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Overview of Extreme Poverty in Illinois Prepared for the meeting of the Commission on the Elimination of Poverty 10/28/09. Muddy Waters: Definitions of Poverty. Official Federal Poverty Definitions. Extreme or Deep Poverty: living below 50% 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 and housing subsidies) do not count.
1. No variation by geography 2. The level doesn’t keep up with costs of basic needs3. It doesn’t include non-cash and tax-based benefits4. It doesn’t account for spending on taxes, work expenses, and health care
Self-Sufficiency Standard for a single parent with a preschool and school-age child in Illinois: - $49,030 annually - $4,087 monthly - $23.22 hourlyThis is $30,720 higher than the federal poverty line for the same family size.
Exemplified by very low incomes:family of 3 $9,355 per yearfamily of 4 $11,025 per year Severe economic deprivation results in:- hunger and nutritional deficits - substandard housing and homelessness- poor health and untreated illnesses
667,026 Illinoisans live in extreme poverty. Illinois’ extreme poverty rate rose from 5.1% in 2000 to 5.4% in 2008.During the same time frame the extreme poverty rate held steady nationally.
Children, youth, and young adults comprise 56% of the extreme poverty population
Area of Origin:
1/3 of those in extreme poverty are single female-headed households and their children.60,379 people in extreme poverty are married. A total of 164,485 children live in extreme poverty
…than those who are not extremely poor.
86.1% of those car- less households live in a metro area
1 out of every 10 households in extreme poverty lives in housing with incomplete plumbing and/or an incomplete kitchen1 of every 10 households in extreme poverty live in housing with incomplete plumbing and/or an incomplete kitchen
24% of all Illinois renters pay over half of their income in rent
Half (49.1%) of working age adults are uninsured
Protected a smaller share of children from deep poverty than it used to. - In 1995, the safety net lifted 88% of poor children above 50% FPL.- By 2005, this percentage had declined to 76%.Protected fewer jobless workers from deep poverty than it used to.Among very poor unemployed workers looking for work in any given week:- In 1995, the safety net lifted 70% above 50% FPL.- By 2005, this percentage had declined to 60%.
Temporary Assistance to Needy Families- In 1995, AFDC (which preceded TANF) lifted 62% of children above 50% FPL. - By 2005 this declined to just21% for the TANF program.Food Stamps- In 1995, the Food Stamp Program lifted 61% of children above 50% FPL. - By 2005 this figure had dropped to42%.
On Illinois Poverty: www.heartlandalliance.org/povertyreportPoverty reports | Local data | Poverty dynamics On Self-Sufficiency in Illinois: www.ilselfsufficiency.org Illinois report | County fact sheets | Online calculator Amy Rynellarynell@heartlandalliance.org312-870-4943