Poverty and Income in Texas:

Findings from the 2015 American

Community Survey

Poverty in Texas

Why care about poverty?Research shows living in poverty is connected to negative outcomes,

both for individuals and society

Poverty is connected to people experiencing worse health outcomes. Mothers living in poverty are more likely to have low-birth weight babies, increasing babies’

chances of developmental delays and disabilities.1

According to parent reports, children living in poverty have worse health than childrennot living in poverty.2

People living in poverty experience higher rates of chronic illness such as asthma, diabetes and heart disease.3

Poverty is connected to greater challenges in education.4

Children living in poverty are less likely to complete high school, attend college and complete college.

Children living in poverty tend to perform less well on standardized tests.

Children who are born into poverty are more likely to live in poverty and less likely to have consistent employment as adults.5

2015 Poverty Thresholds

The U.S. Census Bureau uses the federal poverty thresholds to estimate the number of poor people in the United States. People in families with incomes below these thresholds are considered to be “living below the poverty line.”

U.S Census Bureau. Poverty Thresholds. http://www.census.gov/hhes/www/poverty/data/threshld/index.html

Size of FamilyPoverty Thresholds

(total annual income)

One person(under 65)

$12,331

Family of Two(one adult, one child)

$16,337

Family of Three(one adult, two children)

$19,096

Family of Four(two adults, two children)

$24,036

Texas has the 15th worst rate of poverty in the U.S.

ACS Table R1701, 1-Year Estimates (2015), KIDS COUNT Data Center.

2015 US poverty rate: 14.7%

MS: 22% (Highest)

NH: 8.2% (Lowest)

15.9%

The Rio Grande Valley is home to thethree poorest metro areas in the U.S.

ACS Table GCT1701 (Metropolitan and Micropolitan Statistical Area), 1-Year Estimates (2015).

32.4% 31.8% 31.5%

27.6% 27.1% 27.1% 26.8% 26.7% 26.6% 25.7%

0%

10%

20%

30%

40%P

ove

rty

Rat

e

Texas children hardest hit by poverty

Poverty rate within each age group

ACS Table C17001, 1-Year Estimates (2015).

In Texas, children have the highest poverty rate of any age group.The poverty rate of Texas children is 7.1 percentage points higher than the poverty rate of the

total Texas population.

10.3%

11.5%

17.6%

23.0%

0% 5% 10% 15% 20% 25%

65 and over

35 to 64

18 to 34

under 18

Age

(R

ange

)

Poverty rate fortotal TX population

15.9%

Poverty rate within each age groups

Texas children under 5 are nearly twice as likelyto live in poverty as adults

ACS Table B17001, 1-Year Estimates (2015).

13.3%

18.6%

20.9%

23.8%

25.0%

0% 5% 10% 15% 20% 25% 30%

18 and over

16 and 17

12 to 15

6 to 11

0 to 5

Texas child poverty consistently higher than U.S.

ACS Tables S1701 & C17001, 1-Year Estimates 2005-2015.

17.6%15.8%

18.5%

15.9%

24.9%22.5%

26.6%

23.0%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Poverty (all ages)

Child Poverty

Rec

essi

on

On the positive side, both rates are nearly back to pre-Recession lows.

Poverty rates reflect barriers faced by Texans of different racial and ethnic populations

ACS Table S1701, 1-Year Estimates (2015).

15.9%

8.6%10.6%

21.4% 21.4%22.8%

Total TXPopulation

White, notHispanic

Asian Other Black Hispanic

Pove

rty

Rat

e w

ith

in e

ach

rac

ial/

eth

nic

po

pu

lati

on

Nearly 1 million White Texans & 2.3 million Hispanic Texans are experiencing poverty

ACS Table S1701, 1-Year Estimates (2015).

White, notHispanic

Hispanic Black Other Asian

Pop

ula

tio

n C

ou

nt

Above Poverty Level

Below Poverty Level

1.10M

2.4M

1.26M

8.0M

10.53M

130.9K345.0K673.9K

2.3M

997.8K

Hispanics are over-represented in Texas poverty population

ACS Table S0601 and S1701, 1-Year Estimates (2015).

White, not Hispanic

42.9%

Hispanic 38.9%

Black12.0%

Asian 4.5%Other6.0%

All Texans

White, not Hispanic

23.4%

Hispanic 56.3%

Black15.8%

Asian 3.1%Other8.1%

Texans Living in Poverty

Hispanics represent 39% of all Texans, but 56% of poor Texans

Most Texans living in poverty are U.S. citizensCitizenship status of Texans living in poverty

ACS Table C17025, 1-Year Estimates (2015).

82.6%3.51M

17.4%741K

U.S. Citizens

Non-Citizens*

*Non-Citizens: People who indicate they are not U.S. citizens. This includes people categorized as immigrant, nonimmigrant, undocumented, and people holding nonimmigrant visas (i.e. student, working)

Female-headed households are also over-represented

among Texans living in poverty

ACS Table B17023, 1-Year Estimates (2015).

Two-Adult71.8%

Female-Headed20.7%

Male-Headed

7.4%

Two-Adult40.1%Female-

Headed51%

Male-Headed

9.0%

All Texas Households Texas Households Living in Poverty

Working-age women (18 to 64) in Texas are more likely to live in poverty than men

ACS Table B17001, 1-Year Estimates (2015).

23.1%

14.1%

9.7% 10.1%8.7%

22.9%

21.1%

13.7%

11.5%

1.5%

under 18 18 to 34 35 to 54 55 to 64 65 and over

Male Female

In Texas, the higher your degree, the less likely you are to experience poverty

ACS Table C17003, 1-Year Estimates (2015).

% in Poverty by Level of Educational Attainment26.2%

14.2%

9.4%

4.1%

Less than high schoolgraduate

High school graduate(includes equivalency)

Some college, associate'sdegree

Bachelor's degree or higher

More than One-Third of Texans live below 200%of the Federal Poverty Threshold, aka “working poor”

ACS Table B17002, 1-Year Estimates (2015).

6.6%

9.2%

20.3%

63.8%%

of

Tota

l TX

po

pu

lati

on

$24,632 (200% FPL for one person)

$12,316 (100% FPL for one person)

$6,158 (50% FPL for one person)

27 million Texans

The Supplemental Poverty MeasureA WAY TO MEASURE IMPACT OF POVERTY REDUCTION POLICIES AND THE COST OF LIVING

… and subtracts necessary expenses from income, such as…

Supplemental Poverty Measure (SPM)

SNAP benefits (food stamps), Social Security, refundable tax credits (Earned Income Tax Credit, Child Tax Credit), housing subsidies

Taxes, work expenses, medical out-of-pocket expenses, child care expenses, child support paid

Short, K. (2014). The Supplemental Poverty Measure: 2013. http://www.census.gov/hhes/povmeas/methodology/supplemental/overview.html

The SPM provides a more true poverty measure since it takes into account benefits that help people meet basic needs, such as:

Fox, L. & Renwick, T. (2016). The Supplemental Poverty Measure: 2015. http://www.census.gov/hhes/povmeas/methodology/supplemental/overview.html, numbers indicate the percentage point increase or decline in the poverty rate when accounting for each of these expenses or policies.

Social Security has the strongest anti-poverty effect, as evidenced by the Supplemental Poverty Measure (SPM)

Medical Out of Pocket Expenses, +3.52

Work Expenses (ex: transportation), +1.75

Payroll Taxes (FICA), +1.52

Social Security, -8.34

Refundable Tax Credits, -2.88

SNAP, -1.44

Biggest Expenses that Worsen Poverty Rate

Benefits Most Likely to Improve Poverty Rate

The overall U.S. poverty rate is slightly higherwhen factoring in benefits and expenses through the Supplemental

Poverty Measure (SPM)

13.5% 14.3%

Official PovertyMeasure

Supplemental PovertyMeasure

Fox, L. & Renwick, T. (2016). The Supplemental Poverty Measure: 2015. http://www.census.gov/hhes/povmeas/methodology/supplemental/overview.html

Under the Supplemental Poverty Measure (SPM), national poverty rates are lower for children, higher for adults and seniors

13.7%

13.8%

16.1%

8.8%

12.4%

20.1%

65 and older

18 to 64

Under 18

Official Poverty Rate, U.S.

Supplemental Poverty Rate, U.S.

Fox, L. & Renwick, T. (2016). The Supplemental Poverty Measure: 2015. http://www.census.gov/hhes/povmeas/methodology/supplemental/overview.html

Data reflects higher cost of health care for seniors and positive impact of benefits for children

Income in Texas

Median income in Texas finally has risenabove pre-recession levels

ACS Tables B19013, 1-Year Estimates 2005-2015, all data adjusted for inflation to 2015 dollars.

$56,120

$57,276

$55,775

$51,140

$55,090 $55,653

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

US Median Household Income

Rec

essi

on

Texas Median Household Income

Median income peak prior to recession

Black and Hispanic Texan’s median household incomes are significantly below the Texas median household income

ACS Tables B19013B-B19013I, 1-Year Estimates (2015).

$55,653

$36,544

$44,782

$61,394

$77,368

Total TX Population Black Hispanic White, not Hispanic Asian

ACS Table B19013B-B19013I, Median Household Income, One-year estimates 2006-2015. Adjusted for inflation and expressed in 2015 dollars.

Median household income has risen for all racial and ethnic groups since 2005; Huge disparities by race/ethnicity remain.

$63,766

$68,654

$67,440

$78,121

$51,140

$55,653

$37,595

$40,812$37,479

$43,345

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

White, not Hispanic

Asian

TX Total

Hispanic

Black

The median income for male-headed families is $15,000 higher per year than for female-headed families

ACS Table B19126, Median Annual Family Income in Texas by Family Type, U.S. Census Bureau, 1-Year Estimates (2015).

$55,653

$25,260

$40,387

$82,147

Total MedianFamily Income

Female-Headed Male-Headed Two-Adult

ACS Table B19081, Mean Household Income, One-year estimates, 2015.

Huge gaps remain between upper and lower income householdsAverage household income is nearly 16x higher

in top 1/5 of households than for bottom 1/5 of households

$204,050

$88,622

$55,762

$33,101

$12,773

Income Quintiles

Top 5th Bottom 5th

End Notes

1. Strulley, K. W., Rehkopf, D. H, & Xuan, Z. (2010). Effects of prenatal poverty on infant health: State earned income tax credits and birth weight. American Sociological Review, 75(4), 534-562, Retrieved from http://www.irp.wisc.edu/newsevents/workshops/2011/participants/papers/15-Strully.pdf. For effects of low-birth weight on future health problems see Child Trends Databank (2014), Low and very low birth weight infants. Retrieved from http://www.childtrends.org/?indicators=low-and-very-low-birthweight-infants

2. U.S. Department of Health and Human Services, Health Resources and Services Administration, Maternal and Child Health Bureau. (2014). The health and well-being of children: A portrait of states and the nation, 2011-2012. Retrieved from http://mchb.hrsa.gov/nsch/2011-12/health/index.html

3. Currie. J., & Lin, W. (2007). Chipping away at health: More on the relationship between income and child health. Health Affairs, 26(2), 331-44. Retrieved from http://www.princeton.edu/~jcurrie/publications/Currie_tables_galleys.pdf

4. Ladd, H. F. (2012). Education and Poverty: Confronting the Evidence, Presidential address to the Association for Public Policy Analysis and Management. Journal of Policy Analysis and Management, 31(2), 203-227. Retrieved from http://fds.duke.edu/db/attachment/1979

5. Ratcliffe, C., & McKernan, S. (2010). Childhood poverty persistence: Facts and consequences. (Urban Institute’s Brief Series, Perspectives on Low-income Working Families). Retrieved from http://www.urban.org/uploadedpdf/412126-child-poverty-persistence.pdf

6. “Poverty thresholds are used for calculating all official poverty population statistics — for instance, figures on the number of Americans in poverty each year. They are updated each year by the Census Bureau. Poverty thresholds since 1973 (and for selected earlier years) and weighted average poverty thresholds since 1959 are available on the Census Bureau’s web site. For an example of how the Census Bureau applies the thresholds to a family’s income to determine its poverty status, see “How the Census Bureau Measures Poverty” on the Census Bureau’s web site. The poverty guidelines are a simplified version of the federal poverty thresholds used for administrative purposes — for instance, determining financial eligibility for certain federal programs. They are issued each year in the Federal Register by the Department of Health and Human Services (HHS).” (http://aspe.hhs.gov/poverty/faq.cfm#thrifty)

For more information, contact:Kristie TingleCPPP Research Analysttingle@cppp.org

Data analysis conducted and slides created by:KATIE MARTIN, CPPP’S KUHN POLICY INTERN

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