States responding to the growing income gap.

The widening income gap between rich and poor has become worrisome to state governments. A new report discusses the causes of income inequality on a state-by-state basis while another recent report examines actions states are taking to address poverty and inequity.

Some of the impacts of this growing income gap include reduced social cohesion, reduced trust in government and lower participation in democratic processes. Income inequality can also have a direct effect on the availability and quality of affordable housing and can lower the quality of school systems dependent on local funding.

The growth of the American economy since the 1980s has not benefited everyone equally. While most of the benefits have been enjoyed by the wealthiest families, incomes of lower and middle income families have grown marginally or declined during this period. A 2008 survey commissioned by the Northwest Area Foundation, "Struggling to Make Ends Meet: Americans Worry About Income and Economy," reports that one in four households have an annual income below $25,000 and "more than one-third worry all or most of the time that their income won't pay the bills this year."

According to "Pulling Apart: A State-by-State Analysis of Income Trends," released this month and co-published by the Center on Budget and Policy Priorities and the Economic Policy Institute, contributing factors to the growing gap in income inequality are wage inequality, expansion of investment income, and government policies such as industry deregulation and tax cuts for the wealthy.

The renewed concern about poverty and opportunity reflects both the fear that the American Dream may be a myth and the belief that government policies are necessary to increase equity.

Another new report, "Seizing the Moment: State Governments and the New Commitment to Reduce Poverty in America," published this month by Center for Law and Social Policy and Spotlight on Poverty and Opportunity, provides evidence of growing political and public will in addressing these issues.

Many states are now helping to strengthen social safety nets and providing key work supports to address income inequality.

Some states are providing various forms of assistance and education and training programs to reach out to low-income families.

Virginia, Oregon and Arkansas provide limited cash assistance programs for former Temporary Assistance for Needy Families recipients that are working. Fifteen states have set their own food stamp asset policies, making more low-income families eligible for the Food Stamp Program. Kentucky, for example, has created a cam paign focused on increased education and training among lower-income populations.

States and the District of Columbia have started to address poverty. They have appointed commissions, established poverty-reduction targets or scheduled poverty summits. In 2004, Connecticut, for example, became the first state to enact a law setting a poverty target and aims to cut child poverty in half by 2014. Since then, Delaware, Minnesota, Oregon and Vermont have established their own poverty targets.

The Northwest Area Foundation survey found that nine in 10 individuals say it is "somewhat" or "very important" for local elected officials to help people that are struggling financially. Knowing their states' stances on these issues helps local elected officials ensure that needy families in their communities benefit from state programs and policies.

Details: "Pulling Apart: A State-by-State Analysis of Income Trends" is available at www.cbpp.org/4-9-08sfp.htm.

"Seizing the Moment: State Governments and the New Commitment to Reduce Poverty in America" is available at www.spotlightonpoverty.org.

"Struggling to Make Ends Meet: Americans Worry About Income and Economy" is available at http://programs.nwaf.org/pr/nwaf/info/08%20poll%20index.asp.