Page 84 - 2015 Compass Now

The number of bankruptcies is a measure of the economic health of a community. Job loss, increased
medical bills, and costs associated with divorce and separation are the primary reasons for bankruptcy
filings11. Table 14 shows bankruptcy rates in the Great Rivers Region counties, all of which are well below
their respective state rates.

Table 14: 2013 Non-Business Bankruptcy Rates

County/Region Bankruptcies/1,000 People

La Crosse 2.44

Monroe 2.97

Trempealeau 1.62

Vernon 2.31

Houston 1.70

Wisconsin 5.10

Minnesota 3.41

Source: Administrative Office of U.S. Courts

INCOME/ECONOMIC Poverty in our Region

Poverty is an extremely complex concept to define and to attempt to alleviate. Poverty is a result of the level
of unemployment, length of unemployment, health status, level of educational attainment, and access to
public services of a population. Most often, the poverty rate and rates of enrollment in financial assistance
programs are used to measure poverty. Since poverty is such a multifaceted issue, these measurements
are often inadequate at capturing the entire situation. Living in poverty can be extremely taxing on the
individual, family, and community. There is a strong link between stress and socioeconomic status, and
those of lower socioeconomic status often have higher levels of stress, which can have both acute and
chronic health repercussions, such as high blood pressure and heart disease. Children who live in poverty
suffer from greater health problems than those who don’t, and more time spent in poverty worsens health
outcomes12. Poverty also impacts mental health both directly and indirectly. One study found that poorer
economic conditions increase the risk for mental disability and psychiatric hospitalization13. Individuals
living in poverty often lack hope, feel powerless, and feel isolated from the rest of society14.

The traditional U.S. standard for measuring poverty is the poverty threshold set by the U.S. Census. Based
solely on food costs, the poverty threshold does not take into account other real costs families have today,
including such needs as child care, health care, and transportation.

The Federal Poverty Level (FPL) set by the Department of Health and Human Services for a family of four
in the United States in 2014 was $23,850. A family of four that earns below that amount is considered
“living in poverty15.” Table 15 compares the percentage of the Great Rivers Region population living in
poverty in 2000 and 2012. Because this guideline underestimates how much it truly costs to raise a family,
the Massachusetts Institute of Technology developed the Living Wage Calculator. This provides access to
information about typical expenses and typical wages for multiple family demographics. The outputted
calculations are state and county specific.

76 COMPASS NOW 2015