VIRGINIANS' REAL INCOME IS ON THE RISE AGAIN, BUT WITH GROWING DISPARITIES BETWEEN HIGHEST AND LOWEST CHARLOTTESVILLE, Va., Dec. 13 -- The buying power of Virginians' income is on the upswing again after a period of decline, but there are growing disparities between the highest and lowest incomes in many localities around the state, according to a study by the University of Virginia's Weldon Cooper Center for Public Service. The median adjusted gross income (AGI) on married couples' state tax returns for 1992 rose to $40,454, an increase of 4.6 percent from the previous year, according to the study by economist Samuel R. Kaplan. Adjusted for inflation, the figure still rose 1.3 percent, the first increase after three consecutive annual declines, Kaplan said. The median figure for all taxpayers' returns was $23,261, up 4.1 percent. Fairfax County in Northern Virginia had the highest median for married couples' tax returns, $67,096. That is more than three times higher than the figure for Lee County in Southwest Virginia, $22,099, the state's lowest. The other top four localities were all in Northern Virginia: Falls Church, $63,659; Loudoun County, $59,966; Arlington County, $56,989; and Prince William, $54,818. Since 1980, Rappahannock County, located on the edge of Northern Virginia, has enjoyed the fastest growing median income for married couples, averaging 6.8 percent annual growth, Kaplan said. However, an index measuring inequality of income distribution among all Virginia taxpayers has been rising steadily since the mid-1970s, Kaplan said. Studies of income inequality nationally have cited, among other factors, a growing proportion of single-parent and non-family households, and a growing income split based on education levels of households. The national and state shift from a goods-producing to a service-providing economy has increased inequality, because wages are generally lower in services, Kaplan said. The inequality index rose in 95 of the state's 136 cities and counties, with Goochland County outside Richmond having the highest disparity. The Charlottesville area had the highest inequality among metropolitan areas. ### December 12, 1994 For interviews or additional information Samuel Kaplan may be reached at (804) 982-5638.