DEPARTMENT: Economic Development
DEPARTMENT HEAD: Rene Dominguez
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
Disparity Study Briefing
SUMMARY:
The Small Business Economic Development Advocacy (SBEDA) Ordinance adopted by City Council in 2010 requires the completion of a Disparity Causation Analysis Study (Disparity Study) to evaluate whether barriers that may prevent minority- and women-owned businesses from participating in City of San Antonio and private sector contracting opportunities still exist in our marketplace.
In October 2015, National Economic Research Associates, Inc. (NERA) completed the Disparity Study which found a continuing disparity between available minority- and women-owned businesses in the market area and the participation of such firms on City contracts, as well as market-based disparities impacting minority and women business formation and earnings. This statistical evidence supports the legal basis for continuing the SBEDA Ordinance.
BACKGROUND INFORMATION:
On June 16, 2010, City Council adopted Ordinance No. 2010-06-17-0531, which significantly revised the City's SBEDA Program. The Ordinance was adopted as a result of a 2010 Disparity Study conducted by MGT of America that found disparity in City and private sector contracting with minority and women-owned business.
According to the U.S. Supreme Court case Richmond v. J.A. Croson Co. (1989), a government program that uses race as a consideration in contracting must pass "strict scrutiny". This standard requires that public entities show a compelling governmental interest in establishing race-specific programs, thus requiring firm evidence to conclude that the under-representation of minorities and/or women is a product of past discrimination. Further, those programs that establish a compelling governmental interest must also be "narrowly tailored" to achieve that interest. Disparity studies are undertaken to comply with this legal mandat...
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