ECONOMIC WELL-BEING
Median Household Income
DEFINITION
Median household income is the median annual income for
Rhode Island households. The median income is the dollar amount which
divides the income distribution into two equal groups - half with
income above the median and half with income below the median.
SIGNIFICANCE
The median household income provides one measure of the ability
of Rhode Island's families to meet the costs of food, clothing,
housing, health care, transportation, child care and higher
education. More than one in three Rhode Island households have a
household income less than $25,000.
Annual earnings, especially for young families (those headed by persons younger than age 30) and female-headed families, are often insufficient to lift children out of poverty. A person working 40 hours per week at the Rhode Island minimum wage of $4.45 per hour will earn $9,256 annually, about two-thirds of the 1995 poverty level income of $15,150 for a family of four.
________________________________________________________________
Figure 2-1:
_________________________________________________________________
Figure 2-2:
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Half of all Rhode Island households earned more than $32,181 - and half earned less - according to the 1990 U.S. Census.
CHILD SUPPORT AFFECT FAMILY INCOME
The failure of an absent parent to pay child support has significant economic consequences for a parent raising a child or children alone.
98,963 Rhode Island children are
currently in the state's Child Support Enforcement System
Court orders for child support
require the establishment of paternity, 27,00 Rhode Island children
have not yet had paternity established and therefore receive no child
support.
During the 12 months of 1995, Rhode
Island Child Support Enforcement Services projects that it will
collect approximately $36 million of the $66 million owed in current
child support payments due by absent parents under court order.
As of December 31, 1994, the amount
past due on court-ordered child support totaled $145 million dollars.
This figure does not include potential additional $92 million
associated with the cases for which paternity has not been
established.
Source: RI Department of Human Services, Management services Division, Child Support Program.
Table 2-1: MEDIAN HOUSEHOLD INCOME, RHODE ISLAND, 1990
Median
Household
CITY?TOWN Income
______________________________
Barrington $53,058
Bristol $34,165
Burrillville $37,156
Central Falls $18,617
Charlestown $36,040
Coventry $37,230
Cranston $34,528
Cumberland $40,683
East Greenwich $50,896
East Providence $31,007
Exeter $38,179
Foster $40,795
Glocester $40,000
Hopkinton $36,737
Jamestown $41,518
Johnston $32,596
Lincoln $37,082
Little Compton $41,187
Middletown $35,228
Narragansett $35,545
Newport $30,534
New Shoreham $31,471
North Kingstown $40,419
No. Providence $32,321
No. Smithfield $41,449
Pawtucket $26,541
Portsmouth $42,474
Providence $22,147
Richmond $40,975
Scituate $45,170
Smithfield $42,523
South Kingstown $36,481
Tiverton $36,170
Warren $31,637
Warwick $35,786
Westerly $34,844
West Greenwich $41,250
West Warwick $31,625
Woonsocket $25,363
>
____________________________________
Rhode Island $32,181
Core Cities N/A
Remainder of
State N/A
SOURCE OF DATA FOR TABLEU.S. Bureau of the Census, 1990 Census of Population. Core cities are Providence, Pawtucket,
Woonsocket, Newport and Central Falls.
REFERENCES FOR INDICATORAll data are from the US Bureau of the Census, 1990 Census of Population, unless otherwise
noted.
Vanishing Dream; The Economic Plight pf America's Young Fanilies, (1992), Children's Defense Fund;
Washington,D.C.
Children in Poverty
DEFINITION
Children in poverty is the percentage of related children
under age 18 who live in families with incomes below the poverty
threshold, as defined by the U. S. Office of Management and Budget.
"Related children" include the family head's children by birth,
marriage, or adoption, as well as other persons under age 18, such as
nieces or nephews, who are related to the family head.
SIGNIFICANCE
Children who grow up in poor families are more likely to go
without necessary food and clothing, lack basic health care, live in
substandard housing, and have unequal access to educational
opportunities.
Poor children are at greater risk of being born with low birthweight, dying in infancy or childhood, having health problems that affect school performance, becoming a teen parent and dropping out of school.
_______________________________________________________________
Rhode Island's Poor Children
Figure 2-3:
Figure 2-4:
Figure 2-5:
Figure 2-6:
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FEDERAL POVERTY LINE DEFINED
The poverty income guidelines (often refereed to as the "Federal
Poverty Line") were first set in 1964, using an index developed by
the Social Security Administration. At that time, the average
American family spent approximately one-third of its net income on
food. Therefore, the poverty line was established at three times the
cost of one of the USDA's most economical Food Plans. The cost of
this Food Plan is adjusted each year using the current consumer price
index in order to calculate the official poverty income guidelines.
These guidelines are adjusted for the size of the family unit and
used by federal and state agencies as guidelines for various public
assistance programs and as a basis for compiling data on poverty.
The Federal Poverty Line for a family of four in 1995 is $15,150.
POOR FAMILIES IN THE LABOR FORCE
Forty-three percent of Rhode
Island's poor children line in families in which one or both parents
work. Factors that lead to poverty among working families include the
increase in service and retail jobs that pay lower wages, the
declining value of the minimum wage and the inability to find
full-time, year-round work.
In the 1960's and 70's, the
earnings of a full-time, year-round minimum wage worker lifted a
family of three above the poverty line. Now the same effort leaves a
family of three 20% below the poverty line.
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Figure 2-7: Percent of Children Less Than Age 18 Below Poverty, By Race
Table 2-2: CHILDREN IN POVERTY CHILD POVERTY, RHODE ISLAND, 1990
Related Children under 18 Years
Families with Children Under Children Under
Children 18 6
Below Poverty Below Poverty Below Poverty
City or Town Number Percent Number Percent Number Percent
_______________________________________________________________________________
Barrington 27 1.3 52 1.3 33 2.6
Bristol 108 4.5 253 5.9 128 8.3
Burrillville 148 6.3 276 6.1 119 8.5
Central Falls 710 28.5 1,576 32.5 749 38.0
Charlestown 68 7.8 145 9.4 39 6.4
Coventry 199 4.7 402 5.3 180 7.3
Cranston 735 8.9 1,378 9.5 562 10.9
Cumberland 145 4.0 302 4.7 151 7.4
East Greenwich 75 4.6 153 5.3 112 13.0
East Providence 499 8.0 904 8.7 355 9.9
Exeter 26 3.3 52 3.6 5 1.0
Foster 34 5.5 88 7.6 0 0.0
Glocester 99 7.2 156 6.5 77 10.0
Hopkinton 40 4.1 75 4.1 9 1.4
Jamestown 59 8.9 92 8.1 45 11.9
Johnston 266 9.0 452 8.4 187 10.6
Lincoln 164 7.2 272 7.0 98 7.2
Little Compton 12 2.6 20 2.7 15 5.1
Middletown 129 5.1 275 6.0 158 9.1
Narragansett 71 4.4 122 4.5 36 3.6
Newport 559 17.7 1,143 20.3 575 27.0
New Shoreham 12 12.4 17 10.1 6 10.0
North Kingston 185 5.4 281 4.7 121 6.1
North Providence 182 5.6 298 5.4 78 4.3
North Smithfeild 23 1.7 37 1.6 19 3.1
Pawtucket 1,255 13.4 2,525 15.5 1,096 17.3
Portsmouth 95 3.8 182 4.4 70 5.2
Providence 5,621 29.2 12,946 34.5 5,531 36.8
Richmond 9 1.1 30 2.0 0 0.0
Sctituate 45 3.3 91 3.7 19 2.3
Smithfeild 75 3.4 155 4.1 61 4.9
South Kingston 134 4.9 350 7.5 133 8.7
Tiverton 109 6.0 200 6.4 81 7.9
Warren 132 9.3 199 8.5 56 6.2
Warwick 519 5.1 1,084 5.9 448 7.2
Westerly 210 7.3 432 8.7 224 12.9
West Greenwich 14 2.9 26 2.9 11 4.2
West Warwick 395 10.7 746 11.8 291 13.0
Woonsocket 1,183 20.0 2,235 21.4 1,034 26.9
_______________________________________________________________________________
Rhode Island 14,371 11.6 30,022 13.5 12,912 16.3
Core Cities 9,328 23.2 20,425 27.3 8,985 30.7
All other Cities 5,043 6.0 9,597 6.5 3,927 7.9
SOURCE OF DATA FOR TABLEU.S. Bureau of the Census, 1990 Census of Population. Core cities are Providence, Pawtucket,
Woonsocket, Newport and Central Falls.
REFERENCES FOR INDICATORAll data are from the US Bureau of the Census, 1990 Census of Population, unless otherwise
noted.
___________________
Map 2-1:
CHILDREN IN POVERTY MAP
___________________
Children Receiving Public Assistance
DEFINITION
Children receiving public assistance is the percent of all
children less than 18 who were living in families enrolled in Aid to
Families with Dependent Children (AFDC) and/or the Food Stamp Program
on December 31, 1994.
These data ,easier the number of children and families participating in these programs at one point in time. They do not count the additional children and families who qualified for these programs at other points during the year, but were not enrolled on December 31, 1994.
SIGNIFICANCE
Income support programs such as Aid to Families with Dependent
Children (AFDC) and Food Stamps have significant impact on the
ability of poor families to provide food, shelter and clothing for
their children. Almost one in five Rhode Island children benefit from
either AFDC or Food Stamps.
Participation in both AFDC and Food Stamps has increased during the recession of the late 1980's and early 1990's. These increases have occurred in the core cities as well as in the suburbs and rural areas of Rhode Island.
While the benefit levels of both of these programs combined do not prevent a family of three from falling below the poverty line, they provide a minimal subsistence for poor families.
________________
THE TRANSITION FROM WELFARE TO WORK
Women cycle on and off the welfare
rolls, periodically taking low-paying jobs that frequently leave them
poor. Nationally, about 40 percent of welfare recipients fit this
category.
Barriers to sustainable employment
include low wages that do not provide adequate resources for
transportation, child care, and family health insurance.
Education, job training programs,
and job placement assistance increase the possibilities for obtaining
a good job with a livable wage and the potential for advancement.
_________________
Figure 2-8: Children Receiving Public Assistance
__________________
One in five Rhode Island children less the age 18 receive AFDC and/or Food Stamp benefits. In the core cities of Providence, Pawtucket, Central Falls, Woonsocket and Newport, more than one in three children less than age 18 receive public assistance.
_______________
AID TO FAMILIES WITH DEPENDENT CHILDREN
AFDC was designed to assist children deprived of income support due to a continuously absent mother or father, the incapacity or death of a parent, inadequacy of family income or parental unemployment.
In Rhode Island in 1994, families
enrolled in AFDC had an average of two children.
As of February 1995, 70% of
families enrolled had been participating for less than three years.
The average monthly AFDC benefit
for a Rhode Island family of three is $554 per month. With an
additional average of $268 per month in food stamps (for families
without housing assistance), the average monthly combined benefit is
$822 and the average yearly combined total is $9,870. This amount is
20% below the federal poverty line.
Only 26% of Rhode Island AFDC
families receive housing assistance.
_________________
THE FOOD STAMP PROGRAM
The federal Food Stamp program provides benefits for the purchase of food to AFDC families and other low income families who meet eligibility guidelines. A recent USDA study found that children constitute 52% of all food stamp participants.
There are almost 6,000 working poor
families in Rhode Island who receive food stamps, but are ineligible
for AFDC. The amount of food stamps received depends upon income,
family size, and shelter costs.
The average monthly food stamp
benefit is $268 for AFDC families without housing assistance, and
$205 for AFDC families with subsidized housing.
A recent survey found that more
than half of the people who use the Rhode Island Community Food Bank,
receive food stamps. Most people in this category said that they use
the food Bank because their food stamps do not last for the entire
month.
Forty-five percent of people who
use the Rhode Island Community food Bank are children ages 17 and
younger.
___________________
NEED FOR QUALITY AFFORDABLE CHILD CARE
A December 1994 General Accounting Office (GAO) Report estimated that is poor mothers has assistance in paying for child care the proportion working outside the home would increase from 29% to 44%,
Likewise, parents receiving AFDC who want to make the transition to employment need quality, affordable child care for their children. As of December 31, 1994, there were 33,281 children under the age of 13 in families receiving AFDC.
A 1990 General Accounting Office
(GAO) study found that nationwide, the average annual cost of good
quality child care was $4,797, or about $92 per week. This would
require more than half the income of a minimum wage-earning family of
three, and a substantial portion of any low income family's annual
wages.
The less families earn, the higher
the proportion of income spent on child care. Families earning less
than $15,000 annually often spend more than a quarter of their income
on child care.
In Rhode Island, as of December
1994, 4,664 children received subsidized child care.
The single most important factor in
quality child care is the relationship between the child and the
caregiver. The quality of this relationship depends in part on the
ratio of caregivers to children, and the education and training
levels of the caregivers.
A quality child care program also
attends to the basic issues of health and safety and emphasizes a
partnership between parents and caregiver.
Two recent studies of child care in
the United States have raised serious concerns about the quality of
child care children are receiving.
Table 2-3: Young Children in Families Receiving AFDC,
Rhode Island, December 31, 1994
Number of Children
Under 3 1 to 5 6 to 12
City/Town Years Years Years
____________________________________________________
Barrington 21 5 30
Bristol 116 48 123
Burrillville 76 35 96
Central Falls 547 322 592
Charlestown 34 18 32
Coventroy 176 85 177
Cranston 638 302 700
Cumberland 112 64 128
East Greenwich 60 25 73
East 491 204 501
Providence
Exeter 26 6 18
Foster 16 9 18
Glocester 30 8 23
Hopkinton 44 19 65
Jamestown 14 4 9
Johnston 217 106 218
Lincoln 87 35 94
Little Compton 7 3 4
Middletown 73 22 88
Narragansett 62 34 79
Newport 431 192 400
New Shoreham 3 2 0
North 182 89 162
Kingstown
No. Providence 292 82 224
No. Smithfield 14 6 28
Pawtucket 1429 757 1494
Portsmouth 50 19 44
Providence 4562 2873 6134
Richmond 28 8 41
Scituate 19 18 30
Smithfield 66 23 48
South 81 52 120
Kingstown
Tiverton 93 35 70
Warren 105 37 89
Warwick 617 274 590
Westerly 180 89 189
West Greenwich 23 13 27
West Warwick 353 179 397
Woonsocket 959 580 1110
________________________________________________________________
Rhode Island 12,334 6,682 14,265
Core Cities 7,928 4,724 9,730
Remainder of 4,406 1,958 4,535
State
Table 2-4: Number of Children Under 18 Receiving Assistance
by
Type, Rhode Island, December 31, 1994
AFDC Food Stamps All with AFDC As % of All City/Town & Food Stamps Only Or Food Stamps Under 18
______________________________________________________________________________
Barrington 65 18 83 2.2 Bristol 327 137 464 10.2 Burrillville 239 135 374 8.5 Central Falls 1748 372 2,120 37.8 Charlestown 102 49 151 8.6 Coventroy 534 126 660 8.8 Cranston 1962 404 2,366 15.6 Cumberland 344 119 463 7.2 East 189 52 241 8.8 Greenwich East 1392 300 1,692 15.4 Providence Exeter 56 11 67 4.5 Foster 49 10 59 5.0 Glocester 74 57 131 5.4 Hopkinton 167 34 201 10.7 Jamestown 31 15 46 4.0 Johnston 643 199 842 15.0 Lincoln 253 84 337 8.6 Little 18 12 30 4.1 Compton Middletown 227 69 296 6.0 Narragansett 204 50 254 8.4 Newport 1217 234 1,451 23.0 New Shoreham 6 1 7 3.4 North 493 99 592 9.7 Kingstown No. 694 207 901 15.2 Providence No. 56 20 76 3.6 Smithfield Pawtucket 4350 898 5,248 28.8 Portsmouth 134 52 186 4.5 Providence 16555 2799 19,354 44.0 Richmond 97 31 128 8.1 Scituate 85 38 123 5.1 Smithfield 169 98 267 6.8 South 308 55 363 7.4 Kingstown Tiverton 237 66 303 9.9 Warren 277 58 335 12.8 Warwick 1765 423 2,188 11.6 Westerly 550 100 650 12.1 West 78 19 97 10.5 Greenwich West Warwick 1086 258 1,344 19.0 Woonsocket 3100 730 3,830 33.3
________________________________________________________________________
Rhode Island 39,881 5,951 45,832 19.2 Core Cities 26,970 5,033 32,003 37.4 All other 12,911 918 13,829 9.0 Cities
Rent Burden
DEFINITION
Rent Burden is the percentage of the statewide median
renter income needed to cover the average cost of rent in a
community. Generally, rent burdens of over 30% are considered
unaffordable, rent burdens over 50% are excessive.
SIGNIFICANCE
In the Northeast, housing costs account for the largest portion
of a family's budget. During the 1980's family incomes rose 93%,
while rents increased 153%.
In 1994, average rents in 17 of Rhode Island's 39 communities exceeded the affordability of the state's median income renter. Not a single Rhode Island community was affordable to the minimum wage earner working full-time.
The severity of the rent burden in Rhode Island communities has led to an increasing demand for rental subsidies. Most Section 8 and Public housing waiting lists are closed, and the wait for families currently on the waiting list can be as long as six years.
With a large percentage of family income going toward rent, any interruption in income or unexpected expense can place families at risk for homelessness.
Table 2-5: Affordable Rents for Selected Family Income Levels
In 1994, the average rent for a two bedroom apartment in Rhode Island was $581.
Annual Income Affordable Rent Family of Three 1994 (30% of Income) ______________________________________________________________________ Minimum WageEarner $ 9,256 $231 AFDC (including Food Stamps) $ 9,870 $246 Poverty Level $12,590 $312 Median Income Renter $24,006 $600 ______________________________________________________________________
HOMELESS CHILDREN
According to the Rhode Island Emergency Shelter Information Project:
1.473 children under age 12 were
served by Rhode Island's Emergency Shelter network from July 1, 1993
through June 30, 1994. This does not indicate individuals and
families who were turned away from shelters or those who sought
shelter with family or friends.
Children under age 12 represented
almost 30% of the population receiving shelter at emergency shelters,
and over 50% of the individuals assisted at domestic violence
shelters.
Table 2-6: Rent Burden, Rhode Island, 1994
1994 1994 Media Rent Burden 1994 Poverty Rent Burden
average rent Renter Hous Statewide Median Level-Family Poverty Level
city/Town 2-bedroom Hold Income Income Renter of Three Family of 3
Barrington 747 41,694 37% 12,590 71%
Bristol 614 26,112 31% 12,590 59%
Burrillville 564 24,990 28% 12,590 54%
Central Falls 457 20,496 23% 12,590 44%
Charlestown 573 29,545 29% 12,590 55%
Coventry 525 26,502 26% 12,590 50%
Cranston 596 27,032 30% 12,590 57%
Cumberland 568 27,515 28% 12,590 54%
East Greenwich 621 22,730 31% 12,590 59%
East Providence 579 26,014 29% 12,590 55%
Exeter 528 30,103 26% 12,590 50%
Foster 928 33,581 46% 12,590 88%
Glocester 550 23,048 27% 12,590 52%
Hopkinton 545 24,123 27% 12,590 52%
Jamestown 681 31,331 34% 12,590 65%
Johnston 599 27,240 30% 12,590 57%
Lincoln 594 28,224 30% 12,590 57%
Little Compton 553 27,491 28% 12,590 53%
Middletown 760 30,153 38% 12,590 72%
Narragansett 705 26,361 35% 12,590 67%
Newport 662 24,762 33% 12,590 63%
New Shoreham 628 NA 31% 12,590 60%
North Kingstown 664 27,503 33% 12,590 63%
North Providence 560 26,213 28% 12,590 53%
North Smithfield 612 28,015 31% 12,590 58%
Pawtucket 531 23,130 27% 12,590 51%
Portsmouth 683 39,128 34% 12,590 65%
Providence 546 20,053 27% 12,590 52%
Richmond 595 33,414 30% 12,590 57%
Scituate 604 31,745 30% 12,590 58%
Smithfield 589 23,711 29% 12,590 56%
South Kingstown 703 27,735 35% 12,590 67%
Tiverton 719 29,880 36% 12,590 68%
Warren 570 25,803 29% 12,590 54%
Warwick 624 26,948 31% 12,590 59%
Westerly 624 27,680 31% 12,590 59%
West Greenwich NA 20,092 NA 12,590 NA
West Warwick 541 24,820 27% 12,590 52%
Woonsocket 471 21,949 24% 12,590 45%
Rhode Island 581 24,006 29% 12,590 55%
Core Cities 546 NA 27% 12,590 NA
Remainder of State 611 NA 31% 12,590 NA
_____________________________________________________________________________
Source of Data for table Rhode Island Housing and Mortgage Finance Corporation. Core cities are Providence, Pawtucket, Woonsocket, Newport, and Central Falls. references for indicator All data are from The State of Rhode Island, Consolidated Plan Fiscal Year 1995–1998, (1994), Rhode Island Housing and Mortgage Finance Corporation: Providence, R.I., unless otherwise noted. Children and Their Housing Needs: A Report to Kids Count, (1993), Center on Budget and Policy Priorities: Washington D.C.
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