Report: Illinois poverty remains stubbornly high
By The Associated Press
Posted Jan. 30, 2014 @ 6:32 pm
CHICAGO — Illinois' overall poverty rate is the same as it
was a half-century ago despite scores of state and federal aid programs and a
steep drop in the number of older people struggling to get by, according to a
new report that examines how the state has fared since President Lyndon Johnson
declared a national War on Poverty.
Almost 15 percent of Illinois residents, about 1.9 million,
lived below the federal poverty line in 2012, about the same as in 1960 before
Johnson's call to action, according to the report released Thursday by the
Chicago-based Social IMPACT Research Center. It comes as the debate over the
gap between rich and poor — and what to do about it — become a heated issue in
state and national political races.
The stubbornly high poverty rate — defined as an annual
income below $23,850 for a family of four — reflects, in part, a loss of
manufacturing jobs and an increase in part-time-only and service jobs, as well
as a high number of people still unemployed since the recession, said Amy Terpstra,
the center's associate director.
"It's not 100 percent one thing or the other,"
Terpstra said. "But you used to be able to come out of or not finish high
school, learn skills on the job and get a family-supporting wage plus benefits,
pension and vacation. Those jobs have been diminishing (and are being) replaced
with jobs that are lower-paying and less secure."
Among the report's findings:
— Poverty has increased about 3 percentage points for
working-age men and women. About 9 percent of men lived in poverty in 1960,
compared to 12 percent in 2012; for women, poverty increased from 12 percent to
more than 15 percent in that same period.
— Almost 21 percent of children, or 1 in 5 under the age of
18, lived in poverty in 2012, compared to 16.5 percent in 1960.
— The poverty rate among blacks and Latinos remains highest
among ethnic and racial groups. Poverty among blacks was 32 percent in 2012,
down about 3 percentage points from 1960; it was more than 21 percent among
Latinos in 2012, and about 21 percent in 1960.
— Poverty among senior citizens has dropped the most, with
the rate for those 65 and older down from 30 percent in 1960 to below 9 percent
in 2012, because of programs such as Social Security and Medicare. Even so,
Terpstra said, the number of seniors looking for work has increased 40 percent
since 2000.
— The number of Illinois counties with a poverty rate of 20
percent or higher fell from 68 in 1960 to 10 in 2012, while suburban poverty
increased.
But the issue is complicated and nuanced, and the official
federal poverty line does not provide a full picture of economic hardship,
Terpstra said. For example, almost 18 percent of Illinois residents are above
the poverty threshold but are considered low-income, earning between 100
percent and 199 percent of the poverty level. That means about one-third of state
residents are struggling.
Many work but don't earn enough to afford basics such as
utilities, rent and food, said Pete Schaefer, president and CEO of the Northern
Illinois Food Bank, a 13-county network of food pantries. He said some lost
full-time, middle-class jobs and are trying to get by on lower-paying part-time
or temporary work, while others have given up looking.
"You know who's hungry? It's your neighbor down the
street," said Schaefer, adding that the pantries have almost tripled the
amount of food distributed in four years.
He said half of those seeking help are working or someone in
their family is. Others include the unemployed, elderly on fixed incomes and
homeowners who owe more than their homes are worth.
Terpstra said conditions have worsened steadily since 2000,
amid a changing job market exacerbated by the recent recession.
Illinois' median household income, for example, was more
than $64,000 in 1999, but about $55,000 in 2012. The state poverty rate has
risen 4 percentage points in that same period, as living costs increased.
Democratic Gov. Pat Quinn on Wednesday asked lawmakers to
raise the minimum wage to $10 an hour and double a tax credit that helps
low-income workers keep more of their earnings. Advocates say both measures
could provide an important boost to those in poverty, but also help the economy
because the poor immediately spend extra money on necessities.
Republican gubernatorial candidates have said raising the
minimum wage could backfire by causing some businesses to eliminate jobs,
though GOP hopeful Bruce Rauner has said he would support an increase under
certain circumstances.
But other measures are important, too, said John Bouman,
president of the Sargent Shriver National Center on Poverty Law in Chicago.
He said the availability of health insurance through the
Affordable Care Act should help many who previously would have lost Medicaid
coverage upon employment. Now, if they earn too much to qualify for Medicaid,
they likely will qualify for subsidies to buy private insurance.
Bouman also supports more job training for adults, and
amending the state constitution to adopt a graduated income tax, which would
require those who earn more to pay a higher percentage of their income.
"Most people, I think, are supportive of helping people
who are trying help themselves and of helping the vulnerable," he said.
Read more:
http://www.reviewatlas.com/article/20140130/NEWS/140139947/?tag=2#ixzz2rzCJjPSJ
No comments:
Post a Comment