UNDERNEATH EVERYTHING WE ARE, UNDERNEATH EVERYTHING WE DO, WE ARE ALL PEOPLE. CONNECTED, INTERDEPENDENT, UNITED. AND WHEN WE REACH OUT A HAND TO ONE, WE INFLUENCE THE CONDITION OF ALL, THAT’S WHAT IT MEANS TO LIVE UNITED.
Case For Advancing The Common Good United Way of Miami County
2 January 2010
United Way is working to build a stronger community by creating opportunities and improving the quality of life for others. Everyone deserves to enjoy life. That’s why United Way is focusing our efforts on:
Education – Helping Children and Youth Achieve Their Potential
Income – Promoting Financial Stability and Independence
Health – Improving People’s Health
Advancing the common good is about changing community systems to help all of us. Everyone is connected and interdependent, so we all win when a child succeeds in school, families are financially stable, and people are healthy. United Way’s goal is to create long-lasting change by living united. It takes everyone in the community, working together, to create a brighter future. Give. Advocate. Volunteer. LIVE UNITED.
This report provides an overview of the current state of our economy and community needs. This information represents what is at the heart of our work – to identify pressing community issues and find solutions that advance the common good.
If you have any comments or questions about how United Way of Miami County is working to change lives, please contact us at:
United Way of Miami County
13 East Main Street Peru, IN 46970
(765) 473-4240
www.uwmiamip.org
Case For Advancing The Common Good United Way of Miami County
3 January 2010
Introduction
Indiana’s economy has experienced dramatic changes in the last several years. There has been an economic downturn that is linked to the job losses in the manufacturing sector and the rise of service and knowledge-based employment. Between 2000 and 2008 Indiana lost 142,000 manufacturing jobs (Status of Working Families, 2008). During the same period, Indiana added 120,000 lower-paying service sector jobs. There can be no doubt that economic downturn and high levels of unemployment has lead to reduced economic opportunity for individuals, families and communities.
In the current recession, the national unemployment rate has increased from 4.9 percent in December 2007 to 9.7 percent in August 2009. There are currently about 15 million people who are unemployed with roughly 1 in 6 workers un- or under- employed. About 5 million workers have been unemployed for more than six months, and these long-term unemployed are the highest percentage of the total since 1948 (Economic Policy Institute, Briefing Paper 243, 2009).
Jobs are in short supply for those with low levels of education. In June 2009, when the overall unemployment rate reached 9.5 percent, the unemployment rate for adult workers without a high school diploma was 15.5 percent (Bureau of Labor Statistics, 2009).
The economic recession that began in late 2007 has driven the unemployment rate higher and placed more children at risk. Working families face the challenges of balancing employment and family responsibilities. In 2007, 18 percent of the nation’s working families with children were considered low-income—with earnings equal to or less than twice the federal poverty line, or $41,300 for a family of four in 2007. These struggling families find it difficult to make rent or mortgage payments, put food on the table, and afford adequate child care. The federal poverty line has often been used to gauge whether families have enough income to meet their basic needs. However, there is evidence that an income at the poverty line cannot support most working families (KIDS COUNT, 2009).
By building on community assets in Miami County — including United Way, foundations, human service providers, faith-based organizations, employers, and neighbor-to-neighbor relationships— we can help our community become a place that supports the residents who live here.
Case For Advancing The Common Good United Way of Miami County
4 January 2010
County Population
In 2006-2008, Miami County had a total population of 37,000 - 18,000 (49 percent) females and 19,000 (51 percent) males. The median age was 38.5 years. Twenty-four percent of the population was under 18 years and 13 percent was 65 years and older. For people reporting one race alone, 91 percent was White; 3 percent was Black or African American; 1 percent was American Indian and Alaska Native; less than 0.5 percent was Asian; less than 0.5 percent was Native Hawaiian and Other Pacific Islander and 1 percent was some other race. Four percent reported two or more races. Two percent of the people in Miami County were Hispanic. Ninety-one percent of the people in Miami County were White non-Hispanic. People of Hispanic origin may be of any race. In 2006-2008 there were 14,000 households in Miami County. The average household size was 2.6 people. Families made up 71 percent of the households in Miami County. This figure includes both married-couple families (57 percent) and other families (14 percent). Nonfamily households made up 29 percent of all households in Miami County. Most of the nonfamily households were people living alone, but some were composed of people living in households in which no one was related to the householder. Source: U.S. Census Bureau, 2006-2008 American Community Survey
Case For Advancing The Common Good United Way of Miami County
5 January 2010
Poverty
In 2007, 37.3 million people (or 12.5 percent of the population) lived at or below the official poverty level. Of those living in poverty, children and adults were among the 7.5 million working poor. The working poor are individuals who were in the labor force for at least 27 weeks, but whose income fell below the federal poverty level (Department of Labor, 2009).
The median income of households in Miami County was $43,767. Seventy-seven percent of the households received earnings and 23 percent received retirement income other than Social Security. Thirty-two percent of the households received Social Security. The average income from Social Security was $15,749. These income sources are not mutually exclusive; that is, some households received income from more than one source. Source: U.S. Census Bureau, 2006-2008 American Community Survey
Case For Advancing The Common Good United Way of Miami County
6 January 2010
Source: Economic Policy Institute analysis of Current Population Survey data
Currently, a family of four with annual income of less than $22,050 is considered to live in
poverty. The Indiana self-sufficiency calculator more realistically measures what it actually
takes for families to pay for basic living costs, such as housing, child care, food, transportation,
health care, and taxes. A livable hourly wage in Miami County is $11.92 for a single parent with
two young children (Indiana Coalition on Housing and Homeless Issues, 2005).
With at least one family member in the labor force for 27 weeks or more, those families with
children under the age of 18 were still 5 times more likely to live in poverty (Department of
Labor, 2007). The trend is worsening. Between 2000 and 2007, the number of children living in
poverty increased by 14.7 percent, from 12.2 million to 13.1 million. This means that in 2007,
898,000 more children lived in families with incomes below the federal poverty line than five years
earlier (KIDS COUNT Data Center, 2009). Female head of households were more than twice as
likely to be one of the working poor as male head of households.
Many workers in Indiana remain poor. A total of 27 percent of Hoosier workers in 2007 earned
wages that would not lift a family of four above the federal poverty level -- assuming full-time,
year-round work earning $10.28 per hour or $21,386 annually (Status of Working Families,
2008).
Case For Advancing The Common Good United Way of Miami County
7 January 2010
In 2006-2008, 18 percent of people were in poverty. Seventeen percent of related children under 18 were below the poverty level, compared with 4 percent of people 65 years old and over. Ten percent of all families and 36 percent of families with a female householder and no husband present had incomes below the poverty level. Source: U.S. Census Bureau, 2006-2008 American Community Survey
Employment
Indiana’s work force has become more diverse in the past several years, which reflects the overall changes in the population. The number of workers who are Hispanic now make up more than four percent of the labor force. While Indiana’s labor force is more diverse now than in previous years, workers who are White still comprise more than 85 percent of all workers.
Workers age 55 and older have seen their employment rates increase significantly by two percentage points. More pressures are being placed upon older workers forcing them to remain in the labor market, including more grandparents raising grandchildren (Status of Working Families, 2008 Report).
Employment for workers who lack a high school diploma or GED have seen employment rates drop by nearly six percentage points. For those with a high school diploma saw their employment rates decrease by 5 percentage points. Case For Advancing The Common Good United Way of Miami County
8 January 2010
Employment for those with a bachelor’s degree or higher have seen a slight increase in employment opportunities, which reinforces the need for an educated workforce.
Changes in the industry sectors affect all aspects of the labor market. With the loss of 142,000 manufacturing jobs by 2008, the labor market shifted slightly with the addition of 120,000 new jobs in the service sector. The largest increase in number of jobs created occurred in the education and health industries, which grew by 73,000 jobs (an increase of more than 22 percent) (Status of Working Families, 2008).
In 2006-2008, for the employed population 16 years and older, the leading industries in Miami County were Manufacturing, 28 percent, and Educational services, and health care, and social assistance, 19 percent. Among the most common occupations were: Production, transportation, and material moving occupations, 27 percent; Management, professional, and related occupations, 23 percent; Service occupations, 21 percent; Sales and office occupations, 19 percent; and Construction, extraction, maintenance and repair occupations, 9 percent. Seventy-eight percent of the people employed were Private wage and salary workers; 16 percent was Federal, state, or local government workers; and 6 percent was Self-employed in own not incorporated business workers. Source: U.S. Census Bureau, 2006-2008 American Community Survey
Work supports play a vital role in helping unemployed and underemployed Hoosiers meet their basic needs. Access to resources, such as unemployment benefits, tax credits, child care assistance, affordable health insurance and safety net services, for unemployed or underemployed workers are critical. Without such assistance, many will continue to live paycheck to paycheck. Workforce development programs can be most effective when they deal holistically with job seekers by offering access to community resources. Indiana’s efforts to offer health insurance to low-income families through its Healthy Indiana Plan and education and training programs are positive steps for improving outcomes for families (Status of Working Families, 2008).
In addition, numerous studies show that workers in low-income families are more likely to both get and keep jobs if they have help meeting child care costs. The lack of child care can result in families incurring large debt, choosing lower quality and less stable child care options, or having to choose between child care and other basic needs. Case For Advancing The Common Good United Way of Miami County
9 January 2010
Efforts to improve employment opportunities for low-income families must include helping parents find quality, reliable,
affordable child care. In addition, work development efforts need to expand programs that provide care to children before- and after-school when parents are working (Anne E. Casey, 2009).
Education
Living in poverty has been associated with the level of educational attainment. Individuals with more years of education have greater access to higher paying jobs than those with a lower education. According to the Department of Labor, individuals with less than a high school diploma (16.5%) had a higher rate of poverty than did high school graduates (6.3%) with no college. Workers with an associate degree or a 4-year college degree had the lowest working-poor rates at 2.8 percent and 1.3 percent, respectively.
In 2006-2008, 84 percent of people 25 years and over had at least graduated from high school and 11 percent had a bachelor's degree or higher. Sixteen percent were dropouts; they were not enrolled in school and had not graduated from high school. The total school enrollment in Miami County was 9,100 in 2006-2008. Nursery school and kindergarten enrollment was 810 and elementary or high school enrollment was 6,400 children. College or graduate school enrollment was 1,900. Source: U.S. Census Bureau, 2006-2008 American Community Survey
The changing workplace means Indiana will need to train and retrain adults for knowledge-based jobs. The Indiana Department of Workforce Development estimates that by 2014 there will be an additional 222,410 high-wage, high-demand jobs requiring at least a postsecondary degree. Indiana ranks 41st in the percentage of working-age adults with an associate degree or higher (American Community Survey, 2006).
The new jobs will demand higher education or a post-secondary degree. Higher levels of education are associated with higher wages. Individuals with less than a high school education have experienced the greatest decrease in wages. Those with a bachelor degree experienced a 12 percent increase in wages, but they have seen wages remain level in the past 3 years. Workers with some college have seen the highest jump in wages since 2000 (Status of Working Families, 2008).
Case For Advancing The Common Good United Way of Miami County
10 January 2010
Unfortunately, of those people successfully obtaining a college degree, they tend to not stay in the area to contribute to the local economy. “Brain drain” is a problem for many Midwestern communities.
Education Attainment by Poverty Status, 2006-2008, Miami County
Category
Total
Poverty Rate for the Population 25 Years and Over
for Whom Poverty Status is Determined by Education
Less than high school diploma 29.3%
High school diploma 6.2%
Some college or associate’s degree 6.2%
Bachelor’s degree 6.8%
Graduate or professional degree 0.0%
Source: U.S. Census Bureau, American Community Survey, 2009
Case For Advancing The Common Good United Way of Miami County
11 January 2010
Income by Education Attainment Figures, 2006-2008, Miami County
Category
Total
Median Earnings in 2008 $26,438
Less than high school diploma $15,674
High school diploma $23,965
Some college or associate’s degree $28,716
Bachelor’s degree $31,791
Graduate or professional degree $54,273
Source: U.S. Census Bureau, American Community Survey, 2009
Education and workforce development is critical to preparing workers for new technologies. Employers are also demanding greater skills in literacy, ethics, decision making and positive work habits. An estimated 960,000 to 1.2 million employed Indiana residents do not have the literacy skill levels required for employment in a knowledge-based market (Indiana Chamber of Commerce).
Individuals with higher levels of literacy are more likely to be employed, earn more, and rely less on public assistance. The National Adult Literacy Survey (2003) found that low literacy skills (level 1 being the lowest) were closely connected to economic and social issues, such as: 43% of adults with Level 1 literacy skills live in poverty, compared to 4% of those at Level 5. The likelihood of being on welfare went up as literacy skills went down. 75% of Food Stamp recipients had Level 1 or Level 2 literacy skills. Adults with Level 1 literacy skills earned a median income that was approximately 35% of those with Level 5 skills, and worked fewer weeks per year (Level 1; 19 weeks, Level 5; 44 weeks)
Those without basic literacy skills have little hope of attaining the higher levels of education required for financial and employment stability (United Way of Allen County, 2009).
There is significant evidence that the economic struggles faced by families have a lasting effect on kids, including educational achievement, cognitive development, and emotional and behavioral outcomes. With poverty on the rise, more children will struggle with their education, which will ultimately result in substantial consequences for generations (Economic Policy Institute, Briefing Paper 243, 2009).
Case For Advancing The Common Good United Way of Miami County
12 January 2010
The level and quality of early childhood education available to children is impacted by the amount of family resources. Equally, educational achievement is determined by a number of factors outside of the school environment, including after-school and summer educational activities, homelessness, and the lack of health care affects school achievement and learning.
Education is visibly linked to family financial stability. Greater educational success leads to higher wages and incomes, lower unemployment, better health outcomes, lower incarceration, and greater volunteerism rates (Economic Policy Institute, Briefing Paper 243, 2009). Increased gaps in educational achievement will have lasting effects on children and youth. Many low-income parents are unable to provide the resources or support necessary to break the cycle of poverty for their own children.
Health
Many vulnerable Hoosiers do not have access to affordable health care. The number of people without health insurance in 2008 was 46.3 million, with over 7 million kids under the age of 18 uninsured (U.S. Census, 2009). More than 744,600 Hoosiers were without health insurance coverage in 2007-2008 (Kaiser Family Foundation). In Howard and Miami counties, 10 percent and 14 percent were uninsured in 2008, respectively.
Many children and adults lack access to appropriate health care services resulting in higher rates of diseases among poor and racially minority neighborhoods. Unfortunately, the uninsured or under insured typically do not seek routine health care or delay receiving necessary health care services. Health conditions often become more complex and expensive to treat when services are delayed. The lack of health insurance also results in inappropriate use of local hospital emergency rooms for preventative and non-emergency care (American Academy of Child and Adolescent Psychiatry).
The cost of prescriptions creates a health care barrier for more than 37.7 percent of low income people and 23.7 percent of people overall. Having no prescription coverage means that a person may have to choose between medication or other basic needs (e.g. food, rent, utilities, etc.).
Good health is a key indicator for family economic success. Health problems, mental health issues, and drug or alcohol dependency are major obstacles to steady employment. Expanding access to comprehensive health care is therefore a key to increasing employment.
Case For Advancing The Common Good United Way of Miami County
13 January 2010
Healthy children are ready to succeed in school. Lack of affordable health care has an impact on children. Good health allows parents to care for their families, and makes it possible for children to attend school and achieve developmental milestones (Anne E. Casey, 2009).
Childhood obesity has grown considerably in recent years. Between 16 and 33 percent of children and adolescents are obese. Obesity is among the easiest medical conditions to recognize but most difficult to treat. Unhealthy weight gain due to poor diet and lack of exercise is responsible for over 300,000 deaths each year. The annual cost to society for obesity is estimated at nearly $100 billion (American Academy of Child and Adolescent Psychiatry).
According to American Academy of Child and Adolescent Psychiatry, a child is not considered obese until the weight is at least 10 percent higher than what is recommended for the height and body type. Obesity most commonly begins in childhood between the ages of 5 and 6, and during adolescence. The childhood obesity may be related to: Poor eating habits Overeating Lack of exercise Family history of obesity Medical illnesses and depression Peer and family problems
Studies have shown that a child who is obese between the ages of 10 and 13 has an 80 percent chance of becoming an obese adult. If one parent is obese, there is a 50 percent chance that the children will also be obese. However, when both parents are obese, the children have an 80 percent chance of being obese.
Child and adolescent obesity creates physical risks and complications. The consequences of childhood obesity include increased risk of heart disease, high blood pressure, diabetes, breathing problems, and emotional problems. Young adults struggling with obesity tend to have low self-esteem and peer-related issues that prevent them from maintaining a healthy weight (American Academy of Child and Adolescent Psychiatry).
Case For Advancing The Common Good United Way of Miami County
14 January 2010
Housing
Homelessness and the inability to maintain housing is an increasing problem for Hoosiers. For many, they struggle with the burden of housing costs when wages, unemployment, and inadequate services continue to create housing barriers that lead to the risk of homelessness. The already homeless face repeated spells of chronic homelessness, despite the continued efforts by human service providers to help people gain safe, stable, and affordable housing. Housing is an integral component to creating economic opportunities and healthy communities.
Since the start of the recession, foreclosures have increased the number of people who experience homelessness. There was a 32 percent jump in the number of foreclosures between April 2008 and April 2009. An estimated 40 percent of families facing eviction due to foreclosure are renters and 7 million households living on very low incomes are at risk of foreclosure (National Coalition for the Homeless).
According to the National Coalition for the Homeless (2009), homelessness and poverty are inextricably linked. Poor people are frequently unable to pay for housing, food, childcare, health care, and education. Housing can absorb a large portion of a family’s income. Many families are just one illness, an accident, or paycheck away from being on the streets.
Approximately 17.4 percent of homeless adults in families were employed while 13 percent of homeless single adults or unaccompanied youth were employed (U.S. Conference of Mayors, 2007). Stable housing makes it easier for individuals to find and maintain employment, take better care of their health, and improve educational attainment for their children.
In 2009, a worker must earn $14.97 to afford a one-bedroom apartment and $17.84 to afford a two-bedroom apartment. There has been an increase of 41 percent from 2000 to 2009 in fair market rent for a two-bedroom unit (National Low Income Housing Coalition, 2009).
The median monthly housing costs for mortgaged owners was $961, non-mortgaged owners $337, and renters $620. Twenty-nine percent of owners with mortgages, 11 percent of owners without mortgages, and 48 percent of renters in Miami County spent 30 percent or more of household income on housing. Source: U.S. Census Bureau, 2006-2008 American Community Survey
The lack of affordable rent has created a housing burden for many families. Housing assistance can prevent families from living in unsafe and unstable housing. However, high waiting lists and eligibility requirements remain huge barriers.
Case For Advancing The Common Good United Way of Miami County
15 January 2010
Utility costs are a barrier to maintaining permanent housing for many families. During extreme weather conditions, people living in poverty and low-income elderly may have to choose between buying fuel to heat or cool their homes and buying food for themselves and their families. The cost of utilities can be the difference between maintaining stable housing and becoming homeless.
Declining wages and a growing shortage of affordable housing is a major reason for homelessness. Other factors contribute to homelessness, such as lack of affordable health care, domestic violence, addictions, and mental health. Homelessness results from a complex set of circumstances that threaten the ability for individuals and families to meet their housing needs (National Coalition for the Homeless, 2009).
Food
In an economic downturn, more people experience “food insecurity” – a difficulty providing enough food for all family members. According to a survey conducted by Feeding America in September 2009, 99 percent of participating food banks reported an increase demand for food over the past year. Food Finders in Lafayette reported a 38 percent increase in emergency food requests in 2009.
In 2007, 13 million households, including 12.7 million children faced food insecurity or nutritional difficulty. When individuals have enough food for a healthy life, their nutritional needs are met and they have access to food in socially acceptable ways (e.g., without resorting to emergency food supplies, scavenging, stealing, or other coping strategies). Limited or uncertain availability of nutritionally adequate and safe foods creates food insecurities. Food insecurity affects adults and children, including many seniors and individuals with disabilities (America’s Second Harvest Report, 2007).
More than 25 million Americans—including 9 million children and nearly 3 million seniors—receive emergency food assistance each year from the America’s Second Harvest network. According to their report (2007):
About 70% of the clients seeking emergency food assistance are living below the federal poverty line, and nearly 40% have at least one adult working in their household. Seventy percent of clients are living in food insecure households and 33% of those clients reported experiencing hunger. More than 40% of the clients served by the food bank network had to choose between paying for utilities or heating fuel and food; 35% had to choose between paying for rent
Case For Advancing The Common Good United Way of Miami County
16 January 2010
or a mortgage and food; 32% report having to choose between paying for medical bills and food.
Food Stamps provide the first line of defense against hunger and help to alleviate poverty for low-income families (at or below 130% of poverty). In 2005, approximately 25.7 million individuals participated in the Food Stamp program. Over 50 percent of all food stamp recipients are children and another 25 percent are elderly or disabled persons. Only 60 percent of participants used the Food Stamp program. The barriers (e.g., eligibility, paperwork, and requirements) to accessing this program affect a variety of populations, including the elderly, working poor families, and immigrants. In addition, recipients reported that benefits typically last only two and a half weeks during any given month (America’s Second Harvest Report, 2007).
Food Stamp Figures, 2006-2008, Miami County
Category
Total
Households
Households Receiving Food Stamps
Food Stamp Enrollment by Households
13,651
1,614
With one or more people 60 years and over
34.4%
20.8%
With children under 18 years
32.5%
66.1%
Poverty Status in the past 12 months by Household
Below Poverty Rate
12.6%
65.7%
Median Income
$43,767
$14,489
Source: U.S. Census Bureau, American Community Survey, 2009
Children from families with incomes at or below 130% of the federal poverty guideline qualify for free lunches. Reduced- priced lunches are available to children whose family income is between 130 to 185 percent of the federal poverty income guidelines. Children in participating schools may also be eligible to receive breakfast through the federally subsidized school breakfast program. Summer feeding programs are available to income eligible children when school is not in session. According to America’s Second Harvest Report (2007), over 20 million children received free or reduced lunches during the school year, but only two million children receive meals during the summer months.
Case For Advancing The Common Good United Way of Miami County
17 January 2010
Conclusion
A healthy and thriving community is about providing opportunities for children, families, and individuals. Many local residents are struggling to make ends meet during these challenging economic times. By providing services to meet critical basic and emergent needs, supporting services that strengthen families, fostering school success for children, and offering dignity to those struggling, we can build a stronger community.
Case For Advancing The Common Good United Way of Miami County
18 January 2010
United Way of Miami County Efforts
Working together, we can improve the quality and well-being of children and families in Miami County. Our efforts are part of working toward meeting United Way of America’s national 10-year goals for Advancing the Common Goal.
Education: Cut America’s High School Dropout Rate in Half
Income: Cut in Half the Number of Lower-Income Families Who Are Financially Unstable
Health: Increase by One-Third the Number of Youth and Adults Who Are Healthy and Avoid Risky Behaviors
Advancing the Common Good is about providing opportunities for a better life. Together, every community will be stronger when we give, advocate, and volunteer. LIVE UNITED
1) Education: readiness to enter kindergarten, reading proficiency in fourth grade and on-time graduation from high school predict success in life.
According to United Way Worldwide, being ready to succeed in school means that children enter kindergarten developmentally on track in literacy and in social, emotional and cognitive skills. Unfortunately, less than 40 percent of kids enter school with the skills needed to succeed in kindergarten and beyond. Those without these skills are starting school already at a disadvantage.
Children who are capable of reading at grade level in fourth grade will achieve higher academic success in later grades. When school-age children read at grade level, they are better able to handle middle and high school. According to the National Assessment of Educational Progress, reading proficiency has improved over the last 10 years, but less than one-third of the nation’s fourth graders are rated “proficient” in reading.
Academic achievement means that students graduate high school on time. More than 1 million students each year fail to get their diploma on time (National Center on Education Statistics), costing our nation over $240 billion in lost earnings, forgone tax revenue, and increased welfare expenditures. Dropping out of school means that these young adults will likely never earn enough to make ends meet.
Case For Advancing The Common Good United Way of Miami County
19 January 2010
Transitioning from high school to the working world means that young adults, age 18 to 24, are in college, in a training program, or working to gain experience. When youth do not successfully transition to adulthood, they are less able to be financially stable (United Way Worldwide).
Learning to read starts well before Kindergarten. The two most significant factors in predicting academic success are: a mother’s educational attainment and household income; neither of which schools can influence. Many poor children today enter school already behind, and once behind, few catch up. By third grade, poor children have vocabularies of about 4,000 words compared to 12,000 for middle class kids, and half the math and reading gap for high school seniors can be attributed to gaps at school entry (Anne E. Casey, 2009).
Quality early childhood education is critical to early literacy development and school success. Many child care centers and homes do not provide learning experiences for children to develop early literacy and cognitive skills. Also, many low-income children lack a literacy-rich home environment, including access to books. Research in low-income neighborhoods showed the ratio of books was 1 per every 300 children, compared to 13 books per child in middle to high income neighborhoods. Access to books for families is critical to supporting literacy skill development in the home (Anne E. Casey, 2009).
There is evidence that nutrition impacts cognitive development. Studies have shown that improved nutrition can lead to higher grade attainment, reading comprehension, cognitive abilities, and ultimately high school graduation. One way to meet the needs of hungry children is the national Back Pack program that is designed to provide food at times when free or reduced-priced school lunches are not available, such as weekends and school vacations (America’s Second Harvest).
Affordable and high quality after-school activities provide a safe haven for children and youth. The tendency toward risky behavior increased when students lack the necessary social supports and adult relationships to avoid unhealthy lifestyles. Programs like mentoring and character-building provides a foundation for young people to be healthy and emotionally secure.
Family income can be expected to impact educational attainment in various ways. When children grow up in poverty, they are more likely as adults to have low wages, commit crimes, and have poor health. Therefore, family financial stability and good health are part of the solution for helping children succeed in school.
Case For Advancing The Common Good United Way of Miami County
20 January 2010
2) Financial Stability: Achieving greater stability allows lower-income working families to move toward financial independence.
According to United Way Worldwide, a revealing indicator of financial stability is the percentage of working families who spend less than 40 percent of their income on housing. The disparity between income and housing costs gives a sense of the hardship faced by many as they attempt to pay for the single largest expense for a low-income family. More than one-third of lower-income working families spend more than 40 percent of their income on housing. Many lower-income working families in which one or two adults together work the equivalent of a full-time job cannot earn enough to make ends meet. The 10-year goal is to cut in half the number of these families who lack financial stability. This goal aims for financial independence and helping families to earn a decent income, better manage their money, and save even a small portion or build assets for the future (United Way Worldwide).
Many low-income individuals and families do not access mainstream banking services due to lack of education and understanding of the banking options available. Services such as lending, checking and savings accounts, retirement planning, and debt management are just a few of the areas that need to be more accessible to the working poor. When introduced to these services, they are more likely to increase savings, improve financial health and gain assets.
There is an estimated 28 million unbanked and 44.7 million under banked people in the US representing a potential market of 40 million households (FDIC). In Indiana, approximately 216,200 households are unbanked (Federal Reserve, 2007).
Access to mainstream financial institutions and services allows individuals and families to avoid predatory lending, check cashing services, and financial products with high interest rates. They spend more for basic financial services that lessen the amount of money available to save, pay down debt, and care for their family. The average cost for an unbanked working household using check cashing services in Indiana is approximately $1,148 (Fellows and Mabanta 2008).
Case For Advancing The Common Good United Way of Miami County
21 January 2010
In 2006, nearly $6 million were spent on payday lending fees and more than $36 million in payday loans, according to Bank On Indiana.
Low-income individuals do not utilize mainstream financial products for many reasons, including poor credit, lack of knowledge, or inability to manage a bank account. Many households without checking accounts, have steady, full-time jobs, and about half have never had a checking account in the past (Indiana Department of Financial Institutions).
Financial education and personal mentoring offers the assistance that enables families to manage their resources. The benefits to financial education are increased savings, improved credit management, homeownership, and retirement planning for lasting financial change.
The Earned Income Tax Credit (EITC) plays a key role in helping families meet basic needs and become financially stable. EITC returns income to eligible families and provides an incentive to maintain employment. It represents a large inflow of resources into the local economies. In Miami County, an estimated $231,809 in EITC refunds goes unclaimed each year (Indiana Institute for Working Families, 2008).
EITC lifts more children out of poverty than any other social program (Greenstein, 2005). Furthermore, EITC has proven critical to enabling low-wage workers to support themselves and their families, reduce debt, and save money.
Filing for EITC can help to avoid the use of paid tax preparers. Using a paid preparer leads to other costs, such as an anticipated tax refund loans and check cashing services (Brookings, 2006). Using a Volunteer Income Tax Assistance (VITA) program, low-income filers receive no-cost assistance with filing taxes and may gain access to other mainstream services.
Educational programs integrated with EITC assistance can help adults outside the financial mainstream enhance their money skills and create positive banking relationships. Promoting direct deposits and split refunds at the free tax site help introduce low-income individuals to the banking system. By working with community partners to offer on-site financial education materials and workshops at free tax preparation sites, individuals can build positive relationships with financial institutions and help families make informed decisions about their financial resources.
Efforts to increase income through employer benefit programs have also become a viable method to educate low- and moderate- wage earners. Case For Advancing The Common Good United Way of Miami County
22 January 2010
Many employers are willing to support financial education classes during work time. Information about employer retirement savings, health insurance options, and money management helps employees retain income and build personal assets (United Way Worldwide).
By increasing awareness of the importance of saving, reducing debt, and building assets, low-income individuals and families can become more financially stable. The United Way of Miami County is making a difference by building community awareness around the importance of strengthening family financial stability.
3) Health: good health allows children to learn better and adults to increase their income through productive work.
According to United Way Worldwide, health problems often lead to increased school absences (a predictor of dropping out of high school) among children, as well as increased on the- job absences by adults. Unfortunately, entry level and lower paying jobs are often without health benefits. A lack of health care coverage often means that primary health care that is so important to preventing or treating an illness before it becomes more serious. A serious illness with no or insufficient health insurance has driven thousands of Americans into financial crisis. Fifty percent of bankruptcies in 2005 and 2006 were caused by medical debt.
A healthy life begins with maternal health and infant well-being, followed by preventative health care in childhood, avoiding risky behaviors, and staying healthy through adulthood. Achieving this goal requires us all to become more aware of health risks and the potential effects they have on ourselves and others, starting from before birth (United Way Worldwide).
The health of America’s youth and adults is a serious concern. Just over one-third of youth in high school and one-third of adults can be considered healthy. The percentage of youth and adults who are healthy is declining when compared to a decade ago. For this reason, supporting
Case For Advancing The Common Good United Way of Miami County
23 January 2010
programs that promote healthy youth and adults is another way for us to advance the common good in our community (United Way Worldwide).
Framework for change
United Way of Miami County is working to address the needs in our community. We are focusing on the most critical causes and conditions of poverty in Miami County. The following framework outlines the goals and desired outcomes that will guide our community investment efforts for the next several years.