Economy

Poverty

Poverty imposes far-reaching hardships, not only on the poor but also on all who share their communities. Virginia has one of the lowest poverty rates in the nation -- it was ranked 7th lowest in 2006 -- and it continues to work to make education and opportunity available to its at-risk populations.

Why is This Important?

Poverty has a significant impact on individuals and society at large. Children who live in poverty are likely to suffer from poor nutrition during infancy, experience emotional distress, and have an increased risk for academic failure and teenage pregnancy. Adult men and women who live in poverty are at a high risk of violence. Poverty can also affect seniors' ability to care for themselves or to obtain health care and prescription medication.

How is Virginia Doing?

Poverty Rates. See text for explanation.

In 2006, Virginia had the 7th lowest poverty rate in the nation. During 2006, 9.6 percent of Virginians fell below the federal poverty level, which was $9,800 for an individual. Among Virginia's peers in 2006, Maryland had the lowest rate of 7.8, while North Carolina and Tennessee both had higher rates of poverty at 14.7 and 16.2 percent respectively. The national average was 13.3 percent in 2006.

Poverty Rates, By Region. See text for explanation.

In 2005, the Southwest region had the highest percentage of individuals living below the poverty level (17.3 percent) of any region in the state, followed by the Southside (16.7 percent) and Eastern (14.2 percent) regions. At the other end of the scale, the Northern region (5.3 percent) had the lowest percentage of individuals living below the poverty level, followed by the Valley (10.3 percent) and Central (9.8 percent) regions.

What Influences Poverty?

As with personal income, the two largest factors affecting poverty are educational attainment and economic opportunity.

What is the State's Role?

Traditionally, the primary role of government in addressing this issue has been to provide a social safety net that mitigates the impact of poverty. Since the mid-1990s, however, welfare reform efforts at the state and federal levels have changed the focus of this effort to "welfare to work," where those in need are provided temporary assistance and access to resources that will enable them to become self-supporting.

This is accomplished through programs like Temporary Assistance for Needy Families (TANF), food stamps, Medicaid and various workforce initiatives. In addition to temporary assistance and workforce training for those in poverty, the state can reduce long-term poverty rates by enhancing general education and providing a good business climate -- two of the key factors that affect long-term poverty rates.

Updated August 27, 2008

Data Definitions and Sources

Data Source:
American Communities Survey
factfinder.census.gov/servlet/ACSSAFFPeople?_submenuId= people_9&_sse=on

Income, Poverty, and Health Insurance Coverage in the United States:
www.census.gov/hhes/www/poverty/poverty06.html

Localities, State, US
www.census.gov/hhes/www/saipe/county.html

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Major State Programs

Tax Credit Programs for Employers:  The Welfare-to-Work Tax Credit (WtW) is for employers who hire long-term welfare recipients. These workers can earn their employer a tax credit of up to $3,500 or $5,000, respectively, for their 1st and 2nd years of employment.  Welfare recipients and members of other target groups can earn employers a Work Opportunity Tax Credit (WOTC) of up to $2,400 in the first year. The number of new hires who can qualify employers for these WOTC credits is unlimited. www.vec.virginia.gov/vecportal/ employer/wotc.cfm

Child Support Enforcement: Currently, there are 363,000 child support cases in Virginia. Collectively, 484,000 of Virginia's children are owed more than $2.2 billion. www.dss.virginia.gov/family/ dcse.html
Visit Virginia's Most Wanted for postings of child support evaders. www.dss.virginia.gov/family/ wanted.html

Food Stamps: Food Stamps are electronic benefits that can be used like cash to buy food at any store that has a sign displaying the Cardinal Card or the Quest sign. Each eligible household receives a card that may be used like a bank debit card to purchase allowed food items. www.dss.virginia.gov/benefit/ foodstamp.html

The Quest sign can be found wherever food stamps are accepted.

Medical Assistance/FAMIS: The Medical Assistance program (Medicaid) was established under Title XIX of the Social Security Act to allow states to provide medical care for public assistance recipients and medically needy persons. The program is financed by state and federal funds.

In Virginia, Children's Health Insurance includes Medicaid and Family Access to Medical Insurance Security (FAMIS) and is available through a single application. Children will be covered by Medicaid if the family's income meets the requirements. Children who are ineligible for Medicaid but who meet the FAMIS requirements will be covered by FAMIS. www.dss.virginia.gov/benefit/ me_famis/index.html

Temporary Assistance for Needy Families (TANF): The TANF program provides eligible families with a monthly cash payment to meet their basic needs. For eligibility rules, see www.dss.virginia.gov/benefit/ tanf/index.html.

Homeless Prevention Services: The SHARE Homeless Intervention Program (HIP) provides homeless people with temporary rental assistance, and gives financial aid to low-income homeowners in sudden danger of becoming homeless.
www.dhcd.virginia.gov/
HomelessnesstoHomeownership/
Homelessness_Prevention_Services.htm

Homeownership: Helping individuals achieve home-ownership is an important goal for the Department of Housing and Community Development.   They have several programs to assist Virginians: www.dhcd.virginia.gov/
homelessnesstohomeownership/ default.htm

Community Development: The Department of Housing and Community Development provides a range of multi-purpose community development grants. These programs offer flexible funding resources that can be used to address a variety of community needs.
www.dhcd.virginia.gov/
CommunityDevelopmentRevitalization/ default.htm