The U.S. Census focuses on federal poverty at 100 percent — a point where 11.1 percent of central Iowans cannot afford food, housing and other basic needs. Above that level, however, 22.9 percent of individuals in Warren, Dallas and Polk counties cannot afford everything they need to survive without assistance. Many families above the 100 percent federal poverty line are working, but they are one flat tire or one emergency room visit away from crisis.
The United Way of Central Iowa’s Goal for 2020 focuses on increasing the percentage of central Iowans who are financially self-sufficient or above the 250 percent federal poverty line. This is the point where Des Moines area families can afford basic household needs, including child care, rent and health care, according to the Policy Project’s “The Cost of Living in Iowa” study. Above that line, individuals can begin to save, pay loans or cover education.
Here is what you should know about poverty in Des Moines and the surrounding areas from the latest U.S. Census data released in December 2017:
Over five years, the number of central Iowans living above 250 percent of the federal poverty line has increased by more than 26,600 individuals, while 12,100 more individuals are living below the 100 percent federal poverty level. Some changes can be attributed to an increase in central Iowa’s population. Since 2011, central Iowa’s population has increased by 49,579 people, accounting for 61 percent of Iowa’s population growth.
While there were positive signs of improvement in central Iowa in 2016, the following trends have occurred over the past five years (from 2011-2016) for those living below the 100 percent federal poverty line:
- Among age groups living in extreme poverty, the number of seniors increased 57.7 percent, the number of children ages 18 and under increased 20.2 percent and the working age population increased 21.9 percent.
- Among minority groups living in extreme poverty, Asians showed a population change of 109.4 percent, and African Americans and Hispanics had a 14.3 percent and 14.8 percent increase, respectively.
- Among family type, married couples with children, single fathers and single mothers living in extreme poverty all increased—with single father families experiencing the greatest increase of 54.8 percent.
The number of individuals living at 100 percent of the federal poverty line has increased sharply in central Iowa’s suburban communities. Waukee had a 159 percent increase in poverty, Ankeny saw a 121.1 percent increase and Urbandale had an 80 percent increase in 2016. That’s compared with an 18 percent increase in poverty in Des Moines.
This trend shows that poverty isn’t isolated to one area.
With 22.9 percent of individuals in the Des Moines area living above the federal poverty line but still not affording basic needs, we must consider the barriers that keep them from achieving financial self-sufficiency. A report on ALICE (Asset Limited, Income Constrained, Employed individuals) in Iowa found a few factors to consider:
- More than 68 percent of all jobs in Iowa pay less than $20 per hour, and these jobs are growing faster than higher-wage jobs. At $15 per hour, a person makes $30,000 a year.
- Meanwhile, the average household survival budget for a family of four (two adults with one infant and one preschooler) is $46,680 — nearly double the U.S. family poverty level of $23,850.
- Other factors that lead to poverty include a lack of affordable housing in central Iowa and the child care “cliff effect,” where once a family meets a certain income level, they lose child care benefits before they can afford to make up the difference.
Across central Iowa, more adults took advantage of postsecondary education — a key United Way of Central Iowa strategy to increase families’ incomes and help employers fulfill a need for skilled workers. Greater Des Moines saw a 7.8 percent increase in the number of individuals with some college and/or an associate degree and a 13.9 percent increase in the number of people with a bachelor’s degree or higher over a five-year period.
From 2015-2017, United Way of Central Iowa-funded programs reported the following results for individuals in central Iowa:
- More than 1,400 individuals achieved a high school equivalency diploma
- 1,462 central Iowans earned a work-related credential
- 10,064 central Iowans became work-ready
- 3,987 were placed in employment
To learn more about what is poverty and how United Way of Central Iowa focuses on increasing financial stability for families through our INCOME priority work, visit our website.
Renee Miller is the United Way of Central Iowa’s Chief Community Impact Officer.
