News Round-up on 2009 Poverty Report

Like last year, we have added a feed to the blog (upper righthand box) to track the media coverage of the release of the 2009 Illinois Report on Poverty. A few articles are linked below, and the feed will update as new stories are published.

Study: Recession pushing Illinoisans into Poverty - Chicago Tribune

More than 400,000 More Illinoisans Projected to Fall into Poverty as a Result of the Recession, Report Finds - PR Newswire

State sees rise in poverty - Peoria Star Journal

Report: Poverty Escalating in Southern Illinois - The Southern Illinoisan

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2009 Report on Illinois Poverty is released!

Today marks the release of the 2009 Report on Illinois Poverty, produced by the Heartland Alliance Mid-America Institute on Poverty.





Here are some key findings from the report:

• As many as 405,000 Illinoisans- 132,000 of them children- are likely to have been pushed into poverty as a result of the recession.


• Without effective interventions, approximately 34,500 additional Illinoisans may experience homelessness by 2010.


• Senior citizens are having to work past retirement age to make ends meet.


• In February 2009, there was 1 job for every 5 job seekers in the Midwest.


• "The traditional stepping stones to a better life- gainful employment, quality education, stable and decent housing, access to health care and proper nutrition, opportunities to build assets are out of reach or on shaky ground for far too many Illinoisans"

As we have stated before, while the outlook is far from rosey, the negative trend is not inevitable. The 2009 Report on Illinois Poverty recommends that state legislators take specific actions to protect the most vulnerable of Illinois' citizens:

• Comprehensive spending reform to ensure sustainable resources for anyi-poverty measures and other human services.


• Promote tax fairness through increased Earned Income Tax Credit.


• Leverage resources from the American Recovery and Reinvestment Act to through Temporary Assistance for Needy Families and the Workforce Investment Act programs to help get families and the economy back on track.


• Increase funding for school health centers to reduce hospitalization and emergency room costs, as well as reduce risky behaviors and lost time from school.


• Expand the community schools model to provide services such as out-of-school learning, comprehensive student health services, family supports, and community activities.


• Create Children's Savings Accounts to expand opportunities for savings and asset building across the lifespan.

To download the report and obtain data on each of Illinois' 102 counties, please visit the "Press Room" at www.heartlandalliance.org/povertyreport .

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Action Alert: Make Affordable Housing a Capital Budget Priority

Take action now! - http://xrl.in/24cg

Right now, your state senator is making decisions about his or her priorities in Illinois' capital budget. Your senator needs to hear from you that $500 million for affordable housing must be included in the next capital budget to provide new jobs, new tax revenue, and new opportunity to the most vulnerable people in our state.

Contact your state senator today and urge them to tell their leaders that $500 million for affordable housing needs to be in the capital budget.

Housing is just as important part of our state's infrastructure as bridges and roads. By providing new resources for the development and rehabilitation of affordable housing, our state will be creating white, blue, and green collar jobs, generating new revenue, and creating an infrastructure of opportunity for the hundreds of thousands of people in our state that need safe, decent, affordable housing that is their human right.

Take Action - http://xrl.in/24cg

Note - For this alert, we only need action from those of you that live in Illinois and have a Democrat as your state Senator. Thanks!

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Illinois Poverty News Weekly

Illinois Insuring Unemployment Benefits –Central Illinois Proud, 4/20/2009

The "Reach" For Affordable Housing In Illinois –Progress Illinois, 4/20/2009

Casting A Wider Unemployment Safety Net –Progress Illinois, 4/21/2009

Legislative plan on affordable housing could aid foreclosed homeowners –Medill Report, 4/22/2009

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So Out of Reach in Illinois

Information taken from Out Of Reach 2009, an annual report on housing put out by Housing Action Illinois and The National Low-Income Housing Coalition.

We have this notion that a person who works should be able to afford a decent place to live. I remember when I started looking for my first apartment that someone told me that I should not spend more than one-third of my income on rent. It is a rule of thumb, right?

The Housing Wage is the amount of money a person would need to make per hour for 40 hours per week, 52 weeks a year in order to be able to afford a modest, two-bedroom apartment and not spend more than 30% of your monthly income.

The Housing Wage for Illinois is $17.17. This is an annual income of $35,713.60. In 2008 the Housing Wage was $16.23. This means that even with the housing market problems the cost of rental housing has increased over the last year, possibly due to increased competition from all of the people who no longer own their own homes.

The average wage for renters in Illinois is $15.33. This is an annual income of $31,886.40. A person earning $15.33 would have to average 45 hours per week to afford a market rate apartment.
Illinois minimum wage is $7.75. This is an annual income of $16,120. A person earning $7.75 would have to work 89 hours per week, every week to afford a market rate apartment.

So many problems with this.

There are a lot of people here who make less than $15.33 per hour.
There are a lot of people here who do not work full-time and even if they do, full-time does not always mean 52 weeks per year… especially if you are lower on the pay scale.

As of the latest available data, approximately 670,000 individuals in Illinois are living in extreme poverty, meaning people earning at or below 50% of the poverty line (a family of four making $11,050 per year). This number does not take in account the families that have entered into extreme poverty since the current economic downturn began. So, if a family of four in extreme poverty is renting a two-bedroom apartment at the current fair market rent of $944 a month in the Chicago area, they are left with $172 for all other expenses for the entire year.

In addition, we know that there is great variety in Illinois in regards to rental market and average income (sometimes over only a short distance).

Bond County has the lowest Housing Wage in the state at $10.50 and the Chicago Metro Area has the highest at $19.31. The average wage for a renter in Bond County is $8.33. The average wage for a renter in the Chicago Metro Area is $17.20. Now, you look at these numbers and it might be easy to think, “It is only a couple of dollars difference. What is the big deal?”

The big deal is that (as previously stated) there are a lot of people who earn less than these averages and a lot of people who do not work 40 hours a week 52 weeks a year, but even if that was not the case there is this:
• Over the course of one year a person in Bond County earning the average renter’s wage will spend $4,513.60 more than they can afford. A person earning the average renter’s wage in Chicago will spend $4,388.80 more than they can afford.

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Illinois Poverty News Weekly

4/13 to 4/19
Illinois No.8 in the nation in illegal immigrants –Chicago Sun-Times, 4/16/2009
Illinois jobless rate rises to 9.1% -Chicago Tribune, 4/17/2009
Ill. advocacy groups push for EITC increase –St. Louis Today, 4/14/2009
Food bank gets $20,000 grant –Naperville Sun, 4/19/2009

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Illinois Poverty News Weekly

April 6th to April 12th

More than 20 companies warn state they plan "mass" layoffs –Chicago Tribune, 4/06/2009
Why our taxes put biggest bite on poor –Chicago Sun-Times, 4/06/2009
Chicago Townships Struggling to Meet Needs for Social Services – The Anti-Poverty Blog, 4/06/2009
Report: 3.5M in Illinois spent time uninsured –Chicago Tribune, 4/07/2009
Campaign asks lawmakers to save vital services –The Medill Report, 4/08/2009
Third of Illinois went without health insurance in last 2 years –Chicago Sun-Times, 4/08/2009
Survive unemployment: A users guide The Southtown Star, 4/12/2009

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Health Care and Food Audio Event

On Monday, April 6th we held the final of series of three audio events. This event was focused on Health Care and Food and can now be heard as a podcast, or check it out with the other two audio events on the campaign website.

The Health Care and Food Audio Event features Rachel Klein, Deputy Director of Health Policy for Famlies USA, and Colleen Pawling, Food Stamp Analyst for Center for Budget and Policy Priorities providing commentary and analysis on the impact of the American Recovery and Reinvestment Act on public health care and public food service.

Listen to Rachel Klein discuss the changes that states are seeing in funding for the Children’s Health Insurance Program (CHIP) that have come from recent legislation. In particular the increase in funds that states will receive, changes in the way the funds will be spread among states, and state bonuses for enrolling uninsured children of low-income families in Medicaid. In addition, Rachel discusses the health care developments involved in the American Recovery and Reinvestment Act, changes to COBRA, and action on national health reform.

Listen to Colleen Pawling discuss the changes in Food Stamp funding as well as how Illinois is doing on getting food stamps out to eligible families and what we are doing to increase access to food stamps.

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Illinois Poverty News Weekly

March 30 to April 5th

Five Southern Illinois human service offices to close –The Southern, 3/30/2009
Unemployment up in all Illinois metro areas –Chicago Tribune, 3/31/2009
Caught in the 2-earner trap –Chicago Sun-Times, 3/31/2009
Landmark Health Care Law Goes Into Effect Tomorrow –Progress Illinois, 3/31/2009
Illinois to receive $890 million for food stamps –Chicago Tribune, 4/01/2009
Illinois Winter Moratorium Law Expires –WIFR, 4/01/2009
Massive cuts proposed for Alton schools –Alton Telegraph, 4/03/2009

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Reminder:RSVP for the Audio Event on Health Care & Food on April 6th

Freedom from Poverty in a New Era - The Changes in Washington and What in Means to State-Level Work - Health Care & Food

"The success of our economy has always depended not just on the size of our Gross Domestic Product, but on the reach of our prosperity; on our ability to extend opportunity to every willing heart - not out of charity, but because it is the surest route to our common good."

President Barack Obama
January 20, 2009
Inaugural Address

With rapid changes occurring on the federal level against the backdrop of one of the worst economic downturns in decades, state-level advocates working towards ending poverty and fulfilling human rights need information on what they should be preparing for and acting on in Illinois to take full advantage of these opportunities. The From Poverty to Opportunity Campaign is hosting a series of audio event calling on national experts to share their insight into the changes and possibilities on the federal level and what those changes mean to our work here in Illinois. Participants will have the opportunity to ask questions and learn what can be done to make sure opportunity is extended to the most vulnerable in our society.

Call Three - Monday, April 6 - 10:00 - 11:30 a.m. CST **New Date - Changed From March 30**

Topic: Health Care & Food

Speakers:
Rachel Klein - Deputy Director, Health Policy - Famlies USA
Colleen Pawling - Food Stamp Analyst - Center for Budget and Policy Priorities

President Obama's recently introduced budget included over $600 billion for the expansion of healthcare. Does that mean we are really on the path to healthcare for all? As the economic crisis continues, food pantries are seeing more and more people at their door. How does the recovery package and other policy changes address the growing need for food assistance? National experts will discuss these critical issues and what we need to be doing here in Illinois help realize these human rights.

You can listen to the podcasts of our previous calls by clicking here.

This series of events is made possible by the generous support of the Libra Foundation.

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Action Alert: Ask Illinois Legislators to Support Hunger Relief!

From Campaign members the Greater Chicago Food Depository and the Illinois Food Bank Association:

Individuals and families across Illinois are increasingly turning to food banks and our partner food pantries and soup kitchens for assistance during these difficult economic times. The Food for Families Program has played a vital role in ensuring that quality, nutritious food is available to these men, women and children in need, and it is essential that the state continue to support vital hunger-relief efforts like this.

We are happy to report that Gov. Quinn has included funding for Food for Families in his FY 2010 budget proposal. Given the many difficult budget decisions faced by the state this year, the governor’s support for this program is deeply appreciated. Please take a moment to thank Gov. Quinn for his commitment to meeting the needs of Illinoisans who are facing hunger.

In the coming weeks, state legislators will negotiate what will be included in the FY 2010 Illinois state budget, and we need your help to let them know that feeding hungry families must be a priority in Illinois. As the Illinois General Assembly considers the governor’s state budget proposal, we must urge state legislators to support the Food for Families program and other efforts to provide hunger relief in Illinois.

You can have an impact on the state budget process and the lives of hungry individuals and families across the state—please take action today.

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Illinois Could Save Millions on Expensive Social Services

Affordable housing that provides on-site services for people who are homeless, have a mental illness, and other vulnerable populations could dramatically reduce the use and cost of expensive public services such as state prisons and mental health facilities, according to a new report released Thursday by the Heartland Alliance Mid-America Institute on Poverty (MAIP), the Supportive Housing Providers Association (SHPA), and the Corporation for Supportive Housing (CSH).

The study found that Illinois saw an overall 39 percent cost reduction in the use of public services, such as inpatient mental health care, nursing homes, and criminal justice, over a two-year period after a sample of 177 individuals were moved into supportive housing. The shrunken need for public services yielded a total overall cost savings of more than $850,000 – an average savings per resident of $2,400 per year.

“Illinois could see significant savings from the most expensive users of public services, such as those with mental illness or substance use, if more supportive housing units are made available,” said Katrina Van Valkenburgh, CSH. “This study, like others we’ve done across the country, demonstrates that supportive housing works and is a wise investment of public dollars.”

“Now more than ever, our most vulnerable populations need to count on a support system inclusive of housing to survive challenging times. Illinois’ public services are already strained and facing fiscal woes. But an investment in supportive housing now could save the state a significant amount of dollars long term,” says Janet Hasz, Executive Director of SHPA. “Supportive housing provides residents the tools to lead stable, healthy and independent lives. Once they leave us, they no longer need to rely on the state systems as much—or at all.”

Supportive Housing in Illinois: A Wise Investment measured the impact of the supportive housing intervention on the use of public services from a sample of 177 residents over a four-year time period, comparing the two years before residents entered supportive housing with the two years after. Data were collected on these residents from Medicaid, mental health hospitals, substance use treatment, prisons, and various county jails and hospitals.

The study notes a dramatic shift in the use of state services pre- to post-housing. Among the key findings:

• The number of people using state mental health hospitals dropped 90 percent from pre- to post-supportive housing. The number of overnight stays in mental health hospitals went down by almost 100 percent. The sample of 177 residents used more than $400,000 worth of state mental health hospital services before entry into supportive housing—down to $873 after.
• Overnight stays in state prison dropped to zero during the post-housing time period with a 100 percent cost savings of over $215,000. County jails saw an 86 percent decrease in overnight stays post-supportive housing.
• Medicaid services saw a major shift from a high-reliance on expensive inpatient/acute services before supportive housing to less expensive outpatient/preventative services after.
  
• Nursing home stays decreased by 97 percent, saving over $230,000

“The true cost saving from supportive housing is much higher than reported in this study. We weren’t able to collect the costs of homeless shelters, soup kitchens, free clinics and other supportive services used by this population,” says Amy Rynell, lead researcher at MAIP. “And while we also don’t measure the social costs of supportive housing, we know from residents that post-housing they experience better health, an end to homelessness, financial confidence, and independence – qualities that lead to an improved society as a whole – and which don’t always have a dollar amount.”

According to Van Valkenburgh, other studies on the effects of supportive housing have included much of this additional data and found even greater per person savings than the $2,400 identified in Illinois.

SPHA estimates at least $11 million could come back to the state if $3 million in state funds are invested into 494 units serving 606 men, women, and children in the next fiscal year. Advocates say that if the $3 million for supportive housing is obtained, the funds would leverage more than $27 million in federal assistance. Illinois currently has 6,000 units of permanent supportive housing serving over 8,000 individuals in 28 counties.

SHPA member organizations will meet with state legislators in their districts during the April 6-20 Spring Break and in Springfield to review the study’s findings and supportive housing funding needs.

SHPA is also pressing for the passage of HB4429, a bill to add $3 million in new funding to the FY2010 budget to pay for the services in 500 new supportive housing units in the next year.

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