A report from the Wisconsin Council on Children and Families released Tuesday shows poverty in Wisconsin is back on the rise.
Family poverty in the state increased from its 10-year low in 2000 at 11.2 percent to 13.5 percent in 2002. The study illustrates the condition of low-income families in Wisconsin, with 30,516 more children currently living in poverty statewide than two years earlier and African American children six times more likely to grow up poor than whites.
“This information reminds us that family stability is a fragile thing,” WCCF Executive Director Anne Arnesen said. “Most low-income families are just one crisis or one layoff away from serious financial trouble. The economy is the same way.”
According to the report, poverty in Wisconsin disproportionately affects minorities. A weak economy is also blamed for the growing poverty rate, as unemployment and the cost of living have increased over the last few years.
“This quick rise in the number of people needing assistance underscores the vulnerability of low-income families to the whims of the economy,” Arnesen said.
Barbara Wolfe, University of Wisconsin economics professor, said this data is consistent with national trends, but Wisconsin’s median income rate is higher than the national average. She said the recession is causing poverty to be a bigger problem that will cause negative long-term consequences.
“This report raises the question on how to raise the income of these families,” Wolfe said.
Prior to the recession, Wisconsin had a program to fight poverty, known as the Welfare Reform Program or W-2. It consisted of a four-tier system that worked to guarantee jobs and incomes for low-income families, particularly single mothers.
However, the struggling economy caused the program to go downhill. Now they do not have sufficient resources, Wolfe said.
Arnesen also pointed out that while the signs of growing problems are evident, many families are not taking advantage of the assistance available. For example, 44 percent of households eligible for food stamps are not receiving them, and 23 percent of low-income children in Wisconsin eat school breakfast, compared to 43 percent nationwide.
“As long as you provide health care, food stamps and other assistance, these would alleviate a lot of the consequences [of poverty],” Wolfe said.
Wolfe also said “jobs are key” to improving the poverty problem. She added that although a solution is very hard to establish, increasing the skills of these low-income families and individuals will help in the long term.
“We have to look beyond the poverty line and look at support systems and their adequacy,” Wolfe said.
The WCCF report also stated that housing costs have skyrocketed, but the families’ income has declined. According to the U.S. Census Bureau, which calculates income using two-year averages, the median household income dropped 1.3 percent, from $46,575 in 2000-’01 to $45,985 in 2001-’02.
