Chapel Hill Poverty Not Easily Seen

Although it is not uncommon to see the homeless on Franklin Street, it is rare to witness the daily struggles of working families and individuals in the area.

But as local social welfare experts warn, poverty does exist. "It's not as open, but it is here," said Audreye Johnson, professor at the UNC School of Social Work. "The issue is that poverty is not easily seen because (the University) is isolated and insulated from it."

According to a 1999 U.S. Census Bureau report by the Small Area Income and Poverty Estimates program, the poverty rate for Orange County is 9.9 percent. The study is conducted every three years, and an updated version will be released this summer.

A state-by-state analysis in the 2001 U.S. Census Bureau report revealed that the overall poverty rate in North Carolina during 1999-2000 was 12.9 percent. Poverty rates vary according to factors including age, race, family composition, work experience and geographic location.

And as the state continues to deal with its fiscal crisis, things most likely will get worse before they get better for the poor.

Out of Sight, Out of Mind

Local social welfare experts say there are a few areas of poverty located in Chapel Hill, generally hidden from the view of the University community.

The public's lack of exposure to local poverty issues allows the daily struggles of the low-income population to be ignored.

Johnson said the Northside neighborhood -- an area located north of Rosemary Street on the Chapel Hill-Carrboro border -- is known for its poor living conditions. "You can see the difference in housing there," she said.

Andrew Dobelstein, professor at the UNC School of Social Work, also noted poor living conditions in two housing projects on South Estes Road and Airport Road. "What's happening is a process of gentrification -- the low-income people are getting squeezed out," he said.

Chris Moran, executive director of the Inter-Faith Council, said local poverty issues are largely unseen by the public. "Statistically, Chapel Hill always looks good, but there is a great disparity between people who have a lot of resources and those who don't."

How Much Is Enough?

The official measure of poverty is defined by an income threshold. If an individual's annual income falls below the federal standard, he is considered poor.

According to the 2001 U.S. Census Bureau report, the national poverty threshold for one individual under 65 years old is an annual income of $8,959.

Although the federal poverty threshold has been used as a baseline wage standard since the 1960s, social welfare researchers recently have questioned the national standard as an accurate measuring tool. "The truth of the matter is, even if you're making a salary above poverty, it's almost impossible to provide for basic needs," said Nancy Coston, Orange County Division of Social Services director.

Coston said many researchers and policy makers have discussed the concept of a living wage or income -- the amount of money needed to meet basic needs such as housing, food, clothes and healthcare.

An N.C. Justice Center report released January 2001, examined the economic conditions of working families statewide. According to the report, 35 percent of N.C. taxpayers -- 1.1 million families -- earn below the amount needed to achieve a basic standard of living, which the Justice Center specifically refers to as the "living income standard."

Despite an established national poverty threshold, the report concluded that a living income in North Carolina is almost two times higher than the federal standard.

Moran said the standard offers a more accurate picture of how much is needed to live. "If you're constantly choosing between paying your utility bill and paying for food, then you have a problem."

A Widening Gap

Experts say low income levels and high housing costs are key contributing factors to poverty in Chapel Hill.

As the leading source of employment and housing tenants in the area, UNC plays a pivotal role in contributing to and battling against poverty, according to Dobelstein.

Although UNC offers employment opportunities for many low-income workers, Dobelstein said the wages do not adequately meet basic needs. "The University is the largest employer of low-income people than any place in Orange County," he said. "One of the contributing factors of poverty is your education."

Dobelstein also noted the wide economic gap as a factor in Chapel Hill's existing poverty conditions. "There's such a great discrepancy between people like me, who are professors, and people who are poor," he said.

According to a county-by-county analysis in the LIS report, one needs an annual income of $15,121.94 to make ends meet in Orange County.

Dobelstein said the large student and faculty population in Chapel Hill decreases housing opportunities for the poor. He said developers cater to the student tenants more than to low-income individuals.

Moran added that the large number of students searching for housing drives up residential prices, increasing the poor's challenge of paying for basic needs. "As long as (housing) costs keep creeping up, the problem will keep growing."

Improving by Informing

Three weeks ago, the Chapel Hill Town Council took the first step toward improving housing availability for low-income families by approving a $150,000 trust fund. The revolving loan fund will allow nonprofit community development organizations to buy existing homes and sell them to low-income families.

"The irony of it is that there are so few poverty-stricken families in Chapel Hill," Dobelstein said. "The numbers are small, so if Chapel Hill wanted to do something you wouldn't have to raise the whole battleship, you know."

Dobelstein recommended that the University raise wages of employees in low-paying jobs. "We just need to get more money into people's pockets somehow," he said.

But University officials say increasing employee income will require action on the state level. "We don't control the salary range here," said Laurie Charest, associate vice chancellor for human resources. "The salary ranges are set statewide."

In addition to closing the gap between the wealthy and poor, Dobelstein said perhaps the best plan of action is to increase public awareness.

"I think it's important to keep this kind of thing in front of people, especially students," Dobelstein said. "(We need to) get a little visibility and encourage people to get out there. Even if students can't do anything about it, at least they begin to understand."

The City Editor can be reached at citydesk@unc.edu.