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Patrick T. McCarthy, President and CEO, Annie E. Casey Foundation

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RECESSION INCREASES NUMBER OF CHILDREN LIVING IN LOW-INCOME FAMILIES

~ Millions of Children Lived With at Least One Unemployed Parent in 2010 ~

August 2011

Baltimore, MD – According to data being released on Wednesday, August 17, 2011, by the Annie E. Casey Foundation in its annual KIDS COUNT Data Book, over the last decade there has been a significant decline in economic well-being for low income children and families. The official child poverty rate, which is a conservative measure of economic hardship, increased between 2000 and 2009, essentially returning to the same level as the early 1990s.

This increase means that millions more children are living below the federal poverty line. Data also reveals the impact of the job and foreclosure crisis on children. In 2010, a growing number of children had at least one unemployed parent and increasing numbers have been affected by foreclosure since 2007. These economic challenges greatly hinder the well-being of families.

The Data Book also provides the most current information about 10 key measures of child well- being the Foundation has tracked over the last twenty years. Since 2000:

Five areas have improved: the infant mortality rate, child death rate, teen death rate, and teen birth rate, and the percent of teens not in school and not high school graduates.

Three areas have worsened: the percent of babies born low-birthweight, the child poverty rate and the percent of children living in single-parent families.

Looking across all child well-being indicators, New Hampshire, Minnesota, and Massachusetts rank highest, while Alabama, Louisiana, and Mississippi rank the lowest. The eight states with the biggest improvements in their rankings between 2000 and the most recent years of data are New York, Maryland, Connecticut, Massachusetts, North Carolina, Oregon, Virginia and Wyoming. The five states with the biggest drops in their rankings are South Dakota, Maine, West Virginia, Hawaii, and Montana.

The Casey Foundation recommends strategies that can help move low-income families onto the path for prosperity, including: strengthening and modernizing unemployment insurance; preserving and strengthening existing programs that supplement poverty-level wages, offsetting the high cost of child care, or providing health insurance coverage for parents and children; helping families gain financial knowledge and skills; ensuring that children are developmentally ready to succeed in school; and promoting reading proficiency by the end of third grade, among others.

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