Poverty on the rise in southeastern Minnesota

from the Post-Bulletin

By Laura Gossman

Post-Bulletin, Rochester MN

Getting out of poverty isn't so easy.

Just ask Kathy French. She lost her job after illness forced her to miss work. Now her unemployment is about to run out. She has filled out numerous job application, but hasn't gotten any offers.

"I know a degree would be a big help, but I can't afford to go to school," she said. "I'll probably have to take a job at Kwik Trip or McDonald's."

A recent survey from the census bureau pointed to an increase in poverty in southeastern Minnesota, and several other indicators seem to confirm that.

According to the U.S. Census Bureau in 2005, an estimated 8,685 people in Olmsted County were impoverished, compared to 6,818 in 2000. Surrounding counties also saw an increase.

These numbers are difficult to compare because they come from two different surveys, census officials say. But poverty's rise is also reflected in rising demand for low-income housing and busy homeless shelters.

Nan Madden, director of the Minnesota Budget Project, said Minnesota's median household income has dropped since 2001, and most of the benefits of economic growth are going to the wealthy. The Minnesota Budget Project does research, analysis and advocacy on budget and tax issues and emphasizes their impact on low and moderate-income Minnesotans.

"The state is losing jobs and creating new ones that don't pay as well," Madden said.

State budget cuts to child care assistance and health care programs have hurt those in poverty.

Olmsted County planning director Phil Wheeler said the number of immigrants who have come to the Rochester area for employment could be a factor in poverty growth.

In Olmsted County, 15.3 percent of non-white or Hispanic people are below the poverty threshold compared to 5.4 percent of whites or non-Hispanics, Wheeler said. However, Wheeler quickly pointed out that 70 percent of those who are in poverty are white.

Poverty growth can also be seen in the increased need for low-income public housing. Olmsted County has found reason to support construction of more low-income public housing, Wheeler said.

The county is currently working on two public housing projects and privately-owned low-income housing is also being constructed, Wheeler said.

Rochester homeless shelters have also seen an heightened need for their services. Interfaith Hospitality Network of Greater Rochester, which offers food shelter and security to families in financial crisis, served about 26 families last year.

"Its the busiest we've ever been." executive director Joanne Markee said.

The network operates 365 days a year and has room for 14 people. The program works with churches, which host families for a week at a time.