MidAmericaInstituteonPovertyofHeartlandAlliance

4411N.Ravenswood
Chicago,IL60640
ph:773.336.6075
www.heartlandalliance.org/maip/
CreatingaStateofOpportunity

2007 Report on Illinois Poverty: Chicago Area Snapshot

TheseventhannualReportonIllinoisPoverty
illustratesthattherearemanyindicationsIllinois
familiesareexperiencingsignificanthardship.Over
onethirdofIllinoisansinpovertyarechildren,
disparitiesinincomeandwealtharewidening,young
adultsfacesignificantobstaclestoeconomicsuccess,
andhundredsofthousandsofIllinoisanslivein
extremepoverty,withincomesbelowhalfthepoverty
line.

PovertyRatesandNumbersin1999and2005
19991

Illinois
Chicago
Cook
DuPage
Kane
ThestoryisnodifferentintheChicagoregion.Eachof Lake
thesixcountiesthatcomprisetheChicagoregionhad
McHenry
higherpovertyratesin2005thantheydidin1999.
Historically,povertyrateshavealwaysbeenhigherin Will

20052

10.7%(1,291,958)
19.6%(556,791)
13.5%(713,040)
3.6%(32,163)
6.7%(26,587)
5.7%(35,714)
3.7%(9,446)
4.9%(24,225)

12.0%(1,483,873)
21.3%(573,486)
15.0%(777,089)
4.9%(44,921)
8.9%(42,161)
7.1%(48,360)
4.9%(14,906)
5.1%(32,502)

Chicagothaninthesurroundingregion.Whilethisis
stilltrue,recentdataindicatethatfrom1999to2005,povertygrowthintheregionhasbeenfuelednotsolelyby
Chicago,butalsobythesurroundingsuburbs.
WhiletheCityofChicago,Cook,DuPage,Kane,Lake,McHenry,andWillcountieshaveallexperiencedgrowing
poverty,thecollarcountiesexperiencedsignificantlygreatergrowthinpovertyratesandlowincomeratesthan
ChicagoorCookCounty.3
PercentGrowthinPovertyRatesandLowIncomeRates
intheChicagoRegion,1999to2005
100%FPL 200%FPL
40.0%
36.1%
35.0%

32.8%

32.4%

30.0%
24.6%

24.3%

25.0%

19.9%

19.0%

20.0%

16.3%

15.1%

15.0%
10.0%

8.7%
6.5%

11.1%10.5%
4.1%

5.0%
0.0%
Chicago

Cook

DuPage

Kane

Lake

McHenry

Will

ThefollowingpageshighlightotherindicatorsofhardshipinChicagoandthesurroundingcounties.Thegrowthin
povertyacrosstheboardpairedwiththelossofgoodpayingjobs,troublesomeinequalities,decliningincomes,and
risingcosts,indicatethatfartoomanyChicagoareafamiliesarestrugglingtogetby.
Note:Lowincomeratesrefertothepercentofpeoplelivingbelowtwicethepovertylineor200%FederalPovertyLevel(FPL).Formore
informationonpovertydefinitions,seepage5.

Income &
Poverty

TheChicagoregionstruggleswithashrinkingmiddleclass,andloss
ofmanufacturingjobs,aswellasconcentratedandextremepoverty.

Theproportionofmiddleincomefamiliesdropped
whiletheshareoflowincomeandhighincome
familiesgrewintheChicagoregionfrom1970to2000.4
ShareofFamiliesbyIncomeCategoryintheChicagoRegion,
1970to2000
100%
90%
80%

34.8%

39.6%

30.3%

22.2%

70%
60%
50%
40%
30%
20%
10%

38.1%

34.9%

0%

1970

2000

LowIncome

TheChicagoregionwashit
harderbymanufacturingjob
lossthanthenationasa
wholefrom2000to2005.
5

Chicago
Region
22.2%
jobloss

Chicago Area Snapshot

U.S.
17.6%
jobloss

MiddleIncome

HighIncome

436,270Chicagoregionresidents
liveinextremepoverty,
meaningtheirannualincomeis
6
lessthanhalfthepovertyline.

TheCityofChicagohas

110
highpovertyconcentratedareas
(asdefinedbycensustracts)
meaningover40%ofresidentsin
7
thoseareasarepoor.

2007 Report on Illinois Poverty

Housing &
Transportation

Risinghousingandtransportationcostshavecreatedhardship
formanyChicagoregionfamilies.

Familiescomprise
overaquarterof
theCityofChicagos
homelesspopulation.

CityofChicago
householdsspendon
average

26.2%are
families

$4,800lessperyear
ontransportationcosts
thantheirsuburban
counterparts.
9

Overallforeclosurestartson
subprimeloanshave

increased858%
10

intheCityofChicagosince1993.

AgrowingproportionofChicago
regionrenterhouseholdsarerent
burdened,meaningtheypay
morethan30%oftheirincome
12
towardhousingcosts.
ProportionofChicagoRegionRenterHouseholds
thatareRentBurdened19992005

WorkingfamiliesintheChicago
regionearningbetween
$20,000and$50,000annually,
spendanaverageof55%of
theirbudgetonhousingand
11
transportationcosts.

Chicago Area Snapshot

60.0%
50.0%
40.0%

38.5% 40.2%

42.4%

45.6% 45.7% 47.1% 51.5%

30.0%
20.0%
10.0%
0.0%
1999

2000

2001

2002

2007 Report on Illinois Poverty

2003

2004

2005

Health &
Education

Chicagoregionyouthandfamiliescontinuetofacechallenges
inmeetingtheirhealth,nutrition,andeducationneeds.

MaleChicagoPublicSchool
studentshavesignificantly
lowergraduationratesthan
femalestudents.
13

GRADUATIONRATES
20052006SCHOOLYEAR

Teenbirthratesrose
inCook,DuPage,Kane,
McHenry,andWillCounties
andremainedunchangedin
LakeCountyfrom
2003to2004.
15

FemaleGradRate

79.4%

MaleGradRate

67.7%

23,881householdsamonth
onaveragesoughtfoodthroughthe
NorthernIllinoisFoodBanksnetworkof
foodpantriesinDuPage,Kane,Lake,
16
McHenry,andWillCountiesin2006.

OfChicagoPublicSchool
graduateswhoattend4year
collegesimmediatelyafter
highschool

only35%graduate
collegewithin6years.

14

Chicago Area Snapshot

Eachyear,closeto

500,000 people
relyonemergencyand
supplementalfoodprovided
bytheGreaterChicago
FoodDepository.
17

2007 Report on Illinois Poverty

Poverty
Definitions

Fourdefinitionsofpovertyareinstructiveforananalysisof
wellbeingintheChicagoregion.

IncomePoverty:asdefinedbythefederalgovernmentusingfoodcostasabasis.Thereare
twoslightlydifferentversionsofthefederalpovertymeasure:thepovertythresholdsand
thepovertyguidelines.
Thepovertythresholdsaretheoriginalversionofthefederalpovertymeasure.Theyare
updatedeachyearbytheCensusBureauandareusedmainlyforstatisticalpurposes
forinstance,preparingestimatesofthenumberofAmericansinpovertyeachyear.
Thepovertyguidelines,alsocalledtheFederalPovertyLevel(FPL),aretheotherversion
ofthepovertymeasure.TheyareissuedannuallyintheFederalRegisterbythe
DepartmentofHealthandHumanServicesandareasimplificationofthepoverty
thresholdsusedforadministrativepurposesforinstance,determiningfinancialeligibility
forcertainfederalprograms.18
19

FederalPovertyGuidelines,or100%FPL
Sizeof
familyunit

1
2
3
4
5
6
7
8

2007poverty
guidelines

2006poverty
guidelines

2005poverty
guidelines

2004poverty
guidelines

$10,210
13,690
17,170
20,650
24,130
27,610
31,090
34,570

$9,800
13,200
16,600
20,000
23,400
26,800
30,200
33,600

$9,570
12,830
16,090
19,350
22,610
25,870
29,130
32,390

$9,310
12,490
15,670
18,850
22,030
25,210
28,390
31,570

DeeporExtremePoverty:definedasthosepeoplelivingbelow50%ofthefederalpoverty
threshold.
LowIncomeorNearPoor:asexperiencedbypeoplelivingbelow200%ofthepoverty
thresholdwhooftenhavetroublemeetingtheirbasicneedsduetoskyrocketingcosts
(e.g.,rent,childcare,healthinsurance).
AssetPoverty:definedashouseholdswithoutsufficientnetworthtosubsistatthepovertylevel
for3months20 sothatacrisis(suchasjobloss,illness,ordivorce)canpusha
householdintopovertyorhomelessness.

Chicago Area Snapshot

2007 Report on Illinois Poverty

Chicago Region
Poverty Summary

Chicago
Cook
DuPage
Kane
Lake
McHenry
Will
Illinois

Formoredatabycounty,definitions,andexplanationsofdatasources,
refertotheAppendixofthe2007ReportonIllinoisPoverty.

MedianHousehold
Income21
1999
2005
$45,279
$41,015
$53,833
$48,950
$79,582
$70,560
$69,575
$63,317
$78,510
$68,744
$75,994
$70,908
$72,960
$68,414
$54,616
$50,260

Child
Poverty22
1999
2005
28.5% 30.8%
19.3% 21.3%
4.1%
5.5%
9.1%
11.5%
7.2%
9.1%
4.2%
6.3%
5.9%
6.0%
14.3% 16.4%

Numberof
Wage
Households neededto
ReceivingFood afford2BR
Stamps23
FMR24
2005
2006
131,666
n/a
173,538
$17.98
7,923
$17.98
7,527
$17.98
8,606
$17.98
2,979
$17.98
8,707
$17.98
358,607
$15.95

ExtremePoverty25
1999
2005
10.1%
9.7%
6.8%
6.9%
1.8%
1.9%
2.9%
3.6%
2.4%
3.0%
1.7%
2.7%
2.4%
2.2%
5.1%
5.5%

1U.S.CensusBureau,DecennialCensus2000.
2U.S.CensusBureau,AmericanCommunitySurvey2005.
3U.S.CensusBureau,DecennialCensus2000andAmericanCommunitySurvey2005,calculationconductedbytheMidAmericaInstituteon
PovertyofHeartlandAlliance.
4Booza,J.C.,Cutsinger,J.,&Galster,George.(2006,June).Wheredidtheygo?Thedeclineofmiddleincomeneighborhoodsinmetropolitan
America.LivingCitiesCensusSeries.WashingtonDC:TheBrookingsInstitution.
5Wial,H.,&Friedhoof,A.(2006,July).Bearingthebrunt:ManufacturingjoblossintheGreatLakesRegion,19952005.MetroEconomySeries.
WashingtonDC:TheBrookingsInstitution.
6U.S.CensusBureau,AmericanCommunitySurvey2005.
7Berube,A.,&Katz,B.(2005,October).Katrinaswindow:ConfrontingconcentratedpovertyacrossAmerica.MetropolitanPolicyProgram.
WashingtonDC:TheBrookingsInstitution.
8TheUnitedStatesConferenceofMayorsSodexho,Inc.(2006,December).Hungerandhomelessnesssurvey:Astatusreportonhungerand
homelessnessinAmericascities,a23citysurvey.WashingtonDC:Author.
9Haas,P.M.,&Makarewicz,C.(2006,June29).Housing&transportationaffordabilityindex.PresentedattheHousing+transportation:Moving
theregiontowardgreateraffordabilitymeeting,Chicago,IL.
10Rose,D.C.(2005,June).Chicagoforeclosureupdate.Chicago:NationalTrainingandInformationCenter.
11Lipman,B.J.(2006,October).Aheavyload:Thecombinedhousingandtransportationburdensofworkingfamilies.WashingtonDC:Center
forHousingPolicy.
12U.S.CensusBureau,DecennialCensus2000andAmericanCommunitySurvey2005,calculationconductedbytheMidAmericaInstituteon
PovertyofHeartlandAlliance.
13IllinoisStateBoardofEducation.(n.d.).20052006Stateschoolreportcard.Springfield,IL:Author.
14Roderick,M.(2006,April).Closingtheaspirationsattainmentgap:Implicationsforhighschoolreform.AcommentaryfromChicago.Chicago:
MDRC.
15IllinoisDepartmentofPublicHealth.(n.d.).Illinoisteenbirthsbycounty.RetrievedJanuary2,2007,from
http://www.idph.state.il.us/health/teen/teen0304.htm,calculationconductedbytheMidAmericaInstituteonPovertyofHeartlandAlliance.
16NorthernIllinoisFoodBank(personalcommunicationFebruary1,2007).
17GreaterChicagoFoodDepository.(2006,September).TheNationalHungerStudy:Chicagoprofile.Chicago:Author.
18U.S.DepartmentofHealth&HumanServices.(2006).Frequentlyaskedquestionsrelatedtothepovertyguidelinesandpoverty.Retrieved
December21,2006,fromhttp://aspe.hhs.gov/poverty/faq.shtml#differences
19U.S.DepartmentofHealth&HumanServices.(2007).Povertyguidelines,research,andmeasurement.RetrievedJanuary26,2007,from
http://aspe.hhs.gov/poverty/index.shtml
20CFED.(2007).Assetpoverty.RetrievedJanuary2,2007,fromhttp://www.cfed.org/focus.m?showmeasures=&siteid=504&id=509&
measureid=2841
21U.S.CensusBureau,DecennialCensus2000andAmericanCommunitySurvey2005,calculationconductedbytheMidAmericaInstituteon
PovertyofHeartlandAlliance.
22U.S.CensusBureau,DecennialCensus2000andAmericanCommunitySurvey2005,calculationconductedbytheMidAmericaInstituteon
PovertyofHeartlandAlliance.
23U.S.CensusBureau,AmericanCommunitySurvey2005.
24NationalLowIncomeHousingCoalition.(2006).Outofreach2006.WashingtonDC:Author.
25U.S.CensusBureau,DecennialCensus2000andAmericanCommunitySurvey2005.

TheIllinoisPovertySummitisaninitiativeofHeartlandAllianceforHumanNeeds&HumanRights.
Thisreportcanbedownloadedfromhttp://www.heartlandalliance.org/maip/research.html
Chicago Area Snapshot

2007 Report on Illinois Poverty