epi annual report (2011)

Working for people who work for a living

ECONOMIC POLICY INSTITUTE2011 ANNUAL REPORT

WHAT WE STAND FOR

The Economic Policy Institute was founded in 1986 to improve the lives of America’s low- and moderate-income families by producing reliable economic research, insightful analysis, and visionary policy solutions.

As the first and premier think tank focusing on the economic well-being of America’s workers, EPI believes that every American deserves a good job with a living wage, affordable health care, and a secure retirement.

EPI is an indispensable part of the progressive movement, reaching national and state policymakers, opinion leaders, and activists.

By making sure that workers’ needs are part of public debates on economic policy, EPI is changing the lives of America’s workers and their families for the better.

TABLE OF CONTENTS

1 Statement by Gerald McEntee, Board Chair, 1986–2011

2 The First 25 Years

4 Statement by EPI President Lawrence Mishel

AREAS OF RESEARCH

6 Jobs, Wages, and Living Standards

8 Federal Budget, Deficits, and Taxes

10 Labor Policy

12 Trade, Globalization, and Manufacturing

14 Immigration

16 Education

18 Regulation

20 Race, Ethnicity, and the Economy

22 Retirement

OUTREACH

24 Economic Analysis and Research Network (EARN)

26 Communications

28 Financial Statements

30 Funders and Donors

32 EPI Board Members

33 EPI Staff

“ I want to say thank you to EPI for 25 years of being the authorita-tive voice on economic issues—and really the voice of working American families.”

—U.S. REP. ROSA DELAURO (CONN.)

As chair of EPI’s Board of Directors for a quarter century, I could not be more pleased with what EPI accom-plished in its first 25 years. When we launched EPI in 1986, we hoped to add a voice to the debate about economic policy that would challenge trickle-down and supply-side economics, and deregulation—ideas that were taking hold in Washington and hurting low- and middle-income Americans.

In the mid-1980s, well-funded conservative think tanks were dominating media coverage and the national economic conversa-tion. These organizations favored trade deals that put downward pressure on wages, deregula-tion that jeopardized established companies providing good wages and benefits, and privatization that allowed corporations to replace public employees with lower-paid workers who had fewer rights and less political power. A counter-weight—an institute that could do academic-quality research and go toe-to-toe with the right wing’s best economists—was desperately needed.

From Gerald

McEntee Board Chair

1986–2011

EPI has been that counterweight, and it has been more influential than we ever imagined. It has grown into a vital organization that reaches policymakers and academ-ics, reporters and editors, bloggers and activists—not just every day but multiple times a day, and on a nationwide basis. EPI achieves this success through research, analysis, and commentary on a range of critical topics, from jobs and labor relations to tax and budget issues, from immigration and education to trade. Through extensive partner-ships with national and state-level organizations and a broad network of scholars and researchers, EPI ensures its work has the widest possible reach and scope.

No other think tank has spoken more eloquently and consistently about the concerns of working families (or, in the current econo-my, those who aspire to work) or proposed better policies to deliver the security and economic dignity they deserve.

I am extremely honored and proud to be associated with the people and the ideas that have helped EPI become the significant force for good that it is today.

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gFROM GERALD McENTEE | 1

2 | THE FIRST 25 YEARS

2004 EPI begins publishing a yearly report that sheds light on trends in employer-sponsored health insurance, underscoring the decline in employer-provided health insurance coverage.

2004 EPI research exposes the Bush administration’s destructive changes in overtime regulations. As a result, the rules are significantly improved.

1996 EPI plays a key role in the successful effort to increase the federal minimum wage.

2001 EPI begins to monitor, ana-lyze, and propose changes to the unemployment insurance system. EPI’s research helps persuade Congress to enact Emergency Unemployment Compensation in 2002 and 2003.

2002 Lawrence Mishel succeeds the retiring Jeff Faux as EPI’s president.

2006 EPI starts an ongoing project to address comprehensive immigration and guest worker visa program reform. (The work leads to publication of the books Im-migration for Shared Prosperity in 2009 and Value-Added Immigra-tion in fall 2011.)

1999 EPI begins work on its Basic Family Budget Calculator, which determines the minimum level of expenditures needed to adequate-ly meet a family’s needs. (The calculator, launched in 2001, is one of the most popular features on EPI.org.)

1999 EPI helps found the Eco-nomic Analysis and Research Network (EARN), a group of state research and policy organizations that work to advance progressive economic policy at the state and regional level.

1999–2000 EPI research correctly predicts that China’s accession to the World Trade Or-ganization would lead to spiraling trade deficits, the loss of manu-facturing jobs, and wage declines.

1988 EPI first publishes The State of Working America, the only comprehensive source of data on the nation’s wealth, poverty, income, wages, inequality, and employment trends.

1993 EPI research correctly pre-dicts that NAFTA will lead to sub-stantial manufacturing job losses in the United States and erosion of wages and workers’ rights on both sides of the U.S.-Mexico border.

1986 The Economic Policy Institute is founded by Barry Bluestone, Robert Kuttner, Ray Marshall, Robert Reich, Lester Thurow, and Jeff Faux, EPI’s first president.

2005 EPI works with allies in the labor and progressive movements to highlight the dangers of Social Security privatization. In 2009, EPI joins with the Pension Rights Center, the National Committee to Preserve Social Security and Medicare, SEIU, and the AFL-CIO to found Retirement USA, a coali-tion that highlights the need for a universal, secure, and adequate retirement system.

The First 25 Years 1986–2011

1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006

3

Attendees at EPI’s 25th anniversary dinner included, clockwise from upper left: Julianne Malveaux,

secretary treasurer of EPI’s Board of Directors and president of Bennett College, and Mahlon

Mitchell, president of the Professional Fire Fighters of Wisconsin; Jeff Faux, EPI founding president

and distinguished fellow; Paul Krugman, New York Times columnist; Rep. Keith Ellison (Minn.); Ray

Marshall, former U.S. Secretary of Labor and EPI co-founder, and (left) Ross Eisenbrey, EPI vice

president; and Alexis Herman, former U.S. Secretary of Labor

2007 EPI provides research on the role of unions in the economy and on union organizing as the nation debates the Employee Free Choice Act. More than 200 econo-mists sign EPI’s letter in support of EFCA.

2007 Congress enacts another increase to the federal minimum wage after 34 states increased their minimum wages between 2001 and 2007. EPI worked in tan-dem with EARN on the seven-year campaign.

2008 EPI launches the Broader, Bolder Approach to Education campaign with a statement signed by 60 leaders with diverse reli-gious and political affiliations and a range of policy expertise.

2007 Speaker of the House Nancy Pelosi convenes represen-tatives and national economic and financial experts, including EPI President Lawrence Mishel, to as-sess the state of the economy and the labor market. Mishel sounds the alarm on the need for generat-ing jobs through a substantial stimulus package.

2011 EPI releases the first online edition of The State of Working America, which has become an indispensable tool for academics, policymakers, activists, and the media.

2011 Nearly 450 guests attend EPI’s 25th anniversary dinner Nov. 1 in Washington, D.C. The event honors New York Times columnist Paul Krugman, former U.S. Labor Secretary and EPI co-founder Ray Marshall, and leaders of Wiscon-sin’s labor movement.

2011 EPI releases a series of re-ports disproving claims that state and local public-sector workers are overpaid and rebutting the claim that “right-to-work” laws create jobs.

2009 EPI releases the American Jobs Plan, a public investment plan that would put 4.6 mil-lion people back to work in one year. (In 2011, President Obama’s American Jobs Act adopts many of the proposals from EPI’s plan.) EPI also commissions the Hart Research Poll “Tracking the Re-covery,” which changes the tone of the political debate by revealing that Americans care much more about creating jobs than cutting the deficit.

2007 EPI starts the Agenda for Shared Prosperity to propose affirmative economic policies to address the root causes of the nation’s economic problems. Key papers in this series proposed the public option as a way to ensure universal health coverage and long-term savings; a universal, se-cure, and adequate national pen-sion plan; and a comprehensive solution to employment-based immigration challenges.

2010 EPI releases Investing in America’s Economy, a plan that prioritizes recovery while also sta-bilizing the nation’s debt. In 2011, the EPI Policy Center advises the Congressional Progressive Caucus during the development of its budget alternative, which contains many of the same elements as the EPI plan.

2008 EPI launches the Pro-gram on Race, Ethnicity, and the Economy to highlight the status of minority communities and the effects of policies on their living standards.

20082007 2009 2010 2011

We know that proper public invest-ment, sustained low unemploy-ment, and a healthy, expanding middle class can fuel economic growth.

We also know that a vibrant and healthy economy is not achiev-able if the distribution of income and wealth remains as imbalanced as it is today. We cannot fix this problem in the short term, but we can and must begin to work toward shared prosperity through reforms to the tax code, corporate gov-ernance, education policy, labor policy, and much more.

EPI is making a difference in the public debate. Our footprints were evident in President Obama’s American Jobs Act and in the budget alternatives proposed by the Congressional Progressive Caucus. We take pride in providing credible, reliable data and policy prescriptions that are clear alterna-tives to the many harmful policies being put forth.

The stakes are too high to let wrongheaded policy recommen-dations succeed. EPI’s task going forward is to keep the concerns of working families visible and to remain a source for better policy ideas that help us achieve shared prosperity. We will continue to join with our partners and engage our networks to make the case for what is right.

What kind of country do we want to live in? This is the fundamental question we should constantly ask ourselves, especially now. As the public debates how to address the country’s economic challenges, our priorities should be obvious: We need to create jobs and reduce unemployment. We need to increase living standards for low- and moderate-income families and halt the growth of economic inequality. It is a shame that too few policymakers rec-ognize these national priorities, focusing instead on cutting deficits and preserving low tax rates for the very rich.

At EPI, we unapologetically advance real solutions to the country’s challenges—solutions at the scale of the problem. We know that if our leaders make the right decisions, we can put back to work the millions of people who lost their jobs during the Great Reces-sion. If we prioritize infrastructure investments, safety net spending, and aid to state and local govern-ments, the unemployment rate will quickly fall. And, as these jobs are created, we must make sure they pay decent wages and allow workers to organize unions without the threat of being fired.

From EPI President Lawrence

Mishel

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s4 | FROM EPI PRESIDENT LAWRENCE MISHEL

Areas of Research

EPI strives for an economy in which every worker has a good job. Good jobs offer a living wage, affordable health care, and a secure retirement. EPI’s Jobs, Wages, and Living Standards program uses this yardstick of broadly shared prosperity to measure economic performance and policies at all levels of government. Several times a month, EPI analyzes new government data to better un-derstand the changing state of the national labor market. The data cover national and state employment and unemployment, as well as the national job-seekers ratio. National and re-gional media rely on these analyses to report the health of the economy. In addition, EPI periodically publishes re-ports on national income and poverty, health insurance coverage, and the job market prospects of young graduates.

In 2011, the Jobs, Wages, and Living Standards program focused on the negative impacts of persistent high

unemployment and mass underem-ployment on wage growth and family incomes. Throughout the year, EPI’s regular drumbeat of publications, media appearances, and blog posts demonstrated that the real problem in today’s labor market is a broad lack of demand for workers—not, as often claimed, business uncertainty over regulations and a lack of workers with the right skills.

The EPI report Sustained, High Job-lessness Causes Lasting Damage to Wages, Benefits, Income, and Wealth was particularly successful in examin-ing these troubling trends. Released Labor Day weekend, it received sig-nificant coverage in national media outlets, including the New York Times,

Wall Street Journal, and Washington Post.

In 2011, the Occupy Wall Street move-

ment brought rising economic inequal-

ity to the forefront—and focused at-

tention on the needs of the 99 percent.

EPI defended the arguments of Occupy

Wall Street against unfair criticism

from the media and policymakers. The

defense included the launch of EPI’s

“Quick Facts,” handouts with easy-to-

understand statistics and information

about the economy.

Among other things, EPI’s work in

2011 also refuted false claims that

public-sector employees are overcom-

pensated; exposed how “right-to-work”

policies hurt wages and workers’ right

to organize while not improving job

prospects; argued successfully for the

extension of unemployment insurance

benefits for the millions of long-term

unemployed; stressed the need for

a national paid sick days policy that

would promote workers’ financial

stability; and shed light on the number

of children who have a parent who is

unemployed or underemployed. g

Jobs, Wages, and Living StandardsJUNE 30 Sen. Chuck Schumer (N.Y.) addresses jobs and the economy in a speech at EPI’s offices in Washington, D.C.

FEATURED PUBLICATION

Sustained, High Joblessness Causes Last-ing Damage to Wages, Benefits, Income, and Wealth, by Lawrence Mishel and Heidi Shierholz

6 | AREAS OF RESEARCH | JOBS, WAGES, AND LIVING STANDARDS

THE STATE OF WORKING AMERICA

EPI’s flagship publica-tion, The State of Work-ing America, provides a deep understanding of how low- and middle-income workers and

families are faring by examining trends in economic mobility, health, income, jobs, poverty, wages, and wealth.

Since 1988, EPI has published The State of Working America in book form. In February 2011, EPI launched StateofWorkingAmerica.org, which makes EPI’s essential data and analyses accessible online to academics, jour-nalists, policymakers, and interested citizens. Several times per month, EPI updates vital national and state-level economic indicators on the site.

FAILURE BY DESIGN: THE STORY BEHIND AMERICA’S BROKEN ECONOMY

Released in early 2011, Failure by Design by Josh Bivens builds on a wealth of State of Working America data to deliver a compelling

narrative of the U.S. economy’s struggle to emerge from the Great Recession. The book also provides striking evidence of how the economy has failed to deliver for low- and middle-income workers over much of the past three decades.

Incomes rise fastest at the top Percentage growth in household income by rank on income scale, 1979–2007

FROM OCCUPY WALL STREETERS ARE RIGHT

Skewed economic rewards: From 1979 to 2007, the incomes of the top-earning 0.1 percent of U.S. households grew by 390 percent, compared with 224 percent for the top 1 percent of households and 5 percent for the bottom 90 percent.

Reprinted from Occupy Wall Streeters Are Right about Skewed Economic Rewards in the United States, by Lawrence Mishel and Josh Bivens, Oct. 26, 2011

“ No one does a better job of compiling and presenting inequality data than EPI.”

— CHRIS HAYES, EDITOR-AT-LARGE OF THE NATION, AND MSNBC HOST

7

0%

100%

200%

300%

400%

1980 1985 1990 1995 2000 2005

Percentage growth

Top 0.1%

Top 1%

Bottom 90%

390%

224%

5%

vide economic security to Americans—

Social Security, Medicare, Medicaid,

and the Affordable Care Act.

The challenges began in January 2011,

when the new House GOP majority sig-

naled its intent to enact budget policies

that would destroy jobs and exacerbate

economic insecurity and inequality.

Much of 2011 was spent highlighting

the dangers of these measures.

EPI reports explained how House

Budget Committee Chairman Paul

Ryan’s Roadmap for America’s Future

would dismantle economic security

programs, defund investments, and

shift the burden of taxation. When

conservatives launched an intense

campaign to pass a balanced budget

amendment (BBA) and spending caps,

EPI explained the negative conse-

quences of BBAs and global spending

caps, and analyzed the detrimental

implications of a balanced budget for

Social Security.

Meanwhile, EPI continued to argue

for expansionary fiscal policy, describ-

ing how pivoting from fiscal expan-

The federal budget represents the nation’s priorities. The work of EPI and the EPI Policy Center on federal budget, fiscal, and tax policy—which consists of analyses of congressional and administration proposals, devel-opment of budgetary and fiscal policy proposals, and support to congres-sional staff—has focused on the need for economic growth, jobs, economic security, and greater equity. Major areas of research and analysis in 2011 included analyzing how conservative budgetary plans would jeopardize the economic recovery, promoting policies to generate stronger job growth, sup-porting the Congressional Progressive Caucus (CPC) in developing a budget and a jobs plan, arguing for progressive tax reform and public investments, and protecting the core programs that pro-

Federal Budget, Deficits, and Taxes

FROM MAJOR BUDGET PROPOSALS

Public investment versus vital services: Budget proposals from Rep. Paul Ryan (Wis.), President Obama, and the Bowles-Simpson Fiscal Commission would all have cut the non-security discretionary budget as a share of GDP far below historical levels.

Reprinted from Major Budget Propos-als Pit Public Investment against Vital Services, by Ethan Pollack, July 13, 2011

8 | AREAS OF RESEARCH | FEDERAL BUDGET, DEFICITS, AND TAXES

FEATURED PUBLICATIONThe Restore the American Dream for the 99%

Act: An Analysis of Job Creation Provisions, by Andrew Fieldhouse and Rebecca Thiess

Historical and projected non-security discretionary spending as a share of GDP, 1962–2021

0%

1%

2%

3%

4%

5%

1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010 2014 2018

3.3%

2.3%2.2%2.0%

1.5%

CBO baselineHistorical

Obama budgetBowles-Simpson Fiscal CommissionRyan budget1962–2008 average

sion to austerity would undermine the economic recovery. An EPI report published before the Obama adminis-tration released its American Jobs Act outlined 11 job creation policies.

A major impediment to expansionary fiscal policy in 2011 was the enactment of the Budget Control Act. EPI influ-enced the national debate by explain-ing how the legislation would adversely affect employment.

Also in 2011, the CPC sought EPI’s as-sistance in developing its People’s Bud-get. EPI staff, funded by the EPI Policy Center, worked with Caucus staff to select policy provisions and then mod-eled their effects. The People’s Budget would have financed significant near-term fiscal stimulus and increased public investments while improv-ing the longer-term budget outlook without cutting back on essential social insurance programs such as Medicare, Medicaid, and Social Security.

The CPC subsequently developed a job-creation and deficit-reduction package, the Restore the American Dream for the 99% Act (H.R. 3638), for which EPI staff, funded by the EPI Policy Center, analyzed the macroeconomic

and jobs impacts.

Related to its budget work, EPI dem-onstrated why progressive tax reform is an effective tool for funding gov-ernment, financing needed job cre-ation measures and investments, and addressing income inequality. On the 10th anniversary of the Bush tax cuts, EPI explained 10 ways in which the cuts remain costly, ineffective, and unfair. Later in the year, EPI detailed the case for raising effective tax rates on upper-income households, and explained why Obama’s super commit-tee recommendations did not go far

enough in restoring revenue adequacy.

In 2011, EPI broke new ground analyz-ing public investments in the budget. EPI constructed an account-level da-tabase of public investments, allowing for estimates of how caps on discre-tionary spending over the next decade would deplete public investments such as education, infrastructure, and research and development. EPI also produced reports on green investments in collaboration with such groups as the BlueGreen Alliance, Green for All, the Pacific Institute, and American Rivers. g

FEB. 16 EPI macroeconomist Josh Bivens testifies before the U.S. House Committee on Over-sight and Government Reform’s Subcommittee on Regulatory Affairs about the effectiveness of the American Recovery and Reinvestment Act.

“ When our office needs some help in documentation on issues like why infrastructure would be good for the economy … EPI is the first place we turn to.”

— SEN. CHUCK SCHUMER (N.Y.)

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Labor unions improve the com-pensation and work lives of both unionized and nonunionized workers. The protections, rights, and

wages that unions secure impact all

workers.

In 2011, newly elected officials backed

by special interests worked to cut

wages, benefits, and bargaining rights

of working people, especially those of

public-sector workers. EPI data proved

crucial in countering attempts to

destroy unions in states such as Ohio

and Wisconsin. For example, several

state-specific EPI reports disproved

the myth that public workers are

overcompensated. EPI also combated

misinformation spread by interests

advocating “right-to-work” laws, which

undermine unions by making it harder

for them to sustain themselves. EPI

analyses exposed the truth about the

impact of right-to-work laws on wages,

bargaining power, and job creation.

For instance, an EPI report revealed

that when Oklahoma became a right-

to-work state in 2001, it failed to ex-

perience the boost in employment that

advocates claimed it would.

EPI articulated the need for a

federal minimum wage set at 50 per-cent of the average wage and for an in-crease to the wage of workers who rely on tips, which has been frozen at $2.13 an hour for 20 years. EPI also rebutted attacks on the Davis-Bacon Act, which for 80 years has required contractors on federal construction projects to pay the prevailing wage for each craft.

EPI also played a key role in policy debates about paid sick days by provid-

Labor Policy


Are Wisconsin Public Employees Overcompensated? by Jeffrey H. Keefe

“ The EPI study [Are Wisconsin Public Employees Overcompen-sated?] is aimed at a very specific and very influential claim: that Wisconsin’s state and local employees are clearly overpaid. It blows that claim up.”

— EZRA KLEIN, WASHINGTON POST BLOGGER AND COLUMNIST

10 | AREAS OF RESEARCH | LABOR POLICY

Photo by Flickr user Fibonacci Blue

MAY 18 EPI hosts Ross Perlin, author of In-tern Nation, and U.S. Department of Labor, Wage and Hour Division Assistant Adminis-trator for Policy Michael Hancock to discuss the damaging effects of unpaid internships on the labor market.

FROM ARE WISCONSIN PUBLIC EMPLOYEES OVER-COMPENSATED?

Compensation penalty for public servants: The total compensation of college-educated public workers in Wisconsin is significantly less than that of their private-sector peers.

Adapted from Are Wisconsin Public Employees Over-compensated? by Jeffrey H. Keefe, Feb. 10, 2011

ing research to reporters and activists

in states where the battles over sick

days are being waged. According to

the evidence, paid sick days are vital

to millions of low-income workers and

their families but are disproportionate-

ly provided to higher-income workers.

EPI analyses debunking assertions that

paid sick days destroy jobs educated

policymakers in Connecticut and

Seattle, jurisdictions that passed sick-

leave laws.

Throughout the year, EPI educated

national policymakers about the im-

portance of continuing the program

of emergency, extended unemploy-ment insurance benefits. EPI econo-mists, with the help of outside experts, showed that, contrary to some claims, unemployment insurance benefits do not fuel unemployment and are still needed despite signs of economic im-provement.

Finally, in public testimony, commen-taries, media appearances, and blog posts, EPI defended the National Labor Relations Board against attacks on its regulations and enforcement policies. g

11

Total compensation is lower for public-sector workers in Wisconsin

$0

$50,000

$100,000

$150,000

$200,000

$250,000

High school Bachelor’sdegree

Master’sdegree

Doctorate Professional degree(e.g., J.D., M.D.)

Private-sector compensation

Public-sector compensation

$47,469

$82,134

$100,296

$128,306

$225,644

$46,213

$61,668

$74,056

$91,623

$143,569

EPI ensures workers are con-sidered in critical public policy debates on trade by examining how trade and globalization af-fect America’s workers. Presently, the United States’ non-oil trade deficit alone costs more than five million U.S. jobs. Current trade and globalization policies have also negatively affected the wages and incomes of the vast ma-jority of workers and depleted Ameri-can manufacturing. Throughout 2011, EPI’s research warned of these det-rimental consequences of the United States’ unbalanced trade policies.

In 2011, EPI’s research showed that the U.S.-China trade deficit eliminated or displaced nearly 2.8 million American jobs from 2001 to 2010—and of these, 1.9 million were in manufacturing. These jobs represent nearly half of all

U.S. manufacturing jobs lost between

2001 and 2010.

Further demonstrating the unbal-

anced nature of U.S.-China trade,

EPI released a study showing that full

revaluation of the Chinese yuan would

increase U.S. GDP and employment,

reduce the federal budget deficit, and

help workers in China and other Asian

countries. Senators from both par-

ties widely cited two EPI reports, The

Benefits of Revaluation and Growing

U.S. Trade Deficit with China Cost 2.8

Million Jobs Between 2001 and 2010,

during floor debates over legislation

(subsequently passed in the Senate)

that would impose tariffs on Chinese

goods if China were found by the

Treasury Department to be improperly

valuing its currency.

Trade, Globalization, and Manufacturing

When Washington was debating the ratification of a host of new trade agreements, EPI’s analysis of the U.S. job losses stemming from NAFTA served as a cautionary tale against adopting trade agreements without safeguards protecting American work-ers. During floor debates on free-trade agreements with South Korea, Colom-bia, and Panama, members of Congress cited EPI reports on jobs displaced by U.S. trade with Mexico after the pas-sage of NAFTA, and used EPI research to estimate the number of jobs that would be displaced by the proposed free-trade agreements with South Korea and Colombia. While Congress eventually approved the agreements, EPI provided the only reliable, alter-native estimates of the likely costs involved. g

“ The passage of the China currency bill was the biggest bipartisan jobs bill that we’ve passed in a long, long time. EPI played a role in that because of their jobs numbers. I use them almost incessantly, and Republicans use them.”

— SEN. SHERROD BROWN (OHIO)

12 | AREAS OF RESEARCH | TRADE, GLOBALIZATION, AND MANUFACTURING

Photo by Flickr user Håkan Dahlström

FROM HEADING SOUTH

Mexico trade deficit costs jobs nationwide: The United States had a small, job-supporting trade surplus with Mexico in 1993 (before NAFTA). By 2010, the United States had a trade deficit with Mexico that displaced 682,900 jobs, with jobs lost or dis-placed in every state.

Reprinted from Heading South: U.S.-Mexico Trade and Job Displacement after NAFTA, by Robert E. Scott, May 3, 2011

MARCH 30 EPI Director of Trade and Manufacturing Policy Research Robert Scott testifies before the U.S.-China Economic and Security Review Commission about the growing U.S. trade deficit with China and the American jobs displaced as a result.


Growing U.S. Trade Deficit with China Cost 2.8 Million Jobs Between 2001 and 2010, by Robert Scott

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Jobs lost or displaced due to trade deficits with Mexico, 2010 (as share of total state employment)

0.2% 0.5%

0.3% 0.6%

0.4% 0.8%–1.0%

EPI believes that worker- and im-migrant-friendly policy solutions are good for America. EPI’s work on immigration focuses on educating labor and immigrant-rights organiza-tions and policymakers about the need for a labor-market-based approach to immigration policy that supports shared prosperity. In 2011, EPI focused on:

➥ challenging businesses’ increasing use of temporary migrant labor and indentured “guest workers,” which displaces U.S. workers and puts downward pressure on wages and working conditions

➥ revealing the downsides of inhu-mane anti-immigrant measures that target undocumented migrant workers in the United States

➥ continuing EPI’s longer-term ef-forts to promote a comprehensive solution for immigration—one that links verifiable needs of the U.S. labor market with appropriate levels of temporary and permanent migration

Also in 2011, EPI examined how the re-cession affected both foreign-born and native-born workers in the construc-

tion industry. While

both groups experienced significant job losses when the housing bubble burst, EPI found that foreign-born noncitizen workers suffered higher unemploy-ment.

Meanwhile, EPI’s work on immigration in the high-tech sector and on tem-porary visa programs for high-skilled workers, including the H-1B and L visas, was presented at congressional hearings and quoted heavily in the media, including on national television news programs.

EPI submitted public comments in support of the Department of Labor’s very significant reforms in the H-2B visa program for less-skilled guest workers and participated in congres-sional briefings to explain the new rules.

Another important focus of EPI’s im-migration work is the J-1 visa program, which began as a cultural exchange program but has morphed into a large, permanent employment pipeline that employers use to exploit cheap labor and avoid federal and state taxes. J-1 guest workers are sometimes sub-jected to abuse, live in crowded and filthy conditions, lack funds to pay for groceries and other essentials, and may find themselves without jobs.

Meanwhile, U.S. workers—especially young minor-ity workers who desperately need jobs—are denied

entry-level work.

In an ongoing effort to expose J-1 abuses and prompt comprehensive reform, EPI in July published Guest-worker Diplomacy: J-1 Visas Receive Minimal Oversight Despite Significant Implications for U.S. Labor Market. EPI has since been invited to testify before Congress, and has had multiple direct conversations with State Depart-ment leaders overseeing the program and with the department’s Office of Inspector General.

Due in part to EPI’s efforts, the State Department is conducting a compre-hensive review and is issuing major changes to the program. The State Department also took a major step for-ward by banning one of the program’s largest labor recruiters from further

Immigration

14 | AREAS OF RESEARCH | IMMIGRATION


J Visas: Minimal Oversight Despite Sig-nificant Implications for the U.S. Labor Market, by Daniel Costa

VALUE-ADDED IMMIGRATION: LESSONS FOR THE UNITED STATES FROM CANADA, AUSTRALIA, AND THE UNITED KINGDOM

In 2011 EPI published Value-Added Immigra-tion by Ray Marshall. The book compares the employment-based immigration

policies of Australia, Canada, and the United Kingdom with those of the United States. Value-Added Immigra-tion recommends the United States follow these countries’ lead by tying its migration policy to economic and social objectives. It also advocates policymaking based on a rational examination of our national interest as it relates to immigration, rather than policymaking governed by ideology and interest groups.

OCT 31 EPI co-founder, board member, and former U.S. Secretary of Labor Ray Marshall releases his book, Value-add-ed immigration: Lessons for the United States from Canada, Australia, and the United Kingdom, and conducts a panel discussion.

participation after multiple investi-gations found the recruiter violated program regulations and wage, hour, and workplace safety laws. Just a few weeks before the announcement, EPI sent an open letter to Secretary of State Hillary Clinton calling on her to ban the recruiter from the program.

Going forward, EPI will also focus on examining wages and conditions of both native-born and foreign-born domestic workers in the heavily im-migrant, predominantly female, and rapidly growing low-wage sector—as well as working in partnership with EPI’s Economic Analysis and Research Network (EARN) to educate citizens about the positive impacts of immigra-tion on state and local economies. g

OCT. 31 EPI co-founder, board member, and former U.S. Secretary of Labor Ray Marshall releases his book, Value-Added Immigration: Lessons for the United States from Canada, Australia, and the United Kingdom.

15

Protesters calling attention to misuse of J-1 visas

to high utility costs; exposes students and teachers to potential harm from mold, asbestos, and fire dangers; and raises the risks that books and equipment are dam-aged by leaky roofs and fires. In partner-ship with the 21st Century School Fund and the Center on Budget and Policy Priorities, EPI developed Fix America’s Schools Today, or FAST!, a proposed $50 billion grant program that would renovate schools while creating jobs. The proposal gained traction with an op-ed in the Washington Post urging President Obama to put FAST! atop his jobs agenda, a recommendation he adopted. Sen. Sher-rod Brown (Ohio) and Rep. Rosa DeLauro (Conn.) introduced FAST! as a bill in Congress.

Finally, throughout the year, EPI blog posts, editorials, and presentations ana-

EPI documents how social and economic inequality affect stu-dent achievement. EPI also suggests policies, within school and outside of school, to narrow outcome gaps be-tween middle-class and disadvantaged students—and helps to counter popular but erroneous assertions about public schools, student achievement, and teachers.

The fiscal challenges confronting many states in 2011 fueled vigorous debates over the compensation of public em-ployees, particularly teachers. Critics

suggested that teacher salaries and benefits were excessive and should be cut to meet budget shortfalls. EPI’s past research, on the other hand, has shown a substantial pay penalty for teachers. An update of a 2008 report on teacher pay confirmed these earlier findings, concluding that public school teachers earned about 12 percent less than comparably educated workers in other occupations. EPI also exposed serious flaws in a report claiming that teachers are grossly overpaid.

Ongoing fiscal troubles are also behind our crumbling education infrastruc-ture: Most of the nation’s 100,000 public schools need maintenance, repairs, or upgrades that in some cases have been delayed for several years. This backlog wastes energy and leads

Education

16 | AREAS OF RESEARCH | EDUCATION

FROM THE TEACHER GAP

The downturn’s impact on education: The United States was short roughly 326,000 public educa-tion jobs in 2011 due to the Great Recession and its aftermath.

Reprinted from The Teacher Gap, by Heidi Shierholz, Oct. 7, 2011 (blog post)


The Teaching Penalty: An Update Through 2010, by Lawrence Mishel, Sylvia Allegretto, and Sean Corcoran

Decline in local public education jobs

7,800

7,900

8,000

8,100

2005 2006 2007 2008 2009 2010 2011

278,000 local public education jobs lost

326,000 local public education job shortfall

48,000 local public educationjobs we should have added

Number of jobs (thousands)

EPI launched the Broader, Bolder Ap-proach to Education (BBA) in 2008 to draw attention to the weaknesses of one-dimensional policies that rely on standardized tests as the main way to improve educational attainment. Pointing to decades of rigorous research affirming the poverty-related impediments to learning, the BBA taskforce and high-profile signatories seek to combine improvements to instruction, school

leadership, and other in-school factors with quality early-child-hood care and education, health care (prenatal, parental, and child), and enriching after-school and summer programs.

In 2011, BBA hired a national coordinator to translate its mis-sion into a policy campaign. That work includes enhancing its website to spotlight a variety of new research and advocacy materials from BBA as well as allied organizations. The BBA Web “library” offers examples of communities across the coun-try that have employed comprehensive strategies to improve students’ educational attainment and broader well-being.

Events hosted by BBA highlighted problems with federal turn-around strategies and explored more-effective approaches to improve struggling schools. They also examined policy changes that would provide more-equitable educational opportunities for all of New York City’s students. In addition, BBA established a weekly guest blog on the Huffington Post education page.

lyzed issues such as the achievement gap, national education policy, public school spending, the uses of standard-ized testing, and the impacts of poverty and poor health on low-income stu-dents’ achievement. g

“ EPI is probably the best source of information and evidence for strategies that we need to actually heal our schools and heal our society.”

— DIANE RAVITCH, FORMER U.S. ASSISTANT SECRETARY OF EDUCATION

17

Broader, BOLDER Approach to Education

Elaine Weiss, BBA National Coordinator

EPI believes sound regulations are important to our nation’s health and safety. They can also be essential to building a stable economy that treats workers fairly. Throughout 2011, EPI’s research played a vital role in inform-ing high-profile discussions of the role of regulations and their effects on the economy.

Much of the debate about the economic effects of regulations reflects a nar-row, anti-regulatory perspective at the expense of the broad goals of advanc-ing the nation’s health and safety and

enhancing

economic stability. There was a gaping need for balanced analysis in this issue area, and EPI filled the void.

A key aspect of EPI’s work on regu-lations in 2011 was puncturing the argument that regulations kill jobs. EPI began the year with a “foundational analysis” that explored the true nature of the relationship among jobs, regula-tions, and the economy. The data in the report demonstrated that only a min-ute share of mass layoffs is attributable to regulation.

EPI also conducted a comprehensive analysis of the employment effects of the “air toxics” rule, finding that while

there would likely be a small number of unfortunate job losses in some specific industries, overall the regulation would produce a modest net gain in jobs. The report received wide attention and was featured in a New York Times edito-rial. As a result, EPI testified before Congress as the one minority witness for a hearing on the jobs effects of the regulation held by the House Com-mittee on Oversight and Government Reform, held a briefing for top EPA officials on the study’s results and its approach, and participated in House and Senate briefings on clean air.

In addition, EPI produced studies countering the false argument that regulatory uncertainty hurts the economy and

prevents job growth, one of the main talking points of opponents of regula-tions. In Regulatory Uncertainty: A Phony Explanation for Our Jobs Prob-lem, EPI convincingly demonstrated that a lack of demand, not regulatory uncertainty, is behind the damaged labor market. One month later, the Obama administration released its first and only broad defense of the econom-ics of regulation.

EPI’s work also rebutted exaggerated claims about the costs of regulation, such as the oft-cited claim that regu-lations cost $1.75 trillion a year. EPI examined the statistical analysis at the heart of this number and found it fun-

damentally flawed and illogical. While

EPA regulations were often singled out

for criticism, EPI analyzed all of the

major EPA regulations proposed and

finalized under President Obama and

found their compliance costs total only

around 0.1 percent of the economy—

and are far exceeded by the substantial

benefits of the regulations.

Finally, another goal of EPI’s work on

regulations in 2011 was to add balance

to the debate over labor regulations.

At the start of last year, the Chamber

of Commerce issued a report claiming

that stronger state labor regulations

are associated with higher state unem-

ployment rates. EPI responded with a

methodological analysis and an area-

by-area defense of labor regulations.

EPI also issued a comprehensive report

on a full-fledged assault by a House

Appropriations subcommittee on basic

labor standards. g

NOV. 1 EPI macroeconomist Josh Bivens testifies before the House Committee on Oversight and Government Reform at the hearing “Lights Out II: Another Look at EPA’s Utility MACT Rule.”

Regulation

18 | AREAS OF RESEARCH | REGULATION


A Lifesaver, Not a Job Killer: EPA’s Pro-posed ‘Air Toxics Rule’ Is No Threat to Job Growth, by Josh Bivens

Photo by Flickr user mccready

“ Lawrence Mishel offers the most thorough takedown yet of the conservative idea that regulatory uncertainty is behind our economic problems.”

— GREG SARGENT, WASHINGTON POST

FROM REGULATORY UNCERTAINTY

A phony explanation for our jobs problem: Small businesses cite poor sales, not regulations, as the single most important problem they face.

Reprinted from Regulatory Uncertainty: A Phony Expla-nation for Our Jobs Problem, by Lawrence Mishel, Sept. 27, 2011

19

Photo by Flickr user Rennett Stowe

Most important problem reported by small business, by presidential term

0%

5%

10%

15%

20%

25%

30%

Nixon/Ford Carter Reagan 1 Reagan 2 George H.W. Bush

Clinton 1 Clinton 2 George W. Bush 1

George W. Bush 2

Obama

Percent of respondents Poor sales: 29.6%

Taxes: 20.8%

Regulations: 13.9%

FROM RECESSION CONTINUES TO TAKE ITS TOLL ON AMERICA’S CHILDREN

Rising child poverty rates: From 2007 to 2010, Hispanic children experi-enced the largest increase in child poverty, and black children had the second-largest increase.

Adapted from Recession Continues to Take Its Toll on America’s Children, by Algernon Austin, Sept. 13, 2011 (blog post)

People of color have always played a vital role in the Ameri-can economy. However, these groups have had continual difficul-ties participating fully in the economy and sharing equitably in the country’s prosperity. Economic inequalities by race continue to be a key challenge for America.

As the country becomes more racially and ethnically diverse, these inequali-ties cause broader and deeper harm to the overall economy. This harm can be remedied through a societal com-mitment to a range of policy reforms, including policies that produce higher Latino graduation rates, higher black employment rates, and lower Asian poverty rates. Achieving these goals will result in a stronger and more glob-ally competitive American economy.

To work toward these goals, EPI launched the Program on Race, Ethnic-ity, and the Economy (PREE) in 2008. In 2011, PREE continued to focus on the economic challenges confronting people of color in the aftermath of the Great Recession.

Last April, PREE released Depressed States: Unemployment Rate Near 20% for Some Groups, a report on unem-ployment rates by state and race. The paper documented unemployment rates above 20 percent for Latinos in Rhode Island and African Americans

Race, Ethnicity, and the Economy

20 | AREAS OF RESEARCH | RACE, ETHNICITY, AND THE ECONOMY

in Michigan. Such levels of unem-ployment are comparable to the peak national unemployment rate during the Great Depression.

In conjunction with EPI’s Economic Analysis and Research Network (EARN), PREE also prepared indi-

vidual briefs on the unemployment rates for different racial and ethnic groups in Louisiana, Michigan, Missis-sippi, New Mexico, North Carolina, and Texas. In addition, PREE examined the country’s largest metropolitan areas and produced reports in October on the


A Jobs-Centered Approach to African American Community Development: The Crisis of African American Unemployment Requires Federal Intervention, by Algernon Austin

Percentage-point change in child poverty rate by race/ethnicity, 2007–2010

0 1 2 3 4 5 6 7

All

Asian

White

Black

Hispanic 6.4

4.6

2.3

1.9

4.0

FEB. 28 Pamela Loprest, director of the Urban Institute’s Income and Benefits Policy Center, speaks at “Understanding the Low Wages of Black Workers,” a forum moder-ated by PREE Director Algernon Austin at EPI’s offices.

21

unemployment rates of Hispanics and African Americans in the metro areas with the largest populations of each group.

These reports on metropolitan un-employment among people of color generated significant media coverage. Partnering with the National Council of La Raza helped PREE expand its media outreach to Latinos for the report on Hispanic unemployment. The report received particularly strong coverage in Rhode Island and Connecticut, as those states registered the highest Latino metropolitan unemployment rates. The report on African American unemploy-ment, meanwhile, garnered attention from the Huffington Post, which used it to highlight the 10 metro areas where black unemployment increased the most from 2009 to 2010. g

“ EPI became more important than ever, if you wanted to know what was happening not just to working people but what was happening to poor people, and that blacks and Latinos were being hurt much worse by unemployment than some other groups in society.”

— BOB HERBERT, FORMER NEW YORK TIMES COLUMNIST AND DEMOS DISTINGUISHED SENIOR FELLOW

Photo by Flickr user ellenm1

EPI believes that a retirement sys-tem should be universal, secure, and adequate. As policymakers have intensified their focus on budget deficits and the cost of social insurance programs and public pensions, they have made proposals that would save money but exacerbate already-growing retirement insecurity. EPI’s research has challenged the conventional wis-dom that Social Security cutbacks are necessary and inevitable.

Working in coordination with the Strengthen Social Security coalition, EPI produced several reports about the impact of proposed budget cuts on Social Security. The reports analyzed the effects of various policies, such as capping federal spending, reduc-ing the Social Security cost-of-living adjustment, and raising the Social Security retirement age. Questioning the conventional wisdom of expect-ing older workers to delay retirement, EPI research showed that the average worker retires in his or her mid-60s, not early 60s as is often claimed.

While calls for fiscal austerity have put undue pressure on policymakers to change Social Security and other successful programs, they have also provided an opening for more com-

prehensive reform,

as all forms of government spending, including tax expenditures for retire-ment savings, have come under closer scrutiny. Armed with research show-ing that traditional pensions are more cost-effective than the 401(k)-style plans now more prevalent in the pri-vate sector, EPI continues to educate policymakers and activists about the need for comprehensive reform of our employer-based retirement system.

In 2011, EPI also continued work with New School for Social Research professor and EPI board member and research associate Teresa Ghilarducci on an update to the Guaranteed Retire-ment Account plan, first introduced in 2007. The GRA plan, together with Social Security, would provide the av-erage full-career worker with sufficient income to maintain his or her standard of living in retirement.

The GRA plan helped spur the cre-ation of a new initiative, Retirement USA, convened in 2009 by EPI, the AFL-CIO, the National Committee to Preserve Social Security and Medicare, the Pension Rights Center, and the Ser-vice Employees International Union. The primary goals of Retirement USA are to draw attention to the problem of retirement insecurity and to develop comprehensive reform proposals to

replace the current patchwork retire-ment system with one that is univer-sal, secure, and adequate. g

JULY 20 EPI releases A Young Person’s Guide to Social Security, a 60-page booklet written by young people to help youth un-derstand how Social Security works, whom it affects, and how it fits into their future plans.

Retirement

22 | AREAS OF RESEARCH | RETIREMENT


Beyond ‘Normal’: Raising the Retire-ment Age Is the Wrong Approach to Social Security, by Monique Morrissey

Photo by Flickr user meddygarnet

23

Outreach

A key component of EPI’s work is its partnership with the Economic Analysis and Research Network (EARN)—a network of state and regional “think-and-do” tanks. The network includes 57 multi-issue advocacy, policy, and research or-ganizations throughout 43 states. In collaboration with a broad range of na-tional organizations, EARN improves the lives of working families state-by-state by:

➥ Advancing state-level policy: EARN groups influence policy through research and analysis, media out-reach, and legislative testimony.

➥ Engaging states on national issues: EARN groups analyze national is-sues for state partners, who in turn provide state audiences with a trusted local perspective on national issues.

➥ Developing ideas and strategies: EARN harnesses the collective expertise of its regional groups to operate as a nationwide think tank that captures the best innovations from the state level.

A four-person EARN staff at EPI sup-ports and coordinates the regional organizations through collaborative

research and analysis, conferences and meetings, coordinated campaigns, a website, technical assistance, testimo-ny, and media appearances.

In 2011, EARN members, with help from EPI’s EARN staff, intensified their efforts to draw attention to unemployment at the state level. EPI distributed to EARN groups monthly state-by-state jobs data, along with a software program to aid in analyzing the data. This equipped the regional organizations to create their own monthly reports.

With workers’ rights under attack nationally in 2011, EARN organized the widespread distribution of state-specific EPI reports to aid in on-the-ground campaigns against “right-to-work” advocates. EARN also provided technical assistance and data for the National Employment Law Project’s national campaign to increase the minimum wage and Progressive Mary-land’s state-level campaign to increase the minimum wage. EARN also worked with local partners in Connecticut in their successful effort to pass a paid sick-leave law. g

Economic Analysis and Research Network (EARN)

24 | OUTREACH | ECONOMIC ANALYSIS AND RESEARCH NETWORK (EARN)


Paid Sick Days: Measuring the Small Costs for Con-necticut Businesses, by Elise Gould and Doug Hall

Photo by Flickr user jimbowen0306

Photo by Flickr user jglazer75

Photo by Flickr user ra_hurd

From top: State capitols in Ohio, Connecticut, and Wisconsin

NATIONWIDE LOOK AT THE JOBS CRISIS

In 2011, as part of its new State of Working America website, EPI began posting a monthly interactive U.S. map displaying how employment in each state has changed since the start of the recession.

25

Over 2.1%

2% to -0.9%

-1% to -3.9%

-4% to -6.9%

-7% to -9.9%

-10% to -12.9%

Change in employment since the start of the Great Recession (December 2007)*

*Data show change in number of jobs from December 2007 to February 2012.

EPI “punches well above its weight in Washington.” So wrote

the Washington Post’s Steven Pearl-

stein in his column about EPI’s 25th

anniversary. He was referring to the

amount of influence and respect EPI is

able to generate with a staff and an op-

erating budget far smaller than those

of other powerful think tanks. EPI’s

distinguished experts and sophisticat-

ed communications strategies contrib-

ute to this influence, which EPI uses to

ensure that important policy debates

consider the well-being of American

workers and their families.

EPI IN THE NEWS

In 2011, EPI’s research was cited by

top media outlets more than 1,800

times. This tally includes stories by

the Associated Press and Reuters and

in the New York Times, USA Today,

Wall Street Journal, and Washington Post; mentions on ABC, CBS, CNN,

FOX News Channel, NBC, and

MSNBC; and radio references.

Journalists seek the credible and accu-

rate analyses that EPI provides, as evi-

denced by the pervasiveness of EPI’s

research and findings in mainstream

media outlets nationwide. EPI experts

discuss complicated topics related

to labor markets, the federal budget,

trade, health care, regulation, and im-

migration in a way that reporters—and

the people who read, watch, and listen

to the news—can understand.

EPI ON THE WEB AND IN SOCIAL MEDIA

EPI significantly expanded its Internet and social media presence in 2011. Among the highlights, EPI introduced StateofWorkingAmerica.org, which provides all of the analyses and data from EPI’s The State of Working America publication as well as regu-larly updated data on key economic indicators. Visitors to the site’s most popular, and interactive, page—When Income Grows, Who Gains?—can com-pare the growth in incomes of the top-earning 10 percent of U.S. households since 1917 with income growth among the bottom 90 percent of Americans.

The Working Economics blog, launched in September, gives EPI experts a powerful tool for providing quick analysis of breaking economic news. Posts generated attention in the economic blogosphere and on social media networks, and the blog contin-ues to grow in reputation and reach.

EPI also ramped up its Facebook and Twitter activities, in part by using these social media platforms to publicize EPI research. Twitter in particular has been effective in reaching reporters, activ-ists, economists, and elected officials. g

Communications

26 | OUTREACH | COMMUNICATIONS

2010–2011 Financial Statements

28 | 2010–2011 FINANCIAL STATEMENTS

These are condensed from full financial statements for the years that ended December 31, 2011, and December 31, 2010, which are presented in conformity with accounting principles generally accepted in the United States of America. The 2010 state-ments were audited in accordance with generally accepted auditing standards. At the time of this printing the 2011 audit had not yet been performed. Audits are conducted annually. Copies of the full financial statements and the most recent indepen-dent auditors’ report of Squire, Lemkin + Company LLP are available from EPI upon request.

December 31,

2011 2010

ASSETS

Current Assets:

Cash and cash equivalents 3,580,971 4,286,148

Grants receivable 1,687,278 2,177,605

Other receivables 25,145 26,734

Prepaid expenses 59,551 28,667

Total Current Assets 5,352,945 6,519,154

Furniture and Equipment, net 250,084 212,982

TOTAL ASSETS 5,603,029 6,732,136

LIABILITIES AND NET ASSETS:

Current Liabilities:

Accounts payable and accrued expenses 45,434 26,350

Accrued payroll and vacation 372,609 436,006

Total Current Liabilities 418,043 462,356

Long Term Liabilities

Deferred rent benefit 354,102 384,270

TOTAL LIABILITIES 772,145 846,626

Net Assets:

Unrestricted 1,534,989 1,512,675

Temporarily restricted 3,295,895 4,372,835

TOTAL NET ASSETS 4,830,884 5,885,510

TOTAL LIABILITIES AND NET ASSETS 5,603,029 6,732,136

STATEMENT OF FINANCIAL POSITION

29

For the years ended December 31:

2011 2010

Temporarily

Unrestricted Restricted Total Total

REVENUE AND SUPPORT:

Grant revenue 3,866,515 3,866,515 5,409,955

Public support 1,652,043 1,652,043 1,061,455

Publication sales 71,297 71,297 31,386

Interest income 7,643 7,643 16,838

Rental income 45,745 45,745 53,886

Net assets released from restrictions 4,943,455 (4,943,455) 0

TOTAL REVENUE AND SUPPORT 6,720,183 (1,076,940) 5,643,243 6,573,520

EXPENSES:

Programs 5,723,799 5,723,799 5,275,632

Management and general 598,622 598,622 708,516

Grant procurement and fundraising 375,448 375,448 442,758

TOTAL EXPENSES 6,697,869 6,697,869 6,426,906

CHANGE IN NET ASSETS 22,314 (1,076,940) (1,054,626) 146,614

NET ASSETS, BEGINNING OF YEAR 1,512,675 4,372,835 5,885,510 5,738,896

NET ASSETS, END OF YEAR 1,534,989 3,295,895 4,830,884 5,885,510

STATEMENT OF ACTIVITIES

FOUNDATIONS

The Annie E. Casey Foundation

Anonymous

Atlantic Philanthropies

The Advocacy Fund

The Bauman Foundation

Calvert Social Investment Foundation

Carnegie Corporation of New York

The Century Foundation

Crosscurrents Foundation

The Energy Foundation

The Ford Foundation

The Girardeau A. Spann Charitable Fund

Kaplan Jones Family Trust

New Directions Foundation

Open Society Foundations

Peter G. Peterson Foundation

Public Welfare Foundation

Ralph & Fanny Ellison Charitable Trust

Rockefeller Foundation

Ross/Strohbehn Gift Fund

Russell Sage Foundation

Stephen M. Silberstein Foundation

Vanguard Charitable Endowment Program

W.K. Kellogg Foundation

ORGANIZATIONS

AFL-CIO

Amalgamated Life Insurance Company

Amalgamated Transit Union

American Federation of State, County and Municipal Employees

2011 Funders and Donors

30 | 2011 FUNDERS AND DONORS

American Federation of Teachers

American Income Life Insurance Company

Bakery, Confectionery, Tobacco Workers and Grain Millers International Union

Communications Workers of America

Focus Project OMB Watch

Green For All

International Association of Fire Fighters

International Association of Machinists and Aerospace Workers

International Brotherhood of Electrical Workers

International Brotherhood of Teamsters

Institute for International Education

Institute for Women’s Policy Research

LAANE

Laborers International Union of North America

Michigan Education Special Services As-sociation

National Academy of Social Insurance

National Association of Letter Carriers

National Education Association

National Postal Mail Handlers Union

New York Administrative Employees

Retail Wholesale and Department Store Union

Service Employees International Union

Social Security Works

The Concord Coalition

United Auto Workers

United Brotherhood of Carpenters & Joiners of America

United Food and Commercial Workers International Union

United Mine Workers of America

United Steelworkers

University of California-Berkeley

University of Texas at Austin

Utility Workers Union of America

MAJOR INDIVIDUAL DONORS

Anonymous

Deborah Chalfie

Earl L. Dotter

Irwin Garfinkel

Geoffrey Garin

Teresa Ghilarducci

Robert J. Gordon

Susan Gross

Wayne S. Haefer

Edward S. Herman

Lawrence and Suzanne Hess

Kent H. Hughes

Peter Hunsberger

Eugenia Kalnay

David King

Kathy Krieger

Eleanor LeCain

Stephen Levy

Arthur Lieber

Elaine McCrate

Thomas R. Michaud

Lawrence B. and Claire K. Morse

Tracy Mott

31

Fritz Mulhauser

Fred Schreiber

Rufus Wanning

Charles Winters

25TH ANNIVERSARY SPONSORS

HOSTS ($25,000 AND ABOVE)

American Federation of State, County and Municipal Employees

American Income Life Insurance Company

Anonymous

The Bauman Foundation

Jules Bernstein and Linda Lipsett

International Association of Machinists and Aerospace Workers

International Brotherhood of Teamsters

Bernard L. Schwartz

United Auto Workers

United Brotherhood of Carpenters

SPONSORS ($15,000–$24,999)

National Association of Letter Carriers

Peter G. Peterson Foundation

The National Center on Education and the

Economy BENEFACTORS ($10,000–$14,999)

Blue Wolf Capital Partners

Jobs First 2012

United Food and Commercial Workers International Union

UNITE HERE

The Wessel Group

ADVOCATES ($5,OOO–$9,999)

AARP

American Federation of Teachers

The Annie E. Casey Foundation

Blackstone

International Association of Fire Fighters

International Association of Machinists National Pension Fund

Meketa Investment Group

National Nurses United

Nucor Corporation

Pennsylvania State Education Association Staff Organization

Seafarers International Union

UAW Chrysler National Training Center

Ullico Inc.

United Mine Workers of America

United Steelworkers

ALLIES ($2,500–$4,999)

Amalgamated Transit Union

American Postal Workers Union

America Works

Alexis Herman

International Union of Painters & Allied Trades

Landon Butler & Co., LP

Kenneth Lewis

Julianne Malveaux

National Postal Mail Handlers Union

Prism Public Affairs

Law Offices of Stewart and Stewart

FRIENDS ($1,500–$2,499)

American Federation of Government Employees

Mark Anderson and Peg Seminario

Randy Barber

Jared Bernstein and Kay Arndorfer

BlackRock

California Tax Reform Association

Center on Budget and Policy Priorities

Stan Collender and Maura McGinn

The Commonwealth Fund

Entrust Capital

Forscey and Stinson, PLLC

Josh Gotbaum

International Alliance of Theatrical Stage Employees

International Federation of Professional & Technical Engineers

International Union of Bricklayers and Allied Craftworkers

James & Hoffman, P.C.

Thea Lee and Mark Simon

National Committee to Preserve Social Security & Medicare

Robert Pollin

Threespot

The Yucaipa Companies

CHAIRRichard L. Trumka, President, AFL-CIO

SECRETARY TREASURERJulianne Malveaux, President, Bennett College

Barry Bluestone, Director, Center for Urban and Regional Policy, Northeastern University

R. Thomas Buffenbarger, President, Inter-national Association of Machinists

Larry Cohen, President, Communications Workers of America

Ernesto J. Cortes, Jr., National Co-Direc-tor, Industrial Areas Foundation

Phaedra Ellis-Lamkins, CEO, Green for All

Rep. Keith Ellison (D-Minn.),† U.S. House of Representatives

Jeff Faux, EPI Distinguished Fellow and Founding President

Leo W. Gerard, President, United Steel-workers of America

Teresa Ghilarducci, Bernard L. and Irene Schwartz Chair in Economic Policy Analysis, New School for Social Research

Jacob Hacker, Stanley B. Resor Professor of Political Science, Yale University

Joseph T. Hansen, International President, United Food and Commercial Workers

Mary Kay Henry, President, Service Employees International Union

Alexis Herman, Chair and CEO, New Ven-tures, LLC, and former U.S. Secretary of Labor

Robert Johnson, Board member, Brennan Center for Justice, Democracy Alliance, and the Institute for America’s Future

EPI Board Members (as of Feb. 3, 2012)

32 | EPI BOARD MEMBERS

Bob King, President, United Auto Workers

Robert Kuttner, Co-founder and co-editor, The American Prospect, and EPI co-founder

Donna Lenhoff,† Senior Civil Rights Advi-sor, U.S. Department of Labor Office of Federal Contract Compliance Programs

Wilma Liebman,† Former Chair, National Labor Relations Board

Lisa M. Lynch, Dean and Maurice B. Hexter Professor of Social and Economic Policy at the Heller School for Social Policy and Management, Brandeis University

Ray Marshall, Professor Emeritus of the Audre and Bernard Rapoport Centennial Chair in Economics and Public Affairs, Uni-versity of Texas-Austin, EPI co-founder, and former U.S. Secretary of Labor

Gerald W. McEntee,* President, American Federation of State, County and Municipal Employees, and former Chair, EPI Board of Directors

Lawrence Mishel, President, EPI

Debra Ness, President, National Partner-ship for Women and Families

Pedro Noguera, Professor, Steinhardt School of Culture, Education, and Human Development, New York University

Jules O. Pagano,* Vice President, Ameri-can Income Life, and Executive Director, AIL Labor Advisory Board

Manuel Pastor, Professor of Geography and American Studies and Ethnicity, Univer-sity of Southern California

Bernard Rapoport,* Founder, American Income Life Insurance Company, and the Bernard and Audre Rapoport Foundation (deceased)

Robert B. Reich, Professor, Goldman

School of Public Policy, University of California-Berkeley, EPI co-founder, and former U.S. Secretary of Labor

Roger Smith,† President and CEO, American Income Life

Randi Weingarten, President, American Federation of Teachers

* Left board after 2011 † Joined board in 2012

EPI Staff

EPI STAFF | 33

OFFICE OF THE PRESIDENT

Lawrence Mishel, President

Ross Eisenbrey, Vice President

Alyce Anderson, Executive Assistant

COMMUNICATIONS

Jody Franklin, Director of Communica-tions

Karen Conner, Media Relations Assistant Director

Donté Donald, Media Relations Associate

Lora Engdahl, Publications Director

Dan Essrow, Graphic Designer

Arin Karimian, Online Producer

Michael McCarthy, Editor

Eric Shansby, Online Director/Creative Director

Phoebe Silag, Media Relations Director

Yesica Zuniga, Administrative Assistant

DEVELOPMENT

Arlene Williams, Director of Development and Strategic Planning

Princess Goldthwaite, Senior Develop-ment Associate

Sarah Harding, Senior Development Officer

James Tatum, Development Associate

EXTERNAL AND GOVERNMENT AFFAIRS

Christian Dorsey, Director of External and Government Affairs

Zaneta Green, Administrative Assistant

FINANCE AND ADMINISTRATION

John Cook, Finance and Administration Director

Shurron Dempsey, Office Manager/Payroll

Zaneta Green, Administrative Assistant

Charlene Hill, Accountant

Jana Sangy, Director of Human Resources

Yesica Zuniga, Administrative Assistant

RESEARCH AND POLICY

Josh Bivens, Acting Research and Policy Director

Algernon Austin, Director of the Race, Ethnicity, and the Economy program

Daniel Costa, Immigration Policy Analyst

Jin Dai, Programmer

Jeff Faux, Founding President and Distin-guished Fellow

Andrew Fieldhouse, Policy Analyst

Nicholas Finio, Research Assistant

Elise Gould, Director of Health Policy Research

Monique Morrissey, Economist

Ethan Pollack, Policy Analyst

Richard Rothstein, Education Research Associate

Natalie Sabadish, Research Assistant

Robert E. Scott, Director of Trade and Manufacturing Policy Research

Stephanie Scott, Executive Assistant/Conference Coordinator

Isaac Shapiro, Regulations Research Associate

Heidi Shierholz, Economist

Rebecca Thiess, Policy Analyst

Elaine Weiss, National Coordinator, Broader Bolder Approach to Education Campaign

Hilary Wething, Research Assistant

EARN

Douglas Hall, Director

David Cooper, Economic Analyst

Mary Gable, Policy Analyst

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