing crisis. "I did not know when I went to Knoxville, Tennessee, that I was going to hear complaints about affordable housing," Bostic said. The affordability issue can look different depending on location, but it's a consistent theme around the Southeast, he added. In New Orleans, redevelopment is driving up property values, forcing many longtime residents to leave. In rural areas, the condition of housing can be a problem. In Orlando, Florida, the problem is the "missing middle" of housing, said Mitchell Glasser, manager of Housing and Community Development for Orange County. The single-family homes and expensive apartments springing up in the county are beyond the reach of working class people who are primarily employed in the city's dominant lower-wage tourism jobs, he said. "We need to diversify our housing stock and build more inclusive housing that has different sizes and different price points," Glasser said. "People are stressed with how expensive the rental market has become." Partnerships with promise part 1: Hope in the Deep South + We use cookies on our website to give you the best online experience. Please know that if you continue to browse on our site, you agree to this use. You can always block or disable cookies using your browser settings. To find out more, please review our privacy policy. Recession's shadow lingers Effects of recession and modest wage growth limit the housing options for many people. As the economy has recovered, rents have skyrocketed and home prices have risen (see the chart), but pay increases aren't keeping pace. Adjusting for inflation, the median U.S. rent payment rose 61 percent between 1960 and 2016, while the median renter income grew just 5 percent, according to the State of the Nation's Housing 2018 report from Harvard University's Joint Center for Housing Studies. The pattern for homeowners is similar during that time frame, with the U.S. median home value climbing 112 percent and median owner income rising only 50 percent, the report shows. S&P/Case-Shiller U.S. National Home Price Index Export 250 Jan 2000=100 200 150 100 50 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Note: Data are seasonally adjusted. Source: Federal Reserve Economic Data "Over the past 30 years, wage growth has been stagnant overall, and housing costs, education costs, automotive costs have all increased at a faster rate than incomes," said Domonic Purviance, a senior financial specialist in the Supervision, Regulation, and Credit Division at the Atlanta Fed. The Great Recession left the housing industry on unstable footing in a number of ways. It dealt a blow to the home construction industry and forced many smaller companies out of business. Home building came back, but production has not kept up with demand and builders have become more selective in what they build. (See the chart for an illustration of how the recession affected home building.) Now, increased labor costs and other fees, regulatory hurdles, and difficulty in securing land all have made constructing homes more expensive. "Very few (big) markets in our district are able to deliver new-home product below $300,000," Purviance said. We use cookies on our website to give you the best online experience. Please know that if you continue to browse on our site, you agree to this use. You can always block or disable cookies using your browser settings. To find out more, please review our privacy policy. Housing Starts Export New Privately Owned Housing Units Started 2,500 Thousands of Units 2,000 1,500 1,000 500 0 1980 1985 1990 1995 2000 2005 2010 2015 Note: Data are seasonally adjusted. Source: Federal Reserve Economic Data At the same time, millions of Americans who lost their homes in the foreclosure crisis spilled over into the rental market, which drove rents up. In Louisiana and Tennessee, for instance, the median rent including utilities for an apartment was $840 and $830 a month, respectively, in 2017, up 10 percent in both states since 2001, according to the Center on Budget and Policy Priorities. Cities such as Nashville and Atlanta are losing more than a thousand units each year that rent for $750 a month or less, according to a 2016 Atlanta Fed paper. Partnerships with promise part 2: The shared home + Most vulnerable hurt most Low- and moderate-income residents, some of whom depend on public subsidies for shelter, are bearing the brunt of the affordable housing crunch. For example, the state of Florida has just 22 affordable and available housing units for every 100 extremely lowincome tenants (those who earn at or below 30 percent of the area median income), the Atlanta Fed study found. Funding cuts are hampering many of the programs that have historically provided resources to build or preserve affordable housing, a 2018 report on rural affordable housing from the Federal Reserve Board explained. "There is tremendous demand for housing that far exceeds our ability to deliver," said Oestreicher, the Habitat for Humanity executive director in New Orleans. The waiting list for Section 8 vouchers, she said, exceeds 20,000. About 50 percent of all renter households in the New Orleans metropolitan area are cost burdened, according to the Atlanta Fed report. "You have a lot of people who are literally one paycheck away from being on the streets," Oestreicher added. What's more, there are signs that affordable lodging is set to dwindle even more as U.S. tax credits expire. The National Low Income Housing Coalition stated in an October 2018 report that nearly 500,000 housing units with income and rent limits will approach expiration between 2020 and 2029. Data from the National Housing Preservation Database indicate that more than 59,000 rental units in the Southeast that were built with subsidies are at risk of converting to market rates over the next five years if no additional investments are made to preserve their affordability mandates. Under federal law, housing units financed by the Low Income Housing Tax Credit (LIHTC) are required to commit to affordability for a minimum of 30 years. That includes a 15-year compliance term and a 15-year extended-use period. Created under the Tax Reform Act of 1986, the LIHTC is the primary means to develop affordable housing in the United States. Many property owners have been increasingly using a process that can allow properties to convert to market rates after the initial 15 years, said Meaghan ShannonVlkovic, vice president and Southeast region market leader for Enterprise Community Partners, a nonprofit that works with partners to build, finance, and advocate for affordable housing. "In Georgia, we've seen significant loss of units," she said. Addressing the affordable housing problem is not easy, but efforts are taking shape. Government agencies, private sector developers, and nonprofit organizations are realizing that their efforts are stronger when they work together. Though there is currently no magic formula that will provide affordable lodging for every household that needs it, these partners are offering solutions. (See the sidebars for information about some of these programs.) We use cookies on our website to give you the best online experience. Please know that if you continue to browse on our site, you agree to Safe and affordable housing is important the world a number reasons. It makes it possible for working families to be a part of this use. You can always block or disablefor cookies usingfor your browser of settings. To find out more, please review our privacy policy. communities. It promotes better work lives, improved health outcomes, and economic stability. Ultimately, it helps put people in a position to achieve success and contribute to society and the economy at large. Partnerships with promise part 3: Revitalizing blighted neighborhoods + Karen Jacobs Staff writer for Economy Matters RELATED LINKS: A special Economy Matters podcast on the affordable housing crisis • • 2018 Annual Report: One Region. Many Economies. • Special Report on Workforce Development • "Over the Cliff's Edge? Incentives Hurting Low-Wage Workers" (Economy Matters) • "Untangling the Complex Causes of Inequality" (Economy Matters) • "A Different Type of Tax Reform" (macroblog) COVID-19 RESOURCES AND INFORMATION: See the Atlanta Fed's list of publications, information, and resources; listen to our Pandemic Response webinar series. ECONOMY MATTERS COMMUNITY & ECONOMIC DEVELOPMENT One Region. Many Economies. Small Businesses Meet Big Dreams: Entrepreneurs Stride Varied Paths toward Goals December 19, 2019 Across the Southeast, the small business landscape is a tapestry of different stories that tell different experiences. Businesses with fewer than 500 employees entered 2019 with the tailwind of a strong 2018, as consumer spending picked up, corporate profits climbed, and the U.S. economy grew nearly 3 percent, as measured by gross domestic product. Against this favorable backdrop, 72 percent of small firms that responded to the Federal Reserve's Small Business Credit Survey in 2018 cited optimism that revenue would increase in 2019. Enthusiasm for entrepreneurship appears to be building, with business applications ticking up in recent years, according to U.S. Census Bureau statistics. Business Applications Alabama Louisiana Export Florida Mississippi Georgia Tennessee 125,000 100,000 75,000 50,000 25,000 Q 3 2 Q 004 1 20 Q 05 3 2 Q 005 1 20 Q 06 3 2 Q 006 1 20 Q 07 3 2 Q 007 1 20 Q 08 3 2 Q 008 1 20 Q 09 3 2 Q 009 1 20 Q 10 3 20 Q 10 1 2 Q 011 3 2 Q 011 1 20 Q 12 3 2 Q 012 1 20 Q 13 3 2 Q 013 1 20 Q 14 3 2 Q 014 1 20 Q 15 3 2 Q 015 1 2 Q 016 3 2 Q 016 1 2 Q 017 3 2 Q 017 1 20 Q 18 3 2 Q 018 1 20 Q 19 3 20 19 0 Source: ??? We use cookies on our website to give you the best online experience. Please know that if you continue to browse on our site, you agree to this use. You can always block or disable cookies using your browser settings. To find out more, please review our privacy policy. At the same time, challenges are visible. A tight labor market means that finding qualified workers has become difficult for companies across the Federal Reserve Bank of Atlanta's coverage area, which includes the states of Georgia, Alabama, and Florida and parts of Louisiana, Mississippi, and Tennessee. Many small businesses are hard pressed to manage their cash flow. Rising overhead (including health care costs) poses hurdles, as does regulatory compliance. Federal Reserve reports show that firms owned by minorities and companies in which the business owners are the sole workers have a hard time obtaining loans and turning a profit. Although some small companies are optimistic and look to expand next year, others are less certain about the future. Concerns about the prolonged economic effect of trade and political disputes are tempering some businesses' optimism. Tariffs are "not helping us," said Jamie van den Bergh, chief executive of Clarity Products LLC in Chattanooga, Tennessee. The company designs amplified telephones, alarm clocks, and other alerting devices for elderly and deaf people. In the wake of recent tariff disputes between the United States and China, Clarity has had to pay a 15 percent tariff on those products. "We've had to pass most of that cost on to our customers, and we think that will have some impact on demand," van den Bergh said. While he hopes a resolution to the dispute will end the tariffs, he is also concerned things could get worse. "I'm worried about the tariff going from 15 to 25 percent, which would be really problematic for us," he said. Challenges accompany a healthy labor market To be sure, low unemployment has produced economic advantages. But it has also brought difficulties for small business owners. Jeff Patterson, who is responsible for lender relations and economic development at the Georgia office of the Small Business Administration, said finding qualified staff is perhaps the biggest problem small firms face today. "The number one thing we hear as an obstacle is businesses can't find good people to come to work, and that's everybody from the worker on the floor to C suite–level people," he said. To address this issue, companies have beefed up training to existing employees, cast a wider net in searches for workers, relaxed job requirements, and raised pay, even for lower-skilled workers. But in an era of less than 4 percent national unemployment, none of those actions are silver bullets. Some sectors seem to be having a harder time filling positions than others. In the Southeast, manufacturing and service industries have been particularly hard hit by the shortage of qualified labor. Van den Bergh said two people left his company in the last four months for better opportunities elsewhere. The shortage of service industry workers is especially acute in urban markets such as Nashville, Memphis, and Birmingham, said Clint Gwin, president of Pathway Lending, a community development financial institution (CDFI) that provides financing to small businesses in Tennessee and Alabama. "If you're in the restaurant business and you need a dishwasher, you used to be able to pay $8 to $11 an hour," Gwin said. "Now, you're paying $18 to $19 an hour, and you hope they show up to work." Businesses such as restaurants, entertainment venues, even dry cleaners are struggling to retain employees at a pay level that is sustainable, Gwin added. Bobby Holland, owner of Holland's Paint & Body in Robertsdale, Alabama, has added three people to his staff over the last four years andWe now employs said he would hireonline another person to reduce thethat shop's he acknowledges the agree to use cookies eight. on ourHe website to give youlike theto best experience. Please know if youbacklog, continuebut to browse on our site, you this use. You can always block or disable cookies using your browser settings. To find out more, please review our privacy policy. challenge in finding people trained in auto body and vehicle repair—skills in high demand. "Most skilled technicians are already making top pay," Holland said. Owner Bobby Holland employs eight people at his auto body shop in Robertsdale, Alabama. His shop is decorated with some vintage touches. Photo courtesy of United Bank Fed reports show mixed picture across rm types Federal Reserve reports published this year show mixed results across the small business universe on a number of measures. Among respondents to the Fed's Small Business Credit Survey, 57 percent of firms saw revenue growth last year, and 43 percent of firms applied for new capital. But the picture is not rosy for all companies. Businesses with no workers other than the firms' owners, known as nonemployer firms, are not faring as well as their larger counterparts, as data show that 55 percent of these companies either produced no profits or just broke even during 2017. Additionally, racial disparities in access to funding continue to be an issue: an analysis of the Federal Reserve credit survey findings shows small businesses owned by Blacks are less likely to be approved for financing than are White-owned firms. Firms that have no employees besides the business owners represent 81 percent of all small businesses, a summer 2019 report from the Fed notes. The ranks of these businesses came to more than 25.7 million in 2017, up about 66 percent from 1997, according to Census Bureau statistics. Small Business Snapshot: Firm Size Export 1-499 Employees Nonemployer Firms Number of firms 3M 2M 1M 0M Alabama Florida Georgia Louisiana Mississippi Tennessee Source: 2016 Statistics of U.S. Businesses, Census Bureau use report cookiesfound on our website totwo-thirds give you the online experience. know that if of youincome continue browse on our you agree to TheWe Fed's that nearly of best nonemployer firms arePlease the main source fortotheir owners butsite, face tough thisacquiring use. You can always block or disable cookies browser settings.One To find out more, please review our privacy times capital, as more than half of them using have your financing shortfalls. in five of these companies came intopolicy. existence because the owner lacked other employment options. Among these companies, African American– and Hispanic-owned firms reported the largest funding gaps and were much more likely to be operating at a loss than at a profit. Although the ranks of the self-employed have grown in recent years, many are finding that entrepreneurship is not easy, Patterson said. The Small Business Administration offers workshops to educate potential business owners on the nuts and bolts of running a company. "There are a lot of questions we ask the entrepreneurs," Patterson said. "One of those things is, ‘Can you maintain your lifestyle?' It's hard to do, and a lot of them aren't doing so well," he said. Minority-owned rms face nancing headwinds The problems faced by minority businesses are significant because these firms can be an important vehicle of employment and wealth creation for their communities, said Mels de Zeeuw, a senior research analyst in the Atlanta Fed's Community and Economic Development Department. He has cowritten a report that discusses differences in the financing experiences of minority- and White-owned firms. His analysis of Fed small business credit survey data found White-owned firms were more likely to be approved for bank loans than black-owned firms. The report also noted that Asian-, Black-, and Hispanic-owned businesses were more likely than White-owned ones to report not having sufficient levels of financing in general. Black-owned companies in particular have a harder time, with a smaller share attaining profitability compared with White-owned firms. "If we value economic outcomes in certain communities and equal outcomes for Whites and minorities, then we should want to make sure that access to capital is the same regardless of the race or ethnicity of a firm's ownership," de Zeeuw said. Because of the connection between small business ownership and community wealth building, minority firms' struggle to thrive can help explain different economic outcomes in White and minority communities. "There is a link between race and ethnicity in terms of firms' ownership and their hiring policies, so Black-owned firms on average tend to hire more Blacks," de Zeeuw added. "Having a greater share of employer firms that are owned by minorities can go a long way toward decreasing disparities in unemployment between Whites and minorities." Though the Fed report doesn't delve into the causes of disparities in financing for minority and White-owned small businesses, de Zeeuw noted that minority-owned firms tend to lack networks and relationships with small banks that could help in the loan approval process. De Zeeuw's analysis found that some minority business owners have had better luck securing financing from nontraditional lenders such as online banks and community development financial institutions, or CDFIs. For instance, 17 percent of Black-owned companies that apply for credit turned to a CDFI, compared with 5 percent of White-owned firms, the Fed data showed. John Kimbrough, an Atlanta-area business owner, knows firsthand the difference support from a CDFI can make for a small firm. These institutions, which can include credit unions, venture capital funds, and banks, partner with government and other entities to meet the financial needs of underserved markets. Kimbrough and his wife, Juanisa, operated a daycare in their home for nearly five years, initially providing services for six preschool children and two after-schoolers. Eventually, they moved to another building and paid more than $4,000 a month in rent. Looking to buy their own business property, the couple applied for a loan at a bank with which they had a 20-year relationship. The bank wanted documentation of $250,000 in revenue, and the Kimbroughs verified $219,000. Their loan application was denied. We use cookies on our website to give you the best online experience. Please know that if you continue to browse on our site, you agree to this use. You can always block or disable cookies using your browser settings. To find out more, please review our privacy policy. Co-owner Juanisa Kimbrough accompanies children during recreational activities at Ms. Niecy's Home Away from Home Learning Center. Photo courtesy of Access to Capital for Entrepreneurs A friend suggested they approach community development investors, so the Kimbroughs applied to Access to Capital for Entrepreneurs (ACE), a Georgia-based CDFI. ACE examined the daycare's books and other information and approved a loan that allowed the Kimbroughs to acquire the property that is now home to Ms. Niecy's Home Away from Home Learning Center. "Without ACE, we would not have grown," John Kimbrough said. "ACE looked at us differently" than the bank. To date, ACE has made three loans to the Kimbroughs, allowing them to acquire additional buildings. Their learning center now accommodates 160 children. "In six years, we have bought three properties and grown the business tremendously," Kimbrough said. The growth has enabled the Kimbroughs to have a positive effect on the community by providing a needed service and jobs to at least 18 people. "We have six or seven employees that live in this area. They're able to help their families," Kimbrough said. To be sure, the boost given by CDFIs helps entrepreneurs make their ideas flourish, as ACE did for the Kimbroughs. And while CDFIs provide important financial help, it's still the entrepreneurs who provide the vision, the drive, and the elbow grease that always undergird small business success stories. "Entrepreneurs are great fighters," said Gwin. "They are very determined to be successful and to get to the other side." Karen Jacobs Staff writer for Economy Matters RELATED LINKS: 2018 Annual Report: One Region. Many Economies. COVID-19 RESOURCES AND INFORMATION: See the Atlanta Fed's list of publications, information, and resources; listen to our Pandemic Response webinar series. ECONOMY MATTERS ANNUAL REPORT Directors & O cers JUMP TO: Management Committee & Officers • Advisory Councils SIXTH DISTRICT DIRECTORS Federal Reserve Banks each have a board of nine directors. Directors provide economic information, have broad oversight responsibility for their bank's operations, and, with the Board of Governors' approval, appoint the bank's president and first vice president. Six directors—three class A, representing the banking industry, and three class B—are elected by banks that are members of the Federal Reserve System. Three class C directors (including the chair and deputy chair) are appointed by the Board of Governors. Class B and C directors represent agriculture, commerce, industry, labor, and consumers in the district; they cannot be officers, directors, or employees of a bank; class C directors cannot be bank stockholders. Fed branch office boards have five or seven directors; the majority are appointed by head-office directors and the rest by the Board of Governors. Atlanta Myron A. Gray, Robert W. Dumas, Gerard R. Host, Mary A. Laschinger, Mike J. Jackson, Elizabeth A. Smith, Jonathan T. M. Reckford, and Thomas A. Fanning Not pictured: O. B. Grayson Hall Jr. Mike J. Jackson, Chair Gerard R. Host Chairman, Chief Executive Officer, and President President and Chief Executive Officer AutoNation Inc. Trustmark Corporation Fort Lauderdale, Florida Jackson, Mississippi Myron A. Gray, Deputy Chair Mary A. Laschinger Former President, U. S. Operations Chairman and Chief Executive Officer United Parcel Service Veritiv Corporation Atlanta, Georgia Atlanta, Georgia Robert W. Dumas Jonathan T. M. Reckford President and Chief Executive Officer Chief Executive Officer AuburnBank Habitat for Humanity International 100 N. Gay Street Atlanta, Georgia Auburn, Alabama Elizabeth A. Smith Thomas A. Fanning Chairman and Chief Executive Officer Chairman, President, and Chief Executive Officer Bloomin’ Brands Inc. Southern Company Tampa, Florida Atlanta, Georgia O. B. Grayson Hall Jr. Chairman and Chief Executive Officer Regions Financial Corporation Birmingham, Alabama Birmingham David M. Benck, Brian C. Hamilton, Merrill H. Stewart Jr., Nancy C. Goedecke, David J. Fernandes (as of Jan. 1, 2019), Herschell L. Hamilton, David L. Nast (as of Jan. 1, 2019) Not pictured: Michael Case, Pamela B. Hudson Nancy C. Goedecke, Chair Herschell L. Hamilton Chairman and Chief Executive Officer Chief Strategic Officer Mayer Electric Supply Company Inc. BLOC Global Group Birmingham, Alabama Birmingham, Alabama David M. Benck Pamela B. Hudson, M.D. Vice President and General Counsel Chief Executive Officer Hibbett Sports Crestwood Medical Center Birmingham, Alabama Huntsville, Alabama Michael Case Merrill H. Stewart Jr. Former President and Chief Executive Officer President The Westervelt Company The Stewart/Perry Company Inc. Tuscaloosa, Alabama Birmingham, Alabama Brian C. Hamilton President and Chief Executive Officer Trillion Communications Corp. Bessemer, Alabama Jacksonville Paul G. Boynton, Dawn Lockhart, John Hirabayashi, Cynthia A. Bioteau (resigned), William O. West, Troy D. Taylor Not pictured: Timothy P. Cost, Nicole B. Thomas Troy D. Taylor, Chair Dawn Lockhart Chairman and Chief Executive Officer Director of Strategic Partnerships Coca-Cola Beverages Florida LLC Office of the Mayor Tampa, Florida City of Jacksonville Jacksonville, Florida Paul G. Boynton Chairman, President, and Chief Executive Officer Nicole B. Thomas Rayonier Advanced Materials Inc. Hospital President Jacksonville, Florida Baptist Medical Center South Jacksonville, Florida Timothy P. Cost President William O. West Jacksonville University Chief Executive Officer Jacksonville, Florida The Bank of Tampa Tampa, Florida John Hirabayashi President and Chief Executive Officer Community First Credit Union of Florida Jacksonville, Florida Miami Keith T. Koenig, Ana M. Menendez, Michael A. Wynn, Victoria E. Villalba, Eduardo Arriola, N. Maria Menendez Not pictured: Millar Wilson Michael A. Wynn, Chair N. Maria Menendez Board Chairman and President Chief Financial Officer Sunshine Ace Hardware GL Homes of Florida Holding Bonita Springs, Florida Sunrise, Florida Eduardo Arriola Victoria E. Villalba Chairman and Chief Executive Officer President and Chief Executive Officer Apollo Bank Victoria & Associates Career Services Inc. Miami, Florida Miami, Florida Keith T. Koenig Millar Wilson President Vice Chairman and Chief Executive Officer City Furniture Mercantil Bank, N.A. Tamarac, Florida Coral Gables, Florida Ana M. Menendez Chief Financial Officer and Treasurer Watsco Inc. Coconut Grove, Florida Nashville Beth R. Chase, John W. Garratt, Benjamin G. Brock, Matthew S. Bourlakas, Kent M. Adams, Claire W. Tucker Not pictured: Richard D. Holder Richard D. Holder, Chair Beth R. Chase President and Chief Executive Officer Senior Managing Director NN Inc. Ankura Consulting Group Johnson City, Tennessee Nashville, Tennessee Kent M. Adams John W. Garratt Former President and Chief Executive Officer Executive Vice President and Chief Financial Officer Caterpillar Financial Services Corporation Dollar General Former Vice President, Caterpillar Inc. Goodlettsville, Tennessee Brentwood, Tennessee Claire W. Tucker Matthew S. Bourlakas President and Chief Executive Officer President and Chief Executive Officer CapStar Bank Goodwill Industries of Middle Tennessee Inc. Nashville, Tennessee Nashville, Tennessee Benjamin G. Brock President and Chief Executive Officer Astec Industries Inc. Chattanooga, Tennessee New Orleans Michael E. Hicks Jr., Lampkin Butts, G. Janelle Frost, Phillip R. May, Suzanne T. Mestayer Not pictured: Elizabeth R. Ardoin, Art E. Favre G. Janelle Frost, Chair Michael E. Hicks Jr. President and Chief Executive Officer President and Chief Executive Officer AMERISAFE Inc. Hixardt Technologies Inc. DeRidder, Louisiana Pensacola, Florida Elizabeth R. Ardoin Phillip R. May Senior Executive Vice President President and Chief Executive Officer Director of Communications Entergy Louisiana LLC IBERIABANK Jefferson, Louisiana Lafayette, Louisiana Suzanne T. Mestayer Lampkin Butts Managing Principal President and Chief Operating Officer ThirtyNorth Investments LLC Sanderson Farms Inc. New Orleans, Louisiana Laurel, Mississippi Art E. Favre President and Chief Executive Officer Performance Contractors Inc. Baton Rouge, Louisiana JUMP TO: Sixth District Directors • Advisory Councils MANAGEMENT COMMITTEE & OFFICERS Management Committee W. Jeff Devine, Chapelle Davis, Joan H. Buchanan, Mary M. Kepler, Richard Jones, André T. Anderson, Raphael W. Bostic, W. Brian Bowling, Cheryl L. Venable, David E. Altig, Leah L. Davenport, Cynthia Goodwin Not pictured: Michael E. Johnson, Russell Eubanks Management Committee Raphael W. Bostic Leah L. Davenport President Senior Vice President, Corporate Engagement André T. Anderson W. Jeff Devine First Vice President Senior Vice President, Operations and Administrative Services David E. Altig Russell Eubanks Executive Vice President and Director of Research Senior Vice President and Chief Information Security Officer, Information Security Michael E. Johnson Executive Vice President, Supervision, Regulation, and Credit Mary M. Kepler Senior Vice President, Chief Risk and Compliance Officer Cheryl L. Venable Executive Vice President and Retail Payment Office Product Cynthia C. Goodwin Manager Vice President, Supervision, Regulation, and Credit W. Brian Bowling Senior Vice President, Chief Information Officer and Chief Financial Officer Management Committee Advisers Richard Jones Chapelle Davis Senior Vice President and General Counsel Vice President, Chief Diversity Officer, and OMWI Director Joan H. Buchanan Vice President and General Auditor Senior Vice Presidents Scott H. Dake Keith T. Melton Senior Vice President Senior Vice President Brian D. Egan Paula A. Tkac Senior Vice President Senior Vice President and Associate Director of Research D. Blake Lyons Charles L. Weems Senior Vice President Senior Vice President Vice Presidents Christopher N. Alexander Gregory S. Johnston Vice President Vice President Daniel M. Baum Evette H. Jones Vice President Vice President Kelly A. Bernard Lee C. Jones Vice President Vice President and Regional Executive, Nashville (retired) S. Dwight Blackwood John A. Kolb Jr. Vice President and Assistant General Counsel Vice President Kim Blythe Karen Leone de Nie Vice President Vice President Anita F. Brown Lesley A. McClure Vice President and Financial Management and Planning Vice President and Regional Executive, Birmingham (retired) Controller (retired) Anoop K. Mishra Annella D. Campbell-Drake Vice President and Regional Executive, Birmingham Vice President Edward J. Nosal Michael J. Chriszt Vice President Vice President and Public Affairs Officer Christopher L. Oakley Suzanna J. Costello Vice President and Regional Executive, Jacksonville Vice President Doris Quiros Angela H. Dirr Vice President Vice President and Associate General Counsel Cynthia L. Rasche Patrick E. Dyer Vice President Vice President Juan C. Sanchez Richard M. Fraher Vice President Vice President and Counsel to the Retail Payments Office Adrienne L. Slack Karen B. Gilmore Vice President and Regional Executive, New Orleans Vice President and Regional Executive, Miami Anthony S. Stallings Amy S. Goodman Vice President Vice President Jeffrey W. Thomas M. Laurel Graefe Vice President Vice President and Regional Executive, Nashville Julius G. Weyman Todd H. Greene (Resigned) Vice President Vice President Rebecca L. Gunn Kenneth Wilcox Vice President and Regional Executive, Atlanta Vice President Kevin T. Jansen S. Paige Wilcox Vice President Vice President Mark J. Jensen Christina M. Wilson Vice President Vice President and Branch Manager, Jacksonville Stephen W. Wise Vice President Assistant Vice Presidents Pamela J. Barton Karl Lamb Assistant Vice President Assistant Vice President Giuseppina R. Bitetti Lisa Lee-Fogarty Assistant Vice President Assistant Vice President Phasteus G. Brooks Stephen A. Levy Assistant Vice President Assistant Vice President Jonathan L. Burns Margaret D. Martin Assistant Vice President Assistant Vice President Tonya D. Byrd-Sorrells Lantanya N. Mauriello Assistant Vice President Assistant Vice President Reginald R. Chever Srinivas V. Nori Assistant Vice President Assistant Vice President Karen W. Clayton Gregory K. Odum Assistant Vice President Assistant Vice President Patrick R. Dierberger John C. Pelick Assistant Vice President Assistant Vice President Michael E. Duren J. Elaine Phifer Assistant Vice President Assistant Vice President Shilpa S. Dutt Charles W. Prime Assistant Vice President Assistant Vice President Donna M. Fay Jaswanth G. Rao Assistant Vice President Assistant Vice President Bevery L. Ferrell Robin R. Ratliff Assistant Vice President and Branch Manager, Miami Assistant Vice President and Public Information Officer Travis T. Fix Paul D. Roberts Assistant Vice President Assistant Vice President Gregory S. Fuller Princeton G. Rose Assistant Vice President Assistant Vice President Mary M. Gelpi W. Allen Sautter Assistant Vice President Assistant Vice President Jennifer L. Gibilterra Jeffrey F. Schiele Assistant Vice President Assistant Vice President J. Mark Gibson Maria Smith Assistant Vice President Assistant Vice President S. Craig Griffin Richard H. Squires Assistant Vice President Assistant Vice President and Branch Manager, New Orleans Kathryn E. Haney Allen D. Stanley Assistant Vice President Assistant Vice President Torion L. Harden Bradley J. Waring Assistant Vice President Assistant Vice President Paige B. Harris William R. Wheeler III Assistant Vice President Assistant Vice President Carolyn Ann Healy Michael R. Williams Assistant Vice President Assistant Vice President Kathryn G. Hinton Molly T. Willison Assistant Vice President Assistant Vice President Dana M. Keeley Deborah S. Young Assistant Vice President Assistant Vice President JUMP TO: Sixth District Directors • Management Committee & Officers ADVISORY COUNCILS Federal Advisory Council Representative William H. Rogers Jr. Chairman and Chief Executive Officer SunTrust Banks Inc. Regional Economic Information Network Advisory Councils Agriculture David Bertrand Gaylon Lawrence Owner/Partner Partner Bertrand Rice LLC The Lawrence Group Elton, LA Nashville, TN Lorraine Bertrand Larkin Martin Owner/Partner Managing Partner Bertrand Rice LLC Martin Farms Elton, LA Courtland, AL Donna Jo Curtis James H. Sanford Owner/Operator Chairman of the Board Curtis Farms HOME Place Farms Inc. Athens, AL Prattville, AL Marsha Folsom Gray Skipper Chief Development Officer Vice President Resource Fiber LLC Scotch Plywood Company Inc. Cullman, AL Fulton, AL Mike Giles Robert M. Thomas President President Georgia Poultry Federation Two Rivers Ranch Inc. Gainesville, GA Thonotosassa, FL George F. Hamner Jr. John D. Williams President President and Chief Executive Officer Indian River Exchange Packers Inc. Zen-Noh Grain Corporation Vero Beach, FL Mandeville, LA Bart Krisle Chief Executive Officer Tennessee Farmers Cooperative LaVergne, TN Energy W. Paul Bowers Mark Maisto Chairman, President, and Chief Executive Officer President, Commodities, Trading, and Commercial Services Georgia Power Company NextEra Energy Resources Atlanta, GA Juno Beach, FL Terry Coleman Michael Mansfield President Chairman and Chief Executive Officer LOOP LLC Mansfield Energy Corp. Covington, LA Gainesville, GA Drew Evans Thomas Shaw Executive Vice President and Chief Financial Officer President Southern Company LOOP LLC Atlanta, GA Covington, LA Charles Goodson Stephen Toups President and Chief Executive Officer President PetroQuest Energy Turner Industries Group LLC Lafayette, LA Baton Rouge, LA Mark Hatfield Thomas Yura Vice President, Gulf of Mexico Unit Chief Operating Officer Chevron North America, Gulf of Mexico Business Unit Cornerstone Chemical Company Covington, LA Waggaman, LA Trade and Transportation Adriene Bailey James Hertwig Principal Retired Brooks Davis Consulting Formerly of Florida East Coast Railway Jacksonville, FL Jacksonville, FL Mark Bostick Robert Hooper President Chief Executive Officer COMCAR Industries Atlantic Logistics Inc. Auburndale, Fl Jacksonville, FL Michael Brannigan Frank Lonegro President and Chief Executive Officer Executive Vice President and Chief Financial Officer The Suddath Companies CSX Corporation Jacksonville, FL Jacksonville, FL Mary Cavarra Griffith Lynch Executive Vice President and Chief Financial Officer Executive Director Ingram Industries Inc. Georgia Ports Authority Nashville, TN Savannah, GA Brandy Christian Andy Powell President and Chief Executive Officer Chartering Director Port New Orleans G2 Ocean New Orleans, LA Atlanta, GA Shawn Cole Ken Roberts Vice President President Delta Cargo WorldCity Atlanta, GA Coral Gables, FL Doug Downing Kim Wyant Chief Financial Officer President, Florida District Canal Barge Company Inc. UPS New Orleans, LA Orlando, FL Travel and Tourism William Diercksen Mark Romig Director, Finance and Strategy President and Chief Executive Officer Walt Disney Parks and Resorts U.S. New Orleans Tourism Marketing Corporation Orlando, FL New Orleans, LA Howard Erbstein Alvin West Chief Operating Officer Chief Financial Officer and Senior Vice President The Kolter Group Greater Miami Convention & Visitors Bureau West Palm Beach, FL Miami, FL Amanda Hite Andrew Wexler President and Chief Operating Officer Chief Executive Officer Smith Travel Research Herschend Family Entertainment Corporation Hendersonville, TN Atlanta, GA Ina Lee Mark Woodworth Owner/President Senior Managing Director TravelHost of Greater Fort Lauderdale CBRE Hotels' Americas Research Fort Lauderdale, FL Atlanta, GA Other Advisory Councils Center for Human Capital Studies Tim Arnst Jim Link Senior Vice President Chief Human Resources Officer, North America Universal Parks and Resorts Randstad North America Orlando, FL Atlanta, GA Ed Castile Ann Machado Director Founder and Chief Executive Officer Alabama Industrial Training Creative Staffing Montgomery, AL Miami, FL Melissa Elliott Robert Ravener Senior Vice President of Human Resources Executive Vice President and Chief People Officer Express Employment Professionals Dollar General Covington, LA Nashville, TN Charles Flemming Dwight Sandlin President Owner Georgia AFL-CIO Signature Homes Atlanta, GA Birmingham, AL Jerrold Hill Veronica Snyder Vice President, Human Resources President Southern Gas Company Career Professionals Inc. Atlanta, GA Morristown, TN Center for Quantitative Economic Research Lawrence Christiano Richard Rogerson Department of Economics Department of Economics and Public Affairs Northwestern University Princeton University Martin Eichenbaum Thomas Sargent Ethel and John Lindgren Professor of Economics Leonard N. Stern School of Business Northwestern University New York University Sergio Rebelo Chris Sims Department of Economics Department of Economics Kellogg School of Management Princeton University Northwestern University Community Depository Institutions Brad Bolton Edward J. Langton President, Chief Executive Officer, and Senior Lender Chairman and Chief Executive Officer Community Spirit Bank Grand Bank for Savings Red Bay, AL Hattiesburg, MS Alvin J. Cowans Miriam Lopez President and Chief Executive Officer President and Chief Lending Officer McCoy Federal Credit Union Marquis Bank Orlando, FL Coral Gables, FL Hugh Dailey David R. Melville III President and Chief Executive Officer President and Chief Executive Officer Community Bank & Trust of Florida Business First Bank Ocala, FL Baton Rouge, LA Carlos Fernandez-Guzman Damon Moorer President and Chief Executive Officer President and Chief Executive Officer Pacific National Bank TCM Bank Miami, FL Tampa, FL Caren Gabriel Kim Davis Wilson President and Chief Executive Officer President and Chief Executive Officer Ascend Federal Credit Union OneSouth Bank Tullahoma, TN Chipley, FL COVID-19 RESOURCES AND INFORMATION: See the Atlanta Fed's list of publications, information, and resources; listen to our Pandemic Response webinar series. ECONOMY MATTERS ANNUAL REPORT Milestones & More JUMP TO: Financial & Audit Statements • OMWI Report • Past Annual Reports • Credits MILESTONES Research and Monetary Policy The 2018 Financial Markets Conference, presented by the Center for Financial Innovation and Stability (CenFIS), explored the potential impact of machine learning and artificial intelligence on the financial system, the economy, and regulatory and monetary policy. Attendees included representatives from central banks, financial firms, Federal Reserve banks, government agencies, and universities. CenFIS and Georgia State University's Center for the Economic Analysis of Risk cosponsored a conference that brought together economists, regulators, and finance and risk management professionals to discuss how changing technology is likely to affect financial stability. Research economists published papers and articles on a range of timely topics, including effects of low unemployment periods on labor market outcomes; the role of social capital in migration decisions; fiscal implications of the Fed's balance sheet normalization; the economic effects of China's financial policies; technology innovations in banking; bank runs during the recent financial crisis; and house price and subprime booms in the early 2000s. The Center for Human Capital Studies (CHCS) held its annual employment conference at which economists from prominent academic departments and central banks discussed various aspects of inequality. The center and Georgia State University hosted the 16th Annual Southeastern Health Economics Study Group. CHCS released the Labor Report First Look, which is a quick take on the monthly employment report, and refreshed its Labor Market Sliders, a tool that allows users to explore the relationship between economic growth and labor market indicators. The Survey of Business Uncertainty, conducted in collaboration with the University of Chicago Booth School of Business and Stanford University, was introduced online in November 2018. The survey measures the one-year-ahead expectations and uncertainties of firms throughout the United States and in every industry sector except agriculture and government. The Federal Reserve Banks of Dallas and Atlanta co-organized the conference Technology-Enabled Disruption: Implications for Business, Labor Markets, and Monetary Policy. Its goal was to provide a better understanding of technology- enabled disruption and explore its implications for the broader economy. The Center for Quantitative Economic Research and the International Monetary Fund cosponsored the third annual conference on China's economy. The conference assembled experts from around the world to discuss a number of pressing issues facing China: trade and misallocations, capital account liberalization, and growth and inequality. The Americas Center and World Affairs Council of Atlanta hosted a discussion on the impact and future of the North American Free Trade Agreement. Atlanta Fed president Raphael Bostic moderated a panel that featured Canadian consul general Nadia Theodore, Mexican consul general Javier Diaz de Leon, and Laura Dawson of the Woodrow Wilson Center. The Americas Center, the University of South Florida Sarasota-Manatee, and the Global Interdependence Center hosted a discussion on Cuba and disaster recovery in the Caribbean. Panel discussions featured former U.S. House delegate Stacey Plaskett of the Virgin Islands and former representative Carlos Curbelo of Florida. The Americas Center brought together specialists from central banks, universities, and financial technology (fintech) companies for a workshop on De-risking, Financial Exclusion, and Resiliency in the Caribbean. Participants commented that the workshop was a rare chance for dialogue and policy discussion among people who do not normally interact with one another. The Regional Economic Information Network, or REIN, of the Research Division joined the steering committee of the Conference on Central Bank Surveys, playing a lead role in the annual planning of the conference. REIN helped lead the conference's standing session on nonsurvey methods of gathering and synthesizing anecdotal input. Twenty-five central banks were represented at the 2018 Conference on Central Bank Surveys, which was hosted by the Bank of Sweden (Sveriges Riksbank) and held in Stockholm. Community and Economic Development The Community and Economic Development (CED) program published a comprehensive workforce development resource for policymakers, employers, nonprofits, funders, and program administrators titled Investing in America's Workforce: Improving Outcomes for Workers and Employers. This free three- volume book is the capstone of an initiative of the Federal Reserve System, the John J. Heldrich Center for Workforce Development at Rutgers University, the Ray Marshall Center of the Lyndon B. Johnson School at the University of Texas, and the W.E. Upjohn Institute for Employment Research. Chapters, videos, and other resources are available at www.investinwork.org. The Center for Workforce and Economic Opportunity forged a partnership with the National Skills Coalition and the Federal Reserve Bank of St. Louis to produce Building a Skilled Workforce for a Stronger Southern Economy, a report that is being used to help southern states launch strategies to improve workforce development efforts. The Atlanta Fed cohosted several gatherings to provide District stakeholders shared learning opportunities to address community issues. These included the Creating a More Inclusive Economy: Igniting Systems That Produce Results for Youth Employment conference, the 2018 National Interagency Community Reinvestment conference in Miami, the Growing Regional Food System Opportunity: Capital and Beyond forum, and the Fair Housing: A Look Back and Forward at Racial Equity in Atlanta (and the Southeast) conference. CED produced and updated analytics including Following the Money, a second iteration of the online tool that allows the public to explore funding flows for community and economic development from foundations to local neighborhoods, and the Opportunity Occupations Monitor, which provides metro-level information on jobs that do not require a bachelor's degree but pay a median wage. CED also launched the Southeastern Rental Affordability Tracker in partnership with the University of Florida's Shimberg Center for Housing Studies. The Atlanta Fed continues to support the Federal Reserve Banks' Small Business Credit Survey and used this data to publish two papers in 2018: Mind the Gap: How Do Credit Market Experiences and Borrowing Patterns Differ for Minority-Owned Firms? and How Do Firms Respond to Hiring Difficulties? Several additional papers and reports were published that provide evidence and strategies to address barriers to economic mobility. These include Strength in Numbers: The Growth and Evolution of CDFI Partnerships and Rental Housing Affordability in the Southeast: Data from the Sixth District. Corporate Citizenship, Economic Education, and Public Outreach Seventy-nine Atlanta Fed employees served on the boards of directors or advisory councils for more than 120 nonprofit organizations working to address critical community needs such as access to affordable housing, services for the homeless, and job training and placement for low- to moderate-income individuals. Contributing more than 2,500 hours of volunteer time, 360 employees and their families and friends read to students, offered career advice and résumé and interviewing assistance, prepared and delivered meals to seniors, cleaned up public spaces, and donated new and used goods to benefit veterans, seniors, and youth. More than 9,300 teachers participated in Bank-sponsored economic education workshops, webinars, and presentations. Through its economic education programs, the team exceeded a strategic objective to reach 75 percent of high schools in the Sixth District that are identified as inner city, majority-minority, or girls' schools. The Bank opened its doors to the public for guided tours and a special town hall, A Community Conversation with President Bostic, in October. Bostic discussed the work of the Federal Reserve and took questions from the audience. The weekend event drew more than 200 visitors. Public Affairs Forums brought leading authorities to Atlanta Fed offices to offer economic perspectives on public policy issues such as immigration, income inequality, and the world's food needs. Atlanta Fed president Raphael Bostic spoke to business and community leaders at forums in Nashville and Miami. The Atlanta Fed Speakers Bureau facilitated 376 presentations in which employees shared research, data, and information with community groups and professional associations. Retail Payments O ce The Retail Payments Office received positive customer feedback about its Check and Automated Clearinghouse (ACH) service in areas of quality, price, product, service, and value in a national survey. Progress was made on two new Check which launched in December, and FedACH services. A reporting service for the Federal Reserve's Check business line, provides the bank of first deposit with advance notice of return items, enabling the institution to assess the impact of a returned check earlier in the business day. Additionally, the FedACH® Exception Resolution Service, developed in 2018, will give customers the ability to manage disputes, notifications, questions, or requests for additional information tied to FedACH transactions when it launches in 2019. The Retail Payments Office implemented the third and final phase of enhancements in an industrywide effort to expedite clearing and settlement of ACH transactions, referred to as FedACH® SameDay Service. Additionally, support was provided in the U.S. Treasury's implementation of Same Day ACH origination. Same Day ACH represents the most significant change to the ACH network in more than 40 years. O ce of Minority and Women Inclusion The Bank received external recognition for its commitment to diversity and inclusion in 2018. The Atlanta Fed was ranked seventh on DiversityInc's list of top regional companies and earned a perfect score on the Human Rights Campaign's Corporate Equality Index . The Bank continued its strong commitment to supplier diversity, making 25.8 percent of its reportable procurement spending with minority- and woman-owned businesses in 2018. That compares with 15.2 percent in 2015 and 5.0 percent in 2011. Supervision, Regulation, and Credit In 2018, the Supervision, Regulation, and Credit Division continued to reach out to inform the banking industry and general public on key topics and trends, including the impact of the Economic Growth, Regulatory Relief, and Consumer Protection Act. Division staff also offered a supervisory perspective on the risks posed by migration to cloud environments at an industry cybersecurity conference. The Division produced the annual Banking Outlook Conference, "ViewPoint" articles, and ViewPoint Live! webcasts, which provided information on regulatory developments, supervisory issues, and hot topics, including fintech. Division staff continued to share their knowledge in numerous educational settings, including training events for foreign bank supervisors to promote sound supervisory practices abroad and address developing issues, such as trends in correspondent banking. These efforts also build relationships with central banks and bank supervisory authorities of other countries. The Credit and Risk Management Department and the Bank's Financial Statistics and Structure Analysis Department conducted training for the District's depository institutions on reporting requirements and reserves administration. JUMP TO: Milestones • OMWI Report • Past Annual Reports • Credits FINANCIAL & AUDIT STATEMENTS Financial Statements The Board of Governors and the Federal Reserve Banks annually prepare and release audited financial statements reflecting balances (as of December 31) and income and expenses for the year then ended. Download Financial Statements Audit Statement The Federal Reserve Board engaged KPMG to audit the 2018 combined and individual financial statements of the Reserve Banks* In 2018, KPMG also conducted audits of internal controls over financial reporting for each of the Reserve Banks. Fees for KPMG services totaled $7.0 million. To ensure auditor independence, the Board of Governors requires that KPMG be independent in all matters relating to the audits. Specifically, KPMG may not perform services for the Reserve Banks or others that would place it in a position of auditing its own work, making management decisions on behalf of the Reserve Banks, or in any other way impairing its audit independence. In 2018, the Bank did not engage KPMG for any non-audit services. * In addition, KPMG audited the Office of Employee Benefits of the Federal Reserve System (OEB), the Retirement Plan for Employees of the Federal Reserve System (System Plan), and the Thrift Plan for Employees of the Federal Reserve System (Thrift Plan). The System Plan and the Thrift Plan provide retirement benefits to employees of the Board, the Federal Reserve Banks, the OEB, and the Consumer Financial Protection Bureau. JUMP TO: Milestones • Financial & Audit Statements • Past Annual Reports • Credits OMWI REPORT Each year, the Office of Minority and Women Inclusion (OMWI) at the Federal Reserve Bank of Atlanta provides a congressional report summarizing the office's actions with regard to the requirements under Section 342 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. This report highlights the work OMWI performed in the previous year to take the affirmative steps that the Dodd-Frank Act addresses—specifically, ensuring workforce and supplier diversity, as well as advancing financial literacy in inner-city, majority/minority, and girls' schools. The Atlanta Fed undertakes these efforts in the Sixth Federal Reserve District. JUMP TO: Milestones • Financial & Audit Statements • OMWI Report • Credits PAST ANNUAL REPORTS The Atlanta Fed's annual reports highlight the work of the Atlanta Fed over the preceding year. Reports before 2012 were printed publications, and many of these are available online on our website in PDF. Since 2012, we have published online-only annual reports. These contain topical essays, dynamic charts, and videos and imagery, as well as links to the Bank's financial statements and lists of our current directors and officers. View Past Reports JUMP TO: Milestones • Financial & Audit Statements • OMWI Report • Past Annual Reports CREDITS About the Atlanta Fed The Federal Reserve Bank of Atlanta is one of 12 regional Reserve Banks in the United States that, with the Board of Governors in Washington, DC, make up the Federal Reserve System—the nation's central bank. Since its establishment by an act of Congress in 1913, the Federal Reserve System's primary role has been to foster a sound financial system and a healthy economy. To advance this goal, the Atlanta Fed helps formulate monetary policy, supervises banks and bank and financial holding companies, and provides payment services to depository institutions and the federal government. Through its six offices in Atlanta, Birmingham, Jacksonville, Miami, Nashville, and New Orleans, the Federal Reserve Bank of Atlanta serves the Sixth Federal Reserve District, which comprises Alabama, Florida, and Georgia, and parts of Louisiana, Mississippi, and Tennessee. Annual Report Staff Mike Chriszt Cassie Gage Vice President and Public Affairs Officer Cassie Gooding Sadat Karim Robin Ratliff Odie Swanegan Assistant Vice President and Public Information Officer Marketing and Social Media Nancy Condon Jean Tate Managing Editor, Content and Publishing Director Media Relations Carole Starkey Mark McElroy Web Communications Director Creative Services Director Charles Davidson Scott Fisher Karen Jacobs Jason Palmer Writers Jordan Stockton Video Producers Peter Hamilton Odie Swanegan Raphael Bostic Graphic Designers President and CEO David Fine Dave Altig Photographer Raphael Bostic Karen Leone de Nie Michael Zavarello Donna Salazar Web Developer Whitney M. Strifler Paula Tkac Advisers and Contributors Branches & O ces Atlanta Office Miami Branch 1000 Peachtree Street N.E. 9100 N.W. 36th Street Atlanta, Georgia 30309-4470 Doral, Florida 33178-2425 Birmingham Branch Nashville Branch 524 Liberty Parkway 333 Commerce Street Birmingham, Alabama 35242-7531 Suite 1000 Nashville, Tennessee 37201 Jacksonville Branch 800 Water Street New Orleans Branch Jacksonville, Florida 32204 525 St. Charles Avenue New Orleans, Louisiana 70130-3480 MORE ANNUAL REPORT PAGES
