2009 Poverty Measures Released

September 16, 2010 -- The U.S. Census Bureau today released its report Income, Poverty, and Health Insurance Coverage in the United States: 2009. The report indicated that the 2009 poverty rate was 14.3 percent, up from 13.2 percent in 2008 — the second statistically significant annual increase since 2004 and the third consecutive annual increase in U.S. poverty levels.

The current measure -- developed in the 1960s -- determines families’ poverty status by comparing their pretax cash income to poverty thresholds that represent the cost of a minimum food budget times three. Beginning next year, in addition to rates based on the current measure, the government will publish poverty rates based on a more comprehensive supplemental measure. The poverty thresholds for the supplemental measure will represent basic necessities, including clothing, shelter, and utilities plus a little more, in addition to food. And the measure of family resources will include not only cash income but also government noncash benefits, such as food stamps; it will also deduct taxes, out-of-pocket medical care expenses, and work-related expenses, including child care. The supplemental measure is based on recommendations from the National Research Council report Measuring Poverty: A New Approach.