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National Center for Children in Poverty:
In Illinois, as in other states across the country, even a worker employed full-time does not always earn enough to support a family.
A new report from the National Center for Children in Poverty (NCCP) finds that Illinois' work supports---benefits such as earned income tax credits, health insurance coverage, child care assistance, and food stamps---can help families close the gap between low earnings and basic family expenses.
But Supporting Work in Illinois: The Challenges Ahead also finds that small increases in family income can trigger sharp reductions in benefits, leaving families no better off---even worse off---than before.
In Chicago, a single parent with two children needs to earn about $36,000 a year to afford basic family expenses---that's more than double the poverty level.
Eligibility for work support programs is typically based on income, so as earnings rise, families begin to lose eligibility for benefits.
In some cases, even a small raise can lead to a substantial benefit loss.
As a result, parents can work and earn more with no financial benefit for their families.
"Parents should not have to choose between long-term success in the workforce and their family's immediate financial stability."
The report concludes that Illinois policymakers have made low-wage workers and their families a priority.
The challenge now is ensuring that its policies encourage and reward workforce advancement.
The National Center for Children in Poverty (NCCP) is the nation's leading public policy center dedicated to promoting the economic security, health, and well-being of America's low-income families and children.
Posted on April 5, 2007 10:57 PM
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