FRANKFORT, Ky. - Kentucky continues to have one of the highest poverty rates in the nation, showing only slight improvement in 2015. New Census Bureau figures show 18.5 percent of Kentuckians lived in poverty last year, down six-tenths of a percent from 2014, but still higher than just before the recession hit.
Jason Bailey, the executive director for the Kentucky Center for Economic Policy, said there's a lot of work left to do to address the core challenges of poverty.
"We need to be raising the minimum wage, so families have more to live on," he said. "We need to be making college more affordable, so folks can get the credentials they need to move up. We need to be investing in Eastern Kentucky more at the federal level, so that that region can transition to new opportunities."
Kentucky's poverty rate is even worse among children and African Americans. The Census Bureau estimates one-fourth of children (25.5%) live in poverty and nearly a third (30.8%) of the state's black population.
Adrienne Bush, executive director of Community Ministries is on the front lines in Hazard, where her group provides child care and other services. She said while improvements have been made to address childhood poverty and expand child-care assistance, it's still hard to "move the needle."
"There is reason for optimism, because we are doing some really cool things in Kentucky, but at the same time, we are under-investing in these programs that we know work," she said.
Danielle Bozarth is the programs director with God's Pantry, which distributes food to the hungry in 50 eastern and central Kentucky counties. She said they see firsthand the cycle of generational poverty.
"Things definitely haven't gotten slower in regards to feeding people," she said. "Children and seniors are the two most vulnerable."
On the positive side, Bailey said the census numbers show wages are growing and unemployment is going down as median household incomes in Kentucky rose by over $2,000 last year. But there's still a "regional divide."
"The more urban parts of the state, their economies have recovered, they're growing quickly, wages are growing, folks are better off; in the more rural parts of the state, there's been job loss and nothing has come in to replace those jobs," Bailey said.
The report also found Kentucky is one of eight states where income inequality increased last year.
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As Massachusetts lawmakers work to finalize tax-relief measures, advocates for low-income families are calling for an expansion of tax credits proven to reduce poverty.
Advocates want to increase the Earned Income Tax Credit state match rate from 30% to 50%, expand the credit to working immigrants and pass an inclusive Child and Family Tax Credit.
Charlotte Bruce, senior research and policy analyst for Children's HealthWatch, said the tax credits will ultimately benefit the entire state.
"When you're putting money back into families' pockets, you're not only supporting their ability to afford basic needs and cost of living," Bruce explained. "They're also putting that money right back into their local economies."
Bruce noted all eyes are on the Senate to see how targeted their tax package will be as both Gov. Maura Healy and House lawmakers have already proposed some credit expansions. Bruce emphasized both tax credits reach overlapping but different populations to provide some relief in one of the country's most expensive states.
Supporters of the expanded tax credits say they provide greater "tax fairness" for some of the Commonwealth's most vulnerable families.
Ancel Tejada, financial empowerment program manager for the Massachusetts Association for Community Action, a coalition of more than twenty community action agencies, called the tax credits "course changing," for one mother who rebuilt her credit score.
"By fixing the credit, she was able to get a new apartment to move her family out of a situation that she wasn't comfortable with," Tejada observed. "Because her credit was the only thing holding her back."
As some lawmakers promote greater tax cuts for Massachusetts' wealthiest households, advocates for low-income families are urging people to contact their legislators and urge them to better use the tax code to help those in need.
Disclosure: The Massachusetts Association for Community Action contributes to our fund for reporting on Housing/Homelessness, Hunger/Food/Nutrition, Poverty Issues, and Social Justice. If you would like to help support news in the public interest,
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May is Community Action Month, and Minnesota agencies that help address poverty say demand for services isn't going away. To help clients thrive, they're adding some new parts to their revenue engines.
Community Action Agencies create and help carry out programs that assist struggling households in accessing aid such as energy bill relief, tax preparation and job training.
Kendra Krolik, chief strategy officer with Community Action Partnership of Hennepin County, said state and federal grants make up a big portion of their funding.
She said it certainly helps, but offices such as hers are now expanding their outreach to corporations and foundations to meet current demand.
"With the eviction moratoriums lifting," said Krolik, "we've just seen a big increase in the number of folks who are looking for assistance with their monthly rent payments, with security deposits."
And in the past year, the office saw a 10% increase in energy assistance applications.
Krolik said private partnerships not only allow them to close gaps for those in a crisis but also enhance long-term self-sufficiency programs.
Offices around the state embracing this approach say it gives them more room for discretionary spending based on client needs within their regions.
While community action agencies are diversifying their revenue streams, they did receive an extra $5 million in the new state budget. That additional public support falls under the scope of grant guidelines to which offices have to adhere to.
But Krolik said it's another positive step in establishing financial wiggle room and that collectively, they have more tools to work with in putting a dent in poverty.
"If we have funding that is flexible, that isn't tied to one specific program," said Krolik, "then that just allows us to be more nimble in providing the kind of support that our residents in Hennepin County need."
A corporate partnership with the Hennepin County community action agency provides financial incentives for clients to attend educational workshops.
Clients can use the money for things such as transportation or child-care needs to be able to show up to these events.
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May is Community Action Month, and in North Dakota, groups trying to help households escape poverty are gathering feedback on which obstacles are the biggest. It coincides with potential legislative efforts to study housing barriers. Census data show that in 2021, more than 11% of North Dakotans were living in poverty. That is a slight increase from the previous year.
Andrea Olson, Executive Director of Community Action Partnership of North Dakota, which leads offices around the state in linking low-income residents with supportive programs, said their periodic needs assessments allow reliable data to be included in policy discussions for all levels of government.
"We can flesh out the details at a county level, we can flesh out the details regionally, and statewide. Perhaps there are new programs that could be created - streamlined collaboration that could happen," she said.
Olson added affordable housing topped the recent survey, and so far, it is being mentioned a lot in the current assessment. Residents have until the end of June to participate in the new survey, which is found on the CAP-ND website. Meanwhile, this Thursday, a legislative body will decide which studies proposed in the recent session to adopt, including one dealing with housing-access issues.
That pending decision follows a recent announcement from the state's Rent Help program that it is scaling down applications for aid. Strong demand drew down the available funds from federal pandemic-relief bills.
Rep. Josh Boschee, D-Fargo, is proposing the housing study, which he said would take a holistic approach.
"What resources are out there for tenants' rights when it comes to evaluating their contracts? What kind of financial supports are available? And then the conversation has expanded with others, in terms of affordable homeownership," he said.
Boschee added the study would also look at what has worked with Rent Help and what has not, in hopes of carving out long-term solutions for renters. His proposal has bipartisan support, but it is unclear the state's legislative management will choose it for an interim study between sessions.
Disclosure: Community Action Partnership of North Dakota contributes to our fund for reporting on Budget Policy & Priorities, Health Issues, Housing/Homelessness, Hunger/Food/Nutrition. If you would like to help support news in the public interest,
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