The story the new Census data tells

September 16, 2010

Jacqui Broughton

Today the U.S. Census Bureau released new data from the Current Population Survey which gives us a look at what happened to household income, health insurance and poverty rates in 2009. As expected, things were worse in 2009 than they were in 2008 on both the national and state level.

Nationally, the two-year (2008-2009) median household income was $49,945 which is a fall of 3.2 percent in one year and a drop of 4.5 percent from 1999-2000 (when put into 2009 numbers). The one-year poverty rate moved from 13.2 percent to 14.3 percent, an increase of 3.7 million people.

For Michigan, the numbers are not surprising. The state’s median household income fell and poverty increased. Between 2008 and 2009, the poverty rate moved from 13 percent to 14 percent. Median household income was $47,797, using 2008-2009 two-year average numbers. This is a decline of 7 percent from 2006-2007 to 2008-2009 and of just over 17.5 percent from 1999-2000.

Additionally, while Michigan is still below the national average in the percentage of people under age 65 without health insurance, this figure still increased to 14.4 percent, or 1.3 million people.

Today’s data release only confirms what we already knew and what so many families have been experiencing: income has been falling, fewer people have employer-based health insurance, and more people are struggling to afford day-to-day necessities. In addition, though Michigan’s rate of those with health insurance coverage is still much higher than the national average, more individuals and families are losing coverage due to unemployment. The increase in the number of those without health insurance further illustrates the need for federal health care reform and including the provisions that will take effect next week.

Despite the bad news, things could have been much worse without the federal Recovery Act which helped create thousands of jobs in Michigan and helped keep at least that many people out of poverty. With that in mind, Congress should act to support the extension of key Recovery Act changes that help low-income families, such as the expanded benefits for low-income, working families through the Earned Income Tax Credit (EITC) and preserving the refundable Child Tax Credit. Also, Congress should act to preserve funding for the Emergency TANF Contingency Fund which is scheduled to end on September 30.

Moreover, these new data should send a message to the Michigan Legislature that now is not the time to further decrease support for safety net programs, which help Michigan families make ends meet.

More detailed information will be coming on September 28 when the Census Bureau releases its 2009 American Community Survey data. These data, however, give us a preview of what is to come with that release.

-Jacqui Broughton

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One in six

September 1, 2010

Jacqui Broughton

Just as the U.S. Census Bureau prepares to release poverty, income, and health insurance data for 2009, which may show a record one-year jump in poverty, a USA Today article in the Detroit Free Press sheds new light on just how many Americans are being caught by the frayed safety net.

The numbers are deeply troubling. One in six Americans, or roughly 16 percent of the population, receive assistance from programs designed to help people in tough economic times. Additionally:

  • Over 50 million people are on Medicaid (1.9 million recipients in Michigan).
  • Over 40 million people receive food assistance (1.8 million in Michigan).
  • Nearly 10 million receive unemployment insurance benefits (387,000 in Michigan).
  • Over 4 million receive cash assistance (225,000 in Michigan).

These numbers are most certainly dismal but, unfortunately, in the face of all of this, Michigan continues to hack away at funding for programs at a time when people need them most. Since the official start of the national recession in December 2007, Michigan has reduced General Fund spending in the Department of Human Services by 35 percent and in the Department of Community Health by nearly 27 percent.

Meanwhile, unemployment has increased, and caseloads for all safety net programs have increased with approximately one in four Michigan residents receiving some sort of assistance (food assistance, cash assistance, child day care subsidy, state disability assistance or Medicaid). Even still, the governor has stated in her revised budget plan that each department must reduce spending by 3 percent across the board with an additional $50 million in reductions in the Department of Human Services and the Department of Community Health.

Now is not the time to eliminate or further reduce spending on programs that so many families rely on just to get by day to day.

-Jacqui Broughton