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Study examines needs of lower-income Minnesotans

By Sara Quam
Southwest Minnesota's lower income residents and their concerns were the topic of a study released Thursday by the Wilder Research Center, Saint Paul.

Service agencies such as the Southwestern Minnesota Opportunity Council and Western Community Action sponsored the study that describes chief concerns for area residents of lower income status.

Some of the issues addressed are ones that Rock County has been talking about for years:

living wage jobs

affordable housing

child care, especially off-hour care or care for sick children

transportation

more affordable health insurance

A survey of social service organizations revealed that they wanted less red tape between agencies and easier access to emergency assistance.

Some of southwest Minnesota's problems are felt in Rock County and others are less prominent here as in other parts of the region.

The study illustrates that most job growth in the 18 county area is in lower-wage industries.

The southwest part of the state has a poverty rate greater than the state overall, but Rock County is about even with the state average of 8.7.

Unemployment hasn't been a big concern for Rock County as its rate has been consistently low, hovering around 3 percent for a few years. However, underemployment is an issue.

The city of Luverne is waiting for results of an underemployment study that was recently conducted. Underemployed people are those who want to, and are educated to, work in higher-skilled jobs than are currently available to them.

Luverne is also about to commission a housing study. Luverne Economic Development Director Tony Chladek said he has four candidates that gave cost estimates for the study, and the City Council will approve which one will do the survey. It will be started this summer with a completion date varying by which company conducts the study.

In the past, affordable housing in Luverne has been loosely defined to be about $80,000 and less.

Wages are lower in southwest Minnesota than the average wage elsewhere in the state. However, the new study said that property values are increasing more than wages so affording housing is more difficult in southwest Minnesota.

Along with housing and jobs, transportation is vital in rural areas where a dependable car is a necessity.

For those who need transportation, Heartland Express busing service helps Rock County. Terrie Gulden, Heartland director, said budgets have been tight in the past few years, but added that that's been the case for most businesses. Ridership has increased about 16 percent this year, but this can be attributed partly to more preschool children riding. But Gulden said many of Heartland's customers are lower income adults riding to appointments or work.

The southwest Minnesota study said that welfare has decreased in the region, but that isn't true for Rock County individually. Family Services Director Randy Ehlers said Rock County's welfare rolls have been steady at about 40 families. Some counties may have decreased, but Rock County's numbers are already so low that the county doesnÕt have much room for improvement.

For those who are trying to work their way off welfare, living in southwest Minnesota makes it more difficult. A survey of welfare recipients in the area found that one-fourth were working more than one job, and just as many were working more than 40 hours per week. Yet their monthly take-home pay was lower than in other parts of the state.

Emergency food and shelter assistance has remained constant in the region even though some welfare numbers have decreased.

Dorothy Dorn, who manages Rock County Food Shelf out of the Methodist church, Luverne, said about 10 families still get food there weekly.

The study summarized southwest Minnesota concerns. All may not apply to Rock County:

Wages are lower and poverty is generally higher than in other parts of the state, and most job growth is in lower-wage industries.

Child care during non-standard hours can be difficult to find. The region's relatively low wages may also make parents more prone to take higher-paying shifts and schedules in order to provide for families.

Housing costs are rising faster than wages, and people appear to be experiencing more serious housing crises before seeking help.

Cultural and ethnic diversity are growing, and immigrants are an increasingly important part of the regionÕs future.

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