By Nathan Arnosti, Director of Analytics

Racial Equity: The New Public Priority

Forward-thinking leaders in local governments across the country recognize that many existing practices and policies stand in the way of goals to build racially equitable, inclusive, and prosperous communities.

Studies show that status quo practices – outdated job requirements that exclude candidates of color, purchasing agreements with longstanding contractors that hinder their ability to diversify their supply chains and increase regional job growth among Black, Indigenous, Hispanic, and Asian entrepreneurs, land use planning that fails to integrate the needs and perspectives of historically marginalized communities, economic development incentives that subsidize low-wage job creation –exacerbate racial wealth gaps and restrict regional economic growth.

Meanwhile, emerging practices based on research and pilot demonstrations in local governments across the country offer paths to improved service delivery, community relations, livability, and shared economic prosperity.

Many local governments have established taskforces and committees, created new permanent roles and teams, and joined peer learning networks to make progress towards becoming more racially equitable and inclusive. Yet these efforts are too often piecemeal, siloed within specific departments, and lacking broader context and peer comparison. Based on conversations we’ve had with public sector leaders and partners in recent months, we believe that those looking to take their next steps towards building racially equitable governments would benefit from a new tool developed by the Center for Economic Inclusion, the Racial Equity Dividends Index for the Public Sector.

What Gets Measured, Gets Done

This analytical tool evaluates a local government’s internal and external-facing practices across ten dimensions, including Procurement, Community and Economic Development, and Budgets, identifying more than 60 racial equity standards that research and experience affirm to support more racially equitable and inclusive outcomes. Participating organizations receive a customized score report that provides a clear, concise, quantified picture of their government’s overall current state for supporting racial equity, benchmarks progress against peers, and identifies opportunities for further progress. High-scoring entities will also be publicly recognized in an annual Racial Equity Dividends Index for the Public Sector report. The Public Sector Index structure is modeled off of the Center’s Racial Equity Dividends Index for the Private Sector, which launched in 2022 for private sector employers.

How To Participate

Registration for the first annual Racial Equity Dividends Index for the Public Sector begins at the end of April and will be available to city and county governments in Minnesota and select jurisdictions across the United States. Email me at narnosti@centerforeconomicinclusion.org if you have questions, and stay tuned for more information about registration for the Public Sector Index in the coming weeks!