Women in Poverty Testimony for Commission to End Poverty in Minnesota by 2020 October 3, 2007

1. Legislative Coordinating Commission Office on the Economic Status of Women Women in Poverty Testimony for Commission to End Poverty in Minnesota by 2020 October 3, 2007 Amy Brenengen, Director Andrea Lindgren, Research and Policy Analyst www.oesw.leg.mn

2. The Office on the Economic Status of Women (OESW) “The commission shall study and report to the legislature on all matters relating to the economic status of women in Minnesota…”

3. Purpose of the OESW …including: (1) The contributions of women to the economy; (2) economic security of homemakers and women in the labor force; (3) opportunities for education and vocational training; (4) employment opportunities; (5) women's access to benefits and services provided to citizens of this state; and (6) laws and business practices constituting barriers to the full participation by women in the economy.

4. Four Main Functions of the OESW • Disseminating information • Tracking legislation • “Staffing” issues relevant to women • Gateway to the legislative system for women and those who work with and care about women.

5. How OESW Gathers and Distributes Information • Research and Reports • Briefs, Fact Sheets, Status Reports, Studies • Public Hearings • Listening Sessions • Task Forces

6. OESW and LCEP Synergy • Women’s Issues and Poverty Issues are closely linked. • This is evident in the State of Minnesota based on the following research.

7. Eight Characteristics Of Householders Account For Three-Fourths Of Minnesota’s Poor Source: Tom Stinson, Minnesota State Economist and Tom Gillaspie, Minnesota State Demographer

8. Poverty Rate of People In Selected Households With Householder Experiencing Multiple Risk Factors 2005 ACS micro data. Each of the above groups comprise more than 5,000 Minnesota households Source: Tom Stinson, Minnesota State Economist and Tom Gillaspie, Minnesota State Demographer

9. Poverty and Women • 6 of 7 groups cited are women • At every level of poverty (100 – 200% of the federal poverty line), there is a higher percentage of women represented. • Within every racial breakdown of each poverty level, more women are represented.

10. Percentage of Men and Women over age 16 in Minnesota who are Poor and in Poverty: 2005 Source: IPUMS, American Community Survey, 2005

11. Poverty Rates of Women in Minnesota over age 16 by Race: 2005 Source: IPUMS, American Community Survey, 2005

12. Connecting Issues Poverty, Women and: • Domestic Violence • Aging • Workforce • MFIP • Education • Asset Accumulation • Note: • The above issues are not in order, and are not an exhaustive list; • This is top line information, and where the Commission wants more detailed information, we can come back and provide it.

13. Domestic Violence • Twenty women and twelve children were murdered in Minnesota in 2006 as the result of domestic violence or child abuse (Minnesota Coalition for Battered Women 2006 Femicide Report) • In fiscal year 2006, 37,010 women and children in Minnesota were served by community advocacy programs for battered women. (Office of Justice Programs, Minnesota Department of Public Safety) • In fiscal year 2006, 5,295 battered women and 5,131 children in Minnesota utilized emergency shelter services. (Office of Justice Programs, Minnesota Department of Public Safety) • In fiscal year 2006, 434 battered women and 535 children in Minnesota utilized emergency hotel-motel housing. (Office of Justice Programs, Minnesota Department of Public Safety)

14. Domestic Violence, cont’d • One of every three homeless women in Minnesota is homeless at least in part due to domestic violence. (Wilder Research Center, 2003) • In 2004, 998 Minnesotans received emergency department or in-hospital care for domestic violence related injuries. 97% of the victims were women. (Minnesota Department of Health, Violence and Prevention Unit, February 2006) • Negative “Cascading Effects” of domestic violence • Minnesota Coalition for Battered Women: www.mcbw.org

15. Older Women • Life Expectancy: Today in America, the average woman age 65 and over lives six years longer than the average man. Average life expectancy for men is 81, for women 85/86. • Poverty: Almost one in five of all unmarried eldery women is poor, and another 10% are near poor. These numbers double for unmarried elderly African American and Hispanic women. • Head of Household: As a result, she is typically widowed and living alone. She struggles to make ends meet on an annual income of $15,615 (compared with $29,171 for men). • Caregiving: During her lifetime she probably spent 17 years caring for children and 18 years caring for elderly parents. Her retirement income is also smaller because she probably did not receive a pension, and was paid less than the average man.

16. Older Women • Social Security: As a result, she receives lower Social Security benefits. In Minnesota, she annually receives $7,946 while her male counterpart receives $12,224 – a 35% difference.* • Housing: She spends a higher proportion of her income on housing costs — leaving less for vital necessities such as utilities, medical costs, food, and transportation. • Healthcare: The average older woman spends 20 percent of her income each year on out-of-pocket health care costs. • Minnesota Older Women’s League: www.owl-mn.org • Asset Development for Low-Income Women • *Median Social Security Income of those over 65; 2005 IPUMS American Community Survey

17. MFIP/TANF • Historical Perspective: Current operation of the MFIP program does not mirror the successful elements of the original MFIP pilot. The pilot: • Focused on accurate research and information – not emotion and assumption; • was bi-partisan in creation • Administrative Burden: Complicated paperwork and requirements inhibit the operation of the program for both workers and recipients. • Current caseloads increasingly include individuals with multiple barriers • Nationally, following welfare reform, poor single parent families not receiving TANF were more likely to live in dire poverty.

18. Workforce & Economic Development • While women are experiencing an increased workforce participation rate, they are clustered into a majority of lower paying jobs with low or no projected growth. (OESW “Women and Minnesota’s Job Market”) • Certain high wage/high growth jobs in Minnesota, such as construction trades, have only a 0.7 – 3.4% representation of women. (OESW) • Women’s work portfolio will often include part-time work with no benefits (contributing eventually to decreased retirement/ss benefits)*

19. Workforce & Economic Development • Local workforce agencies report an increasing number of clients who are low-income women with “multiple barriers.” These clients often need intensive life skills training and one-on-one attention in order to stabilize employment – this is the most expensive training to fund, therefore there is very limited availability.* • There are also a limited number of short-term training opportunities that lead to employment for low-skilled workers. Many of the high growth/high skill occupations require longer training.* • The cost of living overall in Minnesota has increased by 38% in the last decade. (JobsNow Coalition) • *Provider interviews, Sept/Oct 2007

20. Education • Women and men with a bachelor’s degree or higher share a generally equal poverty rate. • “High return” on Education: Increased education = less likely to enter into poverty and/or remain in poverty • Positive “cascading effect” of education

21. Poverty Rates by Gender and Educational Attainment: 2006 American Community Survey, 2006, US Census Bureau

22. Female Single Head of Household • In Minnesota, a single female-headed household with children only under five is approximately twelve times more likely to be in poverty than the equivalent married-couple household.

23. Poverty Rates by Household Type

24. Female Single Head of Household, cont’d • 2/3 (64%) of uninsured women are in families with one adult working full-time • Across the board, a single female head of household generally has a lower salary than her male counterpart. • The lowest homeownership rate in Minnesota is among single female-headed households with children.

25. Asset Accumulation • 75 – 80% of current savers in the Minnesota FAIM program are female. • In one cohort of FAIM savers, women are often more eager than men to apply financial literacy education to their spending and saving habits. • Microlending and Women: Experience shows that women are a good credit risk, and that women invest their income toward the well being of their families. At the same time, women themselves benefit from the higher social status they achieve within the home when they are able to provide income.“ (Microcredit Summit Campaign) • Center for Public Finance Research states that “asset accumulation is a surer path out of poverty than income assistance.”

26. Summary • “Single Focus” presentations on any of these issues are possible • OESW is willing and interested in working with the Commission closely to tackle this issue. • Poverty Issues are Women’s Issues.