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 Children17% Under age 620% Ages % Ages % Age 65 & over9%

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, All families-2.6% White-0.2% Black-8.8% Latino-6.7% Asian+1.9%

Trends Before Recession: Child Poverty in Illinois All children15%17% White8%9% Black37%39% Latino19%22% Asian9%9%

Trends Before Recession: Homeless Children More than 25,000 homeless students in Illinois public schools in 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: