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Families and Income

ARIZONA (Arizona Republic) January 15, 2004 - Call it the ultimate investment. Arizonans are shaping their futures by how successfully they raise healthy, capable children and help others do the same. Most people agree this is best done in stable family units able to meet children's many needs. The majority of Arizona children are growing up in at least adequate family situations, but many statistics suggest that a large minority is not.

Why? A major underlying reason is the state's low level of income. Per capita personal income, or PCPI, is one of the most commonly used measures of economic well-being. Arizona's 2004 PCPI places it 38th in the nation. Arizona's per capita income increased moderately during the past decade but did not keep pace with higher rates of growth in other states. Arizona gained 23.1 percent compared with 23.3 percent nationally. The state placed seventh among Western states.

Financing the family

Related numbers paint a similar picture. The median income of Arizona families with children is just over $43,000, placing the state 36th nationally. Compared with other states, Arizona has a high percentage of children under 18 with parents who are not full-time, year-round workers and is 12th in the nation in the percentage of children living in poverty.

In addition, the state has a high proportion of mothers with less than 12 years of education, placing 49th (50 is lowest) nationally on this measure. These state figures mask marked differences among specific portions of the population. American Indian, Hispanic and African-American families in Arizona are far more likely to experience unemployment, poverty and a lack of health insurance than are non-Hispanic White families. The state's rural areas suffer more from poverty than do its urban centers. More than half of Arizona counties have more than 25 percent of their children living in poverty.

Even with the state's Arizona Health Care Cost Containment System, many working parents cannot provide health insurance.

A 2004 Census Bureau estimate ranked Arizona fourth in the nation on the percentage of low-income children without health insurance.

On the plus side, jobs are relatively plentiful in Arizona. In September 2004, Arizona's seasonally adjusted unemployment rate stood at 4.8 percent, compared with 5.4 percent for the nation.

Arizonans who lose their jobs are especially unlucky. Until legislative action in 2004, the state offered the nation's lowest level of unemployment compensation. Since the state's maximum benefit level was increased, Arizona may move out of 50th place.

For years, Arizona has counted on "the sunshine factor" to compensate for relatively low wages. Another oft-noted selling point has been a low cost of living. But contrary to a common perception, living costs, best measured at the local level, are just barely below the national average in metropolitan Phoenix and Tucson.

Finances are not the only source of stress for Arizona families. Nearly one of every two marriages ends in divorce, and nearly a quarter of Arizona children live in single-parent households, a level that ranks 20th in the nation. Arizona's 2002 teen birth rate was among the nation's highest.

Policy choices

Here and now the policy talk is about:

• Increasing workers' skills to qualify them for higher-paying jobs.

• Expanding opportunities for affordable, quality child care to provide greater work and education options for parents and a good start for children.

• Expanding health insurance coverage, one of the greatest concerns for low-income workers.

• Increasing access to affordable housing, again to support stable employment and career development.

• Creating more preschool opportunities for low-income children.

 

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