93-12-14 Real Income for State Taxpayers Showed Record Decline During Recession

REAL INCOME FOR STATE TAXPAYERS
SHOWED RECORD DECLINE DURING RECESSION

     CHARLOTTESVILLE, Va., Dec. 14 -- After taking inflation into account,
the statewide
median adjusted gross income (AGI) for married couples fell 3.1 percent in
1991, according to a
study by the University of Virginia's Center for Public Service.  The
decline, which corresponded
to Virginia's recession, was the largest drop in real income since the U.Va.
center's analysis of tax
returns began in 1972, according to economist Samuel R. Kaplan, author of the
report, "1991
Virginia AGI."
     Adjusted gross income includes all types of income reported on Virginia
tax returns.  The
median value is found where one-half of returns are higher and one-half are
lower.  Median AGI
on married couple returns has proven to be a good proxy for median family
income.
     Medians $50,000 and over were found only in Northern Virginia
localities, the study shows. 
Medians in the $45,000 - $49,999 range were found in a band around Northern
Virginia as well as
in the suburbs of Richmond.  
     The lowest medians were mostly in the Southwest and Southside.
     Fairfax County, the state's most populous locality, had the highest
median, $63,768, while
Lee County in Southwest Virginia had the lowest, $21,689.
     Since 1980 median AGI for married couples has grown the fastest in
Rappahannock County,
averaging 7.2 percent per year.  Slowest growth (2.0 percent) was in
Dickenson County, located in
the heart of Virginia's coal-producing region.
     Inequality of income increased, continuing the trend since 1975.  Not
only did the statewide
index of income concentration increase slightly, rising from .363 in 1990 to
.364 in 1991, but also
equivalent measures rose in 132 of 136 counties and cities throughout
Virginia.  Among these
localities, the highest index was in Goochland County and City of
Martinsville (.420) while the
lowest was in the City of Manassas Park (.279).
                               ###
                                                December 13, 1993
     For interviews or additional information Samuel Kaplan may be reached at
(804) 982-5638. 
The report data for all localities are available by computer modem at (804)
982-4999.

 
Karen Castle, Office Services Specialist, University News Office
P.O. Box 9018, Booker House, Charlottesville, VA  22906
(804) 924-7116, kac@virginia.edu

[Submitted by: Karen A. Castle  (kac@uva.pcmail.virginia.edu)
               Wed, 15 Dec 93 09:22:04 EST]