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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

Day: July 10, 2012

Welfare Purchase Restrictions

States restrict welfare purchases, By Marisol Bello, July 9, 2012, USA Today: “More states are enacting or considering laws that prohibit people who get welfare cash from spending it on liquor, cigarettes, strip clubs, gambling and guns — laws that even supporters say are difficult to enforce. Ten states have passed such laws and at least 14 are considering them, the National Conference of State Legislatures says. Under a new federal law, all states must prevent the use of cash benefits in liquor stores, gambling establishments and adult entertainment businesses by 2014. States that fail to establish policies face cuts in federal support. Welfare recipients use debit cards to buy things or get cash at ATMs. . .”

Economic Mobility

Economic mobility: Who gets left behind, By Tami Luhby, July 10, 2012, CNN Money: “Most Americans make more than their parents did, but that doesn’t mean they’re all moving up the economic ladder. Some 84% of Americans have higher family incomes than their parents had at the same age, according to a new report from the Pew Economic Mobility Project. And 93% of those who grew up in the poorest fifth of the income ladder exceed their parents’ family income as adults. But out-earning their parents hasn’t helped many of them climb out of poverty, as many poor American families remain stuck at the bottom of the income barrel. Some 43% remain in the lowest quintile. . .”

College Graduation Gap – Kentucky

College graduation gap widens for low-income Kentuckians, By Linda B. Blackford, July 9, 2012, Lexington Herald-Leader: “More Kentuckians are getting college degrees, but a troubling trend has emerged in who receives them. According to a new report, the gap between graduation rates for low-income college students and moderate- to high-income students jumped 8 percentage points between 2008 and 2010. In those two years, the graduation rate of low-income Kentucky students fell from 46 percent to 35 percent, according to an annual accountability report from the Council on Postsecondary Education. In comparison, the graduation rate of moderate- to high-income students dropped four percentage points, from 57 percent to 53 percent. The gap between graduation rates for rich and poor students increased from 10 percentage points to 18. The gap is connected to a bad economy, higher tuition rates and less state aid, and it’s a big problem, according to one expert on the economy and higher education. . .”