December 21, 1998
Contact: John Knapp
804) 982-5604

INCOME DISPARITIES WIDEN SIGNIFICANTLY IN VIRGINIA
	The income gap between richer and poorer Virginians "has
increased dramatically" in recent years, with a sizeable percentage of
families remaining below the poverty level in some areas of the state,
according to a study by the University of Virginia's Weldon Cooper
Center for Public Service.  Incomes in Virginia's major central cities
and many rural areas continue to lag those in suburban areas.
	Despite a strong economy and low inflation, many Virginians are
seeing little growth in the purchasing power of their incomes compared
to a decade ago, according to the study by economist John L. Knapp.
	The report gives figures for all Virginia localities on the
median adjusted gross income (AGI) on state tax returns for married
couples in 1996, the latest year with full data available.  The median
figure -- the level at which half of couples report more and half report
less -- is a rough indicator of median family income in the state, Knapp
said.
	The statewide median adjusted gross income for married couples
in Virginia in 1996 was $45,482.  While the figure was up slightly from
the previous year, after adjusting for inflation, it remained below the
inflation-adjusted incomes reported from 1987 through 1990.
	More than 16 percent of the state's 1996 tax returns for couples
showed joint incomes of less than $15,000, well below the 1996 federal
poverty threshold of $16,036 for a family of four.  Measuring income
disparities through tax returns doesn't include those with incomes so
low they don't have to file, Knapp pointed out.
	The five localities with the highest median incomes for couples
were all in Northern Virginia's Washington, D.C. suburbs:
	Fairfax County, $73,785
	Falls Church, $69,402
	Loudoun County, $69,152
	Arlington County, $62,617
	Prince William County, $59,624
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	The bottom five localities in the state were all in rural areas
of western Virginia with the exception of Northampton County on the
Eastern Shore:
	Northampton County, $26,300
	Grayson County, $26,170
	Dickenson County, $25,055
	Highland County, $24,976Ê
	Lee County, $22,969 
	The five localities with the lowest incomes had approximately 30
percent of married couples reporting incomes below $15,000.
	Virginia's large, older cities have experienced lower income-
growth rates than adjoining counties or suburban cities, Knapp said.
"New residential growth involving middle and upper income taxpayers has
occurred outside city limits." In all of the major central cities --
Alexandria, Charlottesville, Danville, Petersburg, Newport News,
Hampton, Richmond, Roanoke, Norfolk and Portsmouth -- the median income
reported by married filers rose at a slower average annual rate from
1990 to 1996 than in adjoining counties or suburban cities.
	Virginia is experiencing rapidly accelerating inequality of
income among its residents, Knapp said.  An index of income
concentration, which measures inequality and has been rising steadily
since the 1970s, rose a strong three percent in 1996 from the previous
year, he said. "This was the second consecutive year in which there was
a large increase in the index." 
	The rise in income disparities is seen not only in the state as
a whole but in almost all localities, Knapp said, with 124 of 135
localities showing a widening gap between wealthier and less wealthy
residents.
	Knapp said a number of factors are contributing to growing
income inequality nationally as well as in Virginia.  These include a
growing proportion of single-parent households; a growing disparity
based on education levels, with those with less education falling behind
dramatically; and the shift from a goods- producing to a service
economy, with wages in service industries generally low. The large
numbers of the baby-boom generation in the work force also has had a
depressing effect on overall wages, he said. 
	Complete statistics for the "Virginia Adjusted Gross Income"
report for all Virginia localities are available on the U.Va. Cooper
Center for Public Service Website at
http://www.virginia.edu/~cpserv/vastat/income.html 
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	For additional information or interviews John Knapp may be
reached at (804) 982-5604. Television reporters should contact the TV
News Office at (804) 924-7550.

see attached table