The Realities of Poverty in Delaware
2001 - 2002 |
The 2001-2002
update of the Realities of Poverty is the first being produced by the Delaware Housing
Coalition on its own, taking over the job from the Public Assistance Task Force, which has
asked us to continue its fine work. It is our intention to update the Realities every two
years, as PAT used to do.
Readers familiar
with earlier editions of this report will find things missing from it this time, including
discussions of food security, utility costs, and childcare. It also lacks discussions of
certain subjects, including community reinvestment, predatory lending, concentration of
wealth, incarceration rates, and tax fairness, which we did not have the space and time to
include. In defense of all these omissions, we can only say that we have attempted to
create a document that provokes Delawareans to further investigation and action on their
own, in the tradition that the Public Assistance Task Force helped to create.
Our concentration
on other areas has to do with our own mission to encourage Delaware to meet its obligation
to house everyone decently. Housing is the single cost most likely to determine whether a
family is in poverty after it has been paid.
Further, we have
included a discussion of liveable wages and basic family budgets for Delawareans, with the
aim of encouraging discussion of this very important issue and of giving some guidelines
within which to begin that discussion.
Contributors |
|
Alice Brandreth |
Karen Curtis |
Deborah Gottschalk |
|
Jay Lockaby |
Gina Miserendino |
Joe Myer |
|
Steve Peuquet |
Christina Stanley, Research |
Ken Smith, Edit/Layout |
The Realities of Poverty
in Delaware: 2001 - 2002 is dedicated to all the citizens of the state who work to make
ends meet and to keep their homes and families together, despite everything.
The Economic Environment for the Poor in Delaware
Using data from the American Community Survey for 1999 and 2000,
the Economic Policy Institute (EPI) came up with a rough measure of state economic
environments for the poor. EPI looked at poverty rates for the state, for children, and
for single female-headed households and compared them to the percentage of families
receiving public assistance and food stamps and paying more than 30% of income on rent.
EPI also looked at median earnings gender gap and income inequality in arriving at an
index of the state economic environment for the poor. The ACS for 1997showed a much lower
child poverty rate than the regular census figures (11.2% versus 16.6%) but reflected the
high rate of poverty among single female-headed families (despite reductions in welfare)
and a gender gap in earnings of 65%.: Delaware women earning $0. 35 less per dollar earned
by Delaware men.
Table 1: Delaware's Economic Environment for the Poor |
Economic
Hardship |
Poverty Rate |
Share of households receiving |
Median earnings gender gap |
| Overall |
Children |
Single mother
families |
Cash public
assistance |
Food Stamps |
Paying more
than 30% on rent |
| 9.6% |
11.2% |
27.9% |
2.5% |
4.8% |
35.9% |
65.2% |
Income
Inequality |
Median family income |
Percent of families with income in range of: |
<$25,000 |
$25 to 50K |
$50 - 100K |
$100 -200K |
$200,000+ |
$35 - 75K |
| $55,131 |
17.0% |
27.0% |
39.4% |
14.0% |
2.6% |
40.3% |
| Source: Data (1997) from the American Community Survey, http://www.epinet.org/datazone/acs/index.html |
Poverty, Housing, and Income in Delaware
Despite a climate of economic growth which, especially
during the second half of 1990s, brought up the earnings of families at or near poverty,
there was an increase in the number (by 17,000) and percent (by 2%) of Delawareans in
poverty, according to the findings of the census. This amounted to an increase in the
number of poor in Delaware by over 35%.
Table 2: Poverty, Housing, and
Income in Delaware: 1990 & 2000 |
| Category |
1990 |
2000 |
Change |
% Change |
|
Poverty |
| Poverty rate |
6.9% |
8.7% |
1.8% |
|
| Number in poverty |
48,000 |
65,000 |
17,000 |
35.4% |
|
Housing |
| Median gross rent |
$495 |
$654 |
$159 |
32.1% |
| Median mortgage payment |
$763 |
$1,330 |
$567 |
74.3% |
| Two-bedroom Fair Market Rent (FMR) |
$590 |
$696 |
$106 |
18.0% |
| Three Bedroom Fair Market Rent (FMR) |
$740 |
$933 |
$193 |
26.1% |
| Two Bedroom Housing
Salary/Wage |
$23,600 |
$27,820 |
$4,220 |
18.0% |
| $11.35 |
$13.38 |
$2.03 |
| Three Bedroom Housing
Salary/Wage |
$29,600 |
$37,316 |
$7,716 |
26.1% |
| $14.23 |
$17.94 |
$371.00 |
|
Income |
| Minimum Wage/Salary |
$8,840 |
$12,792 |
$3,952 |
44.7% |
| $4.25 |
$6.15 |
$1.90 |
| Median family Income |
$40,252 |
$55,131 |
$14,879 |
44.7% |
| Median household Income |
$34,875 |
$47,629 |
$12,754 |
36.6% |
Source:
QTO3. Profile of Selected Economic Characteristics: 2000 and DP4. Income and Poverty
Status in 1989: 1990, http://www.census.gov |
Delaware Household
Income Sources
Increases in the state minimum wage, low unemployment, and
real gains in wages have combined with the time-limiting of welfare benefits to make
Delaware a state where earnings are the principle source of income. Households with any
form of public assistance decreased over the ten years from 1990 to 2000 by over 43%.
Households with retirement as a source of income increased 40%.
Table 3: Delaware Household
Income Sources: 1990 & 2000 |
| Income Type |
1990 |
2000 |
Change |
| # |
# |
# |
% |
| Wage and salary |
199,690 |
241,237 |
41,547 |
20.8 |
| Social Security |
65,306 |
78,592 |
13,286 |
20.3 |
| Public assistance |
12,914 |
7,305 |
(5,609) |
-43.4 |
| Retirement |
45,999 |
64,470 |
18,471 |
40.2 |
| Total Households |
247,163 |
295,258 |
48,095 |
19.5 |
Source:
QTO3. Profile of Selected Economic Characteristics: 2000 and DP4. Income and Poverty
Status in 1989: 1990, http://www.census.gov |
During the 1990s, households with incomes below the
traditional "middle class" threshold of $35,000 saw negative growth, probably a
consequence of real increase on wages and salaries but even more of the increasing need
for families to have more than one wage earner. The greatest growth in households was in
the range from $50,000 to $150,000 per year. The households in this range accounted for
80% of the growth during the decade.
Table 4: Number of Poor and
Poverty Rate in Delaware: 1980 - 2000 |
| Year |
Total Population |
Number of Poor |
Percent |
| 2000 |
750,000 |
65,000 |
8.70% |
| 1995 |
713,000 |
74,000 |
10.30% |
| 1990 |
690,000 |
48,000 |
6.90% |
| 1985 |
624,000 |
71,000 |
11.40% |
| 1980 |
578,000 |
68,000 |
11.80% |
Source:
http://www.census.gov/hhes/poverty/histpov/histpov21.html |
Poverty Line, Poverty Wage, and Poverty Rent
One way of seeing the inadequacy of current measures of poverty
and the plight of the poor in the state is by contrasting the rents that Delaware families
in poverty can afford with the prevailing rents for the units they require. Using the
accepted policy standard that no more than 30% of income should be spent on housing needs,
we can come up with the "poverty rents" for households in poverty in Delaware:
the maximum a family at the poverty line should be paying for gross housing costs. These
poverty rents fall far below the existing fair market rents in the state for the
respective unit required by each of the family sizes.
Table 5: Poverty versus Rent
in Delaware |
| Family Size |
Poverty Line, Poverty Wage and Poverty Rent |
FMR and Housing Wage |
Poverty
Line
(Annual Income) |
Poverty
Line
(Monthly Income) |
Poverty
Wage (Hourly) |
Poverty
Rent
(Monthly) |
Fair
Market Rent
(3-County Range) |
Fair
Market Wage
(3-County Range) |
| 1 |
$8,590 |
$716 |
$4.13 |
$215 |
$472 to $511 |
$9.08 to $9.83 |
| 2 |
$11,610 |
$968 |
$5.58 |
$290 |
$477 to $623 |
$9.17 to $11.98 |
| 3 |
$14,630 |
$1,219 |
$7.03 |
$366 |
$477 to $727 |
$9.17 to $13.98 |
| 4 |
$17,650 |
$1,471 |
$8.49 |
$441 |
$800 to $986 |
$15.38 to $18.96 |
| 5 |
$20,670 |
$1,723 |
$9.94 |
$517 |
$800 to $986 |
$15.38 to $18.96 |
| 6 |
$23,690 |
$1,974 |
$11.39 |
$592 |
$800 to $1192 |
$15.38 to $22.92 |
| 7 |
$26,710 |
$2,226 |
$12.84 |
$668 |
$854 to $1,192 |
$16.42 to $22.92 |
| 8 |
$29,730 |
$2,478 |
$14.29 |
$743 |
$854 to $1,192 |
$16.42 to $22.92 |
Source:
Federal Register: March 18, 1999 (Volume 66, Number 33); Notices: http://aspe.hhs.gov/poverty/01poverty.htm
Poverty level was divided by 52 weeks and then by 40 hours to reach the poverty wage. |
Poverty continues to be concentrated in New Castle County,
accounting for 56% of the total. However, the poverty rate increases as we travel south in
the state, with Sussex County at 12.7%. The child poverty rate, according to this 1997
survey, is 15.4%, with the rate for children from 5 to 17 years of age being 13.8%. These
two rates, like the poverty rate as a whole, increase as we go from north to south, with
the child poverty rate in Sussex County exceeding that of both the other counties, as well
as the state as a whole. The rate of poverty for Delaware children under five years of age
is 17.1%. Similarly, median income per county declines in a southward movement, with New
Castle County exceeding the state median by about $6,500 and Sussex County a little more
than $8,000 below that mark.
Table 6: Delaware Income and Poverty Estimates: 1997 |
| |
Delaware |
New
Castle |
Kent |
Sussex |
| Number in poverty |
73,868 |
41,658 |
14,822 |
17,388 |
| Percent in poverty |
10.0 |
8.7 |
12.1 |
12.7 |
| Number under 5 years in
poverty |
8,553 |
|
| Percent under 5 years in
poverty |
17.1 |
| Number of related children 5
to 17 years in poverty |
18,114 |
9,734 |
4,047 |
4,333 |
| Percent of related children 5
to 17 years in poverty |
13.8 |
11.6 |
16.8 |
18.4 |
| Number 0 to 17 years in
poverty |
28,193 |
15,303 |
5,980 |
6,910 |
| Percent 0 to 17 years in
poverty |
15.4 |
13.1 |
17.7 |
21.5 |
| Median household income |
$41,315 |
$47,819 |
$36,555 |
$33,281 |
Source:
http://www.census.gov/hhes/www/saipe/stcty/sc97ftpdoc.html |
School-Age Poverty
This same survey estimates poverty by school district throughout
the state of Delaware. The same pattern applies to the findings here, with the majority of
poor children attending school in northern Delaware. Northern districts account for 53% of
school-age children in poverty (9,664), with the districts in the central part of state
making up one-fourth of that total (4484) and the southern districts representing 22%
(3,966). However, while the north has one district with a poverty rate of 20% (2,749
children in poverty), there are two districts in the central part of the state with 20%
rates (with a combined total of 2,363 children in poverty). In the southern part of the
state, there are three districts which exceed 20% poverty rates (one of them with a 35%
rate of school-age child poverty), with a combined total of 2,783 poor children among
them.
Table 7: Delaware School Districts and Children in Poverty |
| School District |
Population |
# 5-17 years |
# in poverty 5-17 years |
% in poverty 5-17 years |
| NORTH |
| Appoquinimink |
15,414 |
3,098 |
213 |
7.0 |
| Brandywine |
101,148 |
16,602 |
1,610 |
10.0 |
| Christina |
144,036 |
25,000 |
3,424 |
14.0 |
| Colonial |
71,457 |
13,540 |
1,668 |
12.0 |
| Red Clay |
145,925 |
24,251 |
2,749 |
20.0 |
| Subtotal |
477,980 |
82,491 |
9,664 |
11.7 |
| CENTRAL |
| Caesar Rodney |
35,568 |
7,355 |
1,040 |
14.0 |
| Capital |
43,633 |
7,933 |
1,617 |
20.0 |
| Lake Forest |
19,200 |
3,721 |
746 |
20.0 |
| Milford |
22,251 |
4,222 |
635 |
15.0 |
| Smyrna |
20,750 |
3,627 |
446 |
12.0 |
| Subtotal |
141,402 |
26,858 |
4,484 |
16.7 |
| SOUTH |
| Cape Henlopen |
27,718 |
4,282 |
563 |
13.0 |
| Delmar |
5,174 |
934 |
126 |
13.0 |
| Indian River |
45,622 |
7,040 |
1,452 |
21.0 |
| Laurel |
13,377 |
2,577 |
572 |
22.0 |
| Seaford |
21,173 |
4,014 |
494 |
12.0 |
| Woodbridge |
11,620 |
2,200 |
759 |
35.0 |
| Subtotal |
124,684 |
21,047 |
3,966 |
18.8 |
Source:
http://www.census.gov/hhes/www/saipe/school/sd97ftpdoc.html |
Nearly one in every six Americans (42.6 million) are without
health insurance. Despite the longest economic boom in history, the number of persons
without health insurance dipped just 4% in 1999.[1] With the current economic downturn,
some states are already cutting back coverage with Oklahoma mailing out termination
letters to Medicaid recipients and North Carolina imposing a freeze on enrollment in the
CHIP program for children.[2]
Compared to other wealthy industrialized nations, the United
States health care system provides coverage to the fewest and costs the most. Six of the
eight OECD countries have universal coverage for all of their citizens. [3] The two
countries without universal coverage are the United States and Germany which does not
require its most affluent citizens to purchase health insurance. In 1997, health
expenditures as a percentage of the GDP (gross domestic product) ranged from a high of
13.6% in the United States to 6.7% in the United Kingdom. The OECD median was 7.6%. When
compared to the other OECD countries, infant mortality rates are the highest and life
expectancy rates are the lowest in the U.S. [4]
"Market competition has not succeeded in bringing the U.S.
health care costs in line with those of industrialized countries. There is no evidence of
sustained quality improvement. Market based reform has not expanded health insurance
coverage but has rather, directly or indirectly, increased the number of under insured and
uninsured Americans. Medical research and education have suffered and medicine's social
mission declined." [5]
In Delaware 11.4% of the state's population lacked health care
coverage in the year 2000, compared to 13.4% for the region (Maryland, Pennsylvania, New
Jersey and New York). [6] From the mid 1990s to the present the rate of uninsured in
Delaware decreased from 13.6% to 11.4%. This drop in the number of Delawareans without
health insurance is credited primarily to the increased coverage of children through the
Healthy Children Program initiated in January 1999.
The number of uninsured children is estimated by one source as
32,000 (a 15.1% rate), with uninsured children in families at or below 200% of poverty
being 23,109 (an increased rate of 27.6%). [7]
The bulk of the 96,000 uninsured Delawareans are the working poor
who do not qualify for Medicaid, are not provided health insurance by their employers, and
whose income is insufficient to purchase health care coverage.
The profile of the uninsured Delawarean: single, white,
male over age 17, working with an income above poverty level.
Table 8: Infant Mortality and Low Birth Weight Babies, 1999 |
| |
Delaware |
United States |
| Infant Mortality [8] |
8.1% |
7.5% |
| Low Birth Weight [9] |
8.5% |
7.5% |
Both infant mortality rates and the percentage of low birth weight
babies are higher in Delaware than in the nation. Since 1983 in Delaware, the percentage
of low birth weight babies has increased. As both infant mortality rates and low birth
weight are correlated with poverty, it should come as no surprise that child poverty rates
are increasing in Delaware where one in six children now live in poverty.[10]
| Sources: [1] Physicians For A National Health Program (PNHP), "Despite
Economic Boom, Number of Uninsured Drops Only 4 Percent," Internet News Release:
9/29/00; [2] family Health Organization, Internet News release: 3.20/01; [3] Anderson,
Gerard F., "Multinational Comparisons Of Health Care," Center For Hospital
Finance and Management, John Hopkins University: October 1998; [4] Saltman, R.b., and
Figueres, J., "European Health Care Reform," WHO Regional Publications, European
Series No. 72, Year 2000; [5] Journal of Health and Social Policy, Vol, 13[1] 2001,
"Market Structure and Performance: Evaluating the U.S. Health System Reform," by
Pauline Vaillancourt Rosenau, Ph.D.; [6] Delaware Health Care Commission, Annual Report
and Strategic Plan, 1/15/01, p. 21; [7]Center on Budget and Policy Priorities, DELAWARE:
Poverty and Program Trends (August 2000), www.cbpp.org,
[8] Kinds Count
in Delaware Fact Book 2000-2001, Center for Community Development and Family Policy,
College of Human Services, Education and Public Policy, University of Delaware, p. K-22;
[9] Ibid., p. F-12; [10] Ibid., p. K-35. |
The good news of low unemployment and higher real wages over
recent years is tempered by the fact that workers continue to live at or near poverty and
make up an increasing proportion of the officially poor. A recent study by the Center for
Budget and Policy Priorities (CBPP) found that almost 56% of poor families with children
in Delaware have at least one worker in them and that 52% of poor families have earnings
as a majority of their income (DELAWARE: Poverty and Program Trends, August 2000, www.cbpp.org) . Another CBPP study, The Poverty Despite Work
Handbook, found that there are 31,000 people in working poor families and 21,000
children in those families.
Table 9: U.S. Workers as a Proportion of All Poor: 1978 - 2000 |
| (Numbers in thousands) |
Poor people 16 years and
over |
Worked |
Worked year-round
full-time |
| Year |
Total |
Number |
Percent |
Number |
Percent |
| 2000 |
20,597 |
8,342 |
40.5 |
2,432 |
11.8 |
| 1990 |
21,242 |
8,716 |
41.0 |
2,076 |
9.8 |
| 1980 |
18,892 |
7,674 |
40.6 |
1,644 |
8.7 |
| 1978 |
16,914 |
6,599 |
39.0 |
1,309 |
7.7 |
Source:
http://www.census.gov/hhes/poverty/histpov/histpov18.html |
The Handbook also found that 30% of Delaware families with
children who live at or below the official poverty line have a full-time, year-round
worker present. Within the range of 100% to 150% of poverty, 71% of the families with
children
have a full-time, year-round worker. Over 90% of all
Delaware families with children who fall below 200% of poverty have at least one worker,
and 59% have a full-time, year-round worker.
Table 10: Poverty Despite Work in Delaware: Mid-1990s |
| |
in poverty |
100% to 150% |
100% - 200% |
| Families |
# |
with a worker |
with a full time year round
worker |
# |
with a worker |
with a full time year round
worker |
# |
with a worker |
with a full time year round
worker |
| with Children |
10,000 |
8,000 |
3,000 |
7,000 |
7,000 |
5,000 |
22,000 |
21,000 |
16,000 |
| without children |
12,000 |
8,000 |
1,000 |
8,000 |
8,000 |
3,000 |
18,000 |
17,000 |
10,000 |
| Sources: Center
on Budget and Policy Priorities, The Poverty Despite Work Handbook (Second
Edition), Christina Smith FitzPatrick and Edward Lazere (April 1999), www.cbpp.org, |
The table below was originally developed for the Citizens' Inquiry
on Welfare Reform, held in Dover, Delaware. The table has been updated to 1999 figures,
including scenarios which reflect typical current placement wages and hours worked by ABC
recipients. It illustrates the dilemma of welfare-to-work efforts. Even though Scenario
2
and 3 allow the family of three to rise above official "poverty," the expenses
in this albeit frugal budget exceed income in all three scenarios, as well as the
"pre-work" situation from which the family began.
|
Table 11: Does
Work Pay Enough? Poverty Despite Work: Monthly Analysis |
|
Family of Three in Delaware's a Better Chance Welfare Reform
Program and Three Common Work Scenarios (1999) |
| |
Pre Work |
Scenario 1
During Workp/t 25 hrs@$6.74/hr. |
Scenario 2
During Work30hrs@$7.08/hr. |
Scenario 3
During Workf/t 40hrs@$7.42/hr. |
| Income
* |
TANF Grant |
338 |
146 |
69 |
0 |
| Earnings |
0 |
725 |
913 |
1276 |
| Food Stamps |
329 |
218 |
207 |
159 |
| TOTAL |
$667 |
$1,089 |
$1,189 |
$1,435 |
| % of Poverty ($1,157) |
58% |
94% |
| |