Post on 07-Apr-2018
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Overview of ExtremePovertyin Illinois
Prepared for the meeting oftheCommission on theElimination of Poverty10/28/09
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Muddy Waters:Definitions of Poverty
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Official Federal Poverty
Definitions
Extreme or Deep Poverty:Extreme or Deep Poverty: livingbelow 50% of the FPL.
Low-Income or Near Poor:Low-Income or Near Poor: livingbetween 100% - 200% of the FPL.
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- Earnings- Unemployment compensation- Social Security- Supplemental Security Income- Public assistance- Veterans payments- Pension or retirement income
- Child supportNoncash benefits (such as food stamps andhousing subsidies) do not count.
Income types included in
measure:
ensionorret
irementincome
,interest,di
vidends,rents
,ro
ensionorret
irementincome
,interest,di
vidends,rents
,ro
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1.1. No variation by geography
2.2. The level doesnt keep up withcosts of
basic needs
3.3. It doesnt include non-cash andtax-based
benefits
4.4. It doesnt account for spending ontaxes,
work expenses, and health care
Shortcomings of Current
Measure
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Self-Sufficiency Standard for a singleparent with a preschool and school-age child in Illinois:
- $49,030 annually- $4,087 monthly- $23.22 hourly
This is $30,720$30,720 higher than thefederal poverty line for the samefamily size.
The Self-Sufficiency Standardshows what it takes to make
ends meet
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Self-Sufficiency Wage by Selected Geography 2009
Based on a family with one parent, one preschooler, and one school-age child
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What events cause
poverty? Loss of a job: nearly 20% of people enter
poverty when the head of household losesa job.
Decline in earnings: half of povertyspells begin with the householdexperiences a decline in earnings.
No high school degree: householdsheaded by someone without a h.s. degreeare 6.4 times more likely to enter poverty
than those with a college degree.
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What events cause
poverty (cont.)? Female-headed household: When a two-
adult household becomes a female-headedhousehold 20.1% entered poverty.
Having children: 8.6% of poverty entrieshappen when a child is born into a household.
Disability: when a head of householdbecomes disabled, 6.5% of households enterpoverty.
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What contributes to
these events? Growth in low-wage work: one fourth of theworkforce in the United States earns povertylevel wages, particularly impacting women and
minorities. Discrimination: estimates suggest that
discrimination against black men reduces thedemand for their labor by at least 10 to 13%.
Wage declines for dropouts: high schooldropouts earn less money than those with moreeducation and their wages have declined
considerably.
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What contributes tothese events?
Violence: having experienced violence increasesemployment instability for some women, and leaving anabuser can render a woman without any income.
Teen births: half of all non-marital childbearing startsduring the teen years which is associated with lowerhigh school graduation and a 20% reduction in the girlsadult income.
Not working full time: this is particularly prevalent for
single parents and people with disabilities or parentscaring for children with disabilities.
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What contributes tothese events?
Increased incarceration experience:incarceration reduces wages by 10 to 20%and increases likelihood of unemployment,particularly for black men.
High poverty neighborhoods:segregation, discrimination, the decline in
jobs, and the loss of positive role modelsconstrain current opportunities and futureaspirations for poor minority residents.
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Drilling Down:
ExtremePoverty
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Exemplified by very low
incomes:family of 3 $9,355 per yearfamily of 4 $11,025 per year
Severe economic deprivationresults in:- hunger and nutritional deficits- substandard housing andhomelessness- poor health and untreatedillnesses
Understanding Extreme
Poverty
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667,026Illinoisans live inextreme poverty.
Illinois extreme poverty rate
rose from 5.1% in 2000 to 5.4%in 2008.
During the same time frame theextreme poverty rate heldsteady nationally.
Extreme Poverty by the
Numbers
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Adisproportionat
e share ofAfricanAmericans live
in extremepoverty Children, youth,and young adults
comprise 56% ofthe extreme
poverty
population
37.3%
18.5%
4.7%
39.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1
Children 0-17 Young Adult 18-24
Other Adult 25-64 Seniors 65+
White (Non
Hispanic)
270,972
Other
34,695
Hispanic99,385
Black
261,974
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Geography ofExtremePoverty inIllinois
County ExtremePoverty Rate
Less than 2.5%
2.5 to 4.9%
5.0% or higher
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82.7% of Illinoisans in extremepoverty live in metropolitan
areasChicago 419,076St. Louis, MO-IL 30,114
Rockford 29,662
Peoria 16,640
Champaign-Urbana-Rantoul 15,425Bloomington-Normal 9,503
Davenport, IA-Rock Island-Moline 8,293
Decatur 8,222
Springfield 7,860Kankakee 6,858
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123,731 youngadults are in
extreme poverty 14.6% have at least
one child
6,414 have adisability
57.8% are in school
63.3% worked inpast year
17.1% are not inschool and are notworking
inExtreme
Poverty
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16.2% of
people inextremepoverty have
at least onedisability Children* Working AgeAdults
Seniors
Percent with adisability
8.9% 20.2% 50.6%
Number with one ormore disabilities
14,569 78,076 15,709
Top disability Learning/Remembering
DifficultyWorking
Physical
Disability
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poverty are singlesinglefemale-headedfemale-headed
householdshouseholds andtheirchildren.
60,37960,379 people inextreme poverty
are
marriedmarried.
A total of164,485164,485
childrenchildren live in
Famili
es
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31,056 seniorslive in extremepoverty
67.2% of themare women
53.1% of them
live alone 2,020 head
households withchildren
Half have adisability
Seniors
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Educationlevels
22.4%
35.0%
29.8%
12.8%
Less than high school HS diploma or equivalent
Some college or associates Bachelors or higher
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Work
,people inextremepoverty
worked in the
past year
1 in 10 worked
at least halfthe year and
11,969 worked
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People in extreme poverty are... Much less likely to be married Much less likely to work the entire year Much less likely to work even half the year Much less likely to have a college degree More likely to have a disability
More likely to live in linguistically isolated households More likely to not speak English More likely to have an incomplete kitchen or
plumbing More likely to live in older housing Much more likely to be aminority Much more likely to not have a vehicle
than those who are not extremely
poor.
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Summary
The majority of those in extreme poverty live inmetro areas across the state.
53.7% of people in extreme poverty are children,people with disabilities and seniors groups not
expected to work. 1/3 of those in extreme poverty are single
female-headed households and their children.
1 in 10 working age adults in extreme povertyworked at least half the year.
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Ripple Effects
of ExtremePoverty:Struggling toMeet BasicNeeds
T t ti
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86.1%86.1% of those car-
less households live
in a metro area
78,08278,082 households in
extreme poverty do
not have a car
Transportation
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1 of every 10 households in extreme poverty
live in housing with incomplete plumbing
and/or an incomplete kitchen
1 out of every 10
households in
extreme poverty livesin housing with
incomplete plumbingincomplete plumbing
and/or an incompleteincomplete
kitchenkitchen
24% of all Illinois
renters pay over half
of their income in rent Housing
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Health Nearly one-third (31.4%) of people in extreme
poverty are uninsured
Half (49.1%) of wor
age adults are unin
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nutrition
9.5% of Illinois households are foodinsecure
25% of households eligible for FoodStamps are not receiving them
Over 900,000 Illinoisans get food fromfood pantries each year
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Protected a smaller share of childrenfrom deep poverty than it used to.
- In 1995, the safety net lifted 88% of poorchildren above50% FPL.
- By 2005, this percentage had declined to
76%.
Protected fewer jobless workers fromdeep poverty than it used to.Amongvery poor unemployed workers looking for workin any given week:- In 1995, the safety net lifted 70% above 50%FPL.- By 2005, this percentage had declined to
60%.
From 1995-2005 the Safety
Net:
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Temporary Assistance to Needy
Families- In 1995, AFDC (which preceded TANF)lifted 62% ofchildren above 50% FPL.
- By 2005 this declined to just21% for theTANF
program.
Food Stamps- In 1995, the Food Stamp Program lifted61% ofchildren above 50% FPL.
- By 2005 this figure had dropped to42%.
Spotlight on TANF and Food
Stamps
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Safety Net Supports in
IllinoisThe number of persons receiving TANF inIllinois has declined precipitously:- In June 2000 262,295 people received
TANF- In June 2009 the number had dropped to67,530.
The average annualTANF benefit receivedper household is $2,982.
The average annual SSI benefit received
per household is $8,319.
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On Illinois Poverty:
www.heartlandalliance.org/povertyreportPoverty reports | Local data | Povertydynamics
On Self-Sufficiency in Illinois:www.ilselfsufficiency.orgIllinois report | County fact sheets | Online
calculator
Amy Rynellarynell@heartlandalliance.org312-870-4943
For more information