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118 State House
Springfield, IL 62706
(217) 782-2507
(217) 782-2331 (fax)

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45. E. University Suite 206
Champaign, IL 61820
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Danville, IL 61832
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Frerichs Bill to Reduce Poverty Passes Senate

SPRINGFIELD, IL - On Tuesday, State Senator Michael Frerichs (D-Champaign) passed legislation through the Illinois Senate which creates the Commission on the Elimination of Poverty. The Commission has the goal of reducing poverty by fifty percent or more by 2015.

"Many people assume that poverty is a Chicago issue, but Champaign and Vermilion Counties have poverty rates above the state average and higher than Cook County," said Senator Frerichs. "Champaign County has over 20,000 residents living in poverty, while Vermilion County has a poverty rate of eighteen percent, six points above the state average."

Over 1.5 million Illinois residents live below the poverty line and another 2 million are at risk of falling into poverty. Of the 1.5 million residents currently in poverty, nearly 700,000 of them live in extreme poverty, which means they live below half of poverty threshold. Half of the poverty threshold is equal to a family of four living on $883 a month.

"It's stunning that over 1.5 million people in Illinois live in poverty," said Senator Frerichs. "This means the total population of Philadelphia is less than the poverty population in Illinois."

Poverty is an issue with a wide range of causes and effects. A Heartland Alliance report estimates that after exemptions are considered, Illinois families earning $9,800 per year pay a tax rate of 13.7%, while Illinois families making $1.7 million a year only pay a tax rate of 5.1%. The report also notes that medical-related bankruptcies jumped 2,200% since the early 1980s and home foreclosures have doubled since 2005. Additionally in 2004, Illinois had the 2nd largest gap in the nation between low and high poverty school districts in per pupil spending.

"Poverty affects an individual's access to education, housing, nutrition, and healthcare," said Senator Frerichs. "A complex problem, such as poverty, requires a comprehensive solution, which is why we need this commission to develop an extensive plan with detailed policy recommendations."

The Commission will investigate the amount of access Illinois residents have to quality education, affordable housing, childcare, food and nutrition, healthcare, and transportation. The Commission will release a plan with specific policy and fiscal recommendations in 2010. There will be public hearings and annual reports to follow up on implementation and evaluation of the plan. House Bill 4369 passed without opposition and awaits approval from the Governor.

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