11. Increased Poverty and Cuts to Human Services
The Great Recession took its toll on the nation’s poor. New Census Bureau figures show the nation’s poverty rate rose to more than 15 percent, the highest since 1993. More than 46 million Americans are now considered in poverty, 2.6 million more than last year.
But fiscal woes forced states to make tough decisions on programs aimed at helping their most vulnerable residents.
“In 2011, states implemented some of the harshest cuts in recent history for many of the nation’s most vulnerable families with children,” said LaDonna Pavetti, vice president, Family Income Support for the Center on Budget and Policy Priorities. “States cut already low cash assistance grants, imposed shorter or more rigid time limits, and cut assistance such as child care and transportation assistance that helps parents with low earnings to work.”
At least five states—California, Washington, New Jersey, New Mexico and South Carolina—have cut monthly TANF benefits for low-income families.
Where Poverty has Flourished
Poverty rates at the state level were greatest in the South and West, according to the latest Census data. For example, Alabama’s poverty rate, which had declined to 15.7 percent in 2008, rose to 17.5 percent in 2009.
Mississippi has had a steadily increasing poverty rate since 2007, rising to 21.9 percent in 2009, a higher rate than any other state. The highest increase in poverty occurred in Florida where it increased 2.8 percent since 2007.
Significance of Child Poverty
Child advocates, such as The Annie E. Casey Foundation and the National Center for Children in Poverty, contend that poverty is the single greatest threat to children’s well-being. According to the 2011 KIDS COUNT data from the Casey Foundation, “children who grow up in low-income families are less likely to successfully navigate life’s challenges and achieve future success.”
Since children represent 25 percent of the population, according to the National Center for Children in Poverty, their poverty level is much more significant. Eleven states have child poverty rates above 23 percent, according to the 2011 Census data. Four states—Florida, Hawaii, Nevada and Utah—saw child poverty rise by two-fifths or more.
Cuts to Assistance Programs
Although poverty rates are increases, states face the daunting task of what continues to be paid for and what has to be cut in these tight fiscal times. States spend $25 billion of their own revenues annually on social welfare programs that serve about 20 percent of the population, according to the American Public Human Services Association. As the federal government cut Temporary Assistance for Needy Families, known as TANF, states were making up the difference. Now, states must cut assistance significantly or end it all together.
“We expect that next year could be even worse. In the case of the Temporary Assistance for Needy Families (TANF), states are reporting that the reserves they saved for a rainy day have been used up,” Pavetti said.
At least five states—California, Washington, New Jersey, New Mexico, and South Carolina—have cut monthly TANF benefits for low-income families. According to the Center on Budget and Policy Priorities, in South Carolina TANF benefits are now just 14 percent of the poverty line for a family of three. This year, California cut its TANF payments by 8 percent, and up to 15 percent for “child-only” cases where no adult is receiving assistance.
“Because Congress did not allocate funding for the TANF Supplemental grants which go primarily to poor states, the 17 states that received the grants for the last 15 years will see their total TANF funding decline by about 10 percent,” Pavetti said.
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