23
September , 2018
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Much to be done in Illinois: Solutions identified but response inadequate

 

Chicago, IL –Poverty, worse in Illinois today than during the recession, grew from pre-to post-recession by 16 percent, according to the 2011 Report on Illinois Poverty released today. In fact, poverty is at its highest point in decades. Local data can be found at the end of this release. Visit http://www.heartlandalliance.org/research/2011-report-on-illinois-poverty/ to access an embargoed copy of the report. To access, use: User ID: impactmediarep Password: pr11access

Post recession has seen no gains for struggling families. In the report, the Social IMPACT Research Center at Heartland Alliance documents hardship across a variety of indicators including income, employment, housing and assets. Together these indicators document the conditions faced by struggling families across Illinois.

Nearly 1 in 3 Illinoisans are now considered poor or low-income. Continuing the disturbing trend of the past decade, median household income has steadily declined in Illinois; it is currently $52,972, down 3.4 percent from the recession and 6.9 percent from before the recession. For families at the bottom of the income spectrum, having limited resources results in families having to balance their budgets through short term trade-offs with long-term consequences such as deferring needed medical care or dipping into retirement savings. Byron Dickens, a Chicago resident, illustrates the pressure of trying to make ends meet on a low income: “Working 40 hours a week in a minimum wage job I don’t earn enough to cover my housing, food, transportation, and all my medical expenses. And I don’t even have a family.”

Employment trends are particularly bleak. Unemployment in Illinois skyrocketed 82.3 percent during the recession, and since then unemployment has held steady around 10 percent. The average length of time Illinois workers are unemployed has nearly doubled since 2007, with unemployed workers spending an average of nearly 37 weeks unemployed in 2010. It is going to be a long uphill climb to renewed economic vitality: Illinois must add 528,844 new jobs to fill its job gap (number of jobs lost during the recession and the number of jobs needed for new entrants to the workforce).

These conditions of declining incomes and rising poverty and unemployment are ripe for growth in homelessness. Housing costs have long eaten up large portions of family budgets and now families have even less income to devote to housing. The number of people, 241,093, living doubled up increased by 15 percent from 2008 to 2009, and 1 out of every 4 households in Illinois is now considered to be severely rent burdened with housing costs comprising more than half their income. “These living arrangements are unsustainable in the long run and are the last step before homelessness for many,” according to Amy Rynell, Director of the Social IMPACT Research Center.

These conditions have also led to a considerable erosion of assets and mounting debts, increasing the economic vulnerability of families across Illinois for many years to come. In 2011 the average debt of Illinoisans increased 37 percent over 2003 to $13,416, and the average amount of student loan debt among graduating seniors from 4-year Illinois colleges is $23,885. Low credit scores are also on the rise, which can greatly limit prime borrowing opportunities for car loans, credit cards, and home loans: since 2007 the rate of Illinois consumers with credit scores below 620 has increased 22 percent.

Without government assistance, nearly twice as many people would have been counted as being poor across the nation. Unfortunately, not all of Illinois’ safety net assistance programs responded quickly and effectively to growing hardship. And even the most responsive programs have not grown commensurate with need.

The Supplemental Nutrition Assistance Program (food stamps) continues to respond to growing need: the number of households receiving assistance has steadily grown as incomes have declined, growing 64 percent from before the recession to the post-recession period, with 874,109 households now receiving assistance.

The Earned Income Tax Credit, a refundable federal income tax credit, has steadily reached more households in Illinois, growing almost 10 percent from pre- to post-recession. Over one million Illinois tax filers now receive the EITC.

The response of Temporary Assistance for Needy Families (TANF), which provides cash assistance to very low-income families with children, was undetectable during the recession. There was essentially no increase in the caseload from the year before the recession to the recession period. Since the recession ended, however, the caseload has grown 64 percent to 46,694 families.

The Unemployment Insurance program was by far the most responsive during the recession, growing over 75 percent. Since then, however, while unemployment has stayed at the same level, the number of recipients has plummeted almost 30 percent.

“Personal, social, and economic costs of low family incomes are far too great, compromising Illinois’ economic strength, human capital, and future well-being,” said Sid Mohn, President of Heartland Alliance for Human Needs & Human Rights. “State policies and investments need to support an economy that works for everyone, promote work that pays a living wage, ensure that all have access to a quality education, and that families are able to access adequate income supports to help make ends meet.”

The Social Impact Research Center (IMPACT), the research arm of Heartland Alliance, provides dynamic research and analysis[object Object] on today’s most pressing social issues and solutions to inform and equip those working toward a just global society. Heartland Alliance for Human Needs & Human Rights believes that all of us deserve the opportunity to improve our lives. Each year, we help ensure this opportunity for more than one million people around the world who are homeless, living in poverty, or seeking safety. Our policy efforts strengthen communities; our comprehensive services empower those we serve to rebuild and transform their lives.

For more information: 312.870.4949 | research@heartlandalliance.org | www.heartlandalliance.org/research

 

County Data for The Chicago Region Area

  Extreme Poverty (under 50% FPL) Poverty (under 100% FPL) Low income (100%-199% FPL)
Chicago 265,677 (10.0%) 596,975 (22.5%) 588,104 (22.2%)
Suburban Cook County 115,415 (4.7%) 259,385 (10.5%) 406,082 (16.4%)
DuPage County 22,131 (2.4%) 59,730 (6.6%) 100,845 (11.1%)
Kane County 19,198 (3.8%) 56,707 (11.1%) 96,163 (18.8%)
Lake County 28,785 (4.1%) 60,440 (8.7%) 103,288 (14.9%)
McHenry County 8,895 (2.9%) 23,649 (7.7%) 37,315 (12.1%)
Will County 22,196 (3.3%) 57,644 (8.6%) 86,383 (12.9%)

 

Indicator

Unemployment Rate
(Sep 2011)

Percent Severely Rent-Burdened Households (2005-2009)

Health Uninsured Rate, Non-Seniors (2009)

Food Insecurity Rate (2009)

Average Personal Debt (Jun 2011)

Percent of Consumer with Credit Scores Below 620 (Jun 2011)

Cook
County Rate

10.4%

26.4%

18.9%

16.1%

$15, 146

26.2%

Change from Prior Year

0.6%

DuPage
County Rate

7.9%

19.3%

10.4%

10.3%

$16,272

25.7%

Change from Prior Year 

0.3%

Kane
County Rate

9.1%

24.2%

15.1%

12.6%

$16,489

26.0%

Change from Prior Year

0.3%

Lake
County Rate

8.9%

21.7%

11.9%

11.7%

$18, 056

26.1%

Change from Prior Year

-0.3%

McHenry
County Rate

8.5%

22.4%

11.2%

11.2%

$15,634

26.2%

Change from Prior Year

0.2%

Will
County Rate

9.6%

22.6%

11.5%

12.3%

$15,329

26.4%

Change from Prior Year

0.4%

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