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Recession-Weary Iowans Struggle With Basic Food, Shelter, Utility and Medical Costs

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ST. PAUL, Minn. (September 17, 2009) – A recession that has seen an unprecedented collapse of financial institutions, a rash of home foreclosures, rising unemployment, and bankruptcies in the auto industry has many Iowans struggling to pay for basic necessities. A national poll of more than 4,000 adults shows Iowa families have cut their spending, taken in friends or relatives because of money, and lent or given money to those in need. Commissioned by the Northwest Area Foundation, the poll also shows 63 percent in the state see more people struggling to make ends meet than a year ago, mostly because of circumstances they believe are beyond their control.

Fifty-seven percent of Iowans say they’ve had to reduce spending. More than half, 60 percent, report the change in spending habits will be permanent. In the past year, families have reported:

• Twenty-five percent had problems paying for basic necessities like their mortgage, rent or heating.
• Fifty percent say they’ve cut down on the amount they’ve spent on food.
• Forty-three percent have cut back on saving for retirement.
• Twenty-one percent have had a friend or family member stay with them because of money.
• Thirty percent have had trouble affording medical care.

Compounding those challenges, 44 percent of people in the state say they would not know where to go in their community for help, and 51 percent say they are not familiar with government services such as food stamps.

“These poll numbers confirm what we are seeing in Iowa. Last year, a record 90,000 families applied for energy assistance, many of whom were first-time applicants,” said Lana Ross, executive director, Iowa Community Action Association. “The 18 local community action agencies in Iowa are working hard to support families who need help, but aren’t sure where to turn. We’ve received some federal stimulus funding to expand and create new services to meet the growing need.”

For a second year, people are worried that their paychecks won’t be enough to meet their bills, a response that may be related to reports of job insecurity:

• Twenty-three percent say someone in their household has been laid off or lost a job.
• Thirty-three percent say someone in their household has had their work hours cut.

Iowans also reported:

• A majority says it takes at least $40,000 a year to meet basic needs of a family of four, which is more than twice the federal poverty level of $21,834 – the fourth year in a row that a majority of respondents has expressed this belief.
• Fifty-five percent say two people earning $10 per hour is not enough to make ends meet for a family of four.

“Americans told us that things are even tougher for their families than the official unemployment and poverty rates suggest,” said Kevin F. Walker, president and CEO of the Northwest Area Foundation. “They also say elected officials need to join them in finding solutions. Public policy is a critical tool in moving low-income people – and our nation – toward prosperity that lasts.”

Forty-one percent of respondents said the government is doing too little to help. Their priorities for lawmakers are ranked as follows: attracting and keeping good-paying jobs, making medical care more accessible, making college and vocational education more affordable, and making sure there is a safety net for those on the verge of losing their homes to foreclosure. Overwhelmingly people in Iowa said that when they vote, they will think about how well the candidate would help those struggling to make ends meet.

Despite the tough times, Iowan resolve is strong. Fifty-five percent say they are hopeful about the national economy, and 85 percent say they believe the number of people struggling to get by in their community can be reduced. Seventy-nine percent say they are willing to volunteer to help, and 44 percent say someone in their household has gone so far as to lend or give money to someone who was in need.

For the full report, and to download toplines, policy briefs, executive summaries and charts, visit www.nwaf.org.

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The Northwest Area Foundation is dedicated to supporting efforts by the people, organizations and communities in Minnesota, Iowa, North Dakota, South Dakota, Montana, Idaho, Oregon and Washington to reduce poverty and achieve sustainable prosperity. These states were served by the Great Northern Railway, founded by James J. Hill. In 1934, Hill’s son Louis W. Hill established the Foundation. To learn more, visit www.nwaf.org.

The Foundation commissioned Lake Research Partners to conduct a national survey to explore local perceptions of the struggle to make ends meet in one’s own community, attitudes toward the roles of local elected officials, and ways in which to address this struggle. The telephone survey was conducted among 4,004 Americans age 18 and older, from June 18 – July 13, 2009. A total of 800 interviews were conducted nationally, and oversamples of 400 interviews were conducted in each of the following eight states: Minnesota, Iowa, North Dakota, South Dakota, Montana, Idaho, Oregon and Washington. The oversamples were weighted down to reflect their true proportion in the country. The margin of error for the national results is + 3.5 percentage points. Previous national polls were released in March 2006, March 2007 and April 2008.[1]

[1] The 2005-2006 survey included a national sample of 800 interviews, with oversamples of 200 interviews in each of eight states. The 2007, 2008 and 2009 surveys were conducted among a national sample of 800 adults, with oversamples of 400 interviews in each of eight states.