Poverty Commission Presentation 2009

8/4/2019 Poverty Commission Presentation 2009

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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 [email protected]

For more information

Poverty Commission Presentation 2009

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