Study shows $20,800 income means you're poor (Pekin Daily Times article)

Study shows $20,800 income means you're poor
By Nick Vogel
Published: Thursday, April 24, 2008 12:55 PM CDT
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Times staff writer

PEKIN - Poverty levels in Tazewell County are up slightly, and according to one source, the poor certainly aren't getting richer.

A study released this month shows that 10 percent of Tazewell County residents live in poverty.

The study was done by the Mid America Institute on Poverty of Heartland Alliance for Human Needs and Human Rights.

Overall, Tazewell County's poverty rate went up 0.1 percent from 2005 to 2007, the study indicates.

According to the institute's data, Tazewell County's unemployment rate as of August 2007 was 4.8 percent. That number is up 0.9 percent from 2005.

The study shows that 11,046 people in Tazewell County lived in poverty in 2005, while the average wage per job in Tazewell County in 2006 was $47,789.

According to Amy Terpstra, a spokeswoman for the institute, a couple with a child would need to earn $33,000 per year in order to make ends meet. “We call it the self-sufficiency standard. This is what it costs to not have to rely on any government support to cover costs. This is what I call a modest living. It's a decent standard of living but it's very modest,” Terpstra said.

“As you can see, there is a huge discrepancy between what it really takes to pay the bills and the federal poverty line for this same family, which is $17,600,” she stated in a follow up e-mail.

But modest living does not include buying a home, paying off college bills, or even going to the occasional movie. “There wouldn't be very much money left over to do those sorts of things,” she said.

As the prices of most things rise and the power of the dollar slowly weakens, most incomes remain the same. This has caused household incomes to decline, even though they appear to stay the same, Terpstra said. “If your income has stayed steady on paper, everything's gone up so you have less purchasing power on the same income,” she said.

The projected $33,000 needed to make ends meet is up from $30,000 in 2006.

The institute gets its poverty level data from the federal government. According to the institute's study, an individual making $10,400 during 2008 is considered to be living in poverty. An individual making $20,800 is considered “low-income” or “near poor.”

Terpstra said that part-time jobs at retail chain stores or fast food restaurants are important to the economy but unstable and don't offer good benefits.

“There's still over 11,000 people in (Tazewell) county that are poor. I think it's important to remember that there are thousands and thousands of people struggling on a daily basis.”

As for the numbers themselves, Terpstra agrees that a person living on $10,400 a year in Tazewell County is better off than an individual living on the same amount in New York City. She said the poverty level's setting is politically motivated. “Nobody wants to be responsible for raising the poverty rate,” Terpstra said.

Compared to other counties, Tazewell County appears to be stagnant and making no progress. “Tazewell is really kind of one of those counties that is sitting in the middle, geographically speaking and talking about these indicators that show poverty data,” she said.

Sen. Dick Durbin, D-Ill., released a statement concerning the institute's report, a copy of which was faxed to the Pekin Daily Times. In it, Durbin says that millions of people in the state have been “crippled by the rising cost of living - most evident in skyrocketing food and gas prices.” Durbin calls for greater government support to families and individuals facing poverty-like conditions.

For instance, he supports extending unemployment benefits beyond 26 weeks, and providing more “federal support to local and state wide groups who work together to find solutions that fit the hunger needs in the communities,” his prepared statement reads.

Capt. Catherine Mount of the Pekin Salvation Army said that right now, the Rust Transitional Center is 90 percent full. She added that the less than full occupancy is most likely due to the recent pleasant weather.

“Because when it's nicer outside, people don't have a problem with sleeping outside,” she said.

“We see poverty every day. People come to us whether it's for the shelter, social service or the food pantry.”

This week, food pantry appointments are already booked. “As far as the need, there is always a need,” Mount said.