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NC Budget and Tax Center

Among the nation’s 50 states, North Carolina experienced the biggest increase in the proportion of people living in high-poverty areas between 2000 and 2010, according to a new U.S. Census Bureau  report.The growing number of North Carolinians living in disadvantaged neighborhoods is problematic because they face restricted access to the jobs, education, and networks that can improve their financial standing.The new report signals the need for policymakers to focus on the investments and policies that support ladders of opportunity, from Murphy to Manteo, to all North Carolinians.

The report defined high-poverty areas as places that have poverty rates of 20 percent or higher. The federal poverty level for a family of 4 is stingy, a mere $23,550—which is far lower than the $52,275 needed to make ends meet in North Carolina, per the Budget and Tax Center’s 2014 Living Income Standard. And, the 2010 data reflects the 2008-2012 five-year average.

The extent of people (poor and non-poor) living in high-poverty areas is far worse in North Carolina than in the nation, according to the report. In 2010, 31.8 percent of all North Carolinians lived in high-poverty areas compared to 25.7 percent of all Americans. If you’re poor, however, the chances of also living in high-poverty areas are far higher: more than 1 in 2 poor North Carolinians live in high-poverty areas—a concept known as the “double burden.”

In the entire nation, the share of people (poor and non-poor) living in high-poverty areas grew the fastest in North Carolina from 2000 to 2010, jumping 17.9 percentage points (see graphic below). Read More

NC Budget and Tax Center

We keep hearing that North Carolina’s economy is turning around. But while it’s true that we’re slowly making progress in replacing the jobs lost during the Great Recession, the bad news is that the overwhelming majority of these new jobs just don’t pay enough to make ends meet. In fact, many don’t pay enough to keep workers out of poverty, despite working full time. Check out the latest Prosperity Watch for details.

NC Budget and Tax Center, Poverty and Policy Matters

Durham Public Schools (DPS) is expected to adopt a breakfast program at no cost to students and families, a recent Herald Sun articles reports. Under the program, all DPS students could eat breakfast at school at no cost, regardless of their family’s financial status.

In order to combat the stigma associated with receiving free or reduced breakfast, DPS plans to use a catchy slogan, “Breakfast is on us.”

By eliminating the stigma associated with the existing free and reduced meal programs offered only to students from low- and moderate-income families, students are more likely to participate in school meal programs, which can have a positive impact on their ability to succeed academically. The Herald Sun article notes that national data show that school districts that provide universal breakfast programs at no cost to students have higher test scores, fewer disciplinary problems and more focused students.

Many schools across North Carolina have the option to offer breakfast and lunch programs at no cost to students and families this upcoming school year. Nearly 300,000 students in high-poverty schools across North Carolina could potentially benefit from an initiative, known as Community Eligibility, which ensures every child in these schools receives two nutritious meals each day so that they are ready to learn all day. Read More

Uncategorized

State of ExclusionThe UNC Center for Civil Rights has released a new report as part of a series of in-depth examinations of exclusion and the legacy of racial segregation in individual counties. The subject is Lenoir County in southeastern North Carolina. Both the Lenoir study and last year’s overarching report, “State of Exclusion,” are available by clicking here. This is from the release that accompanied the new Lenoir County study:

“In the middle of the Black Belt of Eastern North Carolina, Lenoir County is divided between its mostly white rural population and the concentrated African American populations in Kinston and La Grange. This new report focuses on the impact of the racial segregation on public education, political representation, and utility service.  Profiles of other counties will follow in the coming weeks, each highlighting particular aspects of that county’s history, ongoing impacts of exclusion, and progress toward full inclusion of all residents.

The county-wide school district in Lenoir County is the result of the 1992 merger of the majority white county school system with the majority African American Kinston city school district. Despite the merger, educational segregation persists because of an inequitable assignment model. Read More

NC Budget and Tax Center, Poverty and Policy Matters

Unless lawmakers reverse course, nearly one million North Carolina families will claim the state Earned Income Tax Credit (EITC) for the last time this tax season—one year after Gov. McCrory signed a bill ending the tax credit, according to a new report from the NC Budget and Tax Center.

In 2013, North Carolina lawmakers put an end to the state EITC, which helps low-wage workers keep more of their income so they can afford basic necessities, like child care, while pursuing deep tax cuts that primarily benefit wealthy individuals and profitable corporations. Combined with the income tax cuts that benefit the wealthy, the loss of the state EITC tilts the tax system even more out of balance. The state’s tax system already asked more from low- and middle-income families than it did from those earning the most, and this makes the disparity even worse. The resulting tax shift is neither true tax reform nor good for North Carolina’s economy. Read More