Michigan's poverty rate hits 14% in '09

MIKE WILKINSON AND CATHERINE JUN
The Detroit News

Michigan experienced a substantial jump in its poverty rate in 2009 as
the full effects of the recession continued to sweep across the
country, according to a report issued this morning by the U.S. Census
Bureau.

The 2009 poverty rate for Michigan was 14 percent, the highest for the
state since it hit 14.1 percent in 1994, and well above the 13 percent
reported for 2008. Both are substantially higher than the 9.9 percent
in 2000.

Advocates for the poor say that the picture would have been bleaker
had the federal government not issued jobless benefit extensions. The
2009 Recovery Act directed as much as $2.6 billion to Michigan's
unemployed.

"It would have been far worse without all the unemployment benefits in
Michigan," said Judy Putnam, spokeswoman for the Michigan League for
Human Services, an advocacy group in Lansing.

The poverty rate, she said, shows that families still need emergency
federal help, particularly an extension of jobless benefits,
additional cash assistance and an expanded after-school meal program
that doesn't reduce food stamp benefits.

"Until our economy recovers and (while) we're without jobs, what do we
expect people to do?" Putnam said.

Nationally, the poverty rate for 2009 was 14.3 percent, up from 13.2
percent last year and the largest year-over-year increase in three
decades. The Census Bureau says that about 43.6 million people, or 1
in 7, were in poverty last year in the United States. That's up from
39.8 million in 2008.

The median -- or midpoint -- household income was $49,777.

In 2009, the poverty threshold for an individual was income just less
than $11,000. For a family of four, it was slightly below $22,000.
Food stamps, medical benefits and subsidized housing are not counted
when calculating a person's income.

For the second year in a row, national household median income dropped
slightly, from $50,112 to $49,777. It is not considered statistically
different than 2008, and substantially less than the decline from 2007
to 2008. But for non-Hispanic whites and African-Americans, the
declines in median income were statistically significant, from $52,113
to $51,861, or 1.6 percent for whites; and $34,088 to $32,584, or 4.4
percent for African-Americans, .

Since 2000, median income nationwide has fallen nearly 5 percent.
Hardest hit: The Midwest, where the 2009 median household income of
$48,877 is 11 percent below its level in 2000. It's also at its lowest
point since 1994. The region, where manufacturing job losses were most
pronounced, saw the largest year-to-year drop, with median income
dropping 2.1 percent from 2008 to 2009.

The Associated Press contributed.
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