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Welfare Reform 1 I I N.C. Center for Public Policy Research Boardof Directors Chairman Secretary Thad L. Beyle Beverly A. Blount The North Carolina Center for Public Policy Research Vice Chair Treasurer is an independent research and educational institution formed to Keith Crisco V.B. (Hawk) Johnson study state government policies and practices without partisan James Bell bias or political intent. Its purpose is to enrich the dialogue be- Daniel T. Blue, Jr. tween private citizens and public officials , and its constituency Ruth Cook is the people of this state. The Center's broad institutional goal Daphne T. Copeland is the stimulation of greater interest in public affairs and a bet- Francine Delany ter understanding of the profound impact state government has Walter DeVries Charles Z. Flack, Jr. each day on everyone in North Carolina. Virginia Ann Foxx A nonprofit , nonpartisan organization , the Center was Karen E. Gottovi formed in 1977 by a diverse group of private citizens "for the pur- R. Darrell Hancock pose of gathering, analyzing and disseminating information con- William G. Hancock, Jr. Wade H. Hargrove cerning North Carolina's institutions of government" It is guided Mary Hopper by a self-electing Board of Directors and has individual and cor- Betty Ann Knudsen porate members across the state. Helen H. Laughery Center projects include the issuance of special reports on Thelma Lennon major policy questions the publication of a quarterly magazine Isaac Miller ; Ed O'Neil called North Carolina Insight; the production of a symposium Roy Parker, Jr. or seminar each year; and the regular participation of members Betty Chafin Rash of the staff and the Board in public affairs programs around the H. Smith Richardson, Jr. state. An attempt is made in the various projects undertaken by Grace Rohrer Jerry Shinn the Center to synthesize the integrity of scholarly research with Patricia J. Shore the readability of good journalism . Each Center publication rep- McNeill Smith resents an effort to amplify conflicting views on the subject un- Asa Spaulding, Jr. der study and to reach conclusions based on sound rationaliza- Robert W. Spearman tion of these competing ideas. Whenever possible, Center Geraldine Sumter H. Patrick Taylor, Jr. publications advance recommendations for changes in govern- Frances Walker mental policies and practices that would seem , based on our Patricia Watts research, to hold promise for the improvement of government Cameron West service to the people of North Carolina. Betty H. Wiser ExecutiveDirector CenterStaff Interns Ran Coble Jack Betts Mike McLaughlin Kim Kebschull Vanessa Goodman Sharon Moore Virginia McGee Lori Ann Harris Nancy Rose David Patte Marianne H. Kersey Kurt Smith NORTH CAROLINA INSIGHT is a quarterly magazine published by the North Carolina Center for Public Policy Research, Inc. (a nonprofit, tax-exempt corporation), Suite 701, 5 W. Hargett St., P.O. Box 430, Raleigh, N.C. 27602. Telephone (919) 832-2839. An- nual membership rates: Individual, $36; Organizational, $50; Supporting, $100; Corporate, $200; Full-Service, $250; Supporting Cor- porate, $500; Patron, $1000; Benefactor, $2000. Third class postage paid at Raleigh, N.C. Copyright 1989 by the North Carolina Cen- ter for Public Policy Research, Inc. Articles may not be reprinted without permission. Graphic design by Carol Majors. Production by PUBLICATIONS UNLIMITED. Printed by Edwards & Broughton Co. Raleigh, N.C. The Center is supported in part by grants from the Mary Reynolds Babcock Foundation and the Z. Smith Reynolds Foundation, as well as by 111corporate contributors and 700 individual members across the state. The views expressed in this publication are those of the authors and are not necessarily those of the Center's Board of Directors or staff. Published April 1989. Cover: Eric Green/N.C. Poverty Project. North S Carolina Insi t Vol. 11 Nos. 2-3 April 1989 FEATURES 2 Who Are the Poor ? The Demographics -Anne Jackson of Poverty and Jack Betts 18 Policymaking and Poverty in North Carolina -Jack Betts - Who's On First? 23 The Single Portal of Entry: Streamlining -Jack Betts the Maze 48 Welfare Reform: No Vacation from Poverty -Dan Hudgins and Fred Broadwell 50 Profiles in Poverty -Mike McLaughlin 51 Horace and Anita Wilson, Robbinsville 54 Benjamin Jones , Raleigh 59 Lisa Carroll, Fayetteville 64 Off the Dole and Onto the Payroll: Do -Bill Finger Jobs Programs Get People Out of Poverty? and Jack Betts 94 The Family in Poverty: Working -Mike McLaughlin and Still Poor 100 Gender and Education: New -Mike McLaughlin Determinants of Poverty? 102 Working vs. Shirking : An Analysis of -Mike McLaughlin Options for the Steele Family 106 Poverty and Education : A Costly -Barbara Barnett Problem for North Carolina 122 Health Care for the Poor: -Pam Silberman Adequacy , Availability , Affordability 131 State's Infant Mortality Rate Among - Pam Silberman the Nation's Worst Editor 138 Taxes and the Poor in North Carolina: - Charles D. Liner Jack Betts An Unfair Share? Associate Editor 140 Regressive, Progressive , or What? -Mike McLaughlin Mike McLaughlin 146 Tax Fairness Commission Recommends -Mike McLaughlin Restructuring of State Income Tax Production/Art Director 153 Resources on Poverty Carol Majors Production DEPARTMENTS PUBLICATIONS 157 In The Executive Branch: -Ran Coble UNLIMITED The Lieutenant Governorship in North Carolina: An Office in Transition 166 In The Mail 167 Memorable Memo Who Are the Poor? The Demographics of Poverty by Anne Jackson and Jack Betts To hear the politicians tell it, North Carolina is in a period of unparallelled prosperity. Thousands of new jobs, billions of dollars in new investment, higher manufacturing wages, better education-in short, an economic renaissance. But contrast that with what the experts tell us-that nearly a million North Carolin- ians are in poverty and hundreds of thousands more are in near-poverty, that too many people are in low-wage, dead-end jobs, that one in five children and one in five persons over 65 is in poverty, that while the poverty rate is high the per- centage of welfare recipients is low, that those on public assistance don't get enough help, and that increasingly, the poor are women and children who will have no real future. To understand these conflicting claims, North Carolinians must first know more about the poor. Gordon Chamberlin still winces at the poses one of the greatest impediments to easing recollection. As executive director of the condition that afflicted some 884,000 North the Greensboro-based North Carolina Carolinians in 1987, an estimated 14.3 percent of *Poverty Project, Chamberlin was the population, according to U.S. Census figures. speaking to a civic club in a town he now declines Nationwide, about 13.6 percent of Americans live to identify. He asked its 90 members to list their in poverty.' ideas for ways the business community should "What we're up against is attitudes-nega- deal with poverty in the state. Wrote one respon- tive stereotypes, hostility, moral judgments," dent: "Get rid of minimum wage, get rid of Chamberlin says. "Social policy [and] political welfare, sterilize the women after two children, decisions are not based on statistics. More funda- and hang the bums." Widespread misunderstanding about the na- Anne Jackson is a Raleigh writer and frequent contributor to ture and causes of poverty, says Chamberlin, Insight . Jack Betts is editor of North Carolina Insight. 2 NORTH CAROLINA INSIGHT mental than that is basic attitudes." Dependent Children (AFDC) program in 1988 Statistics , in fact , reveal information that and $228 per month in food stamps, bringing her might be unsettling to those who assume that in annual total income to $5,928, which still is less booming economic times in this growing state, than two-thirds of the official federal poverty poverty must be the result of laziness, moral lax- level of $9,690 for a family of three. ity, or both. Consider: North Carolina has the highest proportion One in five children and one in five per- of working mothers in the nation-65 percent. sons age 65 or older lives in poverty in North The national average is 55 percent' Many of Carolina.' these working mothers are the heads of their Even with its above-average poverty rate, households. North Carolina has one of the lowest percentages The average AFDC check issued by the of welfare recipients in the nation ? Many North state in July 1988 benefited 2.2 persons, refuting Carolina poor are either too proud to ask for help, the myth that welfare rolls are crowded with wel- or they don't know how to apply. And certain fare mothers who keep having babies to increase barriers to assistance - problems with transporta- their handout. tion to social services offices, lengthy and diffi- In North Carolina and across the nation, cult forms to fill out, waiting periods before bene- the income gap is widening . While the wealthiest fits arrive- may discourage the needy from get- fifth of U.S. households gained $1,490 from 1980 ting help. (See Profiles in Poverty, p. 52, for to 1983, after federal budget cuts, tax policy more). For whatever reason , government poverty changes, and recession, the nation's poorest fifth programs don't reach all those who need help. lost $190.5 Those who are on public assistance don't But for all the statistics the state compiles get enough help to bring them close to the feder- about its neediest citizens , there are some glaring ally-established poverty level. An unemployed gaps. For one thing, no state agency keeps a mother with two children could receive up to reliable annual tally of the number of poor North $266 per month from the Aid to Families with Carolinians . Policymakers must rely on estimates APRIL1989 3 compiled by the U.S. Bureau of the Census from Roots of Poverty small yearly surveys of about 2,500 N.C.
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