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Key Facts

About Poverty and Income in Texas

U.S. Census American Community Survey (ACS)

2014 Data

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Why care about poverty?

Research shows living in poverty is connected to negative outcomes,

both for individuals and society

Poverty is connected to people experiencing worse health outcomes.

Mothers living in poverty are more likely to have low-birth weight babies, increasing

babies’ chances of developmental delays and disabilities.1

According to parent reports, children living in poverty have worse health than children

not living in poverty.2

People living in poverty experience higher rates of chronic illness such as asthma,

diabetes and heart disease.3

Poverty is connected to greater challenges in education.4

Children living in poverty are less likely to complete high school, attend college and

complete college.

Children living in poverty tend to perform less well on standardized tests.

Children who are born into poverty are more likely to live in poverty and less likely to

have consistent employment as adults.5

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2014 Poverty Thresholds

The U.S. Census Bureau uses the federal poverty thresholds to estimate the number of

poor people in the United States. People in families with incomes below these thresholds

are considered to be “living below the poverty line.”

Slightly different from the thresholds, the Poverty Guidelines are used to determine eligibility for various

government programs and services. To learn more, visit http://aspe.hhs.gov/poverty/index.cfm.

U.S Census Bureau. Poverty Thresholds. http://www.census.gov/hhes/www/poverty/data/threshld/index.html

Size of FamilyPoverty Thresholds

(total annual income)

One person

(under 65)$12,316

Family of Two

(one adult, one child)$16,317

Family of Three

(one adult, two children)$19,073

Family of Four

(two adults, two children)$24,008

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Texas’ Total Poverty Rate Ranks 38th in the U.S.

17.2%

MS: 21.5% (highest)

NH: 9.2%

(lowest)

ACS Table R1701, 1-Year Estimates (2014), KIDS COUNT Data Center.

US poverty: 15.5%

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Rio Grande Valley Home to

Three Poorest Metro Areas in the U.S.

ACS Table GCT1701 (Metropolitan and Micropolitan Statistical Area), 1-Year Estimates (2014).

35.2% 34.0% 33.4%

29.6% 29.0% 28.6% 27.7% 27.7% 26.6% 26.3%

0%

10%

20%

30%

40%

Po

vert

y R

ate

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Texas Children Hardest Hit by Poverty

Poverty rate within each age group

ACS Table B17001, 1-Year Estimates (2014).

In Texas, children have the highest poverty rate. The poverty rate of Texas children is

7.4 percentage points higher than the poverty rate of the total Texas population.

10.9%

11.1%

12.9%

19.4%24.6%

0% 5% 10% 15% 20% 25%

65 and over

55 to 64

35 to 54

18 to 34

under 18

Age

(R

ange

)

Poverty rate fortotal TX population

17.2%

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Poverty rate within each age group from ages 0-17

Texas Children Under 5 More Than Twice as Likely

to Live in Poverty

ACS Table B17001, 1-Year Estimates (2014).

14.5%

20.8%

22.3%

25.5%

31.8%

0% 5% 10% 15% 20% 25% 30% 35%

18 and over

16 and 17

12 to 15

6 to 11

0 to 5

Age

(R

ange

)

In Texas, the poverty rate of children under 5 is

over twice that of adults (18 and over)

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Texas Children Face Elevated Poverty Rates

ACS Tables R1701 and R1704, 1-Year Estimates 2005-2014.

Recessio

n

17.6%15.8%

18.5%17.2%

24.9%22.5%

26.6%

24.6%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Pove

rty

Rat

e

Poverty (all ages)

Child Poverty

Rec

essi

on

Texas child poverty rates consistently higher than total population poverty rates.

Both rates increased after initial recession impact in 2008.

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Differences Persist in Texas

in Poverty Rates among Racial and Ethnic Groups

ACS Table S1701, 1-Year Estimates (2014).

9.3%

11.6%

17.2%

23.2% 23.2%24.9%

White, notHispanic

Asian Total TXPopulation

Black Other Hispanic

Pove

rty

Rat

e

Race/Ethnicity

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More than 1 million White Texans, 2.5 million Hispanic

Texans, live in poverty

ACS Table S1701, 1-Year Estimates (2014).

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

White, notHispanic

Hispanic Black Other Asian

Above Poverty Level

Below Poverty Level

1.02M

2.38M

1.72M

7.67M

10.39M

133K521K719K2.55M1.06M

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Hispanics are Over-Represented in Texas Poverty Population

ACS Table S0601 and S1701, 1-Year Estimates (2014).

White, not Hispanic,

43.4%

Hispanic, 38.6%

Black, 12.0%

Asian, 4.3% Other,

8.6%

Total Texas Populationby Race/Ethnicity

White, not Hispanic,

23.5%

Hispanic, 56.3%

Black, 15.9%

Asian, 2.9%Other, 11.5%

Texas Poverty Populationby Race/Ethnicity

Hispanics represent 39% of all Texans, but 56% of poor Texans

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Most Texans Living in Poverty are U.S. Citizens

Citizenship status within Texas poverty population

ACS Table C17025, 1-Year Estimates (2014).

82.1%, 3.72M17.9%, 809K

U.S. CitizensNon-Citizens

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Median Annual Household Income in Texas,

by Household Type

ACS Table B19126, 1-Year Estimates (2014).

$30,650

$44,803

$78,003

Female-Headed Male-Headed Two-Adult

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Female-Headed Households Over-Represented

in Texas Poverty Population

ACS Table B17023, 1-Year Estimates (2014).

Two-Adult, 71.8%

Female-Headed, 20.7%

Male-Headed, 7.4%

Total Texas Households

Two-Adult, 40.1%

Female-Headed, 51%

Male-Headed, 9.0%

Total Texas Households in Poverty

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Texas Women Have a Higher Poverty Rate

Within Every Age Group

ACS Table B17001, 1-Year Estimates (2014).

24.5%

15.8%

10.9%10.1%

8.9%

24.7%23.1%

14.8%

12.1% 12.6%

under 18 18 to 34 35 to 54 55 to 64 65 and over

Pove

rty

Rat

e

Male Female

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In Texas, Poverty Strongly Linked to

Level of Educational Attainment

ACS Table C17003, 1-Year Estimates (2014).

% in Poverty by Level of Educational Attainment

4.5%

10.0%

15.1%

28.5%

Bachelor's degree or higher Some college, associate'sdegree

High school graduate(includes equivalency)

Less than high schoolgraduate

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More than One-Third of Texans Live Below 200%

of the Federal Poverty Threshold

ACS Table B17002, 1-Year Estimates (2014).

Note: 200% federal poverty line is $24,632

for one person; $32,634 for family of two;

$38,146 for family of three.

7.1%

10.0%

20.8%

62.0%

0%

25%

50%

75%

100%

% o

f T

ota

l T

X p

opula

tion

Ratio of Income to Poverty Level

$24,632 (200% FPL for one person)

$12,316 (100% FPL for one person)

$6,158 (50% FPL for one person)

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ACS Table B19081, One-year estimates 2006-2014. Adjusted for inflation and expressed in 2014 dollars.

From 2006-2014 Average Income Rose

for only the Wealthiest Texas Households

$187,744 $195,048

$84,582 $85,882

$53,373 $53,559

$31,802 $31,422

$12,076 $11,873

2006 2007 2008 2009 2010 2011 2012 2013 2014

Fourth Quintile

Third Quintile

Second Quintile

Lowest Quintile

Highest Quintile

1.7 % ↓

1.2 % ↓

0.3 % ↑

1.5 % ↑

3.9 % ↑

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… and subtracts necessary expenses from income, such as…

Supplemental Poverty Measure (SPM)

SNAP benefits (food stamps), Social Security,

refundable tax credits (Earned Income Tax Credit,

Child Tax Credit), housing subsidies

Taxes, work expenses, medical out-of-pocket expenses,

child care expenses, child support paid

Short, K. (2014). The Supplemental Poverty Measure: 2013. http://www.census.gov/hhes/povmeas/methodology/supplemental/overview.html

The SPM provides a more correct poverty measure since it takes into account

benefits that help people meet basic needs, such as:

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The Overall U.S. Poverty Rate Rises Slightly

When Factoring in Benefits and Expenses

Short, K. (2014). The Supplemental Poverty Measure: 2013. http://www.census.gov/hhes/povmeas/methodology/supplemental/overview.html

14.9% 15.3%

Official Poverty Measure Supplemental Poverty Measure

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Under the Supplemental Poverty Measure (SPM),

national poverty rates

improve for children, worsen for adults and seniors

Short, K. (2015). The Supplemental Poverty Measure: 2014. http://www.census.gov/hhes/povmeas/methodology/supplemental/overview.html

14.4%

15.0%

16.7%

10.0%

13.5%

21.5%

0% 5% 10% 15% 20% 25%

65 and older

18 to 64

Under 18

Official Poverty Rate, U.S. Supplemental Poverty Rate, U.S.

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Short, K. (2014). The Supplemental Poverty Measure: 2013. http://www.census.gov/hhes/povmeas/methodology/supplemental/overview.html

Social Security has the strongest anti-poverty effect

under the Supplemental Poverty Measure

Medical Out of Pocket (MOOP) Expenses, +3.5

Work Expenses (ex: transportation), +2

Payroll Taxes (FICA), +1.6

Social Security, -8.2

Refundable Tax Credits, -3.1

SNAP, -1.5

Biggest Expenses that

Worsen Poverty Rate

Benefits Most Likely to

Improve Poverty Rate

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End Notes

1. Strulley, K. W., Rehkopf, D. H, & Xuan, Z. (2010). Effects of prenatal poverty on infant health: State earned income

tax credits and birth weight. American Sociological Review, 75(4), 534-562, Retrieved from

http://www.irp.wisc.edu/newsevents/workshops/2011/participants/papers/15-Strully.pdf. For effects of low-birth weight

on future health problems see Child Trends Databank (2014), Low and very low birth weight infants. Retrieved from

http://www.childtrends.org/?indicators=low-and-very-low-birthweight-infants

2. U.S. Department of Health and Human Services, Health Resources and Services Administration, Maternal and Child

Health Bureau. (2014). The health and well-being of children: A portrait of states and the nation, 2011-2012. Retrieved

from http://mchb.hrsa.gov/nsch/2011-12/health/index.html

3. Currie. J., & Lin, W. (2007). Chipping away at health: More on the relationship between income and child health.

Health Affairs, 26(2), 331-44. Retrieved from http://www.princeton.edu/~jcurrie/publications/Currie_tables_galleys.pdf

4. Ladd, H. F. (2012). Education and Poverty: Confronting the Evidence, Presidential address to the Association for

Public Policy Analysis and Management. Journal of Policy Analysis and Management, 31(2), 203-227. Retrieved from

http://fds.duke.edu/db/attachment/1979

5. Ratcliffe, C., & McKernan, S. (2010). Childhood poverty persistence: Facts and consequences. (Urban Institute’s Brief

Series, Perspectives on Low-income Working Families). Retrieved from http://www.urban.org/uploadedpdf/412126-

child-poverty-persistence.pdf

6. “Poverty thresholds are used for calculating all official poverty population statistics — for instance, figures on the

number of Americans in poverty each year. They are updated each year by the Census Bureau. Poverty thresholds

since 1973 (and for selected earlier years) and weighted average poverty thresholds since 1959 are available on the

Census Bureau’s web site. For an example of how the Census Bureau applies the thresholds to a family’s income to

determine its poverty status, see “How the Census Bureau Measures Poverty” on the Census Bureau’s web site. The

poverty guidelines are a simplified version of the federal poverty thresholds used for administrative purposes — for

instance, determining financial eligibility for certain federal programs. They are issued each year in the Federal

Register by the Department of Health and Human Services (HHS).” (http://aspe.hhs.gov/poverty/faq.cfm#thrifty)

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At the Center for Public Policy Priorities,

we believe in a Texas that offers everyone

the chance to compete and succeed in life.

We envision a Texas where everyone is healthy,

well-educated, and financially secure.

We want THE BEST TEXAS – a proud state

that sets the bar nationally by expanding opportunity for all.

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CPPP is an independent public policy organization

that uses data and analysis to advocate for solutions

that enable Texans of all backgrounds to reach their full potential.

We dare Texas to be the best state

for hard-working people and their families.

OUR POLICY PRIORITIES

• Expanding economic opportunity

• Ensuring health and wellness

• Investing in Texas