The fifth year of national economic growth brought no improvement in the lives of too many New Jerseyans, according to figures released today by the US Census Bureau.

Poverty in the state remained at the same level as at the start of the decade-and so did the income of the typical worker.

"The legacy of tax cuts for the rich and a roll of the dice for everyone else is still being felt in New Jersey," said NJPP President Jon Shure. "Federal policies weren't designed to help the average person, and they're clearly not. Those who had the most at the start of the decade have gained the most since then."

INCOME: Evidence of the lack of headway by typical workers in New Jersey comes from the new data on the state's median household income. The latest figures put it at $64,470, second in the US behind Maryland. That's not a significant increase from $64,038 in 2001. This is consistent with information provided by the federal government revealing that a higher share of gains from the current recovery are going to corporate profits than workers' wages.

POVERTY: The Census reports there were 677,000 persons in New Jersey living below the federal poverty level in 2005-06. The poverty rate in 2005-2006 was 7.8%, compared to 7.7% in 2000-2001. Poverty was much worse for children in New Jersey at 11.5%-also statistically unchanged from 2000-2001. While New Jersey's poverty rate is lower than the national average, the statistics must be taken with a huge grain of salt. This year, a four-person household is considered above the poverty level if it makes over $20,650-nowhere near enough for a household to support itself in New Jersey.

HEALTH COVERAGE: About 1.3 million New Jerseyans-15% of residents-did not have insurance coverage in the 2004-06 period, the Census data shows. That's about the same as the national average, but particularly disappointing in such an affluent state. "You'd think New Jersey could beat the nation in providing health insurance, but many people don't make enough to afford the higher cost of coverage," Shure said. "It's a game of catch-up and we're losing."

The health insurance numbers are especially relevant with Congress in the midst of debate over reauthorizing the State Children's Health Insurance Program, which provides coverage for many kids whose parents don't get policies from their employers and can't afford it on their own. New Jersey's SCHIP is called FamilyCare. To date, the Bush Administration has opposed key measures to renew and strengthen SCHIP coverage.

Legislation has passed the House and Senate to expand SCHIP and Medicaid, with the President threatening a veto. The bills would allow New Jersey to expand coverage to almost half of all uninsured kids in the state who are currently eligible (over 100,000 children) and would create a more reliable source of federal funding. The President wants to cut SCHIP eligibility so that no child in a household with income greater than twice the federal poverty level could participate. New Jersey's standard of 3.5 times the poverty level is more rational, especially with the state's high cost of living.

DATA MISLEADING: The data released today understates economic distress in New Jersey because the federal poverty level is the same for every state (except for Alaska and Hawaii). It doesn't take into account the different cost of living from state to state. In New Jersey, where the cost of living is a third higher than the national average, studies have shown a four-person household needs on average $41,300 to escape poverty. Using that more accurate measure, about 1.8 million New Jerseyans are in poverty-one in five residents.

"Washington needs to focus on education, job training, health care and sensible tax policies-not defining poverty out of existence by setting the standard so misleadingly low," Shure said.

TAX REFORM

WORK & WAGES

BUDGET & FISCAL POLICY

TRANSIT ISSUES

ECONOMIC DEVELOPMENT

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