Published: February 23, 2009 05:04 pm      

Poverty in Virginia — New report underscores financial woes

An alarming new report from the Commonwealth Institute is warning that Virginia’s poverty level could increase by as much as 218,000 people if national unemployment levels reach 9 percent.

The Federal Reserve is predicting unemployment rates in the nation could hit 9 percent as early as this week.

If that happens, the Commonwealth Institute — a coalition of advocacy groups for the poor — says the number of Virginians living in poverty is going up between 159,000 and 218,000, the Associated Press reported Monday. If unemployment hits 8 percent, the poverty figure will rise between 122,000 and 169,000 — still an alarming statistic for Virginia.

It is estimated that close to 700,000 residents of Virginia are already living in poverty.

Michael Cassidy, executive director of the Commonwealth Institute, says such increases in unemployment are linked directly to rising poverty levels. Cassidy said the report gives the state a glimpse of what may be ahead as the economy worsens.

The study is the latest troubling news for the Commonwealth. Lawmakers in Richmond are still working to plug a $3 billion budget shortfall. The Virginia Department of Transportation has announced it is laying off 450 hourly employees across the Commonwealth next month in response to a $2.6 billion shortfall in transportation revenue. VDOT also is proposing a number of additional cuts, including the proposed closure of its residency office in Tazewell, which provides joint administrative functions for Tazewell and Bland counties.

Southwest Virginia has been hit hard by the deep budget cuts, and a number of worthwhile projects across the region have already been lost, including the Tazewell Day Report Center and the Virginia Wilderness Institute.

Clearly, these are difficult times for the Commonwealth of Virginia. And times are only going to get tougher if the number of unemployed in Virginia climbs by another 218,000. It is our hope that the federal stimulus package passed by Congress and recently signed into law by President Obama can provide some help in reversing this economic decline in Virginia.

While it is doubtful that every American — and every resident of Virginia — agrees with everything that is included in the stimulus plan, most will agree that something has to be done to stop the deepening recession and a further downward spiral of the economy.

The latest report from the Commonwealth Institute underscores the fact that some type of action is needed to jump-start the national and local economy.