Recession-Weary Minnesotans Struggle With Basic Food, Shelter, Utility and Medical Costs
ST. PAUL, Minn. (September 17, 2009) – A recession that has seen an unprecedented collapse of financial institutions, ongoing home foreclosures and rising unemployment has hit Minnesota with job loss, reduced work hours and scaled-back lifestyles. A national poll of more than 4,000 Americans shows Minnesota families have cut their spending, taken in friends or relatives because of money, and lent or given money to those in need. Minnesotans without a college degree are more likely to report a job loss than those with a degree. Commissioned by the Northwest Area Foundation, the poll also shows two-thirds see more people struggling to make ends meet than a year ago, mostly because of circumstances they believe are beyond their control.
Sixty-three percent of Minnesotans say they’ve had to cut back on spending. More than half, 55 percent, report the change in habits will be permanent. In the past year, families reported:
- Twenty-seven percent had problems paying for basic necessities like their mortgage, rent or heating.
- Fifty-one percent say they’ve cut down on the amount they’ve spent on food.
- Forty-eight percent have cut back on saving for retirement.
- Twenty-three percent have had a friend or family member stay with them because of lack of funds.
- Thirty-two percent have had trouble affording medical care.
“The economic downturn has played a huge role in the housing market in mid-Minnesota. Affordable housing has become less affordable and renters are struggling to make payments. Rents are not being paid on time and the eviction rate has tripled in the past year,” said Laura McKnight, property manager, Partnership to Supply Affordable Housing.
Compounding those challenges, 47 percent of people in the state say they would not know where to go in their community for help, and 52 percent say they are not familiar with government services such as food stamps. For a second year in a row, 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-four percent say someone in their household has been laid off or lost a job.
- Forty-one percent say someone in their household has had their work hours cut.
Minnesotans 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.
- Sixty-six percent say two adults 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-seven 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 Minnesota 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, Minnesotan resolve is strong. Fifty-nine 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. Eighty 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.
Susan Buckles, APR
Public Relations Specialist
Northwest Area Foundation
(651) 225-3865
sbuckles@nwaf.org
Twitter: www.twitter.com/susanbuckles
Sylvia Burgos Toftness
Communications Lead
Northwest Area Foundation
(651) 225-7704
sburgos@nwaf.org
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