The Economy Tests a New South Boomtown

CHARLOTTE, N.C. -- If Detroit was the canary in the coal mine -- the early sign of the country's economic troubles -- then what might Charlotte, N.C. be? The city that was complacent until it started to cough up bits of black dust?

This New South role model has always thought of itself as prosperous with a heart, the country's second-largest banking center and a leader, as well, in volunteering and philanthropy. (I'm speaking as a 14-year resident, which almost makes me a native in this city of transplants and newcomers.)

Now the recession that the city dodged for so long has hit hard. Social services are strained. The school system is cutting programs and teachers. The unemployment rate is edging to 12 percent, above the national average.

The crown on the Bank of America building, the Cesar Pelli-designed beauty on the skyline, doesn't look quite as majestic in light of the bank's bailout problems. Wachovia, the city's other signature financial institution, is now a part of Wells Fargo.

And the city that others looked to with envy is now studied to see if it can figure a way out of this mess. Will its path also set an example for cities facing similar problems?

Charlotte figures it's the perfect time for that heart to do its work.

Recently, more than 240 community members showed up at Little Rock AME Zion Church for the program "Can We Talk about Meeting Basic Human Needs in Difficult Economic Times?" It was the fifth community conversation, sponsored by Mecklenburg Ministries, the Community Building Initiative and the Community Relations Committee. The crowd was a mix of politicians, community and church activists, representatives of nonprofits and people who wanted to know what they could do, for others and themselves.

The opening back and forth between Bob Morgan of the Charlotte Chamber and Willie Ratchford of the Community Relations Committee reflected Charlotte's struggles and gifts: business failures at an all-time high and rising emergency requests at the Crisis Assistance Ministry vs. new jobs coming into the city and an under-construction NASCAR Hall of Fame and center-city cultural center.

A panel that included former Charlotte mayor and architect Harvey Gantt, Mecklenburg County General Manager John McGillicuddy, Crisis Assistance Ministry director Carol Hardison, Latin America Coalition Executive Director Angeles Ortega-Moore and Charlotte Observer Editor Rick Thames discussed the state of the city.

Of the 850,000 residents of Charlotte-Mecklenburg, 177,000 are receiving some form of public assistance, said McGillicuddy. Calls to the mental health help line are up 25 percent from last year, while the budget of the Department of Social Services has been cut.

Hardison pointed out a 253 percent increase in requests for job training through Goodwill, and strains at local food pantries and homeless shelters for women and children. While Charlotte has had numerous strategic plans for arts and culture, she said, none have tackled the issue of social services.

Despite dire statistics, there was hope and determination.

The community has been experiencing pain for a long time, said Gantt, who served as the city's first and so far only black mayor from 1983 to 1987. Now that it's spread around, more people are noticing. He called Charlotte a "blessed community" that can call on its history to deal with today's crisis. The city has "a responsibility and opportunity" to "make life better."

He reminded the crowd that 40 years ago, when the public schools integrated, tensions led to the bombing of homes of civil rights leaders until "ordinary citizens" and parents came together in grassroots cooperation. Now is the time, said Gantt, for that spirit. "While charity is good, investment is better."

A positive in this crisis, Hardison said, is that people might stop making a distinction between the "worthy and unworthy poor." They see hard times can happen even to those who played by the rules.

Charlotte-Mecklenburg is focusing on those schools that integrated relatively peacefully and now face cuts. On Thursday, system officials said it is set to hire 180 teachers, social workers and other support staff with $12.3 million in federal stimulus money and aid for high-poverty schools, according to a report in the Observer.

Amid these positive efforts, Mecklenburg County Commissioner Harold Cogdell warned that the community has to act quickly. "There have been people in crisis for years," he said. "Now that the scope has broadened, there's a new perspective."

"But if we don't capture that," the perspective will be short-lived.