FOR IMMEDIATE RELEASE: September 20, 2012 CONTACT: Allyson Stewart

Social IMPACT Research Center at Heartland Alliance Phone: 312.870.4940 Email: alstewart@heartlandalliance.org

Poverty Hits Midwest Hard New Data Shows Increase in 10 of 12 States

CHICAGOThe Social IMPACT Research Centers analysis of new Census Bureau data released today presents a startling picture of poverty throughout the Midwest. The new data reveal that poverty rates have gone up in 10 of 12 states and that child poverty has increased and median household incomes have declined in most Midwest states. Notable findings from todays release include: Nearly 10 million Midwesterners (15.1%) experienced poverty in 2011. Indiana experienced the largest increase in the poverty rate from 2007 to 2011 of any Midwest state. Nearly 7% of Midwesterners were living in extreme poverty, below half of the poverty line, amounting to over 4.5 million people. Nearly 1 million more Midwesterners live in extreme poverty than in 2007. Ohio, Illinois, and Michigan are in the top ten nationwide for states with the highest numbers of residents in extreme poverty. Nearly 1 in 4 Midwesterners (18.4%) are living on low incomes. The median household income in the Midwest was $49,057 in 2011. Michigan experienced the greatest decline in median household income from 2007 to 2011 ($6,032) of any Midwest state. 3.3 million Midwest children (21%) were poor in 2011. The largest increase nationwide in child poverty and young child poverty (under age 6) from 2007 to 2011 was in central cities in the Midwest. There were over 1.5 million children in extreme poverty in the Midwest in 2011, nearly 1 out of every 10 kids. The Social IMPACT Research Center at Heartland Alliance, the leading anti-poverty organization in the Midwest, has analyzed the new census data released today and has poverty experts available to provide analysis of the new data and discuss their context and implications. IMPACT has created local fact sheets that include a 2011 snapshot and outline income and poverty trends and health insurance coverage information for all Illinois counties with populations over 65,000 as well as Midwest states. The fact sheets will be available on request and will also be made available throughout the day on Thursday, September 20 and Friday, September 21 at http://www.heartlandalliance.org/research/. The growing number of individuals experiencing extreme poverty and the lack of policy solutions advanced to address the growing need signifies an absence of political will and lack of commitment among decision makers to reduce poverty. These near unprecedented poverty levels are not simply the result of the recession and a sluggish recovery. Poverty was on the rise before the recession began as broader shifts in wages, job quality,

workforce preparation, inequality, and harmful cuts to the safety net disproportionately impacted people at the lower end of the income spectrum, says Amy Rynell, Director of the Social IMPACT Research Center at Heartland Alliance. Instead of acting to reverse this trend, the state not only stalled 11 of 12 bills introduced in the 2012 session to address poverty, but continued to cut funding for key programs. Heres a quick look at the key trends for the Midwest: Poverty in the Midwest

State Illinois Indiana Iowa Kansas Michigan Minnesota Missouri Nebraska North Dakota Ohio South Dakota Wisconsin Midwest
* means change is statistically significant

2011 Number 2011 Rate Percent Change from 2007 to 2011 1,879,965 1,011,017 378,864 383,467 1,693,294 621,970 920,118 234,710 80,882 1,845,800 110,681 725,797 9,886,565 15.0 16.0 12.8 13.8 17.5 11.9 15.8 13.1 12.2 16.4 13.9 13.1 15.1 3.1* 3.7* 1.8* 2.6* 3.5* 2.4* 2.8* 1.9* 0.1 3.3* 0.8 2.3* 2.9*

Median Household Income in the Midwest State 2011 Amount Illinois Indiana Iowa Kansas Michigan Minnesota Missouri Nebraska North Dakota Ohio South Dakota Wisconsin Midwest
* means change is statistically significant

Change from 2007 $53,234 $46,438 $49,427 $48,964 $45,981 $56,954 $45,247 $50,296 $51,704 $45,749 $48,321 $50,395 $49,057 $ -5,476* $ -5,030* $ -1,872* $ -2,507* $ -6,032* $ -3,576* $ -3,689* $ -778 $4,244* $ -4,796* $1,218 $ -4,468* $4,384*

There are a number of key steps we can take as a nation to address poverty: Create more and better paying jobs: Pursue job creation strategies for the hardest to employ: Put those struggling hardest to find jobs back to work by creating more transitional jobs programs. These programs help disadvantaged workers and struggling businesses weather the stalled economy and create jobs that will put people back to work and that pay living wages. Maximize Access to Income Support and Basic Needs Programs: Fund safety net and benefit programs such as SNAP (food stamps), TANF, Medicaid, and the Earned Income Tax Credit, which help poor and near-poor individuals and families bridge the gap between low incomes and meeting their most basic needs. These programs not only help reduce poverty, but also generate additional economic activity in local communities. Prevent cuts in or the elimination of effective services, while supporting expansions necessary to respond to growing need. Imposing deep cuts in services will cost jobs, inflict additional hardship on millions of Americans, and prevent a sustainable economic recovery. Oppose rules and statutory changes that favor tax cuts over important domestic investments by not allowing an investment to be paid for by a revenue increase, while permitting new tax cuts to be adopted without any requirement that they be paid for at all.

Please contact Allyson Stewart, Phone: 312.870.4940, Email: alstewart@heartlandalliance.org

TO INTERVIEW HEARTLAND ALLIANCES POVERTY EXPERTS,

TO OBTAIN THE FACT SHEETS ON SEPTEMBER 20 and 21, PLEASE VISIT

http://www.heartlandalliance.org/research/

Heartland Alliance for Human Needs & Human Rights is the leading anti-poverty organization in the Midwest and 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. The Social Impact Research Center (IMPACT), the research arm of Heartland Alliance, provides dynamic research and analysis on todays most pressing social issues and solutions to inform and equip those working toward a just global society. For more information: 312.870.4949 | research@heartlandalliance.org | www.heartlandalliance.org/research