UNITED NATIONS - / www.MaximsNews.com/ - 28 March 2006 - This week, the National Urban League will release its premiere annual research publication, the State of Black America 2006 report at the National Press Club in Washington , D.C.  

I wish I could say that the news was full of optimism and peppered with tales of economic buoyancy that lifts all boats along a rising financial tide. But such is not the case, especially for Black America . 

Amidst the spin of financial newsmakers and analysts, we must tell the truth. The State of Black America is economically in trouble and getting worse.  

 The State of Black America 2006: The Opportunity Compact report was compiled and analyzed against the backdrop of one of the most catastrophic events to ever befall our nation.  

Hurricanes Katrina and Rita exposed in the starkest and most depressing terms, the race and class gaps that represent our national condition and facts which previous State of Black America reports have anticipated.

In 2006, the fact that the story is no better is a story in itself. 

This year, the Equality Index, a statistical measurement of disparities or “equality gaps” between blacks and whites across health, education, economics, social justice and civic engagement, revealed that the economic status of African Americans is 56 percent that of White Americans. 

Comparing factors such as income, unemployment, home ownership, business ownership, median net worth, and poverty rates, the economic status of Blacks is one percent worse than just a year ago.  

Some would argue that given the destruction and poverty witnessed during Katrina, we should not be surprised. But given the growing stock market index with a national economic rebound afoot, why is A Black America not only lagging behind, but losing ground?

The cause is multifaceted. Some social commentators argue that the problem with African American economic progress is both historical and systematic in nature. Others will profess that it’s social and endemic; the fault of lost ambition and ambivalence. 

Frankly, in Black America , like any other non-monolithic culture, it is a combination of many factors. But, each year the National Urban League’s State of Black America report illuminates the real facts and proposes solutions to address the issues.

The fact is according to the State of Black America’s Equality Index, the economic divide that exists between Blacks and Whites is twenty percent wider than any other of the five indices. 

For example, the median net worth of the average African American family is ten times less than the average White family, ($6,166 versus $67,000 respectively). This is largely due to the difference in home ownership, home equity values and income. 

Blacks own nearly 50 percent of their homes, while Whites own over 70 percent of their homes. But if you look inside the home ownership and net worth numbers, there is much more to the story.   

Blacks experienced over twice as many home mortgage denials and home improvement loan denials than Whites. Clearly, these denial rates impact the ability to secure a home and more importantly, the ability to improve one’s home value over time. 

This fact translates into a $42,800 gap in Black versus White home values. When comparing income status, Black men earn 70 percent of the income that White men earn with the same level of education, creating an average income gap of $16,876 per year. 

Black women with the same level of education earn 83 percent of the income that White women earn or $6,370 less each year.

What can be done?

As part of the State of Black America Report’s Opportunity Compact, the National Urban League has proposed some solutions.

First, and foremost, Congress and the Administration should support and enforce the elimination of predatory lending practices by banks and credit agencies to enable all Americans to afford and maintain a home. 

But another idea is the creation by Congress of a “40lk like” “Tax Free Home Ownership Account” for employees that would be matched by employers. This would quickly spear home ownership. 

In the 1980’s Congress created the 401k account concept to spear investment in the market supposedly to maximize earnings for an employee’s retirement. The same can be done to encourage home ownership!  

One economic bright spot in the 2006 report was the growth of black-owned businesses over the past few years. Although there is still a significant disparity between White and Black owned businesses, the gap is narrowing. 

The current equality index of 54 percent of Black owned businesses compared to White owned businesses is a vast improvement over 2005 index which reported only 37 percent of businesses as Black-owned.

However, access to financing and capital still prevent most Black owned businesses for stabilizing and expanding. Again, the lower home equity values retained by African Americans prevent many minority-owned businesses from accessing the needed capital out of their own homes. 

A National Urban League recommendation is for Congress to double the size of the New Markets Tax Credit program to enable more investment in businesses and minority owned firms located and serving disadvantaged urban communities.

This year’s report on The State of Black America moves many of these issues to the front burner.  

But more than simply describing the problems, the report offers concrete solutions from both the National Urban League and some of America ’s leading scholars and social commentators for moving African Americans from poverty to self-sufficiency to prosperity. 

We encourage you to look at the State of Black America 2006 report at (www.nul.org).  

For Black America and others, there is trouble afoot. But, together there are also solutions that can help every American find the road to recovery and prosperity.  

    MarcMorial@MaximsNews.com