It came as no surprise when the community poverty numbers released recently by the U.S. Census Bureau showed higher number of people living in poverty; especially children. These numbers are a reflection of our economy slowing and stalling over the past decade. Both in areas of traditional prosper, like Dane County, and areas where the economy is just one plant closing from being a struggle, like Green County and Rock County we see a big jump in people living in poverty, extreme poverty and a lowering of the median income level.
Wisconsin’s overall poverty rate also increased significantly last year. The state’s poverty rate rose from 12.4% in 2009 to 13.2% in 2010. Wisconsin’s pre-recession poverty rate in 2007 was 10.8%. Between 2007 and 2010, the number of people in Wisconsin living in poverty increased by about 143,000.
Wisconsin’s child poverty rate increased dramatically last year, from 16.7% in 2009 to 19.1% in 2010, according to data from the American Community Survey (ACS) released by the U.S. Census Bureau. A quarter of a million (249,826) Wisconsin children were living below the poverty line last year, about 36,000 more than in 2009. In 2007, before the recession, Wisconsin’s child poverty rate was 14.4%. That means nearly one in five children lives in poverty.
These numbers beg the question what can we do about it. Definitely taking action to grow the economy is our best bet. More jobs means more people employed and fewer children and families living in perilous situations. We also need to keep our commitment to programs that support low-income individuals like SeniorCare that help senior citizens afford prescriptions and BadgerCare which helps families and children afford health care. Additionally, we need to capitalize our investment in revenue generating programs. What do I mean? We know that working families with low incomes spend every dime that comes in. Keeping people paying their bills is a good thing for everyone.
Revenue generating programs like extension of unemployment benefits, food share programs, the Earned Income Tax Credit and access to job retraining programs not only help lift people up but they guarantee more money in our local economy as well. Just like business tax incentives for creation of jobs, revenue generating programs pump money into our economy. These state economic investments should be viewed as equally important. Assistance programs are not just a hand out; they ensure that families pay their bills and contribute to the economy every day. In fact, their return is much quicker and more easily seen in the local economy than tax credits for businesses.
For more information on ASC data visit the US Census http://www.census.gov or contact my office at 608-266-6670 or 888-549-0027 or sen.erpenbach@legis.wi.gov