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Low-income Arkansans struggling, report says Tuesday, Sep 2, 2008 By Jason Wiest Arkansas News Bureau LITTLE ROCK - Ballet class was wonderful, but in the end, unaffordable. No matter the talent or love her two granddaughters showed for the formalized form of dance, 61-year-old Betty Mitchell had to take them out of class to save money. "There are some things that they would enjoy ... but it's an issue," Mitchell said. It's a struggle just meeting the basic needs of the girls, whom she raises with William, 65, her recently retired husband. "We're making it every month, but we may have to maybe put something on a charge card," Mitchell said. Or nix the things that aren't absolutely essential. Knowing education holds a brighter future for the girls, the family "sacrificed dearly" to put the youngest in private school so that she could get the attention she needed to help her learn. But it was too expensive. She's back in public school. The hardships faced by Mitchell's family and thousands of other low- and middle-income families in Arkansas are highlighted in a report released today by Arkansas Advocates for Children and Families. The report, "The State of Working Arkansas," compiles information released during the past year on the state's economy. The unemployment rate is down, but still higher than the national rate and those of neighboring states. Workers are becoming more educated but the state still ranks last in the percentage of residents with college degrees. Median wages have increased but are barely keeping pace with the rising cost of living, and the gap between the lowest-income families and the ones that earn the most is widening. Arkansas has commonly trailed other states in economic well-being through the years, but now is at risk of being so outdistanced that digging out of the hole will become less and less probable, according to Ginny Blankenship, the advocacy group's director of research and fiscal policy director. "Unless we start to address these problems now in a holistic way, we'll be dropping further behind those that are listed in the bottom now," said Blankenship, who authored the report. "We simply won't be able to survive in a global economy and this affects the future of all of us in Arkansas." The report comes a week after data released by the U.S. Census Bureau showed that more Arkansans are living in poverty. In 2007, 17.9 percent of Arkansans lived at or below the federal poverty rate of $21,200 a year for a family of four. Arkansas' poverty rate ranked fourth nationally. The future doesn't look promising. According to the Arkansas Department of Workforce Services, many of the top 20 growth occupations in the state during the next six years are likely to pay poverty-level wages. The census data also showed that more Arkansans are living without health insurance. Mitchell's granddaughters get health insurance through the state's ARKids First program, which offers low-income families a comprehensive package of benefits. Her husband, however, is without dental insurance. Going without it is just one of the circumstances they deal with while prioritizing and making tough decisions for her family, Mitchell said. The couple refinanced their home. They limit trips in the car to save gas. They shop less and usually buy things on sale. They plan activities that are inexpensive or free. When federal and state lawmakers go back to work, she said, she hopes they'll make the right decisions on choices that affect her. Making the tax code more equitable is at the top of the list, she said. "There's so many tax breaks for the rich," she said. "The poor? You don't get that opportunity." Policy recommendations from Arkansas Advocates for Children and Families include eliminating the sales tax on groceries; expanding the ARKids First program; expanding enrollment in the federal earned income tax credit and adopting one for the state; expanding preschool, after-school and summer programs for low- and middle-income families; shutting down predatory lenders; and expanding access to small, low-interest, short-term loans. |
