Nearly a quarter of N.J. residents lived in poverty in 2010, study shows

Nearly a quarter of N.J. residents lived in poverty in 2010, study shows

Published: Sunday, May 20, 2012, 6:15 AM     Updated: Sunday, May 20, 2012, 8:36 AM

By Megan DeMarco/Statehouse Bureau
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Emile Wamsteker/BloombergA sign on a frozen food case indicates that Electronic Benefit Transfer (EBT) and food stamps are accepted at the Dollar General Corp. store in Saddle Brook.

TRENTON — New Jersey may be among the richest states in the nation, but a record number of Garden State residents lived in poverty during 2010, according to a report scheduled to be released today.
Nearly a quarter of the state’s population — more than 2 million residents — was considered poor, the annual survey by Legal Services of New Jersey found. About 150,000 people slipped into poverty in 2010, even though the great recession ended a year earlier, the report said.
And experts say more recent unemployment numbers show that the trend of increasing poverty likely continued into this year.
“The especially disturbing thing is now a couple of years after the great recession, poverty has increased,” said Melville D. Miller Jr., president of Legal Services. “Our calculations suggest that this is really now at the highest level.”
The report defines being poor as making less than $36,620 for a family of three — twice the federal poverty rate because New Jersey has such a high cost of living.
Families headed by single mothers, as well as children and young adults have especially struggled, the report found.
The number of 18- to 24-year-olds who lived in a household defined as poor in 2010 has increased 39.1 percent since 2006.
And the unemployment rate for 20- to 24-year-olds rose from 8.8 percent in 2008 to 14.8 percent in 2011. According to figures released last week, New Jersey’s total unemployment rate is 9.1 percent, compared with the national average of 8.1 percent.
“These are people who are ready to work, who need to work,” Miller said. “We really need to address that much more urgently.”
BY THE NUMBERS
The report also said 619,003 children are considered poor, under the yardstick Legal Services uses.
Cecilia Zalkind, president of Advocates for Children of New Jersey, said this represents a third of New Jersey children.
“That’s a pretty shocking statistic,” she said. “While the state may be in the beginnings of the economic recovery, it’s going to take far longer for low-income families or individuals to bounce back.”
The report said in five counties — Essex, Hudson, Passaic, Atlantic and Cumberland — more than 30 percent of residents are defined as poor.
Among towns with more than 20,000 people, Camden had the highest percentage of poor residents in 2010, at 62.9 percent. More than half of the residents of Newark, New Brunswick, Passaic, Atlantic City, Bridgeton, Lakewood, Paterson and Trenton were considered poor.
The number of Hispanics in New Jersey living under the federal poverty line increased 29.3 percent from 2005 to 2010. The report found 19.9 percent of Hispanics were poor, compared with 18.9 percent of African-Americans and 5.8 percent of whites.
Miller said what’s happening in New Jersey mirrors many national trends in poverty and unemployment.
But he added it may be felt more in New Jersey, usually ranked among the richest states in the nation, because it’s more expensive to live here. New Jersey ranked second in the country in household income last year.
“When poverty increases, when recession hits, the pain and the difficulty of life for people in New Jersey is much more challenging than most states because of that high cost of living,” Miller said.
GOVERNMENT HELP
The report suggests changes the state could make to address the problem, such as increasing coordination among state departments that address aspects of poverty, like health and housing. It also recommended raising the minimum wage, which lawmakers have proposed.
Assembly Speaker Sheila Oliver (D-Essex) made raising the minimum wage from the federal minimum of $7.25 to $8.50 one of her first priorities in the new legislative session in January. The bill was advanced by committees in both houses of the Legislature, and the full Assembly will vote on it Thursday, according to Tom Hester Jr., spokesman for the Assembly Democrats.
“This is a recognition that thousands of households in New Jersey are struggling to subsist on minimum wage jobs that do not allow them to support their families,” Oliver said. “This is about livable wages for the lowest-income earners, and quite simply, we should all support livable wages.”
Gov. Chris Christie has said he is willing to consider a minimum wage increase but has expressed concerns about its impact on business. His office declined comment on the report.
The report also recommends restoring the Earned Income Tax Credit, a popular anti-poverty tax credit for the working poor. Christie cut it in his first two years but wants to restore the credit for the state budget that takes effect in July.
About $280 million would be spent over two years under Christie’s budget plan, an average $550 refund.
The report’s findings will be discussed tomorrow at a poverty summit in Trenton, where anti-poverty advocates, New Jersey residents and state and local policymakers will talk about employment and hunger issues.
The summit, led by the advocacy group Anti-Poverty Network, will also make recommendations on Christie’s proposed budget.
“The challenge for this administration is just that this economy is just so much worse,” Miller said. “The need to consider bold new steps is heightened.”
This is the sixth annual report released by Legal Services, a group that provides free legal assistance to low-income New Jerseyans for civil problems. The report is based off of 2010 Census data, the most recent available.

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