poverty in new jersey - council of new jersey grantmakers in new jersey...poverty than whites in...

Poverty in New Jersey Council of New Jersey Grantmakers Wednesday, January 23, 2013

Poverty Research Institute Legal Services of New Jersey

www.lsnj.org/PRI

© 2013 Legal Services of New Jersey No portion of this presentation may be reproduced without the

express prior written permission of Legal Services of New Jersey

Presentation by Allan Lichtenstein, Shivi Prasad & De Miller

http://www.lsnj.org/PRI

Unprecedented Increase in Poverty in New Jersey in Recent Years Percent below 100% FPL, New Jersey 1960 to 2000 & 2007 to 2011

11.3%

8.1%

9.5%

7.6%

8.5% 8.6%

10.4%

0%

2%

4%

6%

8%

10%

12%

1960 1970 1980 1990 2000 2007 2011

Decennial Census American Community Survey

BETWEEN 1960 & 2000

Poverty decreased from 11.3% to 8.5%

Number of people below 100% FPL increased by 26,962

4% increase in number of people living in poverty in 40 years

BETWEEN 2007 & 2011

Poverty increased from 8.6% to 10.4%

Number of people below 100% FPL increased by 168,165

23.1% increase in number of people living in poverty in just 4 years

We are approaching the level of 1960

© 2013 Legal Services of New Jersey Source: U.S. Census Bureau 1

Record Number of State Residents Have Fallen into Poverty since the Beginning of the Recession

Population Below Various Levels of Poverty, New Jersey, 2005 to 2011

4.0% 3.9% 3.9% 3.9% 4.1% 4.6% 4.8%

8.7% 8.7% 8.6% 8.7% 9.4%

10.3% 10.4%

21.4% 21.3% 20.9% 20.8%

22.5% 23.8%

24.7%

0%

5%

10%

15%

20%

25%

30%

2005 2006 2007 2008 2009 2010 2011

50% FPL 100% FPL 200% FPL

Source: U.S. Census Bureau. American Community Survey, One Year Estimates © 2013 Legal Services of New Jersey

50% FPL: $9,062 | 100% FPL: $18,123 | 200% FPL: $36,246

2

The Number of Individuals Below 200% FPL Continue to Grow… Number Below 200% FPL, New Jersey, 2005 to 2011

1,819,572 1,820,315 1,776,479 1,772,797

1,922,283

2,054,938 2,135,167

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2005 2006 2007 2008 2009 2010 2011

© 2013 Legal Services of New Jersey Source: U.S. Census Bureau. American Community Survey, One Year Estimates

Lowest number below 200% FPL in 2007

Crossed 2 million mark in 2010

Continued to grow in 2011

3

VULNERABLE POPULATIONS

Children, Young Adults & the Oldest among the Elderly are More Likely to Live in Poverty

Percentage of Individuals Living below 200% FPL by Age Group, New Jersey, 2010 & 2011

30.4% 31.3%

23.8%

21.7%

17.2% 15.7%

19.5%

31.6% 31.2% 32.8%

26.2%

21.5%

17.8% 16.2%

21.8%

31.2%

0%

5%

10%

15%

20%

25%

30%

35%

Below 18 years 18 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 to 74 75 years and over

2010 2011


18-24: Highest percent below 200% FPL

4

Children & 18-24 Age Group Have Seen the Highest Rise in Poverty since the Recession

Percentage of Children Living below 200% FPL, New Jersey, 2006 to 2011

• Below 18 Years

• 18 to 24 Years

26.3% 26.2% 26.8%

29.2% 30.4%

31.2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

24%

26%

28%

30%

32%

34%

2006 2007 2008 2009 2010 2011

25.8% 26.9% 26.3%

28.1%

31.3% 32.8%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

24%

26%

28%

30%

32%

34%

2006 2007 2008 2009 2010 2011


Poverty increased from 26.2% in 2007 to 31.2% in 2011

An additional 95,503 children have fallen below 200% FPL since 2007

Percent 18-24 below 200% FPL increased from 26.9% in 2007 to 32.8% in 2011

6 percentage point increase in percent below 200% FPL

5

Very High Rates of Poverty among the Very Old Percentage of 75 Years and Over Living below 200% FPL, New Jersey, 2006 to 2011

31.9% 32.3% 30.9%

32.1% 31.6% 31.3%

0%

5%

10%

15%

20%

25%

30%

35%

2006 2007 2008 2009 2010 2011

Poverty among elderly remained stable through the recessionary period

© 2013 Legal Services of New Jersey Source: U.S. Census Bureau. American Community Survey, One Year Estimates 6

Except the Elderly, All Other Age Groups Experienced a Significant Rise in Poverty Since the Recession

Population by Age Group Living below 200% FPL, New Jersey, 2007 to 2011

All other working age groups

65 to 74 years

22.0%

26.2%

16.6%

21.5%

13.5%

17.8%

14.3% 16.2%

0%

5%

10%

15%

20%

25%

30%

2007 2011

25-34 Years

35 to 44 years

45 to 54 years

55 to 64 years

21.8% 20.4%

22.0% 20.5%

19.5%

21.8%

0%

5%

10%

15%

20%

25%

30%

2006 2007 2008 2009 2010 2011

Poverty among the elderly, although high, decreased during the recession.


However, poverty for this group has increased in between 2010 & 2011

7

Significant Rise in Poverty among Racial & Ethnic Groups Poverty (below 100% FPL) by Race & Ethnicity, New Jersey, 2005 to 2011

8.7%

4.7%

18.3% 18.2%

8.6%

5.2%

16.9% 16.0%

10.3%

5.8%

18.9%

19.9%

10.4%

5.9%

20.0% 19.6%

0%

5%

10%

15%

20%

25%

Total Population White Non-Hispanic Black Non-Hispanic Hispanic or Latino

20

05

20

06

20

07

20

08

20

09

20

10

20

11

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All racial & ethnic groups experienced a rise in poverty

Poverty highest for Black Non-Hispanics

8

Shifts in Proportions of People Living in Poverty between Racial & Ethnic Groups

Share of Poverty Population by Race & Ethnicity, New Jersey, 2005 & 2011

2005

White Non-Hispanic,

34.1%

Black Non-Hispanic,

27.1%

Hispanic or Latino, 32.0%

Other, 6.8%

2011

White Non-Hispanic,

33.4%

Black Non-Hispanic,

25.1%

Hispanic or Latino, 34.5%

Other, 7.0%


Non-Hispanic Whites: 34.1% Hispanic or Latino: 32.0%

Non-Hispanic Whites: 33.4% Hispanic or Latino: 34.5%%

More Hispanic or Latinos living in poverty than Whites in 2011

More Whites living in poverty than Hispanic or Latinos in 2005

Even though poverty rate for whites is the lowest, they have historically formed the largest group in poverty

9

More than a Quarter of Black and Hispanic Children Were Below the Official Poverty Level in 2011

Child Poverty (below 100% FPL) by Race & Ethnicity, New Jersey, 2005 to 2011

11.8%

4.9%

26.2%

23.7%

11.6%

5.7%

23.7%

20.8%

14.5%

6.9%

27.4%

26.6%

14.7%

6.9%

28.4%

26.4%

0%

5%

10%

15%

20%

25%

30%

All Children White, Not Hispanic or Latino Black or African-American, Not Hispanic or Latino

Hispanic or Latino

20

05

20

09

20

10

20

11

20

06

20

07

20

08

REC

ESSI

ON

REC

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Child poverty rates increased substantially for all racial & ethnic groups

Non-Hispanic Black children had the highest poverty rate in 2011

Rise in poverty was highest for Hispanic or Latino children

10

Hispanic or Latino Elderly had the Highest Poverty Rate in 2011 Elderly Poverty (below 100% FPL) by Race & Ethnicity, New Jersey, 2005 to 2011

8.5%

5.7%

18.4%

27.0%

8.4%

6.5%

14.7%

20.0%

7.2%

5.4%

13.7%

15.6%

7.8%

5.8%

14.2%

17.8%

0%

5%

10%

15%

20%

25%

30%

All Elderly White, Not Hispanic or Latino Black or African-American, Not Hispanic or Latino

Hispanic or Latino

20

09

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20

05

20

06

20

08

20

05

2

00

5

20

10

20

11

20

07


Poverty for elders of all race and ethnicities decreased between 2007 and 2011

Hispanic or Latino elders had the highest poverty rate in 2011

11

PLACES WITH POVERTY

Warren

Sussex Passaic

Bergen

Morris

Hunterdon

Middlesex

Somerset

Mercer Monmouth

Ocean Burlington

Camden Gloucester

Atlantic

Salem

Cumberland

Cape May

Hudson Essex

Union

© 2013 Legal Services of New Jersey

Discrepancies in poverty rates by place of residence These differences are more pronounced when we look at poverty in

smaller geographies

Passaic County had a Higher Percentage of its Population Living Below 200% FPL than Any Other County in 2011

Total Population Living below 200% FPL by County, New Jersey, 2011

37.1% 37.0% 35.9% 35.7%

32.4% 30.8%

27.7% 27.4% 27.0% 25.9%

22.7% 21.6%

19.0% 18.5% 18.4% 18.4% 17.5% 15.2%

14.2% 12.7%

10.9%

0%

10%

20%

30%

40%

50%

60%

Pas

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More than 50 percent of Children in Cumberland County were Living Below 200% FPL in 2011

Children Living below 200% FPL by County, New Jersey, 2011

51.2% 49.9% 49.5%

43.7% 43.5% 42.3%

40.3%

36.5% 35.9%

32.3%

29.5%

26.8%

22.2% 21.6% 21.0% 20.3% 20.2% 18.5%

15.4% 13.1%

11.9%

0%

10%

20%

30%

40%

50%

60%

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Hudson County had the Highest Number of Elderly Living below 200% FPL in 2011

Elderly Population Living Below 200% FPL by County, New Jersey, 2011

42.6%

33.9% 33.5%

30.2% 30.2% 29.6% 28.9%

26.0% 25.7% 25.1% 24.0% 23.9% 23.4% 22.7% 22.7%

20.2% 18.9% 18.2% 18.0% 17.9%

16.2%

0%

10%

20%

30%

40%

50%

60%

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Stark Differences in Poverty at the Municipal Level in 2011

Percentage of Population Living below 200% FPL, Places with Population 65,000+, New Jersey, 2011

9.7% 12.4%

14.3% 14.5% 16.7% 16.9% 17.3%

24.3%

34.4%

42.7%

48.8% 50.4% 51.5% 53.3% 55.9%

59.5%

64.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Mid

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Recall: At the state level, 24.7% were below 200% FPL Passaic county had the highest percentage below 200% - 37.1%


At least 42% or more were below 200% FPL in 8 places in 2011

15

Differences in Child Poverty Rates Even More Alarming at the Municipal Level Percentage of Children Living below 200% FPL: Places with Population 65,000+, New Jersey, 2011

9.3% 11.6%

16.2% 16.4%

20.8% 21.3% 22.7%

32.3%

47.5%

54.6%

63.0% 64.6%

66.3% 67.1% 69.0%

70.6%

79.0%

0%

10%

20%

30%

40%

50%

60%

70%

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In 5 additional places, percent below 200% FPL was at least 63%

16

High Poverty Places Have High Concentration of Racial and Ethnic Minorities Racial & Ethnic Composition of High Poverty Places (65,000+), New Jersey, 2011

White Non-

Hispanic

Black Non-

Hispanic

Hispanic or

Latino

Poverty at

200% FPL

Middletown (Monmouth) 90.7% 1.8% 4.9% 9.7%

Pove

rty

bel

ow

Stat

ewid

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vera

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Cherry Hill (Camden) 77.2% 5.8% 4.0% 12.4%

Woodbridge (Middlesex) 53.1% 9.1% 14.5% 14.3%

Edison (Middlesex) 40.9% 7.3% 8.1% 14.5%

Hamilton (Mercer) 75.6% 10.2% 9.7% 16.7%

Toms River (Ocean) 86.7% 1.8% 7.8% 16.9%

Brick (Ocean) 89.5% 2.0% 6.6% 17.3%

Clifton (Passaic) 54.8% 4.5% 30.2% 24.3%

Pove

rty

Ab

ove

Sta

tew

ide

Ave

rage

Jersey City (Hudson) 22.6% 24.9% 27.9% 34.4%

Elizabeth Union) 19.5% 18.4% 58.4% 42.7%

Union City (Hudson) 14.2% 2.2% 81.1% 48.8%

Newark (Essex) 13.7% 53.5% 29.7% 50.4%

Trenton (Mercer) 15.5% 50.4% 32.5% 51.3%

Paterson (Passaic) 11.1% 30.4% 55.0% 53.3%

Lakewood township (Ocean) 77.5% 6.9% 14.8% 55.9%

Passaic (Passaic) 18.1% 7.8% 69.2% 59.5%

Camden (Camden) 5.9% 47.0% 44.7% 64.5%


MEASURING POVERTY

The Official Poverty Level is not an Effective Measure of Poverty

Federal Poverty Level

Outdated measure

No geographical differences in cost

Does not vary by ages of children

Real Cost of Living

Addresses shortcomings of FPL

Based on the cost of each basic need, determined independently which allows

each cost to increase at its own rate

Incorporates geographical variations in costs

Accounts for cost variation by family size and composition, as well as ages of the

children

Includes the net effect of taxes and tax credits

© 2013 Legal Services of New Jersey 18

The Real Cost of Living is About Three Times the Federal Poverty Level in New Jersey

Income Levels (3 Person Family) New Jersey, 2012

Source: US Census Bureau & Legal Services of New Jersey, the Poverty Research Institute © 2013 Legal Services of New Jersey 19

The Federal Poverty Level Undercounts Poverty

Real Cost of Living

True Poverty (200% FPL)

Federal Poverty Level

Severe Poverty Level

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Officially denoted as living in poverty

The FPL does not capture the income hardships of these groups


The Gap Between the RCL and FPL has Increased Since 1999 Comparison of the RCL & FPL for a Family of One Adult & Two School Age Children, New Jersey,

1999 to 2011 (2011 Inflation Adjusted Dollars)

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

1999 2002 2005 2008 2011

RCL FPL

Source: The Real Cost of Living in New Jersey in 2012, LSNJ, PRI © 2013 Legal Services of New Jersey

Increasing gap between the RCL and the FPL

21

The Official Poverty Measure (FPL) Fails to Capture the Full Extent of Poverty among the Elderly

New Jersey Residents 65 and over below the Elder Index

© 2013 Legal Services of New Jersey Source: Elder Index, 2012 22

SUPPLEMENTAL POVERTY MEASURE

Alternative poverty measure produced by the U.S. Census Bureau

Addresses some of the flaws of the official measure

It is not designed to replace the official measure and is not used

for determining eligibility for government programs


SUPPLEMENTAL POVERTY MEASURE (SPM) DIFFERS FROM OFFICIAL POVERTY MEASURE (FPL)

FPL

• No geographical variation in costs

• No adjustments for housing

• Gross (before tax) cash income from all sources

SPM

• Costs vary by state of residence

• Adjusted by differences in expenditure for renters, owners with a mortgage and owners without a mortgage

• Also adds value of in-kind benefits (SNAP, NSLP, etc.) and also includes tax credits

• Excludes income and payroll taxes & some other expenses

Source: U.S. Census Bureau. Brookings/Census Bureau Meeting on Improved Poverty Measurement November 7, 2011 © 2013 Legal Services of New Jersey 24

Poverty Rate in New Jersey Increases Substantially Using the Supplemental Poverty Measure

New Jersey’s poverty rate increases by 3.7 percentage points when using the SPM

Using the official poverty measure (FPL), 44 states (including D.C.) have higher poverty rates than New Jersey

However, only 17 states (including D.C) have higher poverty rates than New Jersey, when using the SPM

25 © 2013 Legal Services of New Jersey

MANIFESTATIONS AND EFFECTS OF POVERTY

Unemployment Rate at Height Last Experienced 35 Years Ago Monthly Unemployment Level & Unemployment Rate, New Jersey, Jan. 1976 to Dec. 2012

© 2013 Legal Services of New Jersey Source: US Bureau of Labor Statistics & New Jersey Department of Labor & Workforce Development

Note: Shaded areas indicate recessions 26

Dec. 2012: 9.6%

The Underemployment Rate Remains High and Substantially Higher than the Official Unemployment Rate

Changes in the Underemployment Rate New Jersey, 2003 to 3rd Quarter 2012

Source: US Bureau of Labor Statistics © 2013 Legal Services of New Jersey Note: Shaded area indicates recession 27

Lethargic Job Recovery: Employment at a Level Last Experienced in October1999 Nonagricultural Wage and Salary Employment in New Jersey, Jan. 1990 to Dec. 2012

Source: US Bureau of Labor Statistics & New Jersey Department of Labor & Workforce Development © 2013 Legal Services of New Jersey

Note: Shaded areas indicate recessions 28

Dec. 2008 4,085,300

Dec. 2012 3,922,600

New Jersey was Shedding Goods Producing Jobs Before the Great Recession and Continues To Do So

Aggregate Changes in Nonagricultural and Wage Employment in New Jersey, Jan. 1990 to Dec. 2012

© 2013 Legal Services of New Jersey Source: US Bureau of Labor Statistics & New Jersey Department of Labor & Workforce Development 29

ASPECTS OF POVERTY: FOOD Record Percentage of New Jerseyans Experiencing Food Insecurity in 2011

Percentage of Households Experiencing Food Insecurity, New Jersey, 1996 to 2011

8.8%

7.8%

8.5% 8.6% 8.5% 8.1%

7.7%

8.8%

10.3%

11.5% 12.1% 12.3%

3.1% 2.4% 2.7%

3.1% 2.9% 2.6% 2.1%

2.7% 3.4%

4.0% 4.2% 4.5%

0%

2%

4%

6%

8%

10%

12%

14%

19

96

-19

98

19

97

-19

99

19

98

-20

00

19

99

-20

01

20

00

-20

02

20

01

-20

03

20

02

-20

04

20

03

-20

05

20

04

-20

06

20

05

-20

07

20

06

-20

08

20

07

-20

09

20

08

-20

10

20

09

-20

11

Low or very low food security Very low food security

© 2013 Legal Services of New Jersey Source: United States Department of Agriculture, 30

HEALTH: Significant Portion of Working Age New Jerseyans Living in Poverty Did Not Have Health Insurance in 2011

Percentage with No Health Insurance by Income Level & Age, New Jersey, 2011

11.2%

41.7%

5.3%

6.8%

38.2%

2.3%

10.2%

42.4%

2.1%

4.9%

25.8%

0.9% 2.4%

8.9%

1.4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Children 18-64 Years Elderly

Below 50% FPL

50-99% FPL

100 to 200% FPL

200 to 300% FPL

Above 300% FPL


Working Age Hispanics Were Most Likely to Lack Health Insurance in 2011 Uninsurance Rate by Race & Ethnicity & Age, New Jersey, 2011

3.4%

10.9%

0.4%

5.0%

21.5%

2.5%

8.8%

40.2%

6.5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Children Working Age Adults Elderly

Non-Hispanic White

Black or African American

Hispanic or Latino H

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Individuals with Lowest Income Most Likely to Report Poor Health Percentage Reporting Poor Health by Income Level, New Jersey, 2006 to 2011

0%

5%

10%

15%

20%

25%

Less than $15,000 $15,000-24,000 $25,000 - 34,999 $35,000 - 49,000 $50,000 & above

2006 12.8% 8.2% 4.1% 3.3% 1.2%

2007 21.4% 10.1% 4.3% 4.2% 1.3%

2008 12.5% 7.8% 6.4% 4.4% 1.1%

2009 11.8% 8.4% 4.1% 3.1% 1.0%

2010 13.0% 9.8% 4.7% 2.5% 1.4%

2011 13.8% 5.8% 4.0% 3.0% 1.3%

2006

2007

2008

2009

2010

2011

Source: Center for Disease Control, BRFSS Survey © 2013 Legal Services of New Jersey 33

Housing Challenges Continue to Escalate for Majority of New Jersey Renters Cost-Burdened & Severely Cost-Burdened Renters, New Jersey, 2005 to 2011

50.3%

25.8%

49.8%

25.8%

51.2%

25.6%

51.2%

25.6%

52.6%

27.4%

54.3%

29.4%

54.6%

29.6%

0%

10%

20%

30%

40%

50%

60%

Cost-burdened Severely cost- burdened

2005

2006

2007

2008

2009

2010

2011

REC

ESSI

ON

REC

ESSI

ON

Source: U.S. Census Bureau. American Community Survey, One Year Estimates © 2013 Legal Services of New Jersey 34

An Overwhelming Majority of New Jersey Renters with Low Incomes Struggle to Afford Housing

Percentage of Cost-Burdened Renters by Income Level, New Jersey, 2005 to 2011

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less than $10,000 $10,000 to $19,999 $20,000 to $34,000 $35,000 to $49,999 $50,000 or more

2005 86.7% 84.4% 79.5% 41.2% 10.1%

2006 87.4% 86.0% 83.6% 44.7% 9.2%

2007 87.0% 85.5% 84.1% 53.6% 11.5%

2008 87.7% 85.2% 86.1% 54.9% 12.1%

2009 87.4% 85.7% 86.2% 57.9% 13.1%

2010 89.9% 86.5% 87.1% 61.5% 14.8%

2011 88.8% 86.4% 87.2% 62.6% 15.4%

2005

2006

2007

2008

2009

2010

2011

Source: U.S. Census Bureau. American Community Survey, One Year Estimates © 2013 Legal Services of New Jersey 35

INCOME AND WEALTH INEQUALITY

Income Share of Bottom Three Quintiles at Lowest Level in Six Years, while Share for Top Two Quintiles at Highest Level

Share of Household Income by Quintile, New Jersey, 2006 to 2011

© 2013 Legal Services of New Jersey Source: US Census Bureau, American Community Survey © 2013 Legal Services of New Jersey 36

The Wealthy Have Been Increasing Their Share of the Total Pie Distribution of Wealth by Wealth Group, United States, 1962 to 2009

Source: Economic Policy Institute Analysis of Wolf in Allegretto, 2010

Top 1%

Next 5%

Next 4%

Next 10%

Bottom Four-Fifths

© 2013 Legal Services of New Jersey © 2013 Legal Services of New Jersey 37

Wealth Is Even More Concentrated Than Income Distribution of Before-Tax Household Income and Wealth, United States, 2009

Source: Economic Policy Institute Analysis of Wolf in Allegretto, 2010 © 2013 Legal Services of New Jersey © 2013 Legal Services of New Jersey 38

Wages Have Been Eroding for the Last Decade, Importantly for Low Paying Jobs

Occupational Wage & Employment Estimates, New Jersey, 2001 to 2011 (2011 Dollars)

Estd. Total Employ.

25th Pctile Hourly Wage

25th Pctile Annual Wage

50th Pctile Hourly Wage

50th Pctile Annual Wage

2001 3,848,330 $12.72 $26,465 $19.90 $41,392

2007 3,980,080 $12.30 $25,587 $19.32 $40,202

2011 3,771,250 $11.85 $24,640 $19.01 $39,530

Estd. Total Employ.

2011

Median Hourly Wage 2001

Median Hourly Wage 2011

Median Annual Wage 2001

Median Annual Wage 2011

Retail Salesperson

117,720 $11.34 $10.77 $23,591 $22,400

Cashiers 106,290 $9.68 $9.16 $20,125 $19,060

Laborers & Freight, . . . Movers

73,940

$12.83

$11.64

$26,689

$24,200

Janitors & Cleaners

67,440

$11.91

$11.71

$24,759

$24,360

Stock Clerks & Order Fillers

66,790 $13.39 $10.40 $27,844 $21,640

© 2013 Legal Services of New Jersey Source: US Bureau of Labor Force Statistics and NJ Department of Labor & Workforce Development © 2013 Legal Services of New Jersey 39

RCL for a Single Adult in 2011 = $13.75 an Hour

Median Household Income Declined during the Recession and Continues to Decline

Median Household Income, New Jersey, 1984 to 2011 (2011 Dollars)

© 2013 Legal Services of New Jersey Source: US Census Bureau, Current Population Survey, Annual Social & Economic Supplement Note: Shaded areas denote recessions


2008 $68,218

2011 $62,338

Median Income for Black & Hispanic Households Has Declined Considerably More than for White Non-Hispanic Households

Percentage Change in Median Household Income by Race & Ethnicity, New Jersey, 2007 to 2011 (2011 Dollars)


Females Still Earn Considerably Less than Males Median Income by Sex and by Work Experience for Population 15 Years & Over with an Income in

the Past 12 Months, New Jersey, 2005 to 2011 (2011 Dollars)


SELECTED ANTI-POVERTY PROGRAMS AND POLICIES

Difference in SPM Rate After Including Each Element: 2010 & 2011

© 2013 Legal Services of New Jersey Source: The Research Supplemental Poverty Measure: 2011; Current Population Reports, November 2012 43

Number of Parents & Children Affected in FY 2012 by the Reduction in the State EITC Rate in 2010

76,316 105,876

62,435

121,680

18,794 43,333

223,239

42,592

181,561

7,819

63,552

120,280

70,949

37,392

78,540

140,582

13,671 32,524

14,305

108,763

13,351

-

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100,000

150,000

200,000

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Until 2010, NJ State EITC was 25% of the federal credit. It was reduced to 20% during that year.

Half million families, and more than 1.5 million individuals were affected by the reduction of state EITC from 25% of the federal EITC to 20% in 2010 .

Working families with incomes between $13,980 to $50,270 (based on marital status and number of children) are eligible to receive federal EITC (FY 2012). The largest benefit, however, goes to those who are poorest in this group.

In FY 2012, the maximum federal credit varied between $475 (with no qualifying children) and $5,891 (for those with three or more children).

1,577,556 New Jerseyans affected by reduced State EITC


TANF & GA Participation in Decline Number of Eligible Persons Receiving TANF and GA, New Jersey, Aug. 2003 to

Oct. 2012

Source: NJ Dept. of Human Services, Division of Family Development, Current Program Statistics

Note: Shaded area denotes recession

© 2013 Legal Services of New Jersey © 2013 Legal Services of New Jersey 45

Emergency Assistance (EA) Usage Slowing Especially for GA Recipients Number of TANF Families and GA Recipients Receiving Emergency Assistance (EA), New Jersey on

Average Each Month, 2007 to Oct. 2012

Source: NJ Dept. of Human Services, Division of Family Development, Current Program Statistics © 2013 Legal Services of New Jersey © 2013 Legal Services of New Jersey 46

SNAP Usage Has Soared although the Great Recession Officially Ended More than Three Years Ago

Aggregate Change in Adult & Child SNAP Usage in New Jersey, Aug. 2003 to Oct. 2012

Source: New Jersey Dept. of Human Services, Division of Family Development, Current Program Statistics © 2013 Legal Services of New Jersey © 2013 Legal Services of New Jersey 47

SNAP Usage Increased Significantly among Hispanic and White Non-Hispanic Households

Number of Households Receiving SNAP in the Past 12 Months by Racial/Ethnic Group, New Jersey, 2005 to 2011


Receipt of SNAP Split about Evenly between Three Major Racial/Ethnic Groups Share of SNAP Received by Each Racial/Ethnic Group by Household in the Past 12 Months, New Jersey,

2005 to 2011


SNAP Usage among Blacks & Hispanics Disproportionately High Share of Racial/Ethnic Group Receiving SNAP in the Past 12 Months by Racial/Ethnic Group, New

Jersey, 2005 to 2011

Source: US Census Bureau, American Community Survey © 2013 Legal Services of New Jersey © 2013 Legal Services of New Jersey 50

Adult Enrollment in New Jersey Family Care has been Dropping Precipitously since March 2010

15,850

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

20

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May

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In March 2010, NJFC eligibility was cut to parents filing new applications.

Overall, eligibility reduced from 200%FPL to 29% of unearned income and total income not exceeding 133%FPL.

As a result, parent enrollment has dropped precipitously.

Peak enrollment in May 2010: 64,717 parents were enrolled

Drastic drop in enrollment. Lowest enrollment level in

December 2012

© 2013 Legal Services of New Jersey 51 Source: NJ Dept. of Human Services, Division of Medical Assistance & Health Services

The Minimum Wage in New Jersey Has Not Kept Pace with Inflation Changes in the Minimum Wage in New Jersey, 1966 to 2011

$8.25


• For more information visit: www.lsnj.org/PRI

• For questions regarding the data or the presentation email: [email protected] or call 732-529-8332

Concluding Remarks

© 2011 Legal Services of New Jersey

http://www.lsnj.org/PRI

mailto:[email protected]

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