Springfield/Clark County's Population and Economy

Springfield's Population

Springfield is very typical of cities in the Midwest generally and especially in Ohio. Clark County is located in the Dayton-Springfield Metropolitan Statistical Area (MSA) which is comprised of four counties : Clark, Montgomery, Greene and Miami. It is the 24th largest MSA of 264 in the U.S. according to the 1990 Census. Clark County has a land mass of 400.02 square miles with a population of 147,548 and a median age of 34.3 years. Clark County is the 14th most populous of Ohio=s 88 counties. Per capita income in 1990 was $16,676, ranking the county 34th in the state.

When we compare Springfield to other cities in Ohio, we find that it is just about as typical as the media say. We have compared it on a number of measures to the three largest cities (Cleveland, Columbus, and Cincinnati), our nearest city (Dayton), and some other Ohio cities of comparable size (Lima, Canton, Lorain, Middletown and Mansfield). As shown in Table 1, residents of Lorain, Middletown and Columbus experience significantly higher income levels than do residents of Springfield; residents of Cleveland, Dayton and Canton have significantly lower levels. The other cities cluster on either side of Springfield. Households, families and non-family households in Springfield receive incomes near the middle of the distribution for the cities chosen.

If we are very typical of Ohio cities in average income, we compare much better in terms of unemployment. Unemployment rates are more variable among cities than the other comparison factors chosen. Columbus and Cleveland represent the low and high rates respectively, with Springfield again near the middle of the range for the cities chosen. Only Columbus, Middletown and Cincinnati have lower rates of unemployment. Clearly Central and Southwestern Ohio have fared much better in employment than the northern part of the state, yet Springfield (7.4%) has done much better than Dayton (9.7%). The December 1994 figures show the results of an improved economy throughout Ohio; unemployment has hovered in this range since.

Table 1 - Median Incomes and Unemployment Rates for Selected Ohio Cities (1990 Census)

City	Median Income Levels			Unemployment Rates in %
	Household	Families	Non-family Households	All Persons	All  Males	All  Females	12/1994  Total
Lima	$21,061	$25,775	$12,471	12.8%	13.6%	12%	6.4%
Canton	$19,807	$25,177	$11,850	11.3%	12.2%	10%	6.0%
Lorain	$24,123	$29,304	$13,745	9.3%	9.1%	10%	5.8%
Middletown	$25,714	$31,313	$14,306	7.8%	8.9%	7%	5.3%
Mansfield	$22,591	$28,504	$14,497	8.8%	9.5%	8%	7.8%
Dayton	$19,799	$24,819	$13,499	10.5%	11.3%	10%	4.9%
Cincinnati	$21,006	$26,774	$15,256	7.9%	8.9%	7%	4.8%
Columbus	$26,651	$32,898	$18,961	5.9%	6.4%	5%	3.9%
Cleveland	$17,822	$22,448	$10,994	14%	15.1%	13%	5.8%
Springfield	$21,407	$26,838	$12,671	8.8%	10%	7%	4.9%

 

Education and income are so closely tied together today that it is helpful to look at educational attainment and poverty levels at the same time as shown by Table 2. Springfield has more high school drop outs and fewer college graduates than most of these Ohio cities, but we fall close to the middle between Columbus and Cleveland. Springfield actually does not have quite as much poverty as this low educational attainment would predict. Notice that poverty rates for persons in female headed households are roughly twice the levels for persons in all families and for persons both young and old in non-female headed families. This lack of an educated labor force is a problem for attracting and keeping good jobs here, and that will be increasingly true in the future when wages will be even more closely tied to education.

After all of the comparisons with these other Ohio cities the conclusion returns us to where we began. Springfield lies in the middle between Cleveland and Columbus on almost all counts. We shall find this to be a continuing theme of this report. Springfield is very typical of Ohio cities.

Table 2 - Educational Attainment and Poverty Rates for Selected Ohio Cities (1990 Census)

City	Educational Attainment		Poverty Rates for Persons, Families and Households
	% High School or Greater	% College or Greater	% of All Persons	% of All Persons over 18	% of All Persons over 65	% of All Families	% of Female Headed Household
Lima	69.3%	8.4%	21.6%	17.3%	14.6%	18.6%	49.3%
Canton	67.0%	9.7%	21.9%	17.5%	11.7%	18.8%	48.3%
Lorain	67.5%	7.7%	19.8%	15.0%	10.6%	16.6%	47.8%
Middletown	71.4%	12.8%	15.4%	12.6%	12.3%	13.1%	37.2%
Mansfield	69.7%	13.0%	17.8%	14.7%	14.1%	14.5%	40.3%
Dayton	68.3%	12.3%	26.5%	21.4%	15.8%	22.0%	48.5%
Cincinnati	69.6%	22.2%	24.3%	19.8%	17.3%	20.7%	46.3%
Columbus	78.7%	24.6%	17.2%	15.0%	13.0%	12.6%	35.0%
Cleveland	58.8%	8.1%	28.7%	23.4%	19.2%	25.2%	48.5%
Springfield	68.3%	10.9%	20.9%	16.8%	12.9%	16.6%	40.3%

 

The Local Economy

Springfield is often described as an old Midwest industrial city, and so it is in many ways. Navistar International sits astride the Springfield and Clark County economies as the largest employer and the payer of the best wages. Many other industrial firms, paying various levels of wages, are located around the community. However, as Table 3 shows, employment in the manufacturing sector has declined over the past two decades even as total employment grew by 6,992 jobs. Over the same period, wholesale and retail trade increased 4.7%, and service employment jumped 7.4%. In other words, like the rest of Ohio and the nation, the local economy has shifted away from manufacturing to a more service based economy.

Agriculture is also important to the local economy. Clark County has 732 farms consisting of 179,820 acres or about 70% of the county land mass. While the average farm is 245 acres, there are 47 farms with more than 10,000 acres. The estimated market value of land and buildings for the average farm is $410,000 or $1,803 per acre. Total cash receipts for Clark County farms in 1995 were over $92 million or $118,138 per farm. Both of these figures are much higher than the corresponding figures for Greene and Champaign counties.

Table 3 - Clark County Non-Farm Employment in Major Industries as a Percent of Total County Employment and Compared to That of Ohio and That of the MSA (1990 Census)

Industry	As a % of Clark County Total			Clark Co. compared
	1970	1980	1990	MSA	Ohio
Total Employment	58,063	60,370	65,055	451,000	4,882,300
Construction	4.4	4.4	4.8	3.5	4.9
Manufacturing	37.6	30.1	26.1	22.8	23.1
Transportation and Public Utilities	5.0	5.5	5.0	4.0	4.5
Wholesale Trade	2.3	3.1	3.8	4.4	5.4
Retail Trade	14.6	16.2	17.8	18.2	18.6
Finance, Insurance and Real Estate	3.7	5.3	4.8	3.8	5.2
Total Service	23.6	27.6	31.0	26.2	24.4
Total Government	8.8	7.8	6.6	17.1	14.8

 

Turning to the City of Springfield, Table 4 lists the 10 largest firms in the city, as measured by the size of their income tax withholding accounts. We find four manufacturers, three providers of services (including two hospitals) and three governmental employers. These figures indicate that the Springfield economy is also very much dependent on the service sector and government for employment. No doubt the manufacturing sector remains very important to Springfield and Clark County, but that is much less true than in the past.

Table 4 - Major Employers in Springfield, 1950 and 1996

Clark County and Springfield rose out of the 1990-91 mini-recession stronger than at any time in recent history. During the past five years, building permits, housing starts and industrial expansion all rose to extraordinary levels. Even retail trade flourished with the opening of several national marketing giants and the building of several new restaurants, making Springfield/Clark County a regional magnet for shopping. A number of new hotels were also constructed in the city, significantly increasing occupancy levels and setting new levels in excise tax receipts.

For three years running, the State of Ohio has led the nation in investments in manufacturing and distribution. The Springfield/Clark County region has been a key player in that success with over forty major business expansions including Rittal, Rose City Manufacturing, Eagle Tool, O'Cedar/Vining and a variety of others.

The hallmark of industrial growth in Springfield/Clark County has been the PrimeOhio Corporate Industrial Park which led our region in industrial development over the past several years. Local manufacturers such as Benjamin Steel, Krone Crane and R&M Material Handling all began or completed buildings in the park in recent years. The most significant additions to the park, however, were M&M Restaurant Supply and Gordon Foods, both of which chose PrimeOhio for their Midwest distribution centers. With the addition of these two firms, employment numbers in the park swelled to record highs, and the park was virtually built out. This is far ahead of the schedule originally contemplated by the park's founders. In late 1996, eighty-eight acres were added to the park to accomodate the continuing pressure for more industrial development.

This strong industrial expansion in Springfield/Clark County over the last several years has produced dramatic increases in manufacturing payrolls and job levels. From 1990 to 1995, manufacturing payrolls in our area rose from $98.8 million to $124.7 million and manufacturing jobs increased from 13,655 to 14,203. With this steady influx of manufacturing, retail and service sector jobs, Springfield/Clark County had increased its employment base from 52,589 jobs to 54,957 jobs by the third quarter of 1995. The results of this growth have been record low unemployment levels and increasing financial stability for both City and County governments.

Springfield is not a Suburb of Dayton or Columbus

Dayton TV and radio stations claim they serve the Dayton-Springfield area and the Bureau of the Census does place us together in the same MSA (Metropolitan Statistical Area). However, as Tables 5 makes clear, Springfield is not a suburb of Dayton or Columbus. Perhaps the simplest test of economic connection is where we work. The vast majority of workers in Springfield and in the suburban townships around Springfield work either in the City of Springfield or elsewhere in Clark County. Even rural Madison Township sends nearly three-fourths of its workers to work in Springfield and Clark County. With the exception of some areas in the western end of Clark County, residents of Springfield and Clark County depend upon this area as their primary economic base.

Looking at the specific numbers makes the independence of our economy clearer. Of the nearly 28,000 workers who lived in Springfield in 1990, nearly 65% worked in the city, and over 17% worked in the rest of the county. In our mobile society, that total of 82% indicates impressive integration of our local economy.

Of the about 64,000 workers who lived in all of Clark County in 1990, over 44% worked in the city, and nearly 26% worked in the rest of the county. The total of 70% still suggests a significant integration. The totals for the suburban townships (82% for Moorefield Township, 81% for Springfield Township, and 77% for German Township) are closer to the Springfield total than they are to the county average.

The totals for nearby townships (76% for Harmony Township, 75% for Madison Township, 71% for Green Township, 65% for Pleasant Township, and 57% for Pike Township) do not slip all that much. Only in Mad River Township (42%), New Carlisle (37%) and Bethel Township (36%) do a majority of residents work outside of Springfield and Clark County.

TABLE 5 - Place of Work by Residence (1990 Census)

 

Place of Residence	Work in Springfield	Work in Clark Cnty	Spfld or Clark Cnty
Springfield	65%	17%	82%
Clark County	44%	26%	70%
Moorefield Township	44%	38%	82%
Springfield Township	47%	34%	81%
German Township	36%	41%	77%
Harmony Township	37%	39%	76%
Madison Township	27%	48%	75%
Green Township	35%	36%	71%
Pleasant Township	37%	28%	65%
Pike Township	20%	38%	58%
Mad River Township	19%	24%	42%
New Carlisle	10%	27%	37%
Bethel Township	9%	27%	36%

 

Tables 6 and 7 lay out the same information for some selected census tracts that we will examine in more detail later in the study. Table 6 tells us that the vast majority of workers in Springfield and in the suburban townships around Springfield either work in the City of Springfield or elsewhere in Clark County. Even rural Madison Township sends nearly three-fourths of its workers to work in Springfield and Clark County. As Table 7 shows, most residents of our county work close to home, traveling less than 20 minutes to work. To a great extent, our economy is separate from Dayton's.

TABLE 6 - Place of Work by Residence (1990 Census)

 

Place of Residence	Dayton  Springfield MSA	Clark County	Springfield City	Forest Hills	Shawnee	Northridge (S)	German Township	Madison Township
Total Workers	438,754	64,012	27,998	1,043	2,021	2,789	1,587	1,104
Dayton City	121,925	3,686	815	72	94	59	70	23
Springfield City	30,206	28,356	18,148	370	941	1,163	650	297
Rest of Clark County	18,689	16,493	4,782	391	697	1,107	605	530
Outside Dayton - Springfield MSA	23,356	5,088	2,285	37	111	277	130	215

Table 7 - Travel Time to Work (1990 Census)

 

Tract Name	< 5 Minutes	5-9 Minutes	10 - 14 Minutes	15-29  Minutes	30-44  Minutes	45 - 59 Minutes	60 - 89 Minutes	> 90 Minutes	Work at Home
Selma Road	0	173	200	217	34	29	8	11	28
S.Yellow Springs	0	67	67	114	25	5	22	13	15
Southgate	23	218	272	507	243	54	44	0	19
Kenwood Heights	68	333	427	782	212	104	78	24	12
Ridgewood	121	318	505	372	207	73	81	4	49
Forest Hills	21	107	184	427	215	27	17	8	37
Shawnee	120	149	306	1,023	228	62	34	56	43
German Twp.	53	174	301	689	210	88	37	9	26
Madison Twp.	89	171	70	337	252	87	28	36	34
Northridge (N)	35	24	142	342	63	22	4	0	16
Northridge (S)	79	333	438	1,021	215	124	70	0	33

 

The Rusk Analysis of Elasticity and Annexation

A critical component of the Rusk analysis is the degree of a city=s elasticity. In recent decades, American cities have grown in both population and tax base primarily on their peripheries, their outer edges. A city is said to be elastic if it can expand its boundaries one way or another in order to capture the population and tax base growth on its periphery. Most commonly this is done through annexation. Rusk has presented evidence that elastic cities are more healthy than those cities which are bounded by incorporated areas on their borders. A city=s fiscal health thus depends in part upon its ability to capture tax base outside its boundaries.

To illustrate this situation, Table 8 shows city-to-suburb income ratios and fair share of poverty percentages for 1990. The average Springfield resident has 69% of the income that residents of outlying areas have, lower than the Ohio average. In North Carolina, Rusk's favorite state for elasticity, city residents actually have higher incomes than their suburban counterparts. The second column shows that the situation has gotten worse for all Ohio cities. The city to suburb income ratio has fallen in just ten years, by 13% in the case of Springfield. This data suggest that the rate of growth of incomes has been greater in the outlying areas, lending more urgency to the policy implications of the Rusk hypothesis. Cities must capture growth on their edges or face very difficult financial conditions in the future.

Table 8 - Income Ratios and Fair Share of Poverty (1990 Census)

Metro Area	City / Suburb Income Ratio %	Change in City / Suburb Income Ratio, 1980-1990	City Fair Share of Poverty  %
Columbus	81	-4	146
Dayton	64	-10	223
Springfield	69	-13	176
Cleveland	54	-10	243
Ohio Average	75	-12	192
North Carolina Average	110	-2	124

 

In his recent book, Rusk proposed a fair share poverty index. The fair share of poverty number assesses the distribution of poverty over a metropolitan area. He believes it would be fairest if poverty were shared more or less equally across a metropolitan area. A score of 100 for a city in comparison to the area around it would indicate that the area's poor are just as likely to live in the city as in the surrounding area. The higher the number, the more the burden of poverty is borne by the center city. Springfield=s score is 176, slightly better than the 192 score for all of Ohio=s cities but higher than the average for North Carolina cities (124).

Cleveland is the clearest example of inelasticity in Ohio; more locally, Dayton is a good example. Both are surrounded by growing suburbs that have captured most of the growth in their metropolitan areas. At the same time both are experiencing greater demands for public services represented here by larger proportions of poor people. Poor persons depend much more on public services, everything from bus service to housing inspection to drinking water and sewers, than do those with more money who can afford cars, good housing, and wells and septic systems. Elastic cities are better able to deal with metro-wide problems than are inelastic cities, both because they have more resources and because their problems, such as poverty, tend to be less concentrated. On this and most other of Rusk's measures of how healthy a city is, Springfield tends to fall somewhere between healthy Columbus and unhealthy Cleveland and Dayton.

In a recent book, Rusk categorized Springfield as a low elasticity city. In order to measure the elasticity of different cities Rusk invented an index of elasticity. Calculating this index number involves identifying a city=s population density in 1950 and then measuring the rate of expansion of its boundaries between 1950 and 1990. Because Springfield had a population density close to the median for U.S. cities in 1950, its relatively low ranking is due solely to its inability to capture territory on its periphery by expanding its boundaries between 1950 and 1990.

Table 9 shows that all city densities, measured as persons per square mile, have fallen in the last three decades by an average of around 40%. The experience of the city of Springfield has mirrored the national picture. However, Springfield suburbs were in 1960, and remained in 1990, less densely populated than the average for U.S. suburbs. Looking at the figures for Cleveland, it was predictable that Ohio=s largest city would depopulate in the thirty year period after 1960. Cleveland city densities were much higher than the national average in 1960 and fell sharply in the following thirty years. Density changes over time in Columbus and its suburbs closely track the national averages. The same can be said of Portland, an example added here because it is using land use planning and other metropolitan controls in an attempt to limit sprawl.

Table 9 - City and Suburb Population Density, 1960-1990 (1990 Census)

 

Population Density Changes Over Time, Cities vs. Suburbs	1990 City Density  Persons / sq. mi.	1990 Suburb Density	1960 City Density	1960 Suburb Density
USA avg. (213 areas)	3,320	2,131	5,502	2,622
Cleveland	6,566	2,097	11,542	1,795
Columbus	3,315	2,028	5,430	2,606
Springfield	3,615	1,128	5,552	1,517
Portland, OR	3,507	2,763	5,630	2,229

 

The rate of expansion of the Springfield city boundaries was 61% between 1950 and 1990. This compares to a 72% average for all cities in Ohio, and 366% for all cities in North Carolina, Rusk's model state for elasticity. During these years, the average annual rate of growth of Springfield's boundaries for the period 1950-1990 was around 1.5%, a relatively low figure, even for Ohio cities. By comparison, Cleveland hardly grew (3%), and Columbus grew at a rate like a typical North Carolina city. This is one area where Dayton's numbers look better than Springfield's; however, it has very few options for future growth. Table 10 summarizes this information.

Table 10 - City Growth in Territory, 1960-1990 (1990 Census)

Metro Area	1950 City Area in sq. mi.	1990 City Area  in sq. mi.	City Area Growth  1950-1990 (%)	Rusk=s City  Elasticity Category
Ohio Average	33	56	72	low
North Carolina Ave.	14	66	366	high
Springfield	12	20	61	low
Dayton	25	55	120	low
Cleveland	75	77	3	zero
Columbus	39	191	385	high

In addition, population growth has been negative for the city of Springfield in the last three decades. The average rate of population growth for 213 U.S. cities was 47% over the 1960-1990 period, but Springfield experienced a population decline of 2%. Columbus population grew by 53%, and Dayton grew by 22%. The Ohio average was 13%, and the North Carolina average was 102%.

Rusk concludes that Ohio=s urban areas have experienced low rates of population growth and high rates of land development outside their boundaries. His primary concern is that Ohio central cities are being steadily abandoned. On a 40 point scale, Springfield has a city elasticity score in the mid-teens. To raise its elasticity rating to a level comparable to that of Columbus, Springfield would need to be a city three to four times its current size in square miles. Had such growth occurred, Springfield would be categorized as a medium elasticity city. To reach the high elasticity category, Springfield would need to be seven to eight times its current size. This would mean that before 1990 Springfield would have had to annex all of German, Moorefield, Springfield, Green and Mad River Townships.

If sprawl and failure to capture growth on the periphery are the problems, annexation can be seen as one solution, according to Rusk. The city of Springfield=s most visible annexation effort in the last decade was the PrimeOhio project. Located across Ohio Route 41 from the Clark County Fairgrounds, PrimeOhio provides excellent industrial sites with instant access to Interstate 70. The Springfield and Clark County Chamber of Commerce estimates that the seven manufacturing and distribution companies located in the PrimeOhio Corporate Park have generated over $4 million in income, property and sales taxes. Some of these new firms were already present locally but most have come from outside the area. In either case, they probably would have been lost to the City of Springfield's tax rolls except for the annexation of PrimeOhio. Taxes generated since the opening of the park in 1987 and estimates of annual tax flows after new tenants are shown in Table 11. Notice that since school annexation does not usually follow from city annexation, Springfield Local Schools, not Springfield City Schools, is actually the largest tax winner from PrimeOhio.

Table 11 - Tax Revenue from PrimeOhio

 

Type of Tax	Total Past Taxes	Future Annual Taxes
County property taxes	$650,000	$275,600
County sales taxes	$394,200	$160,800
City income taxes	$1,491,722	$464,005
Township revenue sharing	$74,587	$23,200
School property taxes	$1,954,517	$798,030
Total	$4,565,026	$1,721,635

 

The number of existing jobs at PrimeOhio is shown in Table 12. These estimates do not include any multiplier effect. That is, they do not include other jobs that either directly or indirectly support those jobs created at PrimeOhio. Chamber of Commerce estimates are that for every 100 new jobs created, 71 support jobs are also created. Estimates of future job creation are very difficult.

Table 12 - Jobs Created at PrimeOhio

 

Chamber of Commerce Estimate of Jobs Created to Date in PrimeOhio by Company
F.H. Bonn Co.	Clark County Ag. Services	Teikuro  Corp.	Trutec  Industries Inc.	CoilPlus  Ohio  Inc.	AOT  Inc.	Benjamin  Steel,  Inc.	Aldi  Foods	M & M  Rest.  Supply	Total
94	40	65	60	32	65	83	150	160	749

 

The city of Springfield began a new annexation policy in 1987 whereby it no longer provided its water or sewer services to property outside the city without agreement to annex, unless the property was located in an already established utility service district. Practically this meant that very little industrial or commercial development could occur without annexation. Already existing utility service districts were in residential areas, the most important being the Northridge Water and Sewer Districts located where the Clark County housing boom was centered. As a result, much of the new residential building occurred with city utilities without annexation in areas covered by these already existing agreements. It would appear that Springfield has done much better at annexing tax base than at annexing population.

Springfield did annex 1,479 acres from neighboring townships between 1987 and 1996. In all of the annexation cases of the last decade, the request was initiated by property owners in the areas affected usually in order to get city services. This resulted in an increase in the size of the city area from 19.9 square miles at the beginning of 1990 to 21.7 square miles by the end of 1996. The rate of increase in city size was 8.8% for the years from 1990 - 1996, an annual average of 1.27%. While an impressive accomplishment, it does not approach the levels achieved by the mostly southern and western cities in Rusk=s high elasticity category.

The total projected or actual value of investment associated with annexation efforts in the last seven years is approximately $35 million. Since annexation to the City of Springfield usually does not mean annexation to Springfield City Schools, there is no question that county school districts (especially the Springfield Local District) will receive big tax benefits from the increased value of properties in the annexed areas. Township taxes lost are considerably smaller, around $40,000 annually, because the land use before annexation was much lower in value, typically residential or farming.

Gains for the city are unknown and linked to future job creation in the annexed areas which is difficult to estimate accurately. Because the city has little property tax and relies almost exclusively on income taxes, tax revenue gains for the city are dependent on income taxes paid by future employees of newly developed commercial activity. Estimates of future job creation are very difficult because businesses hire and employees leave constantly. This is a problem in evaluating precisely how much the city gains from annexation since its primary revenue source is a tax on wages.

As we have already seen, the City of Springfield expects to receive more than $450,000 a year in taxes from PrimeOhio in future years. Already in 1996, the added revenue the Glimsher development (Wallmart, Lowes, Big Bear, etc.) was estimated at nearly $175,000. When all other annexations are added in, the City estimates that a total of nearly $896,000 was added to the city's 1996 revenue. Based upon projects already underway, the City believes that revenue from areas annexed during the last decade will reach almost $1,118,000 per year by 1998.

The accompanying diagram shows the positive effect of annexation on the budget of the City of Springfield. The past eight years have seen a turn around in city finances. During the Eighties city government was constantly in the news for one budget crisis after another. In recent years, the City of Springfield has balanced its budget and built up a fund of 10% in order to be able to help handle whatever the economic future may bring.

The numbers show that this budget success would have been difficult if not impossible without annexation. If we subtract the new revenue from annexed areas, the budget for the City would have been seriously (nearly $723,000) out of balance by 1995. The total deficit by the end of 1996 would have been $1,828,000. Annexation has been key to the recent revival of Springfield City Government.