Posted: Oct. 8, 2009

Cobo a scene of desperation
Social service agencies are bracing for more troubles
BY TAMMY STABLES BATTAGLIA and MATT HELMS
FREE PRESS STAFF WRITERS


The economic tsunami washing over metro Detroit swept its casualties
to the doors of Cobo Center on Wednesday in the form of 35,000 people
so desperate for help with mortgage and utility bills that threats
were made, fights broke out and people were nearly trampled.

Some were treated by emergency medical workers on site.

It was one of the most dramatic signs to date of how deeply
joblessness and the home foreclosure crisis have pushed people from
the lower and middle ends of the economic scale to seek help wherever
they can.

City officials said a total of about 65,000 people over the past few
days have gotten applications -- due next Wednesday -- for a share of
$15.2 million in federal stimulus money to help people avoid
foreclosure or quickly rebound from homelessness.

Ultimately, as few as 3,500 people may receive the help.

Area social service agencies worry the problem will worsen because of
lingering economic woes and the masses of people who could soon run
out of unemployment benefits.

Racquel Sawyers, 35, a laid-off engineer for General Motors and
Chrysler, went home after seeing the crush at Cobo. "I'm just trying
to do what I can right now," she said.

Kelli Phillips tries to make the numbers work: $650 a month for rent,
$300 to $500 a month to heat her old house, plus food for her and her
boys, ages 6 and 17.


The unemployed office worker does it all on $1,000 a month, plus
"borrowing, doing odd jobs," said Phillips, 42, of Detroit. "I clean
houses for people."


That's why she stood in the chaos of thousands lined up outside Cobo
Center on Wednesday, hoping for a chance at $3,000 in assistance
through a Detroit housing and utility payment program funded through
the federal stimulus program.


The huge lines were a sobering glimpse into the deep economic trouble
in metro Detroit, but they were no surprise to social service agencies
struggling to provide food, clothing, utility and housing assistance
to people living in the state with the nation's highest unemployment
rate -- 15.2% in August -- and a city where joblessness is approaching
30%.


Folks are out of work, out of money and running out of hope.


"People seem to be falling between the cracks of government programs
that are supposed to help them," said Kristin Seefeldt, a research
scientist for the National Poverty Center at the University of
Michigan's Gerald R. Ford School of Public Policy.


Seefeldt, who is following 45 low-income Detroit women for a study on
the recession's impact on poor people, said the group is a microcosm
of what's happening across the state and country. They're losing jobs
and having a hard time finding new ones. More than half owe money to
utility companies, ranging from $200 to several thousand, that they're
unable to pay because groceries, rent and food come first.


"They may be able to keep up with current payments, but there's always
this back debt that they owe," Seefeldt said. "People are struggling.
They're really struggling. Although, I would say many of them would
say, 'At least I have a roof over my head.' "


Metro Detroit's economic troubles are severe. Michigan unemployment
was at 15.2% in August -- and 27.8% in Detroit proper.


"You have to go back to the 1982 recession to find unemployment levels
at or above the levels we're at in 2009," said Bruce Weaver, an
economic analyst for the state's Department of Energy, Labor and
Economic Growth.


Weaver said the state lost 330,000 nonfarm jobs between August 2008
and August 2009, a 7.9% drop. Of those, 142,000 were in manufacturing,
a 25% drop in that sector.


Social service agencies say they're swamped with requests for aid.


"It's probably the worst hunger crisis we've seen in our history,"
said Anne Schenk, spokeswoman for Detroit's Gleaners Community Food
Bank, the state's largest food bank, serving five counties in
southeast Michigan.


Schenk said charitable groups are bracing for even more troubles as
the long-term jobless run out of unemployment benefits -- as many as
50,000 in the next few months in Michigan if the federal government
doesn't approve an extension.


"That, we're anticipating, is going to throw a lot more families into
poverty," Schenk said. "It's going to happen three months from now, or
six months from now, or within the year. We are looking at every
strategy available to us to get more food and get it out" to agencies
that provide food directly.


Heading into 2009, Michigan was already in bad shape. According to
U.S. Census Bureau estimates for 2008, 1.4 million Michiganders lived
below the poverty line, about 14% of the state's population. In
Detroit, the number was 33%. The bureau puts the poverty level at
about $22,000 in yearly household income for a family of four.


Bill Sullivan, director of 211, the services hotline of United Way for
Southeastern Michigan, said the region is being jolted by job losses
and a culture and society that are unsustainable.


"What we saw at Cobo today is nothing new" to people struggling to get
by, Sullivan said. "It's new to everyone else. The people who are most
affected by a lack of jobs, what they experienced today is what they
experience every day on a certain level."


Robyn Smith, community relations director for the Coalition on
Temporary Shelter, said the tremendous crush of people didn't sadden
her.


"I'm happy because there's something available," she said as she
collected filled-out applications from a doorway guarded by a Detroit
police officer to keep people from slipping in. COTS provides 44,000
shelter nights a year to the city's homeless people, about 40%
families and about half working poor people.


People fainted and others fought as police tried to keep people calm
and cooperative in line at Cobo, with some waiting since Tuesday
night. By 11:45 a.m., Detroit Mayor Dave Bing's office sent out word
for people to stay away.


Inside Cobo, lines led up to a crush of people outside the Riverview
Ballroom, where Detroit Planning & Development employees were to hand
out applications. At about 10:30 a.m., a shoving match broke out in
the crowd, and many of the people bolted away.


"It's a disaster here," City Council candidate Gary Brown said. Brown,
a former Detroit Police assistant chief, handed out bottles of water
to those in line. "This is dangerous. Very unorganized, very
dangerous."


Police said only a few people were hospitalized for medical issues or
minor injuries in the skirmishing.


Camille Lewis and Lakia Montgomery, both 25 and longtime friends,
moved in together to save money after Lewis was laid off from her
Aramark job cooking at Cobo and Montgomery was let go from an adult
foster care position.


"When that happened, we had to move in together," Lewis said. "That's
what's making it easier."



Contact MATT HELMS: 313-222-1450 or [email protected]. Free Press
data analyst Kristi Tanner contributed to this report.
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