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IMPACT analyzed the most recent indicators from the U.S. Census Bureau and other key sources to create the report, which provides a primer on the who, where, why, and what of poverty in Illinois. Who is poor in Illinois? Nearly 1.9 million Illinoisans (15.0 percent) live in poverty. A family of four is poor if its annual income is below $23,021. Of the 1.9 million Illinoisans experiencing poverty: 55 percent are female 35 percent are children 46 percent are minorities 84 percent are native born 14 percent have a disability 46 percent are in extreme poverty, with incomes below 50 percent of the poverty level
Another 2.2 million Illinoisans (17.9 percent) are living close enough to the poverty line (with incomes between 100 and 199 percent of the poverty level) that they could easily fall below it at any time. Together these two groups of Illinoisans comprise Illinoiss 33 percent. Where do they live? Poverty is not restricted by geography. Large cities, suburbs, and small rural areas across Illinois are affected: Twenty-eight of Illinoiss 102 counties have poverty rates between 15 and 20 percent. Nine counties have poverty rates over 20 percent. In Chicago, 9 out of 77 neighborhoods have poverty rates of 35 percent or greater. Even in the six suburban counties around Chicago, generally thought to be more affluent, at least 20 percent of residents are poor or near it.
To accompany the report, IMPACT established a County Well-Being Index that tracks and scores each Illinois countys change in poverty, unemployment, teen births, and high school graduations. This year, 39 out of 102 counties are on either the Poverty Watch or Poverty Warning Lists. You can find out if your county is on the list and access other county-level data at www.ilpovertyreport.org. Why does poverty exist? Economic forces, such as unemployment, declining wage levels, and growing inequality, have a direct impact on poverty. When combined with other hardships like inadequate education, high rent burden, poor health, and lack of access to financial asset-building opportunities, these economic forces create a climate ripe for poverty growth. For example: Every one percentage point increase in the unemployment rate causes a 0.5 percentage point increase in the poverty rate. Conversely, a 10 percent increase in median wage lowers the poverty rate by 1.5 percentage points. The more education a person has, the more likely he or she will avoid economic hardship. Yet the value of a high school education has eroded: workers with a high school diploma are earning 7 percent less now than they did 40 years ago (when adjusted for inflation), and workers without a high school diploma are earning 21 percent less now they did 40 years ago. In Illinois, there are only 59 available affordable rental units for every 100 low-income renter households. Medical problems caused 62 percent of all personal bankruptcies filed in the United States in 2007; three quarters of those filers had medical insurance at the start of their illnesses. One in four Illinois households does not have enough money saved to protect it from a sudden drop in income.
What can we do to end poverty in Illinois? Recognizing that poverty has no single cause, IMPACT offers the state several recommendations for addressing poverty. Increase the minimum wage (currently $8.25 per hour in Illinois), and expand it to include domestic workers, workers under 18 years old, and workers who rely primarily on tips for their wages so that people who work dont remain trapped in poverty. Increase access to the states 529 college savings program, making college an attainable dream for more Illinois children. Return homeless prevention funding to previous levels to help more families remain housed. Fully implement the Affordable Care Acts Medicaid expansion and state-based health insurance exchange, and support Illinoiss transition to care coordination programs to help improve health outcomes and maximize cost-effectiveness. Expand retirement saving opportunities through an automatic retirement account program to help struggling families build wealth and escape financial insecurity.
We believe housing, health care, jobs, and justice are the way out of poverty, said Sid Mohn, president, Heartland Alliance for Human Needs & Human Rights and co-chair of the Illinois Commission on the Elimination of Poverty. Heartland Alliance has refocused our organizational mission squarely on ending poverty. It is my hope that this report serves as a wakeup call to our state leaders, and they will be compelled to follow Heartland Alliances lead by re-committing to ending poverty in Illinois. This report gives elected leaders a roadmap for how to do so. The report was developed by the Social IMPACT Research Center, a program of Heartland Alliance, with support from The Chicago Community Trust, Grand Victoria Foundation, and The Libra Foundation.