FINANCIAL LITERACY

In the recent years, there has been an increased emphasis on the need for financial literacy. Because of the widespread reports of escalating mortgage default, home foreclosures, and the predatory nature of payday lending establishments financial literacy has been promoted to citizens from government agencies, grass-root consumer groups, community interested group and banking institutions.

Financial literacy is not limited to low income consumers; it is for everyone. The importance of consumer and financial education is even more critical for people who have little financial resources because it allows them the opportunity to learn how to manage their limited resources more wisely. The lack of financial literacy will affect negatively the day to day money management of individuals and families. More importantly, it will affect their ability to save for long-term goals, such as buying a home, seeking higher education, or financing their retirement. As a result of ineffective money management, it can make the individual and family vulnerable to severe financial crisis.

Financial literacy is an educational process that empowers consumers to become better shoppers, teaching them how to obtain goods and services at a lower cost. In addition, the financial knowledge obtained teaches individuals and families how to create a household budget, control expenditures, manage their debt, make strategic decisions for purchasing a car or a home, and plan for their retirement or their children’s education.

Financial literacy awareness and education is not a simple task. Personal financial management is an extremely complex subject. It requires significant resources and commitment by consumers to understand and evaluate their own financial situation to make appropriate decisions. There is a wide range of excellent financial educational materials available.

The mymoney.gov web site contains a lot of neutral and unbiased information focusing on educating consumers and empowering them to get information that will help them to make informed decisions. Improving financial literacy is not a one size fits all approach. It heavily depends on the consumer to take ownership of his or her own future, to understand the information and make informed financial decisions. A challenge for those involved in the financial education effort is producing material that consumers can understand. Also, some programs do not always result in positive consumer behavior. In addition, consumer behavior and individual emotions sometimes make the subject more difficult for consumers to make the right and logical financial decision.

The Community Development Department continuously advocates public awareness of financial literacy by supporting legal assistance for the victims of predatory lending, and supporting homebuyer counseling programs, down-payment assistance programs and savings initiatives. The DeKalb County Community Development Department also supports several non-profit agencies that provide financial literacy and housing counseling education services to the citizens of DeKalb which include: The DeKalb Metro Housing Counseling Center, Inc. conducts homebuyer education seminars and provides housing counseling.

The Green Forest Community Development Corporation provides ongoing homeowner training, foreclosure prevention and loss mitigation programs.

The Consumer Credit Counseling Service of Greater Atlanta, Inc. provides professional counseling services directed toward educating the consumers of DeKalb County on housing issues as they relate to money management and credit.

Atlanta Legal Aid Society, Inc. provides a number of educational activities and homebuyer seminars on foreclosure and fraud prevention.

Conclusion

The CDBG program continues to fund public/ human services related to affordable housing, homeless supportive services, and youth programs. The need and demand for services in low-income communities in DeKalb County have increased dramatically over the years. Although Community Development funds make up a small percentage of available funds to non-profit organizations, Community Development is able to leverage other funds for public/human service needs by participating in the funding of these types of agencies. Our strategy is to work with other entities to advocate for increased services and funding in low-income communities in DeKalb County. All segments of the DeKalb Community must take responsibility for helping to improve the conditions in DeKalb County.

3. ECONOMIC DEVELOPMENT

The following section is a summary and assessment of economic development from the DeKalb County 1995 - 2015 Comprehensive Plan. In addition, it contains updated information for 2001 and 1999-2000 as provided by the Georgia Department of Labor and the 2000 Census. It is also includes the Community Assessment from the DeKalb County 2005 - 2025 Comprehensive Plan submitted to the Department of Community Affairs. This section describes the general needs and assessments of the County’s economic base.

a. ECONOMIC BASE Jobs in DeKalb County

• DeKalb County is a key asset in the economic base of the State of Georgia. The County contained 8.1% of the State’s population in 2000; however the County contained 10% of all employed persons in the State. In other words, 1 out of every 10 employees in Georgia resides in DeKalb County.

Table 44: Employment by Major Industry Group, DeKalb County Employers 1980 – 2000 DeKalb County 2005-2025 Comprehensive Plan

Change: 1980-2000

Sector 1980 1990 2000

Number Percent Proportion Construction 11,388 13,900 14,900 3,512 30.8% 2.7% Manufacturing 29,136 31,100 28,900 -236 -0.8% -0.2% T.C.U. 1 _{15,325 23,300 29,000 13,675 89.2% 10.5%} Wholesale Trade 24,653 32,500 28,100 3,447 14.0% 2.6% Retail Trade 36,860 60,600 56,800 19,940 54.1% 15.3% F.I.R.E. 2 _{20,601 28,700 27,700 7,099 34.5% 5.4%} Services 3 _{47,496 85,300 114,900 67,404 141.9% 51.6%} Government 4 _{31,733 42,900 45,900 14,167 44.6% 10.8%} Miscellaneous 950 1900 2600 1,650 173.7% 1.3% Total 218,142 320,200 348,800 130,658 59.9% 100.0%

Proportion refers to the sector change in number of the total. 1 Transportation, Communication, and Utilities

2 Finance, Insurance, and Real Estate

3 Includes miscellaneous: Agriculture, Forestry and Fishing, Mining and industries not elsewhere classified.

Table 45: Employment by Major Industry Group, Atlanta Region 1980 – 2000

DeKalb County 2005-2025 Comprehensive Plan

Change: 1980-2000

Sector _{1980 1990 2000}

Number Percent Proportion

Construction 48,768 64,300 104,200 55,432 113.7% 5.1% Manufacturing 135,923 153,900 169,900 33,977 25.0% 3.1% T.C.U. 82,654 126,500 190,000 107,346 129.9% 9.8% Wholesale Trade 82,525 139,100 174,400 91,875 111.3% 8.4% Retail Trade 145,654 261,500 357,000 211,346 145.1% 19.4% F.I.R.E. 71,737 113,800 136,000 64,263 89.6% 5.9% Services 181,549 349,700 595,400 413,851 228.0% 38.0% Government 149,263 209,200 241,100 91,837 61.5% 8.4% Miscellaneous 3084 8000 23500 20,416 662.0% Total 901,157 1,426,000 1,991,500 1,090,343 121.0% 100.0%

Source: U.S. Bureau of the Census;

• The fastest growing sectors over the past two decades have been in Services, Retail Trade, Transportation, Communication, Utilities (T.C.U.), and Finance, Insurance, and Real Estate (F.I.R.E.), which have tripled or quadrupled in the total number of jobs in each category.

• Over 20 years from 1995 to 2015, the greatest rates of job growth are projected to be in the Government and Services sectors, followed by T.C.U. Overall, DeKalb will grow at a steadily decreasing rate, reflecting its maturing economy.

b. Economic Development Agencies

• The DeKalb County Economic Development Department has been instrumental in providing leadership and direction in the area of economic development. In the past, each agency was pursuing its own goals and communicating with other team members only as the need arose. The Economic Development Department has developed definite strategies and goals with a clear platform for common communication.

• Another issue has been the limited recognition of the diversity of interests of businesses in various parts of the County. The International Village Project is an example of the excellent steps made toward focusing programs to diverse interests on a geographical basis. However, businesses in the areas of Perimeter Center, Clarkston, Tucker, Lithonia, Emory Village, and elsewhere have interests and concerns that are different from one another. They also need a vehicle through which to concentrate their activities.

c. Education and Training

• The County has a wealth of resources available at all levels of job training and general education. The County is an active participant in job training programs for adults and youths. In addition, DeKalb Technical Institute is an excellent resource within the County for skills training, and forms partnerships with businesses to provide specialized on-site training for employees along with anticipation of employment needs prior to moving into, expanding or re-tooling in the area. Six colleges with technical or business programs offer an excellent potential training base for prospective entrepreneurs.

• DeKalb County is home to eight colleges and universities, including the third largest college in Georgia (Emory), and is easily accessible to major institutions such as Georgia Tech and Georgia State in Atlanta and the University of Georgia in Athens. These assets provide both formal education and enormous community enrichment through non-academic programs.

d. Incentives Program Overview

• The Enterprise Zone Program – The purpose of the Enterprise Zone

Program is to provide certain tax exemptions or advantages for qualifying businesses and service enterprises within the Enterprise Zone. The theory behind this concept is that revitalization will improve areas within the County that are suffering from disinvestment, underdevelopment and economic decline and will encourage private businesses to reinvest and rehabilitate such areas. As an incentive, businesses that meet the criteria by locating within the Enterprise Zone and creating at least 5 jobs may be eligible for property tax abatement for 10 years. The businesses may also receive credit for up to $10,000 in Building Permit Fees, Business License Fees, and Water/Sewer Tap-on Fees not to exceed $30,000.

• Tax Allocation Districts – Tax Allocation Districts (TADs) are development tools used by local government to make challenging redevelopment sites attractive to developers by leveraging future property tax revenue for new development by offering bonds to pay for infrastructure improvements. The bonds are secured by tax increments which represent the increase in property tax revenues resulting from redevelopment activities within the TAD district.

• Two Year Expansion Tax Credit – The purpose of the Two Year Expansion

Tax Credit is to provide a two year tax exemption incentive on the expansion of an existing building. The amount of the exemption cannot exceed 40% of the fair market value before improvements.

• Impact Fees – Currently, DeKalb County does not charge impact fees

against new development projects.

• 100% Freeport Exemption – The Freeport Exemption provides exemptions

on ad valorem taxes on inventories, as defined by Georgia law, and provides a local option tax exemption of 100% in three categories:

ƒ Goods in the process of manufacturing

ƒ Raw materials

ƒ Finished products still in possession of the original manufacturer but destined for sale outside of Georgia.

exempt and taxable bonds for fixed asset expansion projects. Tax-exempt industrial development revenue bonds can be used by manufacturers for the acquisition, renovation and construction of buildings or the purchase of land and new equipment. Project sizes range from $2,000,000 to a federally imposed maximum of $10 million.

e. Economic Development Programs

The County’s goal is to provide a full range of economic development programs for all its citizens. One main focus will be on programs for people who are low- and moderate-income citizens.

DeKalb County provides funding for a one-stop shop small business center. There are three agencies in the One Stop Center, the Small Business Development Center, which provides technical assistance for small businesses, and the DeKalb Business Enterprise Corporation (DEBCO), which provides small business revolving loans and SBA Micro Loans. The DeKalb Micro-enterprise Institute (DMI) provides entrepreneurship training to promote opportunities for self sufficiency.

The DeKalb Workforce Development Center provides a comprehensive approach to career development, through economic development, education and employment initiatives. Goodwill Industries of North Georgia, Inc. also helps job seekers to secure employment and assist the development of micro businesses. ACCION also offers small business loans in metro Atlanta.

Detailed descriptions of those programs are available in the Strategic Plan Additional Files Folder.