
Topic:
January 19
POVERTY
POVERTY
Background
Biographies
According
to U.S. Census statistics, Louisiana has the third highest percentage
of people living in poverty in the United States. Why is this problem
so prevalent in Louisiana and what can the state do to improve the
lives and economic status of these people? Governor Kathleen Babineaux Blanco, State Labor Secretary John Warner Smith, and Lorna Bourg, Executive Director of Southern Mutual Help Association, Inc., provide some of those answers on this month’s Louisiana Public Square.
LPB President Beth Courtney and former CNN anchor and reporter Charles Zewe are the hosts for the program. This episode is underwritten by Entergy.
BACKGROUND
All
of the following background material comes from the Council for a
Better Louisiana [CABL], a long-time partner with LPB on numerous civic
activities. CABL is a non-profit organization working in the public
interest to focus attention on issues most important to moving
Louisiana forward. For more information got to www.cabl.org.
The following is excerpted from the CABL web site. Please note that some data have changed since the report was written. See “Poverty Data” below for more recent data.
Poverty: A Part of Our Past that Threatens Our Future
“The conquest of liberty is bound up for us with the conquest
of poverty. There is too much poverty in the state of
Louisiana.”
Governor Sam H. Jones
1940
Perhaps the most dramatic evidence of our inability to keep up is our
chronically high rate of poverty. There is some good news this year in
that our poverty rate has declined somewhat, from 19.2% in 1999 to
17.4% in 2000. But where we stand in relationship to the rest of the
South and the nation remains unchanged. Stated another way, the poverty
rates for Louisiana, the nation and the South are all trending
downward, but the gap remains. In 1980, for instance, the poverty rate
in the South as a whole was about 36% higher than the national rate. By
2000, the difference had been cut by more than half. Louisiana’s
poverty rate, on the other hand, remains as it was 20 years ago at just
over 50% above the national average. Our poverty rate is lower than it
was, but we’re not catching up. One of the tragic consequences of this
is the impact it has on Louisiana’s children. In 2000 more than 23% of
the youth in Louisiana lived in poverty. That’s the fourth highest rate
in the nation, and more than 40% above the national average.
This
is a number that should be moving up, but Louisiana was one of three
Southern states that actually saw household income decline over the
last year. It fell from $33,218 in 1999 to $30,219 in 2000 – more
evidence that we are not closing the gap with the South and the U.S.
when it comes to economic prosperity. In 1993, household income in
Louisiana was ahead of seven other Southern states. Today we are ahead
of one.
Percent of Births to Unmarried Mothers
The economic significance of these statistics is important to
Louisiana’s future. If 45% of the births in Louisiana each year are to
women who are not married, that means a large percentage of the
families in our state face enormous obstacles. Many of these mothers
have low educational attainment and low-paying jobs. They also have an
increased likelihood of living in poverty and relying on public
assistance. Of added concern is that the number of these births is
trending slowly, but steadily, upward.
Percent of Citizens Without Health Insurance
Louisiana showed a significant reduction in the percentage of citizens
without health care coverage between 1999 and 2000. That’s good news,
but this is a statistic that tends to fluctuate frequently. Besides
being a health care indicator, it also speaks to the quality of jobs in
our state and the vitality of the economy. Many of those without health
insurance are employed in low-paying jobs where coverage isn’t offered.
With the fifth highest uninsured rate in the nation, Louisiana must
clearly work to raise the quality of jobs in our state.
Poverty Rate
Louisiana’s poverty rate dropped by nearly 2% between 1999 and 2000. It
remains the second highest in the nation, behind Arkansas which
experienced a significant increase over the same period. Year-to-year
comparisons don’t always tell the full story, however. Over the last 20
years, Louisiana’s poverty rate has fluctuated considerably, but today
it is only 3 points lower than it was in 1980. While the South narrowed
the gap with the rest of the country during that time period,
Louisiana’s poverty rate remains more than 50% above the national
average – virtually unchanged.
Children in Poverty
One unfortunate consequence of our high poverty rate is that it
translates into an even higher rate of children in poverty. The number
of children in poverty in Louisiana declined between 1999 and 2000, but
again the South is showing greater progress. Louisiana’s child poverty
rate is 23.3%, while the South has declined to 16.8%, only a few tenths
of a percent higher than the national average. In 2000, poverty is
defined as an annual income of $17,603 or less for a family of four.
Crime Rate
Generally crime rates have been falling, and Louisiana is no exception.
Between 1999 and 2000, the crime rate in Louisiana dropped by 5.6%
versus a smaller 3.2% decrease in the South. Unfortunately, our crime
rate remains the fourth highest in the nation and the second highest in
the South.
Violent Crime
Violent crimes, which include murder, rape, robbery and aggravated
assault, are also down. Violent crime in Louisiana decreased by 7.1%
compared to a decrease of 3.7% in the South. That moved Louisiana from
the third highest violent crime rate in the region to fourth.
Nationally, we dropped from sixth highest to seventh. Of continuing
concern is that Louisiana’s murder rate remains by far the highest in
the nation.
POVERTY DATA
Louisiana Poverty Rate, 2003
17.0% (4th highest in U.S.)
U.S. Census Bureau, March 2004 CPS
Median Household Income, 2003
$34,307 (47th in U.S.) (three year average 2001-2003)
U.S. Census Bureau, March 2004 CPS
Louisiana Children in Poverty, 2003
25.5% (4th highest in U.S.)
U.S. Census Bureau, March 2004 CPS
Percent of Families with children headed by single parent, 2001
36% (highest in the U.S.)
Kids Count, 2004
Percent of Children Born to Single Mothers, 2002
47% (2nd highest in U.S.)
National Vital Statistics Report, 2003
Individuals on Food Stamps, 2003
14.6% of Louisiana’s Population – 655,300 people
Highest ranked percentage in the U.S.
Morgan Quinto Press & U.S. Dept. of Agriculture
Public School Students Receiving Free or Reduced Lunches, 2002
59.1% (2nd highest percentage in the U.S.)
Morgan Quinto Press & U.S. Dept. of Agriculture
Cost of Food Stamp Benefits in Louisiana, 2003
$685.3 million (11th highest amount in U.S.)
Morgan Quinto Press & U.S. Dept. of Agriculture
The following is from the Quality of Life: Poverty section of the CABL web site.
Poverty is pervasive in Louisiana and it does not discriminate, snaring people from every age group and race.
Louisiana ranks fourth highest in the nation and third highest in the
south in our overall poverty rate (17.5%) and our rate of children in
poverty (26.4%) ranks second highest in the nation and in the south.
Yet, these numbers tell a story far beyond one that simply measures
individual personal wealth. Our high rate of poverty is the root cause
to many of Louisiana’s most pervasive issues – poor education, poor
health, high crime rates, etc.
But, the effects of poverty reach beyond those labeled by “statistics.”
Poverty in Louisiana is everyone’s concern. We all bear the costs as
the state is obligated to directly address the consequences of poverty
through numerous education, corrections, and public health programs.
Education is of primary importance if we are going to rid ourselves of
poverty. Louisiana’s recent investments in education and the push for
early childhood education programs are positive steps that, if
sustained, can help reduce poverty in the long term. Yet, the urgent
message to our state’s leaders must remain the same – the reduction of
poverty must be a top state priority over a sustained period of time.
If not, the future we will have will be different from the one we would
all hope to create.
Things to Consider:
- Only
ten states have a higher percentage than Louisiana of the “working
poor” – those who earn less than one-and-a-half times the poverty
level.
- Nearly 39% of Louisiana households earn less than $25,000 a year.
- Academic
achievement often eludes low-income students, limiting the means by
which, as adults, they can leave poverty behind. In 2004, 53% of
Louisiana 4th graders and 53% of Louisiana 8th graders scored at or
above “basic” on the Math LEAP test and 60% of 4th graders and 47% of
8th graders scored at or above "basic" on the English LEAP test. In
addressing this issue, Louisiana spends around $50 million annually on
the School Accountability Plan.
- Low-income students are more likely to be taught by inexperienced teachers or by teachers who are teaching out of their fields.
- Today’s
rapidly changing economy, one that values critical thinking and
flexibility, has little room for the low-skill, labor intensive jobs
that have been a staple of Louisiana’s economy in the past. Yet, 22% of
Louisianans don’t have a High School diploma and only 21% have at least
a Bachelor’s degree. To meet the needs of the new economy, Louisiana
spends approximately $300 million annually on job training services and
our technical colleges system.
- Infants
born to teenagers and to low-income women of all ages are more likely
to be of low birthweight, which has been linked to numerous health and
developmental problems. Only one other state has a higher rate of low
birthweight babies than does Louisiana.
- Poor adults are more likely to have elevated blood levels, to smoke, to be overweight and to live a sedentary lifestyle.
- Over
18% of Louisianans are without health insurance and nearly 12% of
Louisiana’s children do not have health insurance. To address the needs
of this portion of the population, Louisiana spends $1.1 billion in
State General Funds on public health and hospitals. Additionally,
Louisiana's total financing budget for Medicaid in FY 04/05 is $5.1
billion.
- There
is evidence that those with poor prospects in the job market are more
likely to engage in criminal activity than those able to secure
positions in the labor market. With a majority of men in the state’s
prisons functionally illiterate, Louisiana’s prison population appears
to bear this out.
Louisiana has the highest
murder rate and state prisoner incarceration rate in the country. The
enormous toll of this violence is reflected in part in the public funds
spent on crime – nearly $498 million in State General funds alone in
FY-04/05.
The following is excerpted from:
“Confronting the Issue of Poverty in Louisiana”
November 2004 CABL Briefing
Where Do We Stand?
How much progress have we seen? Some. In 1996 the poverty rate was a
little more than 20% Today it’s 17%. The national average is just under
11%. The state of children is about the same. Since 1996 the poverty
rate for young people has dropped from about 30% to slightly more than
25%. Forty percent of the households in the state have incomes of less
than $25,000.
BIOGRAPHIES
Governor Kathleen Babineaux Blanco
On
January 12, 2004, Kathleen Babineaux Blanco became the first woman to
serve as governor of Louisiana. In her long, distinguished career,
Governor Blanco has served the people with a vision of creating a new
Louisiana, filled with hope and opportunity for all citizens. As
Governor, her top priorities include: providing affordable, accessible
healthcare, improving the state’s education system, and creating a
strong and vibrant economy. First elected lieutenant governor in 1995,
Governor Blanco was overwhelmingly re-elected to her second term in
1999, winning 80 percent of the vote.Governor Blanco began her career
as a public servant in 1984, when she became the first woman ever
elected to represent the people of Lafayette in the state Legislature.
Five years later she was elected to the Public Service Commission,
where she became the first woman to serve as a Commissioner and, later,
as the first woman to chair the Commission (1993-94). Before joining
the public sector, Governor Blanco taught at Breaux Bridge High School,
a public school in Southwest Louisiana, not far from the city of
Coteau, where she was born. She received a B.S. degree in Business
Education from the University of Louisiana at Lafayette. Governor
Kathleen Babineaux Blanco and her husband Raymond have been married
since 1964. They are the parents of six children and the proud
grandparents of six.
Lorna Bourg,
President/Executive Director Southern Mutual Help Association, Inc.
Lorna
Bourg is co-founder, president and executive director of the 35 year
old Southern Mutual Help Association, Inc., a not-for-profit community
development corporation that creates innovative solutions and
alternative institutions to insure social and economic justice for
rural Louisiana families and communities.
Her
skills as educator and organizer have enabled challenged rural
communities to develop a vision and determine goals and strategies
toward long-term improvement. Ms. Bourg created the Louisiana Rural
Home Loan Partnership which includes an eight bank consortium which has
brought nearly 12 million dollars in new homeownership to over 150
rural Louisiana families. To further Louisiana’s rural development, Ms.
Bourg co-founded the Southern Mutual Financial Services, Inc., a
certified Community Development Financial Institution. Ms. Bourg serves
as co-founder and national president of the Sustained Excellence
Alliance, Inc., a practitioner-led, not-for-profit of ten high
performing community development corporations collectively doing 100
million dollars of low income community-building each year.Since 1964
Ms. Bourg has worked with the poorest and most marginalized families
and communities in rural Louisiana. She has served as a member of the
U. S. Commission on Civil Rights - Louisiana Advisory Committee since
1995, and represents Louisiana on the Mid South Commission to Build
Philanthropy. The commission seeks to broaden philanthropy to address
racial, social and economic equity.
Ms.
Bourg is a MacArthur Fellow and was in the inaugural class of the James
A. Johnson Fellows of the Fannie Mae Foundation. Ms. Bourg is a
graduate of St. Joseph’s Academy and received undergraduate and
graduate degrees from the University of Louisiana at Lafayette as well
as completing programs of study at Harvard, University of Massachusetts
at Amherst, and the University of Wisconsin Extension.
John Warner Smith,
Secretary of Labor
John Warner Smith has been appointed Secretary of the Louisiana Department of Labor.
His background features an array of high-profile positions of public
trust, with noteworthy accomplishments in both the public and private
sector.
In his most recent position, Smith served as vice president of Bank One
where he was responsible for developing and managing banking
relationships with public and non-profit clients such as universities,
state agencies and local governments in four metropolitan markets.
He
also served as Assistant City Manager of Development and Transportation
Services for the City of Tallahassee, Fla. In this position he
administered the development arm of the city, comprising the
departments of growth management, planning, public works, economic
development, aviation and transit.
Smith’s previous positions include Chief Administrative Officer with
Lafayette Parish Government/Lafayette Consolidated Government and
Economic Development Manager for the City of Lafayette. He also served
as Undersecretary of the Louisiana Department of Labor.
Smith received a Bachelor of Science degree in Psychology and a
Bachelor of Science degree in Accounting from McNeese State University
and a Master of Business Administration from the University of
Louisiana at Lafayette.
His
affiliations include: Franciscan Missionaries of Our Lady Health
System, Board of Trustees; Leadership Louisiana, Council for a Better
Louisiana; and Leadership Lafayette, Greater Lafayette Chamber of
Commerce.
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