community action plan demograph profile by Morgan County, Alabama Career Pathway

Demographic & Economic Profile

Decatur-Morgan County, Alabama

Submitted by:

MARKET STREET SERVICES, INC.

www.marketstreetservices.com

February 17, 2009

LIVE WORK GROW Market Street brings original insights and clarity to the evaluation and revitalization of the places where people live, work, and grow. Through honest and informed assessments, Market Street can equip you with the tools to create meaningful change. Our solutions merge our experience and expertise with the economic and social realities of our clients. Market Streetâ&#x20AC;&#x2122;s community clients are successful at creating stronger programs, increasing operational budgets, and creating new quality jobs that improve the quality of life in their communities.

Table of Contents Introduction ............................................................................................................................... 1 Executive Summary................................................................................................................ 2 Methodology............................................................................................................................. 6 Geography ....................................................................................................... 6 Data Sources ................................................................................................... 7

Economic Profile ..................................................................................................................... 8 Employment and Wage Growth .................................................................... 8 Economic Structure........................................................................................ 9 Average Annual Wage ................................................................................... 12 Commuting Patterns .................................................................................... 13 Unemployment ............................................................................................. 13 Labor Force Participation Rates .................................................................. 16 Entrepreneurs ................................................................................................ 17

Demographic Profile ............................................................................................................. 19 Population Change ....................................................................................... 19 Migration ....................................................................................................... 21 Age Distribution ........................................................................................... 22 Racial and Ethnic Composition ................................................................... 24 Poverty Rate ...................................................................................................25 Per Capita Income ........................................................................................ 26 Educational Attainment ............................................................................... 27 Teenage Birth Rate ....................................................................................... 28

Community Profile ................................................................................................................. 31 Public K-12 Education ................................................................................... 31 Higher Education ......................................................................................... 38 Crime ............................................................................................................ 40 Health.............................................................................................................41 Costs of Living .............................................................................................. 42

Conclusion............................................................................................................................... 43

Economic and Demographic Profile February 2009

INTRODUCTION There are communities in America that are making the hard choices and taking the tough steps needed to improve their attractiveness and competitiveness. They have recognized the realities of the global economy and are slowly but surely making strides toward being successful in the new economic world order. Communities as a whole must be globally competitive in the New Economy, where the emphasis on available workforce, education, and quality of life are driving location decisions of families, individuals, and corporations. The City of Decatur, Morgan County Commission, and the Decatur-Morgan County Chamber of Commerce have long been proactive in building a stronger community. Market Street Services, a community and economic development consulting firm based in Atlanta, has been retained to facilitate a strategic process to develop a Community Action Plan. This Plan will provide a blueprint for Decatur-Morgan County’s public and private sector leadership to address the challenges and fully leverage the opportunities facing the community. The first phase, the Economic and Demographic Profile, will provide a common understanding of the community’s recent trends. The Profile will analyze key economic, demographic, and community indicators to identify what has happened in the community in its recent past. This analysis will be the basis of Market Street’s work as the project proceeds to the remaining stages, as outlined below: I. Issue Analysis and Framing. To gather the perspectives of community members and project stakeholders, several approaches will be utilized including individual interviews, focus groups, and an online survey. Information will be gathered about various aspects of Decatur-Morgan County’s current competitiveness and quality of life, as well as information related to stakeholders’ visions for its future development. Highlights from this process will be summarized in the Issue Analysis and Framing report, which will highlight the key issues facing the community II. Best Practice Review. Based on the findings related to the community’s key issues, Market Street will delineate two or three best practice programs for each. The review will include information about the program’s operations, structure, and costs. III. Community Action Plan. This plan will represent the culmination of all research completed and will present action items geared toward addressing challenges and capitalizing on opportunities for visionary growth. This Community Action Plan will serve as a tool to unify Decatur’s public and private leadership behind a consensus blueprint for the community’s future. The final plan will include benchmarks and activity measures for implementation.

Economic and Demographic Profile February 2009

EXECUTIVE SUMMARY Community and economic development has never been more competitive. Because globalization has flattened many costs and barriers, communities must refocus their strategies to increase their globally competitive position. This Economic and Demographic Profile investigates issues related to community trends in DecaturMorgan County in order to help identify strategies that will best serve the community in the coming years. The Economic and Demographic Profile establishes a shared understanding of the County’s demographic, economic, and community trends. In the Profile, DecaturMorgan County was compared to Madison County, AL, Huntsville, AL, the Huntsville metropolitan statistical area (MSA), the state of Alabama, and the nation on several issues of competitiveness. The research presented in the Profile helps to clarify Decatur-Morgan County’s competitive position as a place to live and to do business. The Profile’s key trends are discussed below.

Economic Trends 

Morgan County added over 1,400 jobs between Q2 2006 and Q2 2008, growing local employment by 3.1 percent – a higher rate of growth than the nation (1%). Average wages continue to lag behind state and national averages. Slower local growth in average annual wages compared to the state and nation (6.3 percent locally, 7.0 statewide, 7.2 nationwide) indicates persistence in this gap.



Decatur-Morgan County has been successful in attracting foreign companies to locate within the County. Foreign owned companies, when combined, have over 1,300 employees, which makes them the third largest employer in the County.



Labor force participation (the percentage of working-age adults employed or looking for a job) in Morgan County since 2000 is on par with national levels. Combined with the lower unemployment rates compared to state and national averages, it appears that Decatur-Morgan County’s economy is able to fulfill most of the workforce’s demand for employment.



The local economy is not as diversified as the national economy. Twenty-five percent of Morgan County jobs are in manufacturing compared to 10 percent nationwide. In the New Economy job growth will be in healthcare, advanced technology manufacturing, and others sectors that require a highly skilled workforce. Decatur-Morgan County is well positioned to take advantage of these trends.

Economic and Demographic Profile February 2009



There was relatively slow growth (14 percent) of entrepreneurs between 2002 and 2007 in Decatur-Morgan County. Local growth was more sluggish than the Huntsville MSA (25 percent), Alabama (23 percent), and the U.S. (18 percent). This indicates either a low demand for certain products and services locally or barriers to market entry.

Demographic Trends 

In 2006, the community’s real per capita income was $32,204, higher than the Alabama average, but slightly lower than the Huntsville MSA and the nation. It is notable that local real PCI increased by 10.6 percent since 2000, a higher rate than the Huntsville region (7.5 percent) and the United States (5.1 percent) – helping to close the income gap.



The City of Decatur is a relatively well educated community in which 33 percent of adults, respectively, have an Associate’s degree or higher. This exceeds the state average of 28%. Since 2000, adults without diplomas have declined while those with an Associate’s degree or higher have increased.



Decatur-Morgan County has grown at a slower average annual rate than the Huntsville MSA; the state of Alabama; and the nation. Between 2000 and 2007, Morgan County grew 3.6 percent to 115,050. Most of this growth occurred in Decatur, the County seat, which grew 3.4 percent – adding over th 1,800 new residents. Morgan County was tied for 5 place among Alabama counties where net international migration accounts for a higher percentage of its overall population change (28 percent locally, compared to 16 percent statewide). More people moved to the County from outside of the U.S. than domestically.



Of Morgan County residents that moved out of the community since 2000, only one-in-five moved out of state. Amenities or opportunities (whether perceived or real) in other Alabama communities appear more likely to lure residents away.



Retaining residents within the region – particularly young professionals with educational credentials and technical skills – has become a significant challenge. Negative growth rates in the 0-44 age groups indicate outmigration of youth and young adults. Declining percentages of current and future workforce-age adults is a potentially damaging local trend that could foreshadow future workforce availability issues.



The minority population in Decatur-Morgan County has grown quickly. While the total numbers are small compared to the total county population, the Hispanic population grew 74.2 percent from 3,645 in 2000 to 6,530 in 2007, accounting for 68 percent of population growth during this time. This

Economic and Demographic Profile February 2009

rapid growth can present significant challenges for communities in delivering and providing services for new arrivals. The Black population grew by 8.9 percent during the same period, from 12,383 to 13,485 residents, and accounted for 28 percent of the population growth. 

Another warning sign is the County’s high youth poverty and teenage birth rates. In 2007, the community’s childhood poverty rate was 20.5 percent compared to 23.6 percent in Alabama, and 18 percent nationwide. DecaturMorgan County’s teen pregnancy has increased in the past three years to 30.1 percent, higher than Huntsville-Madison and the state, after several years of decline. These trends impact nearly every aspect of community and economic life and could potentially serve to restrict local job and income growth.

Community Trends 

Students in the school systems are performing very well but lagged behind other high performing districts in Alabama. The combined performance results for the schools systems are as follows: th o 4 grade students “met or exceeded” standards in reading by 84.7 percent and math by 76.1 percent. Reading was slightly lower than the state average of 85.0, while math was slightly above the 75.3 percent state average. th o 8 grade students “met or exceeded” standards in reading by 73.2 percent and math by 71.4 percent. These were higher than the state averages of 72.0 and 66.3 percent, respectively. th o 11 grade students “passed or passed advanced” reading by 86.6 percent and math by 90.2 percent. These were higher than the state averages of 84.3 and 86.5 percent, respectively.



Public K-12 enrollment increased by 3.2 percent (662 students) in the County between 2003 and 2007 from 19,312 to 19,954 to students. Although a relatively small percentage of the student population, the largest student enrollment increase was 45 percent by Hispanic students, from 846 students to 1,535, for a net increase of 689 students during the same period. o Morgan County Schools experienced the largest enrollment growth of 5.2 percent (442 students) compared to 1.5 percent (134 students) in Decatur City Schools and 2.7 percent (86 students) in Hartselle City Schools. o Of the 689 new Hispanic students, 179 were enrolled in Morgan County Schools, 479 in Decatur City Schools, and 31 in Hartselle City Schools.

Economic and Demographic Profile February 2009



Over the last five years all of the school systems experienced an increase in students qualifying for free and reduced price lunch. This is a national trend. Approximately 51.3 percent of Decatur City Schools’ students qualify versus 42.6 percent in 2003. This is an indicator of trends in household income levels, which appear have declined in recent years.



Morgan County is served by James C. Calhoun Community College which offers 49 Associates’ degree programs and 52 career/certificate programs to over 9,800 students. CCC has the states only Associates’ degree program in Biotechnology and will house the future Alabama Robotics Education Center.



Violent crime in the Decatur MSA is significantly less than the Huntsville MSA, Alabama, and the nation, despite a 14.3 percent increase between 2003 and 2007. However, during the same period there was an 8 percent decrease in property crime.



Decatur-Morgan County has access to good health care resources, especially the private not-for-profit Decatur General Hospital. The County has a lower per capita ratio of physicians compared to the Huntsville MSA and nation, but this is a challenge across Alabama. Establishing healthcare coverage options and services will be necessary to support the County’s aging population, and as a key component to attracting businesses.



A significant challenge facing hospitals in the County is the high payer mix of individuals with low or no-income that use hospital services. The payer mix of low or no-income patients at Decatur General is 61 percent and at Parkway Medical is 21 percent. This places a significant strain on available healthcare resources and reduces the attractiveness of a community to doctors and other healthcare service providers.



The Decatur MSA’s cost of living is lower than the national average and that 2 of the Huntsville MSA according to 2008 Average Annual data from C ER (a national community and economic development research organization). Only local grocery and health care costs are slightly higher (4% and 3% respectively) than in Huntsville.

The Economic and Demographic Profile provides the Steering Committee and the community at large with information critical to making informed decisions that will address the challenges and opportunities facing Decatur-Morgan County. The information in this Profile will inform the Community Action Plan that will establish a shared vision of the goals, objectives, and action steps necessary to address barriers to growth, increase the County’s competitiveness for jobs and people, and improve community vitality.

Economic and Demographic Profile February 2009

METHODOLOGY This Economic and Demographic Profile provides an understanding of Decatur-Morgan Countyâ&#x20AC;&#x2122;s economic and demographic trends compared to the Decatur and Huntsville metropolitan statistical areas (MSA), Alabama, and the United States. In addition to the economic and demographic profiles, Market Street has included a section that examined specific community trends that will strongly influence Decatur-Morgan Countyâ&#x20AC;&#x2122;s future. This section describes the methodology used in the research and data analysis of the Profile.

GEOGRAPHY For most indicators, Decatur-Morgan County was compared to the Decatur and Huntsville metropolitan statistical areas, as defined by the U.S. Office of Management and Budget (OMB). The current definition of the Decatur MSA includes Lawrence and Morgan Counties; the current definition of the Huntsville MSA includes Limestone and Madison Counties. The geographical definition for the MSA has remained unchanged since the release of the 2000 Decennial Census. Decatur and Huntsville, Alabama Metro Areas

Economic and Demographic Profile February 2009

Due to Decatur’s small population size, recent reliable data is not available for many indicators. In these instances, Market Street has used Morgan County data to gauge community trends. In 2007, the City of Decatur’s population was 55,741 – accounting for approximately half of Morgan County’s total population (115,050). The City of Decatur is the largest municipality in Morgan County.

DATA SOURCES Market Street used the most recent data available for this Profile. Reputable and reliable private, non-profit, local, state, and national government data sources were leveraged, with every effort made to match methodologies and units of comparison across sources to provide the most accurate and informative analysis of DecaturMorgan County’s demographic and economic trends. Major data sources for this Profile included the U.S. Census Bureau, the U.S. Bureau of Economic Analysis (BEA), the U.S. Bureau of Labor Statistics (BLS), U.S. Department of Justice, the Internal Revenue Service (IRS), and National Center for Education Statistics. State and local data sources included the City of Decatur, the Decatur-Morgan County Chamber of Commerce, Morgan County Economic Development Agency, the Alabama Department of Education and Health, and other sources. In many cases, the data are presented in a chart as the percentage each component represents of the total. In these cases, unless otherwise noted, if the summation of the percentages of all the components does not equal 100 percent, it is due to rounding.

Economic and Demographic Profile February 2009

ECONOMIC PROFILE This section of the Economic and Demographic Profile examines employment and wage trends, commuting patterns, and entrepreneurial activity. This economic profile will help project stakeholders gain a broad understanding of recent economic changes within the Decatur-Morgan County community, and whether they differ or are reflective of trends within the Decatur and Huntsville MSAs, Alabama, and the United States.

EMPLOYMENT AND WAGE GROWTH The following table shows recent employment and wage trends for metro counties, the state, and the nation. Between Q2 2006 and Q2 2008 (the most recent quarter which data are available), Morgan County added 1,484 local jobs growing total employment by 3.1 percent and average wages by 6.3 percent. While DecaturMorgan County’s employment growth outpaced that for the state and the nation, its wage growth lagged behind. Average annual wages in Morgan County grew by 6.3 percent (reaching $36,009 in Q2 2008) compared to 7.0 percent for the state ($37,455) and 7.2 percent for the nation ($43,732). The disparities in economic growth between Decatur and Huntsville metro areas are notable. In metro Decatur, population and job growth has been concentrated in Morgan County, while Lawrence County has shed both residents and jobs in recent years. In metro Huntsville, job and population growth has reached both Limestone and Madison Counties; however, average wages in Limestone County have declined. This indicates a certain level of job churning in Limestone County as higher wage jobs have been lost while new job growth has been concentrated in lower wage sectors. Total Employment and Average Annual Wages, Q2 2006 and Q2 2008 Employment

Average Annual Wage

Change since Q2 2006

Decatur MSA Lawrence County Morgan County Huntsville MSA

Percent

Change since Q2 2006

Q2 2008

Number

Q2 2008

Amount

Percent

55,977

1,298

2.4%

$36,027

$1,721

5.0%

6,397

(187)

‐2.8%

$36,160

($1,291)

‐3.4%

49,580

1,484

3.1%

$36,009

$2,135

6.3%

206,057

11,987

6.2%

$45,730

$2,618

6.1%

Limestone County

22,931

1,057

4.8%

$40,425

($3,191)

‐7.3%

Madison County

183,126

10,930

6.3%

$46,394

$3,346

7.8%

1,954,401

19,567

1.0%

$37,455

$2,466

7.0%

136,141,522

1,701,221

1.3%

$43,732

$2,956

7.2%

Alabama United States

Source: U.S. Bureau of Labor Statistics

Economic and Demographic Profile February 2009

ECONOMIC STRUCTURE Analyzing the economic structure of Decatur-Morgan County can provide insight into its economic diversity, opportunities, and challenges. The following chart shows employment by business sector in Q2 2008 for Morgan County, sector employment as a percentage of total employment, and growth by sector on both the county and national levels. Compared to the U.S. economy, the local economy is not as diversified - 25 percent of Morgan County jobs remain in manufacturing compared to 10 percent nationwide. This translates into a smaller proportion of jobs in other sectors including health care, professional and technical services, information, and finance and insurance. The community has continued to add jobs in construction and manufacturing (as these sectors have shed jobs nationally); these sectors accounted for three out of every four new jobs created during this time. It is important to note that food processing is classified as a subsector within the manufacturing sector. Decatur-Morgan County Employment by Business Sector, Q2 2006 – Q2 2008 Employment Q2 2008

Change Q2 2006 ‐ Q2 2008

Total

Percent of Total

Number Change

% Change

U.S. % Change

Construction

3,842

551

17%

‐5%

Manufacturing

12,193

25%

573

‐5%

Wholesale trade

1,660

(100)

‐6%

Retail trade

5,624

11%

Transportation and warehousing

1,871

‐

332

(105)

‐24%

‐1%

1,507

(161)

‐10%

‐2%

Business Sector

Information Finance and insurance Real estate and rental and leasing

448

(30)

‐6%

‐2%

Professional and technical services

1,147

Management of companies and enterprises

480

14%

Administrative and waste services

3,698

491

15%

‐2%

Educational services

3,240

Health care and social assistance

5,151

10%

Arts, entertainment, and recreation

292

18%

Accommodation and food services

3,946

(69)

‐2%

Other services

1,059

(36)

‐3%

Public administration

2,112

132

1,484

Total Employment 49,580 100% Source: U.S. Bureau of Labor Statistics

Note: Total employment does not add up to the sum of sector employment due to data suppression issues. Data for the following subsectors are not included because each accounts for less than 0.5 percent of DecaturMorgan County's total employment: agriculture, forestry, fishing and hunting; mining; and utilities. Data for transportation and warehousing in Q2 2006 was suppressed due to privacy issues.

Economic and Demographic Profile February 2009

The following table provides a brief overview of Morgan County’s largest manufacturing employers. Many local manufacturing jobs are in higher wage production and assembly of consumer and industrial goods; however jobs in chicken, beef, and meat processing are traditionally lower wage. Largest Manufacturing Employers, 2008 Company Wayne Farms, LLC General Electric 3M Company United Launch Alliance Nucor Steel CR Compressors, LLC BP America Baker Division Hyosung USA, Inc. Daikin America

Product Chicken Processing Refrigerators Industrial Chemicals Rocket Boosters Steel Mill A/C Compressors Plastics, Raw Materials Wood Reels Nylon Tire Cord Fabric Fluoropolymers

Employment 1,596 1,390 834 684 630 577 446 350 343 322

Source: Morgan County Economic Development Agency

Decatur-Morgan County has had significant success in attracting foreign companies to locate in the region; many of them advanced technology companies. Combined these companies employ over 1,300 individuals, which make foreign companies the third largest employer in the Region. The following table lists the foreign owned companies in the County. Foreign Owned Companies, 2008 Company Ineosnova, LLC BP CEMEX BASF Ferralloy Corp. Linde Gas Daikin MDA Manufacturing Steel Technologies Toray OCI Chemical Hyosung Corporation Alpha Pet, Inc.

Country Canada England Mexico Germany Germany Germany Japan Japan Japan Japan Korea Korea Thailand

Source: Morgan County Economic Development Agency

Economic and Demographic Profile February 2009

The following table shows Decatur-Morgan County’s location quotients by business sector. Location quotients are an effective means of determining the comparative strength of an employment sector in a community compared to a larger area. Location quotients (LQ) are ratios representing the strength of a local business sector in relation to the national average. They are represented formulaically as: LQ = (County Employment in Sector/Total County Employment) (National Employment in Sector/Total National Employment) If a location quotient is greater than 1.00, the area has a larger share of employment in that sector than the nation. The higher the LQ, the more concentrated the level of local employment compared to its U.S. equivalent. Conversely, if a location quotient is less than 1.00, this indicates a smaller local share of employment than the nation. Decatur-Morgan County’s business sectors with high location quotients include manufacturing, construction, and administration services. Compared to the nation’s employment mix, there are a lower proportion of local jobs in higher wage and potential growth areas like health care, professional and technical services, finance and insurance, and information which are all lower than the U.S. average. Decatur-Morgan County Location Quotients, Q2 2006 and Q2 2008

Business Sector Manufacturing Construction Administrative and waste services

Q2 2006 2.29 1.17 1.07

Q2 2008 2.47 1.41 1.23

Change 0.18 0.25 0.17

Retail trade Transportation and warehousing Accommodation and food services Health care and social assistance Public administration Wholesale trade

1.03 ‐ 0.99 0.87 0.76 0.83

1.01 0.95 0.93 0.81 0.78 0.76

(0.02) ‐ (0.07) (0.06) 0.01 (0.07)

Educational services Finance and insurance Management of companies and enterprises Other services Real estate and rental and leasing Professional and technical services Arts, entertainment, and recreation Information

0.74 0.77 0.66 0.69 0.60 0.40 0.29 0.38

0.71 0.70 0.69 0.64 0.56 0.40 0.32 0.29

(0.03) (0.07) 0.04 (0.05) (0.04) (0.00) 0.03 (0.09)

Source: U.S. Bureau of Labor Statistics Note: Data for the following subsectors are not included because each accounts for less than 0.5 percent of Decatur-Morgan County's total employment: agriculture, forestry, fishing and hunting; mining; and utilities. Data for transportation and warehousing in Q2 2006 was suppressed due to privacy issues.

Economic and Demographic Profile February 2009

AVERAGE ANNUAL WAGE Average annual wage is a good indicator of the wealth-generating potential of local jobs. Cross-referencing average wages with location quotients can help show if a community is competitive in relatively high or low-wage business sectors. While the community has higher concentrations of jobs in high-wage sectors like manufacturing ($51,628) and construction ($42,949), these sectors are shedding jobs nationally. Decatur-Morgan County’s other sectors with high LQs are predominately lower-wage jobs sectors including administrative and waste services ($22,685), retail trade ($22,567) and accommodation and food services ($12,331). It must be noted that the average annual wage calculation includes wages of all employees in that sector, professional and non-professional. Average Annual Wages by Business Sector, Q2 2006 and Q2 2008

Wages below County average

Wages above County average

Decatur‐Morgan County

U.S.

Q2 2008

Change since Q2 2006

% change since Q2 2006

Q2 2008

% change since Q2 2006

Manufacturing

$51,628

$2,981

6.1%

$52,522

6.0%

Wholesale trade

$45,990

$2,997

7.0%

$58,746

6.9%

Management of companies and enterprises

$45,031

$2,939

7.0%

$87,331

5.3%

Information

$43,619

$2,659

6.5%

$64,935

7.7%

Construction

$42,949

$4,358

11.3%

$46,773

10.0%

Transportation and warehousing

$41,373

‐

$44,594

6.3%

Professional and technical services

$40,303

$3,353

9.1%

$70,633

9.9%

Finance and insurance

$37,072

‐$1,668

‐4.3%

$70,815

6.5%

Public administration

$35,086

$524

1.5%

$52,568

9.0%

Health care and social assistance

$34,797

$3,103

9.8%

$41,648

7.1%

Educational services

$32,860

$4,110

14.3%

$43,010

8.5%

Other services, except public administration

$24,254

$175

0.7%

$28,362

6.8%

Administrative and waste services

$22,685

$467

2.1%

$31,119

8.6%

Retail trade

$22,567

$234

1.0%

$26,127

3.3%

Arts, entertainment, and recreation

$12,905

‐$2,001

‐13.4%

$28,145

6.1%

Accommodation and food services

$12,331

$815

7.1%

$16,487

6.6%

$36,009

$2,135

6.3%

$43,732

7.2%

Average

Economic and Demographic Profile February 2009

In addition to average annual wage by business sector, a snapshot of mean annual wages of three non-management production occupations is provided. The occupations were consistent with jobs available in the top three manufacturers: Wayne Farms, GE, and 3M. Data for meat, poultry, and fish cutters and trimmers for the Decatur MSA was not available due to data privacy restrictions. Mean Annual Wages by Occupation, 2007 Occupation Electrical and electronic equipment assemblers Meat, poultry, and fish cutters and trimmers Chemical plant and system operators

U.S. Alabama Decatur MSA $ 26,540 $ 31,220 $ 29,030 $ 21,050 $ 20,110 N/A* $ 50,860 $ 54,170 $ 49,690

Source: U.S. Bureau of Labor Statistics

COMMUTING PATTERNS Analyzing commuting patterns can help clarify Decatur-Morgan County’s role within the Decatur-Huntsville region. More residents in the City of Decatur both lived and worked in their community in 2007 (77 percent) compared to 2000 (65 percent). This is contrary to the commuting trends of residents in the Decatur MSA, Huntsville MSA, state and nation. This dynamic indicates that the City of Decatur has become an increasingly important job center in the metro area. Competitive communities provide a variety of employment opportunities within a close commuting distance; in this regard, it seems that the City of Decatur has enhanced its position. Percent of Workers Employed in Their Place of Residence, 2000 and 2007 Worked in County of Residence 2000

2007

Change

City of Decatur*

65%

77%

12%

Decatur MSA

78%

64%

‐14%

Huntsville MSA

87%

86%

‐1%

Alabama

75%

73%

‐2%

United States

73%

72%

‐1%

Source: U.S. Census Bureau *Due to limited data availability for smaller communities, 2007 data figure is taken from the Census Bureau's American Community Survey 3-year estimates (2005-2007), which average data over this time period.

UNEMPLOYMENT Examining local unemployment rates, compared to state and national trends, provides a good barometer for the stability and health of a community’s economy. The U.S. Bureau of Labor Statistics reports unemployment rates, tracking people month by month in the civilian labor force who were available for work, made

Economic and Demographic Profile February 2009

specific efforts to find employment, or who were waiting to be recalled to a job from which they had been laid off. The following chart shows annual unemployment rates for Decatur-Morgan County, the Decatur and Huntsville metro areas, Alabama, and the United States between 2000 and 2007. Between 2000 and 2004, local unemployment rates closely mirrored those for the nation; however, since that time local rates have dropped below national figures. In 2007, Decatur-Morgan County’s unemployment rate was 3.1 compared to 3.2 for the Decatur MSA, 2.7 for the Huntsville MSA, 3.5 for the state, and 4.6 for the nation. The annual unemployment rate for 2008 was not available at the time of this analysis. Annual Unemployment Rates, 2000-2007 7.0 6.0

Decatur‐Morgan County

5.0

Decatur MSA

4.0

Huntsville MSA

3.0 Alabama 2.0 United States 1.0 0.0 2000

2001

2002

2003

2004

2005

2006

2007

Source: U.S. Bureau of Labor Statistics

Monthly unemployment rates highlight trends that are more recent. Since March, 2008, local, regional, and state unemployment have been following national trends. The nation will continue to see rising unemployment, as the housing and financial crises have destabilized workers’ financial wellbeing, corporate bottom lines, and consumer confidence.

Economic and Demographic Profile February 2009

Monthly Unemployment Rates, November 2007 – November 2008 7.0 6.0

Decatur‐Morgan County

5.0

Decatur MSA

4.0 Huntsville MSA 3.0 Alabama

2.0

United States

1.0 0.0 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 2007

2008

Source: U.S. Bureau of Labor Statistics

Announced Layoffs and Closings, 2003-2008

Decatur MSA Total Losses

Jobs Lost 2,556

Largest Closings/Layoffs Bechtel Power Corporation

686

Wolverine Tube, Inc.

464

Solutia

408

Mundy Maintenance and Services, LLC

224

Wallace Developmental Center

221

Regal Employment, Inc.

180

Cargill

106

The Boeing Company

100

Huntsville MSA Total Losses

6,017

Largest Closings/Layoffs Goodyear Dunlop Tire NA, Ltd.

1,160

West Telemarketing Corporation

1,081

Delphi Steering Systems

1,020

Computer Sciences Corporation

667

Continental (Siemens)

308

Pinkerton Government Services

194

Delta Air Lines

183

Sweet Sue Kitchens, Inc.

161

Bill Heard Chevrolet, Inc.

158

Wright-K Technology, Inc.

150

Triana Industries Lockheed Martin

150 118

Economic and Demographic Profile February 2009

The Alabama Adjustment and Retraining Notification Act requires employers to provide 60 days advance notice of pending plant closures or mass layoffs. The law applies to “business enterprises” with 100 or more employees (excluding part-time employees). According to the Alabama Department of Labor between January 2003 and December 2008, the Decatur metro area lost 2,556 jobs due to mass layoffs of plant closings, while the Huntsville metro area shed 6,017 jobs. These announcements affected workers in a variety of industries including food processing, defense, telemarketing, and manufacturing.

Source: Alabama Department of Labor

LABOR FORCE PARTICIPATION RATES Labor force participation rates (LFPR) offer a more nuanced view of employment dynamics within a given area. Unemployment rates only measure those adults who are actively seeking work and receiving unemployment benefits. Yet many eligible workers may not be employed, and may not be receiving benefits for any number of reasons. Labor force participation rates measure the percentage of the potential workforce (ages 18 to 69) that is employed or looking for work divided by the total working aged population. The remaining adults comprise the so-called “hidden workforce” because they have either dropped out of the workforce or have given up looking for a job. As seen in the following chart, Decatur-Morgan County’s labor force participation rate decreased slightly between 2000 and 2007, from 77 percent to 75 percent. This trend replicates what is happening with the region, state, and nation, which all suffered declines in their LFPR. Combined with the lower unemployment rates compared to national averages, it appears that Decatur-Morgan County’s economy is able to fulfill most of the workforce’s demand for employment. Because local figures are on par with national trends, it does not appear that the local labor market is particularly tight, which provides a favorable environment for both businesses and workers. Labor Force Participation Rates, 2000 and 2007 77% Decatur‐Morgan County

75% 76%

Decatur MSA

73% 2000 2007

80%

Huntsville MSA

78% 74%

Alabama

71% 78%

United States

76%

10%

20%

30%

40%

50%

60%

70%

80%

Source: U.S. Bureau of Labor Statistics and the U.S. Census Bureau

Economic and Demographic Profile February 2009

ENTREPRENEURS Stimulating entrepreneurship is a strategy that many communities rely on to grow their local economies. Understanding where entrepreneurial activity is already taking place is a good starting point for assessing what additional resources may be needed to foster small business growth and start-ups in Decatur-Morgan County. In Decatur-Morgan County, the highest percent (18.8 percent) of self-employed individuals (also called “non-employers”) are working in construction, followed by 18.2 percent working in other services. The U.S. Census Bureau defines other services as, “primarily engaged in activities such as equipment and machinery repairing, promoting or administering religious activities, grant-making, advocacy, and providing dry-cleaning and laundry services, personal care services, death care services, pet care services, photofinishing services, temporary parking services, and dating services.” There are no large disparities between sector concentrations in Decatur-Morgan County and the comparison areas. Non-Employers by Business Sector: Decatur-Morgan County, 2006 Non‐ employers

As a % of all non‐ employers

Average income

7,455

100.0%

$ 42,068

Construction

1,399

18.8%

$ 57,829

Other services

1,355

18.2%

$ 22,334

Total

Retail trade

840

11.3%

$ 44,064

Administrative, support and waste management services

700

9.4%

$ 16,019

Real estate and rental and leasing

675

9.1%

$ 76,286

Professional, scientific, and technical services

609

8.2%

$ 30,655

Transportation and warehousing

389

5.2%

$ 71,810

Health care and social assistance

339

4.5%

$ 32,743

Arts, entertainment, and recreation

242

3.2%

$ 10,620

Finance and insurance

231

3.1%

$ 55,996

Wholesale trade

146

2.0%

$ 69,253 $ 59,399

Manufacturing

143

1.9%

Educational services

117

1.6%

$ 8,675

Forestry, fishing & hunting, agricultural services

115

1.5%

$ 50,617

Accommodation and food services

1.1%

$ 27,456

Information

0.9%

$ 25,894

Utilities

0.1%

$ 18,286

Mining

0.0%

$ 25,667

Source: U.S. Census Bureau

Economic and Demographic Profile February 2009

A look a growth in non-employers and their average income does reveal disparities. The following table shows that between 2002 and 2006, the number of non-employers in Decatur-Morgan County grew by 14 percent, while their income increased by six percent. Both figures are lower than those for the Huntsville metro area, state, and the nation potentially indicating either a lower demand for certain services locally or barriers to market place entry. Non-Employers and Average Income, 2002-2006 2006

Change since 2002

Non‐employers

Average income

Non‐ employers

Average income

Decatur‐Morgan County

7,455

$42,068

14%

Decatur MSA

9,525

$40,909

15%

Huntsville MSA

24,198

$43,194

25%

13%

Alabama

293,874

$44,657

23%

10%

20,768,555

$46,724

18%

United States

Source: U.S. Census Bureau

Economic and Demographic Profile February 2009

DEMOGRAPHIC PROFILE This section analyzes Decatur-Morgan County’s population change and socioeconomic dynamics - including migration, change by age and race, educational attainment, poverty rates, and other indicators. Studying these trends can help show how the community’s population is changing compared to those of the Huntsville metro area, Alabama, and the nation and how they may help or hinder DecaturMorgan County’s competitiveness as a place to live, work, and do business.

POPULATION CHANGE The City of Decatur has experienced slow and steady growth since 2000. As shown in the following chart, Decatur has grown at a slower rate than the Huntsville MSA, Alabama, and the nation. It is interesting to note that Lawrence County actually lost residents between 2000 and 2007. Because of its amenities and opportunities, the greater Decatur-Huntsville area remains a growth “hot spot” in a state where 38 of its 67 counties (or 57 percent of them) experienced population decline since 2000. Total Population, 2000 – 2007

City of Decatur Decatur MSA Lawrence County Morgan County Huntsville MSA Limestone County Madison County Alabama United States

Change

2000 Population 53,929

2007 Population 55,741

Number 1,812

Percent 3.4%

145,867 34,803 111,064 342,376 65,676 276,700

149,279 34,229 115,050 386,632 73,898 312,734

3,412 ‐574 3,986 44,256 8,222 36,034

2.3% ‐1.6% 3.6% 12.9% 12.5% 13.0%

4,447,100 281,421,906

4,626,595 301,290,332

179,495 19,868,426

4.0% 7.1%

Source: U.S Census Bureau

Three factors account for population growth and decline: natural change (births minus deaths), net international migration, and net domestic migration. The following chart shows that over the last eight years domestic migration accounted for a lower rate of population change in Decatur-Morgan County (one percent) than in the surrounding counties (Lawrence County: 66 percent; Limestone County: 74 percent; Madison County: 61 percent), or the state of Alabama (31 percent). At the same time, the County’s rate for international migration led metro area counties and the state. This indicates that Decatur-Morgan County’s growth is driven primarily by immigration and new births, as opposed to domestic migration.

Economic and Demographic Profile February 2009

Components of Population Change, 2000 – 2007

Nation State

Huntsville MSA

Decatur MSA

1% 28%

71%

Decatur‐Morgan County

20%

40%

Domestic Migration International Migration

36%

64%

United States

Natural Change

16%

31%

53%

Alabama

61%

29%

Madison County

74%

23%

Limestone County

66%

29%

Lawrence County

60%

80%

100%

Source: U.S Census Bureau

The following map illustrates international migration as a percentage of total th population change by county. Morgan County ranks 5 in the state for the highest percentage of international migration tied with Colbert County (28 percent) and behind Marshal (31 percent), DeKalb (32 percent), Lauderdale (34 percent), and Etowah Counties (59 percent).

International Migration (as a % of total population change), 2000 – 2007 Source: U.S Census Bureau

Economic and Demographic Profile February 2009

MIGRATION Migration dynamics are an important part of community development planning. Community leaders should understand who is moving into and out of DecaturMorgan County in order to provide appropriate services for all of its residents now and in the future. As was discussed in the previous section, domestic migration only accounted for one percent of Morgan Countyâ&#x20AC;&#x2122;s total population change between 2000 and 2007. This is an unusually low percentage, meaning population growth is being driven by a combination of international migration and higher birth rates instead of in-migration from other U.S. communities. In fact, a total of only 35 net new residents were gained during this time due to net migration (in-migrants minus outmigrants). IRS tax return data was used to analyze migration patterns to learn more about where 1 residents are moving to and where new residents are being attracted from. These data show that of the new in-migrants who have moved to Decatur-Morgan County since 2000, four-in-ten moved from out of state. Of the Morgan County residents who moved out of the community during this time, only one-in-five moved out of state. This means that work obligations or opportunities, and family connections to Decatur are most likely attracting new residents from out-of-state, while perceived amenities or opportunities in other Alabama communities are more likely to lure residents away. Top out-of-state magnet counties for new residents include Orange County, California (Anaheim); Cook County, Illinois (Chicago), and San Diego County, California. Top in-state magnet counties are highlighted in red in the following map, which shows net migration for Decatur-Morgan County within the Southeast region. The top counties receiving out-migrants from Morgan County during this time were Madison (Huntsville), Jefferson (Birmingham), Blount, Limestone, and Baldwin (Mobile). Most out-migrants leaving Morgan County for another state chose to settle in metro Nashville and Atlanta.

This estimate is made based on the number of individuals who filed returns for that calendar year, specifically the number of exemptions claimed during this time.

Economic and Demographic Profile February 2009

Net Migration for Decatur-Morgan County, 2000 - 2007

Source: Internal Revenue Service

AGE DISTRIBUTION Communities with a strong, growing young workforce often have more success sustaining long-term economic health. The following chart shows age distributions for Decatur-Morgan County, the Decatur and Huntsville MSAs, the state, and the nation in 2007. Local dynamics mirror those for the region; however, DecaturMorgan Countyâ&#x20AC;&#x2122;s age distribution shows it has a slightly higher proportion of older residents than the nation.

Economic and Demographic Profile February 2009

Age Distribution (Total Population), 2007 100% 80%

14%

12%

14%

13%

27%

26%

25%

27%

28%

10%

24%

25%

60% 40% 20% 0%

65 and older

45‐64

25‐44

18‐24

17 and younger

Source: U.S Census Bureau

These dynamics could become more pronounced if recent trends continue. As shown in the following chart, Decatur-Morgan County’s 0-17 (down by one percent, shedding 366 residents), 18-24 (down by three percent, shedding 238 residents), and 25-44 (down by seven percent, shedding 2,264 residents) age groups shrunk between 2000 and 2007. This is surprising considering over 11,000 babies were born in Morgan County during this time. This indicates that many younger residents and families with school-aged children are choosing to move out of the community, while older residents are choosing to stay or are relocating to the area. Population Change by Age Group, 2000-2007 30% 25% 20% 15% 10% 5% 0% ‐5% ‐10%

0‐17 Decatur MSA

18‐24 Huntsville MSA

25‐44

45‐64 Alabama

65+ United States

Source: U.S Census Bureau

Economic and Demographic Profile February 2009

RACIAL AND ETHNIC COMPOSITION As shown in the following chart, the Decatur area has a lower proportion of minority residents than the Huntsville area, the state, and the nation. It is interesting to note, however, that Decatur has a smaller black population and a larger Hispanic population than Huntsville and Alabama. The following chart illustrates these 2 dynamics.

Total Population by Race and Ethnicity, 2007

Decatur‐Morgan County

80%

12% 6

Decatur MSA

80%

12% 5

71%

Huntsville MSA

22%

69%

Alabama

26%

66%

United States 0% White

20% Black

12%

40%

60%

Hispanic

3 3

2% 7%

15%

80%

100%

Other

Source: U.S Census Bureau

These dynamics could be changing, as Decatur-Morgan County has grown increasingly diverse in recent years. Both in raw numbers and percentage increases, residents of other races, and the black and Hispanic populations grew faster during this time than whites. Growth within the Hispanic population accounted for 2,705 of the 3,986 net new residents – or 68 percent. Growth within the black population accounted for 1,102 or 28 percent of new residents. Increasingly, racial and cultural diversity is an important aspect of healthy communities. Decatur-Morgan County’s increasing diversity poses both challenges and opportunities as the County addresses the needs of its diverse populations.

Hispanic is considered an ethnicity, not a race, and therefore the percentages of “Other Races,” “White,” and “Black” in the following charts refer only to non-Hispanics. “Other Races” includes American Indian and Alaska Native; Asian; Native Hawaiian and Other Pacific Islander; and two or more races combined.

Economic and Demographic Profile February 2009

Decatur-Morgan County Population Change by Race/Ethnicity, 2000-2007 Change 2000

2007

Number

Percent

White

92,584

92,473

‐111

‐0.1%

Black

12,383

13,485

1,102

8.9%

Hispanic

3,645

6,350

2,705

74.2%

Other

2,452

2,742

290

11.8%

111,064

115,050

3,986

3.6%

Total

Source: U.S Census Bureau

POVERTY RATE Examining poverty rates is one of the best ways to help gauge a community or region’s socio-economic prosperity. Poverty rates are estimated by the U.S. Census Bureau using income measures from annual population surveys. Information including family size, pre-tax income, and number of children help the Bureau determine poverty thresholds. If a family’s income is less than the poverty threshold, that family would be considered living in poverty. In 2007, the most recent year which poverty rates are available, the poverty threshold for a family of four with two children was $21,027. The poverty rate for an individual in 2007 was $10,590. As shown in the following chart, total population and childhood poverty rates have increased since 2000 following regional, state, and national trends. In 2007, one in five children in Decatur-Morgan County was living in poverty; however, minority children are disproportionately affected by poverty. The U.S. Census Bureau released average poverty estimates between 2005 and 2007 for smaller communities. These data reveal that approximately nine percent of local white residents live in poverty, compared to 37 percent of black residents and 38 percent of Hispanic residents. Compared to the region, state, and the nation, minorities in Decatur-Morgan County are more likely to live in poverty.

Economic and Demographic Profile February 2009

Total Population and Child Poverty Rates, 2000 and 2007 25% 20% 15% 10% 5% 0%

2000

2007

2000

Total Population

2007 Children

Decatur‐Morgan County

11.1%

14.2%

16.7%

20.5%

Huntsville MSA

10.5%

11.5%

14.9%

16.4%

Alabama

14.6%

16.6%

20.5%

23.6%

United States

11.3%

13.0%

16.2%

18.0%

Source: U.S. Census Bureau

PER CAPITA INCOME In general, raising the quality of life for local residents is a key focus of economic development. To this effect, per capita income (PCI) is one of the best measurements of a community’s progress in economic development, because it is an important indicator of the economic stability and potential buying power. Per capita income is a measure of the total personal income of a place divided by its total population. By adjusting for inflation (real PCI), incomes across many years can be compared more accurately. As shown in the following table, more money is circulating in Decatur-Morgan County. In 2006, the community’s real per capita income was $32,204, lower than the Huntsville MSA and the nation but more than that for the state. It is notable that local real PCI increased by 10.6 percent since 2000, a higher rate than the Huntsville region (7.5 percent) and the United States (5.1 percent) – helping to close the income gap.

Economic and Demographic Profile February 2009

Real Per Capita Income, 2000-2006 Change 2000

2006

Percent

Amount

Decatur‐Morgan County

$29,125

$32,204

10.6%

$3,079

Decatur MSA

$27,751

$30,683

10.6%

$2,932

Huntsville MSA

$32,272

$34,689

7.5%

$2,417

Alabama

$27,825

$30,894

11.0%

$3,069

$34,940

$36,714

5.1%

$1,774

United States

Source: U.S. Bureau of Economic Analysis

PCI comes from three sources: 1) earnings; 2) transfer payments, which includes social security, retirement income, public assistance, and other government assistance; and 3) dividends, interest, and rent – sometimes referred to as investment income. Figures from the Bureau of Economic Analysis show that growth in real PCI is being fueled by increases in earnings and transfer payments, possibly from the increase in the senior population. In 2006, 69 percent of PCI was from earning, 17 percent was from transfer payments, and 14 percent was from dividends, interest, and rent.

EDUCATIONAL ATTAINMENT An important indicator of socio-economic well-being is educational attainment. Not only is educational attainment related to earning potential and income levels, but it also is one of the key determinants of a workforce’s competitiveness. The following chart shows the educational attainment of adults ages 25 and over in 2007. The City of Decatur is a well-educated community – 33 percent of adults have an Associate’s degree or higher, more than the state of Alabama (28 percent), and on par with national figures (34 percent). Since 2000, the local proportion of adults lacking a high school education, with a high school diploma, and who have completed some college have all declined while the proportions of adults with an Associate’s degree, Bachelor’s degree, or graduate level degree have all increased. University of Alabama- Huntsville, Alabama A&M University, University of North Alabama, Athens State University, John C. Calhoun Community College and other higher education institutions provide residents and workers convenient and low-cost access to quality educational programs. Ensuring that appropriate programs are in place to meet the needs of the community’s fast growing minority populations will also be an important component to maintaining a competitive workforce in the future.

Economic and Demographic Profile February 2009

Educational Attainment of Adults (ages 25 and older), 2007 100% 9%

12%

12% 80%

17%

13%

22%

21%

20%

7% 60%

10% 17% 7%

23%

19% 20%

40%

36% 28%

32% 30%

25%

20% 17%

19%

14%

20%

16%

0% City of Decatur*

Decatur MSA

Graduate or professional degree Associate's degree High School

Huntsville MSA

Alabama

United States

Bachelor's degree Some College No diploma

TEENAGE BIRTH RATE Teenage pregnancy is a potential issue of concern for all communities. The following chart shows teenage birth rates (per 1,000 women ages 10-19) for Decatur-Morgan County, other regional counties, and the state of Alabama. Decatur-Morgan County’s birth rate in 2007 (30.1) was lower than that for Lawrence County (31.3) but higher than Limestone County (24.1), Madison County (21.5), and the state (28.1). This presents an interesting dynamic between the Decatur and Huntsville metro areas.

Economic and Demographic Profile February 2009

Teenage Birth Rate per 1,000 Women (ages 10-19) 40 35 30

27.6

28.8

30.1

26.1

29.4

25.7

20 15 10 5 0 2002

2003

2004

2005

Decaturâ&#x20AC;?Morgan

Lawrence

Limestone

Alabama

2006

2007

Madison

Source: Alabama Department of Public Health

The charts on the following page show teenage birth rates for white and minority (black, Hispanic and others) women ages 10-19, as tracked by the Alabama Department of Public Health. Minority teenage birth rates in Decatur-Morgan County topped 50 per 1,000 women in 2007, compared to 23.5 in Huntsville-Madison County and 34.6 statewide. This is a troubling trend. High teenage birth rates can undermine the social and economic stability of a labor forceâ&#x20AC;&#x2122;s next generation of workers. It can also help highlight potential youth development issues in a community. It is interesting to also note that, according to the stateâ&#x20AC;&#x2122;s Department of Public Health, the percent of total births within Morgan County financed by Medicaid increased from 39 percent in 2004 to 45 percent in 2006, and in Lawrence County from 42 to 48 percent. At the same time, rates for the Huntsville MSA remained stagnant (38 percent for Madison County and 40 percent for Limestone County).

Economic and Demographic Profile February 2009

Teenage Birth Rate per 1,000 White Women (ages 10-19)

Rate per 1,000 Teen Girls

60.0

Decatur‐Morgan Alabama Huntsville‐Madison

45.0

30.0

15.0

0.0 2002

2003

2004

2005

2006

2007

Teenage Birth Rate per 1,000 Minority Women (ages 10-19)

Rate per 1,000 Teen Girls

60.0

Decatur‐Morgan Alabama Huntsville‐Madison

45.0

30.0

15.0

0.0 2002

2003

Economic and Demographic Profile February 2009

2004

2005

2006

2007

COMMUNITY PROFILE This section examines the qualities of Decatur-Morgan County that make the community an attractive place to live, work, and visit. In addition to factors already examined in other sections, public K-12 education, crime, healthcare accessibility, and cost-of-living all weigh heavily on the desirability of a community to existing and potential residents.

PUBLIC K-12 EDUCATION The importance of public K-12 education on a communityâ&#x20AC;&#x2122;s well-being is paramount. The quality of primary and secondary education in a community determines the strength of the workforce, the college preparedness of its graduates, and features prominently in the relocation decisions of families and businesses. Enrollment and financial trends have been examined within the three school systems in Morgan County: Decatur City Schools, Hartselle City Schools, and Morgan County Schools and compared to state and national averages. Performance data of the schools systems will be compared to Huntsville City Schools, Madison County Schools, Hoover City Schools, and the state. The most recent data from the National Center for Education Statistics (NCES) and the Alabama Department of Education was used to provide a comprehensive portrait of the systems student characteristics, financial situation, performance, and outcomes.

Enrollment Between the 2003 and 2007 academic years, total K-12 enrollment grew by 3.2 percent (642 students) in Morgan County. Morgan County Schools experienced the largest growth in K-12 students, 5.4 percent (442 students), more than the 1.5 percent growth in Decatur City Schools (134 students), and the 2.7 percent growth in Hartselle City Schools (86 students).

Economic and Demographic Profile February 2009

Public School Enrollment, 2002 v 2007

6,000 5,000

7,836

8,831

7,000

7,414

8,000

8,965

9,000

2002‐03

4,000 2,000 1,000

2006‐07

3,153

3,067

3,000

‐ Decatur City Schools

Hartselle City Schools

Morgan County Schools

Source: Alabama Department of Education, National Center for Education Statistics

Student Characteristics In 2007, 80 percent of the total population in Morgan County was white, 12 percent was African American, 6 percent Hispanic, and 2 percent other. The 2007 demographic enrollment in public schools closely reflects those percentages. In Morgan County 74 percent of students are white, 17 percent are black, 8 percent are Hispanic, and 1 percent are Asian, Native American, or other. Public School Enrollment by Race/Ethnicity Percentage, 2007

1% 8% 17%

White, Non‐Hispanic Black, Non‐Hispanic 74%

Hispanic Asian, Native American

19,954 Students in 2006‐07

Source: Alabama Department of Education, National Center for Education Statistics

Economic and Demographic Profile February 2009

In 2007, 74 percent of the students are white (14,819). There was a slight decline in white students from 2003 to 2007 by 1.6 percent or 242 students. Although a relatively small portion of the student population, the largest population increase was 45 percent in Hispanic students from 846 students in 2003 to 1,535 students in 2007. There were a total of 689 new Hispanic students, 479 of which were in Decatur City Schools. Also, black student enrollment increased by 3.7 percent over the same period of time, adding 124 students. Interestingly, in 2007 there were more Hispanic students in Morgan County Schools (255) than black students (219). Public School Enrollment by Race/Ethnicity, 2003 v 2007 15,061 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 ‐

14,819

3,230

3,354 1,535 846

2002‐03 175 246

2006‐07

Source: Alabama Department of Education, National Center for Education Statistics

Expenditures Per pupil expenditures (PPE) are useful in gauging resources available to support students’ education. The following table displays the weighted average expenditure per pupil for all districts within each county. The most recent data available for comparison is for the ’05-’06 academic year. For the 2006 academic year, the average expenditure per pupil in Decatur City Schools was $8,740. This was more than $500 above per pupil expenditures in Morgan County Schools and more than $1,900 above the average expenditure in Hartselle City Schools. Between the 2002 and 2006 academic years, PPE grew in Decatur City Schools by more than $1,500 per pupil. This growth outpaced the other school systems and placed the system in the top 20 of PPE for school systems in Alabama

Economic and Demographic Profile February 2009

Per Pupil Expenditure, 2002-2006 $9,000.00 $8,000.00 $7,000.00 $6,000.00 $5,000.00 $4,000.00 $3,000.00 $2,000.00 $1,000.00 $‐ 2002‐03

2003‐04

Decatur City Schools Morgan County Schools U.S.

2004‐05

2005‐06

Hartselle City Schools Alabama

Source: Alabama Department of Education, National Center for Education Statistics

Free and Reduced Price Lunch The percentage of K-12 enrollment that is eligible for free or reduced lunch sheds lights on students’ household income levels. In the 2003 academic year, 42.6 percent of students in Decatur City Schools were eligible for free or reduced lunch. However, in the 2007 academic year, 51.3 percent (1 in 2) of all students were eligible, the same percentage as the state, and an 8.7 percent increase. In 2007, 25.1 percent (1 in 4) of students were eligible in Hartselle City Schools; 42.6 percent (2 in 5) were eligible in Morgan County Schools; while 51.2 percent were eligible in Alabama. Between the 2003 and 2007 academic years, all school systems in Morgan County experienced an increase in eligibility for free or subsidized lunches, which is on par with national trends.

Economic and Demographic Profile February 2009

Free and Reduced Price Lunch, 2002-2007 System 2002‐03 2003‐04 2004‐05 2005‐06 2006‐07 Decatur City Schools 42.6% 48.2% 50.7% 52.5% 51.3% Hartselle City Schools 21.4% 22.3% 23.5% 23.6% 25.1% Morgan County Schools 38.7% 40.4% 41.0% 42.0% 42.6% Alabama 49.7% 50.7% 51.6% 51.9% 51.2% U.S. 37.0% 36.0% 37.0% 41.0% N/A Source: Alabama Department of Education, National Center for Education Statistics

Education Performance Test scores provide the most objective measure of relative student aptitude and changes in aptitude between cohorts across years. Examining the percentage of students that are “below standard” “meeting standard” or “exceeding standard” will illustrate the spectrum: the relative number of students performing well and the relative number performing poorly in a given grade, subject, and district. Huntsville City Schools, Madison County Schools, and Hoover City Schools were selected as comparison systems because of proximity and student performance characteristics. The Alabama Reading and Mathematics Test (ARMT) assess students’ mastery of the content contained in the Alabama Courses of Study. The ARMT is given in grades th th three through eight. The following charts show the percentage of 4 and 8 grade students that “met or exceeded” the standard for that grade. th

In 4 grade student performance, Hartselle City Schools was the top performer followed by Morgan County Schools and Decatur City Schools. Student performance in all three districts was above the state average.

Economic and Demographic Profile February 2009

4th Grade Student Performance Reading and Math, 2006-07 80 70 60 50 40 30 20 10 0 % Below Standard

% Meeting % Exceeding Standard Standard

% Below Standard

% Meeting % Exceeding Standard Standard

Reading

Math

Decatur City Schools

Hartselle City Schools

Morgan County Schools

Huntsville City Schools

Madison County Schools

Hoover City Schools

Alabama Source: Alabama Department of Education

In all three school systems, more than 84.7 percent of student “met or exceeded” the standard in reading while more than 76.1 percent “met or exceeded” the standard in math. The state average was 85.0 and 75.3 percent, respectively. 65.9 percent of th Hartselle City Schools 4 graders “exceeded standard” in reading, while 57.9 percent th did so in math. Hoover City Schools had 92.7 percent of 4 grade students in reading and 87.9 percent of student in math that “met or exceeded” the standard, which is excellent when compared to the state. . Of students in Decatur City and Morgan County Schools, 23.3 percent and 23.9 percent, respectively, performed “below basic” in math. th

In 8 grade student performance, Hartselle City Schools was the top performer followed by Morgan County Schools and Decatur City Schools. Student performance in all three districts was above the state average.

Economic and Demographic Profile February 2009

8th Grade Student Performance Reading and Math, 2006-07 60 50 40 30 20 10 0 % Below Standard

% Meeting Standard

% Exceeding Standard

% Below Standard

% Meeting Standard

Reading

% Exceeding Standard

Math

Decatur City Schools

Hartselle City School

Morgan County Schools

Huntsville City Schools

Madison County Schools

Hoover City Schools

Alabama Source: Alabama Department of Education

In the three school systems, more than 73.2 percent of student in reading and more than 71.4 percent in math “met or exceeded” the standard. The state average was 72.0 and 66.3 percent, respectively. Students performed slightly better in Hartselle City Schools. Hoover City Schools had 90.3 percent of students in reading and 86.8 percent of student in math that “met or exceeded” the standard. One in four students in Decatur City were “below standard” in reading (26.8%) and math (25.9%). All systems were below the state average for students that performed “below standard” in reading (28.1%) and math (33.7%). Students must pass the Alabama High Schools Graduation Exam (AHSGE) to earn a th high school diploma. The table shows the percentage of 11 grade students that passed the reading subtest and mathematics subtest of the exam. In the Morgan County school systems, student performance on the AHSGE was very good and exceeded the state percentage. In the schools systems, over 86.6 percent in reading and over 90.2 percent in math of th 11 grade students “passed or passed advanced”. The state average was 84.3 and 86.5 percent, respectively. The school systems were much more competitive to Hoover th City Schools in 11 grade student performance (93.1% reading and 95.8% math) than th th in 4 and 8 grade performance.

Economic and Demographic Profile February 2009

11th Grade Student Performance Reading and Math, 2006-07 80 70 60 50 40 30 20 10 0 % Passed

% Passed Advanced

% Passed

Reading Decatur City Schools Huntsville City Schools Alabama

% Passed Advanced Math

Hartselle City School Madison County

Morgan County Schools Hoover City Schools

Source: Alabama Department of Education

HIGHER E DUCATION Institutions of higher education provide significant economic impacts within their regions. They educate existing residents; draw young people from outside the region; create value and innovation through research and development; revitalize surrounding neighborhoods; and support existing businesses and industry clusters through targeted training and degree programs.

John C. Calhoun Community College John C. Calhoun Community College (CCC), located in Decatur, is Alabama’s largest two year educational institution, and the region’s leader in education and workforce development. CCC offers 49 associate degree programs and 52 career/certificate programs, serving over 9,800 students on its Decatur Campus. In the fall of 2008, approximately 600 nursing students enrolled in the college, the largest class in its history. In the fall of 2007, CCC began the state’s first and only associate’s degree program in Biotechnology. Despite these accomplishments, CCC receives the lowest per student appropriation from the state of Alabama; approximately $4,100 per full time student (the average for the state is approximately $5,200).

Economic and Demographic Profile February 2009

Programs of study at Calhoun Community College include the following: Business/CIS, Technologies, and Workforce  Adult Education  Business Administration and Professional Services (including Accounting, and Business Administration)  Computer and Office Information Systems  Cooperative Education Program  Technologies (Aerospace, Air Conditioning/Refrigeration, Automation/Robotics, Co-operation Technical Program, Design Drafting Technology, Electrical Technology, Industrial Maintenance, Machine Tool Technology, and Process Technology) Health  

Allied Health (including Clinical Lab Technician, Dental Assisting, EMS , Massage Therapy, Surgical Technology ) Nursing

Humanities and Social Sciences  Fine Arts ( including 4CTV, Art, Computer Graphics, Music Education, Music Industry Communications, Photography and Film Communications, and Theatre)  Language and Literature  Social Sciences (including Physical Education) Mathematics and Natural Sciences  Mathematics  Natural Sciences (including Biotechnology)

The Alabama Robotics Education Center In June 2008, Alabama Governor Bob Riley announced that Calhoun Community College in Decatur will be the site of a new $71 million robotics training and education center. Built in three phases, the new center, a partnership between the state of Alabama, the two year college system, and robotics industry leaders, will include three buildings directly across the street from CCC’s Decatur campus. These buildings include the Robotic Maintenance Training Center (phase 1), which will house a training program for the industry, the Advanced Technology Research and Development Center (phase 2), which will feature a test facility for robotics manufacturing companies including NASA and the U.S Missile Command, and the Integration and Entrepreneurial Center, which will enable companies to develop robots for industries and create a space for start-up firms. The program will train approximately 450 people per year. Decatur was chosen because of its close proximity to Huntsville’s aerospace industry, and the area’s other manufacturing facilities.

Economic and Demographic Profile February 2009

CRIME Public safety and perceptions of crime are important factors affecting quality of life and the desirability of a community. Crime is often heavily localized in specific neighborhoods, and perceptions of crime can often deter residents from relocating to areas that may be ripe for investment, including downtowns. Crime statistics are collected by jurisdiction and submitted to the Federal Bureau of Investigations. Crime rates are calculated by incidents per 100,000 inhabitants. The following table compares 2003 crime rates in the Decatur MSA with the crime rates of 2007. Despite having nominal population growth, violent crime increased by 14.3 percent between 2003 and 2007 while property crime decreased by 8.2 percent over the same period of time. Decatur MSA Crime Rates, 2003 v-2007 Year Population 2003

146,845

2007

150,246

Motor Violent Forcible Aggravated Property LarcenyMurder Robbery Burglary Vehicle Rape Assault Theft Crime Crime Theft 200.9 3.4 10.9 92.6 94.0 851.9 2,762.1 178.4 3,792.4 27.3 127.1 3,503.6 864.6 234.3 0.0 79.9 Source: US Department of Justice, Federal Bureau of Investigation

2,426.7

212.3

The Decatur MSA is a much safer place than both the Huntsville MSA and Alabama. Crime rates for 2007 in the Decatur MSA, Huntsville MSA, Alabama and the U.S were compared to identify crime related trends. The following table highlights that violent crime in the Decatur MSA is less than half of the rate in Huntsville and is significantly below the Alabama and U.S. rates. However, the property crime rate exceeds the U.S. rate but is lower than the Huntsville MSA and Alabama. Crime Rates, 2007 Location Decatur MSA Huntsville MSA Alabama U.S.

Motor Violent Forcible Aggravated Property LarcenyMurder Robbery Burglary Vehicle Rape Assault Theft Crime Crime Theft 0.0 27.3 79.9 127.1 234.3 3,503.6 864.6 2,426.7 212.3 493.2 8.1 36.1 186.3 262.7 4,182.6 923.3 2,820.0 439.3 448.0 8.9 33.4 159.9 245.8 3,971.6 979.5 2,684.6 307.5 466.9 5.6 30.0 147.6 283.8 3,263.5 722.5 2,177.8 363.3 Source: US Department of Justice, Federal Bureau of Investigation

Economic and Demographic Profile February 2009

HEALTHCARE The quality and availability of health care in a community has a direct impact on community well-being and quality of life. While access and quality may vary by income, the health care assets and services in a region should provide adequate care for all demographics and income groups. The Decatur MSA compares extremely well to Huntsville MSA and the U.S. average in terms of availability and cost of health 3 care in the community. The number of hospital beds per capita in the region is higher than Huntsville as well as the U.S. average. Further, the average cost of a doctor visit in Decatur-Morgan County is competitive with Huntsville and lower than the U.S. average. Despite the low number of physicians per capita, costs per doctorâ&#x20AC;&#x2122;s visit is still much lower than the national average. Healthcare Capacity 2007 Decatur, AL MSA Huntsville, AL MSA U.S.

Physicians per capita 131.4 206.3 244.2

Hospital beds per capita 489.1 301.3 420.0

Cost per doctor visit $ 64 $ 62 $ 77

Source: Cities Ranked and Rated, Council for Community and Economic Research (C2ER)

Decatur-Morgan County is served by one full service hospital, Decatur General Hospital, an acute care psychiatric hospital, North Alabama Regional hospital, and three medical centers, Decatur General West Behavioral Medical Center, Hartselle Medical Center, and Parkway Medical Center. A significant challenge facing hospitals in the County is the high payer mix of individuals with low or no-income that use hospital services. The payer mix of low or no-income patients at Decatur General is 61 percent and at Parkway Medical is 21 percent. This places a significant strain on available healthcare resources and reduces the attractiveness of a community to doctors and other healthcare service providers.

Alabama Urology and Robotic Center, PC. 4 The Alabama Urology and Robotic Center (AURC) is the most experienced robotic surgical center in North Alabama, offering skilled doctors performing six different robotic surgery options. The center has developed a robotic surgery program which allows for minimally invasive procedures, and camera based operations. These practices result in reducing patient pain, shortening hospital stays, and providing faster recovery times.

Data is not available at the county-level. Source: Alabama Urology and Robotic Center, PC. (http://www.alabamaurology.com/index.html)

Economic and Demographic Profile February 2009

COSTS OF LIVING The Council for Community and Economic Research (C2ER) publishes a quarterly cost of living index for more than 300 urban areas across the country. An index value equal to 100 represents the average across all participating urban areas. Cost of Living Index by Urban Area (2008 Annual Average) 120 100 80 60 40 20 0

Decatur MSA

Huntsville MSA

Source: Council for Community and Economic Research (C2ER)

Overall cost of living – as measured by the composite index – is lower in the Decatur urban area than the national average and the Huntsville MSA. The cost of groceries and transportation are the area’s greatest disadvantage, with costs nearly 4 and 3 percent, respectively, above the Huntsville MSA’s average. The housing cost index takes into account the price of new and existing homes, as well as rental costs. Miscellaneous goods and services – representing the largest portion of the composite index – are less expensive than the national average and Huntsville MSA.

Economic and Demographic Profile February 2009

CONCLUSION Quantitative research conducted for this Demographic and Economic Profile highlighted a number of issues and trends that shed light on Decatur-Morgan Countyâ&#x20AC;&#x2122;s competitiveness as a place to live, work, and visit. Indeed, there are many local advantages that Decatur-Morgan County has in its arsenal to attract businesses, individuals, or families. Among these are is a competitive supply of properties (commercial, industrial and residential); several quality of life amenities; proximity to Huntsville; good schools; high quality medical facilities; and a strong community college. These advantages and others must be leveraged to insure that the community maximizes its potential and increases its global competitiveness. However, Market Street would be remiss if we did not mention the critical challenges that Decatur-Morgan County must continue to work on if it is to be a top-tier community in the South. Key issues include: Expanding economic opportunities for businesses and residents Increasing business sector diversification is necessary for Decatur-Morgan County to grow, establish a more sustainable local economy, and create higher wage job opportunities for its residents. Opportunities and resources for entrepreneurs must be encouraged and expanded. The future Integration and Entrepreneurial Center, at the Calhoun Community College, is a step in the right direction for advanced technology entrepreneurs but support is needed those who do not have hightech products or services. Addressing demographic and diversity challenges. Decatur-Morgan County is undergoing several changes. The decrease in individuals between the ages of 0-44 is a significant concern. This significantly impacts the future of the community. If not reversed this will have a dramatic impact on both the future workforce and leadership. The increase in immigrants has created a more diverse Decatur-Morgan County. Efforts to address the challenges of immigrants must have clearly defined goals that strengthens the community and protects the interests of long-term residents. Poverty, especially youth poverty, is a significant issue that impacts the entire County, the state, and nation. Combined with the high teen pregnancy rate, many of the youth in the County are at-risk and at a significant disadvantage. Without hope and opportunities to improve, the communityâ&#x20AC;&#x2122;s at-risk young people and out-of-work adults will face nearly insurmountable odds to achieve success.

Economic and Demographic Profile February 2009

Enhancing and strengthening the community. Relationships between the community, businesses, higher education, and public schools must be enhanced and expanded. There is an excellent structure in place that can be maximized to raise the bar for all students to graduate on time and have the skills to be successful in higher education or st the 21 century workforce. The perception of public safety in Decatur-Morgan County must be improved. The data reveals that the Decatur MSA is much safer than Huntsville MSA and Alabama. Improved relationships with the general public and specific communities can address this, which would also enhance community based policing and other crime reduction efforts. Solutions must be explored to increase healthcare coverage options available to residents and employers to reduce the impact of the high numbers of low and no payers on local hospitals. Improving the payer ratios will increase sustainability of existing facilities and improve the attractiveness of the community to physicians and other health related service providers.

The challenges identified in the Economic and Demographic Profile are significant but can be overcome; other communities have successfully traveled down similar paths to competitiveness and can provide roadmaps on how to achieve desired results. Decatur-Morgan Countyâ&#x20AC;&#x2122;s citizens must come together and work as one entity to reach their goals and vision.

Economic and Demographic Profile February 2009