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home : news : north central illinois   May 24, 2016

9/20/2013 2:55:00 AM
Census: State poverty rates remain near 15 percent

By Kevin Caufield
NewsTribune Reporter
and the Associated Press

A new snapshot into local poverty shows not much has changed in La Salle County since the 2009 recession began, according to a recently released one-year report by the U.S. Census American Community Survey.
Local poverty is much easier to see locally as the number and quality of lost jobs still outpaces new ones, those who have employment are finding their hours are being cut, and area food banks see more of their clientele coming a second time each month for additional help.
Wayne Thompson is director of the weatherization program for Tri-County Opportunities Council. TCOC serves nine area counties including La Salle, Bureau, Putnam and Marshall counties. Specifically, the weatherization program assists people in need of home improvement upgrades to make their heating and cooling systems run more efficiently.
“Our list of people needing help never really gets caught up because the need is so great,” Thompson said. “As soon as we take care of 10 houses another 15 need help.”
New U.S. census figures show that Illinois’ poverty rate held stubbornly at nearly 15 percent last year, signaling what anti-poverty activists say is worrisome proof that any economic recovery has not reached those struggling with low income.
In La Salle County, 16,373 people or 14.9 percent were estimated to be in poverty, according to the survey.
The latest federal data show that 14.7 percent of Illinoisans — 1.85 million people or one in seven residents of the state — were in poverty last year, down slightly from the 15 percent, or 1.88 million, in 2011. The national rate also remained discouragingly stuck at 15 percent — affecting 46.5 million Americans and marking the sixth year in a row the U.S. rate failed to improve.
For the past year, the official poverty line was an annual income of $23,492 for a family of four. The latest figures show that the median income for the nation’s households was $51,017, also unchanged from the previous year after two consecutive annual declines.
Illinois was one of just four states where the median household income rose last year, while Missouri and Virginia were the only ones that saw a decline. That income level in Illinois rose 1.4 percent to $55,137, while neighboring Missouri’s fell 1.6 percent to $45,321.
Amy Terpstra of the Heartland Alliance’s Social Impact Research Center, a Chicago-based nonprofit that pushes for policy changes to help the poor, said the latest numbers partly underscore Illinois’ need to raise the minimum wage. Gov. Pat Quinn recently revived his pursuit of that despite fierce opposition from business groups, which have argued that hiking the benchmark hourly wage would mean fewer jobs and even higher poverty rates.
“I think what it shows is that poverty still is at nearly unprecedented levels,” Terpstra said. “Ultimately, I think it shows that the recovery has not trickled down to the people at the bottom of the economic ladder.”
The U.S. Census Bureau’s annual report offers a snapshot of the economic well-being of U.S. households for 2012, when the unemployment rate averaged 8.1 percent after reaching an average high of 9.6 percent in 2010. Typically, the poverty rate tends to move in a similar direction as the unemployment rate, so many analysts had been expecting a modest decline in poverty.
Illinois saw such a slight easing, coinciding with a drop in the state’s unemployment rate to 8.9 percent last year from 9.7 percent in 2011 and 10.4 percent in 2010, when Illinois’ jobless ranks were the highest since 1983, according the Illinois Department of Employment Security. Illinois’ seasonally adjusted unemployment rate for July was 9.2 percent.
The breadth of Illinois’ poverty on a local level remains murky, given that census figures released Thursday only focused on counties with populations of at least 65,000, which in Illinois number just 23 of the state’s 102 counties. Those did not include most counties in largely rural southern Illinois, where high unemployment and poverty have notoriously deep roots.
In the Chicago metropolitan area, 14.5 percent of the residents were classified as in poverty last year as the region’s median household income was $59,261, in both cases not statistically different from the previous year. In southwestern Illinois’ St. Clair County, which includes long-suffering East St. Louis, 19.7 percent were below the poverty line in 2012, from 19. 4 percent the previous year.
Terpstra called raising Illinois’ minimum wage — at $8.25 an hour, the highest among Midwestern states — “a key piece” to potentially easing the poverty, noting that a person working 40 hours a week at that income makes roughly $16,000 a year. But boosting that benchmark wage hasn’t gotten much traction in the Statehouse despite Quinn’s continued push to raise it to $10 an hour.
Quinn, a Chicago Democrat who in 2010 campaigned on raising the minimum wage and mentioned it in his State of the State address in February, has revisited the matter recently as he seeks re-election. On Sept. 1, he told congregants at a Baptist church in Chicago “it’s a principle as old as the Bible to help those who work hard to not live in poverty.”
An Illinois bill to raise the minimum wage hasn’t reached a floor vote and opponents have fought it hard. Illinois Chamber of Commerce President Doug Whitley has branded “an untimely, ill-advised and outrageous proposal that puts a dagger to the heart of the very employers politicians normally say they want to grow and be successful.”


Copyright 2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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