Comprehensive analysis explains why poverty is growing in Arkansas and what we can do to change direction

LITTLE ROCK - Arkansas is suffering from a growing poverty rate despite our more diverse economy, better educated workforce and declining unemployment rate.

The 2008 edition of the "State of Working Arkansas" explains why nearly 18 percent of Arkansans live below the federal poverty line. That's an annual income of $21,200 for a family of four. In fact, one in four Arkansas children lives in poverty.

The report is a comprehensive analysis of the conditions causing unbalanced economic growth, income immobility and squeezed paychecks. Using the newest data, Arkansas Advocates for Children and Families shows how our workforce has been falling further behind. That's even before we entered a nationwide economic slowdown.

"Too many of our workers owe more than they are worth and couldn't subsist above the poverty level after losing a job," said co-author Ginny Blankenship, Research and Fiscal Policy Director at AACF. "On top of that, our low-income workers can't afford to buy or keep a home, are more likely to declare bankruptcy than the national average and are finding it harder to get health insurance."

Women and minorities aren't paid equally and the gap between the wealthy and the poor is growing wider - even as more people are working. Wages can't keep up with rising gas prices, grocery bills and college tuition. Low-income workers have seen an increase in wages of just 4 percent since 2000.

We can do something about it.

Arkansas Advocates for Children and Families has a handful of policies that will help arrest our slide into deeper poverty. Our state and federal leaders need to:

• Expand enrollment in the federal earned-income tax credit (EITC) and adopt a similar state credit.
• Extend ARKids First health insurance to cover more low-income Arkansas children.
• Eliminate the sales tax on groceries.
• Shut down remaining "payday" predatory lenders operating in Arkansas.
• Increase access to high-quality child care, preschool and after-school and summer programs for children of low- and middle-income families.