ILLINOIS KIDS COUNT SYMPOSIUM

March 5, 2010

Introduction

• The most visible signs of recession don’t reveal full impact on children

• Children are hidden casualties of the economic crisis

• Recessions have lasting effects on child poverty

Effects of Unemployment

When parents lose a job, children are more likely to:

• Struggle in school

• Repeat a grade

• Have behavior problems

Long-Term Effects of Child Poverty

Children growing up in poverty are likely to have:

• Lower levels of educational attainment

• Diminished employment prospects

• Greater health problems

• Children in poverty: 530,000

• Child poverty rate: 17% (18% in U.S.)

• Children as share of Illinois residents: 25%

• Children as share of poverty population: 35%

Child Poverty in Illinois, 2008 (before recession)

Illinois Poverty Rates by Age, 2008

Children 17%

Under age 6 20%

Ages 6-17 15%

Ages 18-64 11%

Age 65 & over 9%

Recession and Child Poverty

• Poverty rates will be higher for 2009

• Poverty expected to continue rising even after economy begins to recover

• Child poverty in U.S. projected to reach 24% in 2012

• Expected rate in Illinois: 22%

(more than 650,000 children)

Trends Before Recession:Family Incomes Lag Behind Inflation

Change in median family income,

adjusted for inflation, 1999-2008

All families -2.6%

White -0.2%

Black -8.8%

Latino -6.7%

Asian +1.9%

Trends Before Recession:Child Poverty in Illinois

2000-01 2007-08

All children 15% 17%

White 8% 9%

Black 37% 39%

Latino 19% 22%

Asian 9% 9%

Trends Before Recession: Homeless Children

• More than 25,000 homeless students in Illinois public schools in 2007-08

• Evidence that homelessness has become much worse since then

Economic Security Programs: Unemployment Insurance

• End of 2009: one in seven children in U.S. lived with unemployed parent

• Unemployment Insurance considered first line of defense in a recession

• But majority of unemployed workers do not receive regular UI benefits

Food Stamp Program

• About half of Food Stamp recipients in Illinois are children

• Illinois residents receiving Food Stamps

June 2007: 1.26 million

June 2009: 1.50 million (22% increase)

• Food Stamps and federal EITC are the most effective programs in lifting children above poverty level

Policy Gains for Illinois Children

• Early childhood care and education

• Health care coverage

• Child care assistance for low-income families

• Mental health services

• Child welfare and prevention strategies

Securing the Future for Children and Families

Recession and state fiscal crisis put these policy investments in jeopardy

Policy challenges:

– Protect families in need

– Build on successful policies

– Strengthen foundation for prosperous future

Illinois Kids Count 2010 report is available at:

www.voices4kids.org/library/kidscount.html