Community Connections

April 2007

The High
Cost of Poverty:
It Affects Us All
Erie County, Pennsylvania

Laura Lewis, Ph.D. Associate Professor of Social Work, Mercyhurst College

Amy Cuzzola-Kern, Ph.D. Vice President of Programs, Erie Community Foundation

Helping today...Shaping tomorrow.

One in a series of publications designed to build and share knowledge on public issues in Erie County, Pennsylvania.
This series is a collaboration between The Erie Community Foundation and the Mercyhurst Civic Institute.
 I n furthering its mission of enriching the quality of life in the region,
the Erie Community Foundation established an ad hoc committee
of the Council of Advisors to study the issue of poverty in the Erie
community. In the spring of 2006, this committee began its task
by reviewing demographic data regarding poverty, conducting
interviews with a cross section of stakeholders, and carrying out a
literature review. This publication presents the findings of the work
completed thus far by the Poverty Study Group.

This brief report is in no way meant to be an exhaustive exploration

of this issue. Its intent is to increase public awareness about the
magnitude of poverty in Erie County, the challenges for families
living in poverty, the circumstances that lead to poverty, and the
high costs of poverty for the whole community. It briefly presents
current efforts in the Erie community to manage the effects of
poverty. Finally, you are invited to partner
A healthy community is with the Erie Community Foundation
necessary for a healthy in developing community awareness and
business environment. in creating a community-driven vision
We all have a stake and action plan to address poverty in
in working together to Erie County.
address poverty. In fact,
it is essential that we do.
— Bill Hilbert Sr., PHB Industries

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Poverty in Our Community
The 2000 U.S. Census Bureau figures indicate that 12.0% of Erie County residents, more
than 32,000 people, lived below the poverty threshold.1 The overall poverty rate in Erie
City was 18.8%, and many of our residents who are poor are concentrated within census
tracts where 32% to 45% of the residents live in households with incomes below the
poverty threshold. Living below the poverty threshold for the 2000 census equated to an
income of less than $13,300 for a family of three and less than $17,100 for a family of four.2
A disproportionate number of children, especially minority children, are poor.

ERIE COUNTY CHILD POVERTY STATISTICS (1999)

United States Pennsylvania Erie County Erie City

All Children 16.6% 14.7% 16.2% 27.4%

White (Non-Hispanic) 9.4% 9.7% 11.4% 17.1%
Black 33.1% 35.8% 46.6% 47.9%
Hispanic 27.8% 37.7% 41.8% 46.5%

As has been the case nationally, poverty has increased in Erie County since 2000. Estimates
conducted by the U.S. Census Bureau between decennial census years indicate 12.6% of
Erie County residents, approximately 35,657 people, lived below the poverty threshold
in 2003.3 This is an increase of an estimated 3,549 individuals, reflecting an 11% increase
of individuals living in poverty since the 2000 census. In 2003, the poverty threshold was
$15,260 for a family of three and $18,400 for a family of four.
An additional resource from the Census Bureau, The American Community Survey,
produces critical information about local communities and each year publishes social,
housing, and economic characteristics for various U.S. geographic areas.4
According to The American Community Survey in 2005:
• In Erie City, approximately 1 out of 5 individuals lived below the poverty threshold.
And, approximately 1 out of 4 children in the city lived below the poverty threshold.
• In Erie County, approximately 1 out of 7 individuals lived below the poverty
threshold. And, approximately 1 out of 6 children lived below the poverty threshold.
• In Erie City, approximately 30,886 individuals (34%) lived in households with
incomes less than 150% of the poverty threshold.
• In Erie County, approximately 62,407 individuals (23.5%) lived in households with
incomes less than 150% of the poverty threshold. 150% of the poverty threshold equals
an income of $23,366 or less for a family of three and $29,957 or less for a family of four.
The data informs us that poverty is indeed a growing problem in our community. The
residents of Erie County agree. Of the 625 respondents recently polled on “Perceptions of
Poverty in Erie County,” 72% of residents said they believe that poverty in Erie City was a
big problem, and 51% said that poverty in the county was a big problem.5

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 There is no single
approach to this issue.
Rural areas and the
The Challenges of Living in Poverty inner city are facing
Behind the statistics are individuals—infants, children, teens, different issues and
moms, dads, aunts, uncles, sisters, brothers, grandmas, and therefore require
grandpas—who experience the personal effects of being
different approaches.
“officially” poor or near poor. Interviews conducted by members
of the Poverty Study Group were informative in gaining some — Dr. David Kozak,
insight into what it means to be one of the faces behind the Professor of Public Policy,
Gannon University
statistics.6 What appears to be universal is that being low income
in Erie County results in struggling to access transportation, adequate housing, quality
child care and health care, and, too often, being unable to acquire these basic necessities.
For many Erie families, being poor means making choices between food and rent or
skipping meals so children can eat. It means heading to the food pantry in order to
provide nutritional meals at home and relying on government, social service agencies, and
churches for support and meeting basic needs. It means not knowing how you will pay for
the medical care or dental work your child needs.
In addition to presenting serious challenges
in meeting physical needs, being poor has
profound psychological effects on families.
Travis and Carmen Some parents expressed feeling bad that there
Erie County, Pennsylvania
was never money for “extras” like going out to
Travis and Carmen’s financial
struggles have been ongoing a movie or shopping for new clothes for their
during much of their married children. The desire to be self-sufficient was
lives. While they both have expressed by many, and yet as one individual
work histories, Carmen’s was who works a part-time job in addition to her
interrupted for several years due
full-time job stated, “I work so hard but I don’t
to having to care for one of their
see it materializing.” Being poor can lead to
children who, after an accident,
ended up needing round-the-clock feelings of hopelessness, frustration, fear,
care. The child is now deceased, and distrust. However, there are also many
and Travis and Carmen are doing low-income individuals who express pride in
everything they can to provide for what they have overcome and an “I can do it”
their remaining child. Travis works
attitude. Just like “non-poor” parents, parents
in a position that pays slightly
who are low-income expressed a desire for
above minimum wage. Carmen is
drawing unemployment after being their children to obtain a good education and
laid off from her factory job. Their have what is best for them.
income does not cover all the bills
and while they have received help
from a local social service agency
for assistance with food, rent,
clothes, and utilities, they are still
falling further and further behind.
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 Why Are So Many in Erie Poor?
There are multiple factors associated with why people in Erie County experience poverty.
Glimpsing at a few of the factors clearly indicates stereotypes often do not apply. Policy
reform ending cash entitlements and an improved economy resulted in a significant
reduction in the welfare rolls, and many who left cash assistance are working. But many
former welfare recipients are working in low-wage jobs, mostly without benefits, and are
still poor. (A local study conducted with single mothers who left cash assistance in Erie
County indicated welfare leavers want to work and are working.7) And, it is not only those
who once used welfare working in low-wage jobs. Plant closings in our community have
contributed to the financial hardships being experienced by some who lost their jobs.
Many elderly living solely on Social Security are officially poor. They sometimes choose
between medicine and paying for food or rent. There are those who are poor and dealing
with serious mental health issues such as depression, post-traumatic stress syndrome,
and schizophrenia. Many working families with children do not have access to affordable
child care or reliable transportation and end up struggling to make ends meet.
Many of the factors associated with poverty can be alleviated. Stakeholders interviewed
indicated that equal access to quality education starting in early childhood and the
development of, and access to, job training and good paying jobs as well as affordable
health care are needed most to break the cycle of poverty
Everyone I know is in Erie County. Alleviating poverty through systemic
in poverty and it is change, however, will require a concerted, multifaceted,
and community-wide approach.
getting worse with
companies closing.
Sometimes I wonder if
it is everywhere or if it
is just because I am so
poor and everyone
I know is too. I see
it everywhere.
­— Person living in poverty

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 Malcolm and Deena
Erie County, Pennsylvania
Malcolm and Deena have been
married for 12 years and have
two children. Malcolm recently
started receiving disability for
Economic and Social a serious health condition. His
physical condition prevents him
Costs of Poverty from working or being able
Poverty is costly to all of us. Poverty interferes to watch the children while
with the accumulation of human capital, which Deena works. Currently, they
subsequently has a negative impact on the receive cash assistance and other
government subsidies. Deena
economic growth of our community. Living in
worked in health care for 10 years
poverty results in increased risk of poor health
but is currently unemployed since
and criminal activity that has significant social and she cannot leave her husband
economic implications.8 alone. While government
assistance and support from
This past year, four nationally respected academic
social service agencies helps
researchers, Holzer, Schanzenbach, Duncan, and the family survive, the stress of
Ludwig, utilized the findings from many studies “never having enough” is great.
to estimate “the average statistical relationships “I tell my kids, so what if other
between children growing up in poverty and people have cars, or a Game Boy,
their earnings, propensity to crime, and quality of we make do with what we have.”
What she really desires is help
health later in life.” They also reviewed “the costs
that would let her return to work
that crime and poor health per person impose and for her family to be able to
on the economy.” They estimate that the costs get back on their feet.
associated with child poverty totals approximately
$500 billion per year. This equates to about 3.8%
percent of the GDP.9
The Erie County Department of Health estimated the economic costs of Erie County
poverty by using the 2005 population estimate for Erie County of 280,446 and applying
the GDP economic cost model figures provided by Holzer
When we become and colleagues. The estimate equals $463,577,238 per year.
serious about poverty we The $463 million in annual economic costs is distributed
across the three domains of (1) foregone earnings, (2) crime,
undertake a journey that and (3) health.10
begins with awareness,
In accordance with Holzer on the national cost estimate, the
moves on to charity, and health department notes the uncertainty of the local cost
then leads to challenging estimate. Holzer, et. al. believe that their methodology very
questions of justice. likely underestimates the overall economic costs of
­— The Very Reverend all poverty.
John P. Downey, Dean,
Cathedral of Saint Paul
(Episcopal)

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 Access to education is
the only way out of
poverty. When equal
access is denied, it
impacts one’s life forever.
Clearly, from an economic standpoint, expenditures
to address poverty “can be viewed as public or social — Dr. Frank G. Pogue,
President, Edinboro University
investments, which generate returns to society over time of Pennsylvania
in the form of higher real gross domestic product, greater
productivity, reduced expenditures on crime and health care problems, reduced costs
borne by crime victims or those in poor health, and improvements in everyone’s quality
of life in a wide variety of other ways as well.”11

Costs of Concentrated Poverty

Poverty in the Erie community is highly
Cindy
Erie County, Pennsylvania
concentrated. In nine contiguous census tracts
Cindy suffered many troubled
in Erie City, the poverty rates exceed 30% with a years and fell victim to substance
range of 32% to almost 45%. Whereas 21% of the abuse. In 2000, she was homeless,
population resides within these nine census tracts, desperate, and “at the end of my
it represents 41% of all those living in poverty. rope.” She entered rehabilitation,
is now clean and working two
Research supports the common assumption
jobs­­—one full time and another
that “concentration of poor people leads to a
part time. Her annual income
concentration of social ills that cause and are from both jobs combined is
caused by poverty.”12 An analysis conducted by the approximately $20,000 per year.
Annie E. Casey Foundation in 2005 indicates that Additionally, she receives some
negative child outcomes such as teen pregnancy, child support, heating assistance,
and medical cards for her two
health problems, and dropping out of school are
teenage children. They live in a
linked to higher rates of neighborhood poverty.
house that she is buying through
One of the problems faced by families who live a first-time homeowner’s loan.
in neighborhoods with high poverty rates is She is grateful that she is not
isolation from both economic opportunity and homeless and is actually buying,
social networks.13 not renting, but she also feels
frustration. “I work so hard but
I don’t see it materializing, there
is never even enough food in
the house, and there is no extra
anything.” While the bills do get
paid, every penny is then gone.
She states, “I want to do more for
the kids and feel bad that I can’t.”
Cindy would like to go back to
school eventually so she can get
a better job, but at this time she
sees no way financially to make
that happen.
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 Current Efforts and Local Initiatives
We are fortunate to have a vital and effective nonprofit sector in Erie County, including
many providers that address the diverse needs of poor and low-income individuals and
families. “A Profile of Nonprofit Organizations,” available through the Erie Community
Foundation, identifies organizations in Erie County that deliver arts and culture, education,
health, human services, and youth development programs to the community. Human
service organizations account for nearly one in three nonprofits in the county, evidence of
a long tradition of service and a strong commitment to Erie’s poor and vulnerable.
Social service nonprofits are joined by churches and religious institutions that provide
additional assistance, including emergency support, education, food distribution,
and housing. These services supported both publicly and privately are critical, yet, as
President of Mercyhurst College Dr. Thomas Gamble states: “Social services respond to the
consequences of poverty, but generally not to the causes of poverty. There is a need to
address poverty on the macro level of social policy change, education and finance reform,
and to involve the resources of the business and political communities. While we have a
humanitarian obligation to provide social services and they do ameliorate much human
suffering, social services alone will never adequately address the poverty problem.”
There are numerous community initiatives aimed at addressing some of the underlying
factors associated with poverty. For example, to promote early learning in childhood
and enhance school readiness, United Way funds programming at Early Connections
that provides free educational services to children from low-income families who are not
kindergarten-ready. After services, 88% of the 385 children
It is education, jobs served in 2006 exhibited age-appropriate social, motor,
and opportunities that verbal, and cognitive skills, and displayed a positive self-
image. These services are critical in giving poor children
break the cycle. It is a enhanced opportunities for early learning and later
matter of awareness, school success, especially during the foundational years of
prioritization, and kindergarten and elementary grades.
mobilization of The Earned Income Tax Credit (EITC) Initiative was started
resources. This will to help low-income families access federal tax credits and
require a full court free tax preparation services. The federal Earned Income Tax
Credit (EITC) provides up to $4,500 to working families who
press of community earn less than $39,000. The credit enjoys wide bipartisan
leaders. We need a support because of its proven record in helping reduce
“summit” on poverty
in Erie.
­—John Malone,
President and CEO,
Hamot Health Foundation

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 We need to change
the way we perceive
poverty…change to what
poverty, reward work, provide tax relief, stimulate local
are the human needs
economies, and meet basic expenses for working families. of the community and
The most recent data indicate that in 2004, 20,877 taxpayers what are the human and
in Erie County received the earned income credit for a (hidden) resources we
total of $34,392,058. It is estimated an additional 9,000 Erie
County taxpayers are eligible but not receiving credits. At an
have to meet those needs.
average of $1,700 per credit, local families could be missing We need community-
$14,000,000 in annual income. During its first year (2005), wide unity not division.
Erie’s EITC Initiative generated almost $600,000 in additional
­— Rabbi John L. Bush,
refunds for local individuals and families and saved them Temple Anshe Hesed
from spending $50,000 on tax preparation services. The local
initiative is led by Family Services and supported with grants from the Erie Community
Foundation. This year, there are 19 free tax preparation sites throughout Erie city and
county, many of which are located in poor neighborhoods.

In Summary
Maria In our region poverty is a serious issue
Erie County, Pennsylvania
requiring attention from all of us. It has a
Maria is a 31-year-old mother
direct impact on many adults and children,
of three children who is recently
and indirectly affects the quality of life for
separated from her spouse. She
is currently in her junior year of all Erie residents. By addressing poverty we
college. Her biggest challenges stand to both improve our workforce and
are paying her bills on time and the overall business climate in our region. A
helping the children adjust to not common theme that emerged in stakeholder
having a father in the home. To interviews with individuals from business,
pay the bills she relies on money health care, education, the religious
from her work-study jobs, child community, social service, government,
support, and college loans. She and people living in poverty was that as
does not receive cash assistance a community we must unite and work
but does get food stamps, a
together to develop and implement creative
medical card, and help with
strategies to effectively deal with poverty
heat and electricity. Money for
and its long-lasting effects on families.
necessities such as clothes is just
not available. At the beginning
of the school year she was doing
laundry every day since the
children only had one pair of
pants each and she wanted them
to be clean. Her hope is to finish
school and make a better life for
her family. By sacrificing and
going without right now she
is certain she and her children
will come out on top.
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Poverty Rates by Municipality 2000
Total Child Total Child
Poverty Poverty Poverty Poverty
United States 12.4% 16.6% Lake City Borough 12.9% 16.1%
Pennsylvania 11.0% 14.7% Lawrence Park Township 6.5% 9.7%
Erie County 12.0% 16.2% LeBoeuf Township 7.0% 9.1%
Municipality McKean Borough 5.4% *
Albion Borough 11.8% 14.3% McKean Township 5.0% 8.1%
Amity Township 10.9% 14.1% Millcreek Township 5.8% 7.5%
Concord Township 7.3% 8.4% Mill Village Borough 9.3% *
Conneaut Township 11.3% 16.5% North East Borough 13.6% 19.1%
Corry City 16.4% 21.4% North East Township 5.8% 8.5%
Cranesville Borough 7.8% * Platea Borough 12.9% *
Edinboro Borough 34.4% 10.8% Springfield Township 9.3% 10.3%
Elgin Borough * * Summit Township 6.9% 11.3%
Elk Creek Township 6.0% 5.0% Union Township 8.1% 13.4%
Erie City 18.8% 27.4% Union City Borough 20.9% 26.8%
Fairview Township 3.8% 4.7% Venango Township 3.7% *
Franklin Township 3.0% 4.1% Washington Township 3.5% *
Girard Borough 8.3% 13.4% Waterford Borough 7.2% 9.3%
Girard Township 6.5% 7.5% Waterford Township 7.0% 14.9%
Greene Borough 4.6% 6.3% Wattsburg Borough 17.9% *
Greenfield Township 5.3% 7.5% Wayne Township 9.9% 9.5%
Harborcreek Township 5.5% 4.8% Wesleyville Borough 11.8% 12.3%

* Population less than 300

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 Call to Action
The Erie Community Foundation, in partnership with additional funders, local
nonprofit service providers, government, civic leaders, and volunteers will:
• Continue efforts to create awareness of the poverty issue through a series of
presentations to a wide variety of stakeholder groups. If you participate in a civic
group, please contact ECF for a speaker on the topic of poverty in Erie County.
• Conduct an in-depth study of successful national initiatives to address poverty
and determine, with community feedback, what could be initiated locally to
continue reducing poverty in the Erie community.
• Convene members from a wide cross section of stakeholders to develop a
community agenda for addressing poverty and improving the quality of life
for all Erie residents.

The Poverty Study Group would like to encourage all Erie residents to learn
more about poverty in our community and to please contact the Erie Community
Foundation with your thoughts and ideas.
For more information, please go to the Erie Community Foundation web site at
www.eriecommunityfoundation.org or the Mercyhurst College Civic Institute web
site at www.civicinstitute.org.

Never doubt that a small group of thoughtful committed citizens

can change the world, indeed that is the only thing that ever has.
­­­— Margaret Mead, Anthropologist (1901-1978)

ENDNOTES
1 U.S. Bureau, Census 2000, Table DP-1: Profile of General Demographic Characteristics, Erie County, Pennsylvania at www.census.gov.
2 Poverty guidelines updated periodically in the Federal Register by the U.S. Department of Health and Human Services under the authority of 42 U.S.C. 9902(2).
3 U.S. Census Bureau: State and County QuickFacts.  Data derived from Population Estimates, Census of Population and Housing, Small Area Income and Poverty
Estimates at http://quickfacts.census.gov/qfd/states/42/42049.html.
4 U.S. Census Bureau, 2005 American Community Survey, Erie County Pennsylvania, General Demographic Characteristics.
5 The “Perceptions of Poverty Poll” was conducted through the Mercyhurst College Civic Institute under the direction of Dr. Laura Lewis. College students
assisted in the completion of 625 phone interviews during October and November 2006. Report can be found at www.civicinstitute.org.
6 During 2006 the Poverty Study Group conducted interviews with 40 individuals who were each asked a series of 10 questions. The individuals were people
living in poverty, social service providers and members of the business, government, education, health care and religious sectors of the community. Six
additional in-depth interviews were conducted with individuals who were working and struggling to make ends meet.
7 Lewis, L. (2002). “Life After TANF: Single Mothers in Erie County Pennsylvania Share Their Experiences.”
8 “Poverty in America, Consequences for Individuals and the Economy,” Statement by S. Nilsen, of the General Accounting Office, before the Committee on
Ways and Means, January 24, 2007.
9 Holzer, H., Whitmore Schanzenbach, D., Duncan, G., and Ludwig, J. (January 2007) “The Economic Costs of Poverty in The United States: Subsequent Effects
of Children Growing Up Poor,” Center for American Progress. The authors make it clear that they make a number of assumptions about the definition of poverty
as well as cause and effect. They acknowledge the limitations of attempts to “disentangle” hereditary and environmental factors associated with poverty.
10 Jeffrey T. Quirk, Ph.D., Epidemiologist, Erie County Department of Health, Erie, PA. February 2007.
11 Holzer, H., Whitmore Schanzenbach, D., Duncan, G., and Ludwig, J. (January 2007) “The Economic Costs of Poverty in The United States: Subsequent Effects
of Children Growing Up Poor,” Center for American Progress.
12 Mather, M. and Rivers, K., “Census 2000 Report: The Concentration of Negative Outcome in Low-Income Neighborhoods,” Annie E. Casey Foundation, 2007.
13 Ibid.

Profiles listed are that of current Erie County low-income families. Names and some identifying information have been changed.

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 Helping today...Shaping tomorrow.

127 West Sixth Street

Erie, Pennsylvania 16501-1001
Phone: (814) 454-0843 • Fax: (814) 456-4965
www.eriecommunityfoundation.org

Publication Committee: Amy Cuzzola-Kern, Ph.D., Donna Hixon, Ph.D.,

Susan Kemenyffy, Laura Lewis, Ph.D., Debi Liebel

Poverty Study Group Members: Amy Cuzzola-Kern, Ph.D., John Downey,

Andy Glass, Donna Hixon, Ph.D., Bill Jackson, Danny Jones, Carl Kallgren,
Ph.D., Cheryl Kobel, Susan Kemenyffy, Laura Lewis, Ph.D., Debi Liebel,
Linda Madara, Jim Martin, Dale McBrier, Jeanine McCreary, Gwen White

127 West Sixth Street Non-Profit Org.

Erie, Pennsylvania 16501 U.S. Postage
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Erie, PA 16501
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