Poverty down, income
up, Hawaii defies
national trend

Hawaii's strong economy is bucking a national trend, with an increase in median household income and a reduction in the number of people in poverty, according to a new census report released yesterday.

The percentage of people without health insurance remained constant at about 9.9 percent, the second-lowest in the nation.

Median household income here rose to $54,841 for the two-year period 2003-2004, a 6.6 percent increase over the previous two years. Median income refers to the point at which half of households earn more and half earn less. The average increase in the cost of living in Hawaii over the same period was 2.8 percent a year.

The Census Bureau uses two-year averages to measure change in states because it is more statistically accurate. It uses three-year averages to compare states with each other.

The percentage of people below the federal poverty level also decreased over the two-year period, from 10.3 percent in 2002-2003 to 8.9 percent in 2003-2004.

Economists say the Hawaii figures in the census report "Income, Poverty and Health Insurance Coverage in the United States: 2004" reflect two factors: slower growth in population compared to income, and a robust economy.

"The visitor industry continues to do well. Construction continues to do well, and we see growth in almost every sector," said Pearl Imada-Iboshi, the administrator of the state Research and Economic Analysis Division of the Department of Business, Economic Development and Tourism.

But state Rep. Dennis Arakaki, chairman of the House Health Committee, said the report doesn't take into consideration Hawaii's high cost of living.

"If poverty rates are based on income, yes, we may be doing better than other states," Arakaki said. "But when you think about how much it costs to live here, I think we end up having more people living in relative poverty."

Arakaki also said that while Hawaii is second only to Minnesota in the number of people with health insurance, the state has done better in the past and can do better in the future.

"I still think 9.9 percent is too much. I'd like to see us be the first state in the country with zero uninsured, or at least be able to say that everyone has access to quality health care," said Arakaki (D, Alewa Heights-Kalihi Valley-Salt Lake).

Nationwide, the census report showed the number of Americans without medical insurance rose for a fourth straight year, to a record high, and the poverty rate climbed to a six-year high.

Median household income remained at $44,389, unchanged from 2003, and the number of people without health insurance edged up by about 800,000, to 45.8 million people, although the percentage of uninsured remained the same, at 15.7 percent.

Among racial and ethnic groups, blacks had the lowest median income and Asians the highest, followed by native Hawaiians and Pacific Islanders. Native Hawaii and Pacific Islanders saw a 4 percent increase in their median income, using two-year averages, to $54,378, but because of the sample size, the Census Bureau says it is statistically unchanged.

Hawaii snapshot Here's how Hawaii compares with the United States, according to the Census Bureau, which averaged the three years 2002 through 2004: Median household income: Hawaii $53,123 U.S. $44,473 People living in poverty: Hawaii 9.7% U.S. 12.4% People without health insurance: Hawaii 9.9% U.S. 15.5%