Poverty Up, Income & Health Insurance Down in Iowa
The Iowa Policy Project
New Census Figures Show Erosion of 1990s Gains
MOUNT
VERNON, Iowa (Aug. 26, 2004) Median household income has fallen while
poverty and the number of uninsured are on the rise in Iowa, according
to a new federal government report.
The U.S.
Census Bureau released new data Thursday from two surveys on poverty
and household income in Iowa and the nation. The Census Bureau figures
suggest that the improvements in income that occurred in Iowa in the
late 1990s were eroded during the recent recession and subsequent
lackluster recovery.
“It will
come as no surprise to many Iowans that our incomes are lagging. But
the new Census numbers hold a staggering loss of almost $2,900 in
median household income since 1999,” said David Osterberg, executive
director of the Iowa Policy Project. “That gave Iowa the nation's
eighth-largest percentage decline – 6.5 percent – over the period. In
addition, the figures showed 1 in 10 Iowans were not covered with
health insurance in 2002-2003.”
In figures adjusted for inflation to equal the purchasing power of the dollar in 2003:
*Median
household income in Iowa decreased by $1,497 between 2000-2001 and
2002-2003, falling from $43,184 to $41,687. This 3.5 percent decrease
in median income was not statistically significant, according to the
Census Bureau.
*While
that difference was not considered significant, the decline from the
1999-2000 period was considered significant. Between 1999-2000 and
2002-2003, median household income fell by $2,889 (or 6.5 percent);
from about $44,575 to $41,687.
*In the
1990s, by contrast, incomes rose substantially in Iowa. The income of
the typical Iowa household grew from $36,432 in 1992-1993 to $44,575 in
1999-2000. This is an increase of $8,143, or 22 percent. The new
figures show that much of the gain of the late 1990s has been lost.
*In
2003, 173,000 Iowans worked full time, year round and still earned less
than $20,000. This is equal to 17.8 percent of all full-time, year
round workers in Iowa.
The recent economic downturn also appears to be increasing the number of Iowans in poverty:
*The
poverty rate increased by 1.2 percentage points between 2000-2001 and
2002-2003 (rising from 7.9 to 9.1 percent). While this change was not
statistically significant, it suggests that more families are living
below the poverty line, which is $18,810 for a family of four.
*Poverty
rate estimates for 2003 were available for Des Moines, Waterloo, and
the Quad-Cities Metropolitan area. Their respective poverty rates were
7.3 percent, 16.8 percent, and 10.4 percent.
On a
positive note, it appears that child poverty rates in Iowa have
decreased from 13.7 percent in 2002 to 11.7 percent in 2003 (although
this change also was not statistically significant). For children under
5 years old, the decrease was significant, dropping from 18.5 percent
in 2002 to 14.6 percent in 2003.
Elderly
poverty rates also dropped from 8.5 percent in 2002 to 7.6 percent in
2003 (although, again, this change was not statistically significant).
The data
also provided a first look at changes in health insurance coverage
rates over the last year, with a statistically significant increase in
the rate of uninsured Iowans between 2001-2002 and 2002-2003; up from
8.5 percent to 10.4 percent.
In
comparison with the nation, Iowa showed mixed results. Iowa's poverty
rate of 9.1 percent is well below the national poverty rate of 12.3
percent, and Iowa's uninsurance rate of 10.4 percent is also below the
national uninsurance rate of 15.4 percent. However, Iowa's median
income of $41,687 is below the national median income of $43,349, a
significant difference of $1,663.
“We
still have not recovered in Iowa from the national recession of 2001,”
said Elaine Ditsler, research associate for the Iowa Policy Project.
“The declining income and increasing poverty is reflective of the
economic downturn that is affecting Iowa and the entire nation.”
She noted Iowa's average annual unemployment rate has risen from 2.5 percent in 1999 to 4.4 percent in July 2004.
The
Census Bureau used data for the income analysis, poverty rates for all
people, and health insurance rates from its 2003 Current Population
Survey. For state analysis, the Census Bureau recommends using two-year
averages of that data in order to ensure accuracy. Other data came from
the bureau's 2003 American Community Survey.
The Iowa
Policy Project is a non-profit, non-partisan research organization
based in Mount Vernon. IPP reports are available to the public, free of
charge, on the web at www.iowapolicyproject.org
Blog For Iowa 
Terrific reporting here….I am going to use this in one of my sociology classes! Thank you so much. Bev
LikeLike