Working families struggle, despite NJ's overall wealth

from the New Jersey Star Ledger

Posted by LCraven

New Jersey is the nation's second wealthiest state, but 20 percent of its working families don't earn enough money to adequately support themselves, a report found.

The analysis by the Rutgers Center for Women and Work and New Jersey Policy Perspective found 200,000 Garden State families with a working adult earn too little in pay and benefits to be self-sufficient at a time when proposed state budget cuts threaten to reduce services for the poor.

"New Jersey is a tale of two states," said Eileen Appelbaum, the director at the Rutgers center. "On the one hand, we have a large number of highly educated members of the work force who are doing well, but this report makes clear that there are also hundreds of thousands of working adults who lack the skills, training and opportunity to adequately support themselves."

The Economic Policy Institute said a family of four requires income ranging from $49,572 to $57,144 to be self-sufficient, depending on where in the state they live.

The study focused on families of four that earn less than $39,942, or twice the federal poverty level. It found the state has 16 percent more of such families since 2000, with those 200,000 families accounting for 750,000 people.

The state has about 8.7 million residents, who earn, on average, $46,344, ranking New Jersey behind only Connecticut for income per capita and 28 percent above the U.S. average.

Jon Shure, president of the liberal-leaning NJPP, noted the report comes as Democratic Gov. Jon S. Corzine proposes a $33 billion budget with $2.7 billion in spending cuts to key programs, including several that help the poor and elderly.

"As the state faces shortsighted budget cuts, the message of this report is more important than ever," Shure said. "This is wake-up call that says we need to invest, not cut, to build a secure future and a prosperous state."

The report proposes:

-- Increasing the state minimum wage from $7.15 to $8.50 an hour and adjusting it yearly.

-- Approving paid work leave to give low-income families flexibility to handle emergencies.

-- Expanding eligibility for a state-run health insurance program for the working poor.

-- Expanding child care assistance and adult education courses.

-- Targeting more higher education aid to low-income working adults.

-- Helping welfare recipients not just find work, but jobs that let them become self-sufficient.