Financial self-sufficiency in region inches toward 75% goal
BUSINESS RECORD STAFF Dec 26, 2017 | 5:23 pm
2 min read time
407 wordsAll Latest News, Economic DevelopmentThe percentage of families in Polk, Warren and Dallas counties who are financially self-sufficient increased in 2016 to 65.9 percent, after remaining flat for the past three years around 65.2 percent, according to new figures from United Way of Central Iowa.
The year-over-year increase — which represents just over 11,000 more individuals in self-sufficient families — moves Central Iowa closer to its goal for 2020 of increasing the percentage of families who are financially self-sufficient to 75 percent, the organization said.
“This increase shows that many of our community’s collaborative efforts to address poverty are working,” said Elisabeth Buck, president of United Way of Central Iowa. “Through initiatives that are helping adults obtain a high school equivalency diploma and acquire skills for better jobs, we are making meaningful progress to improve families’ lives, especially for those who are employed.”
United Way uses the “Cost of Living in Iowa” study from the Iowa Policy Project to define self-sufficiency as 250 percent of the federal poverty level, which allows families to cover basic expenses, including rent, utilities and child care. Above that level, families are able to save, pay loans, cover education expenses and afford other items that help them thrive. U.S. census data focuses on 100 percent of the federal poverty level, where most families struggle to afford basic needs, including food, housing, clothing, transportation and health care.
In 2016, 1,265 fewer individuals lived below the federal poverty level — a decrease to 11.1 percent of Central Iowa’s population from 11.5 percent in 2015. Other changes over the one-year period include:
• The number of children (ages 18 and under) living below the federal poverty level decreased to 14.9 percent of the population from 15.7 percent.
• The number of seniors (ages 65 and older) living below the federal poverty level increased to 7 percent of the population from 6.5 percent in 2015.
• The number of African-Americans living below the federal poverty level decreased to 32 percent of the population from 36.8 percent the previous year.
Looking at a five-year period, the number of Central Iowans living above 250 percent of poverty has increased by more than 26,600 individuals, while 12,100 more individuals are living below the 100 percent federal poverty level. Some of the change can be attributed to an increase in the region’s population. Since 2011, Central Iowa’s population has increased 9.3 percent, by 49,579 people, accounting for 61 percent of the state’s population growth.