Report: Poverty rate not as high

Overall income in Cleveland is much higher than estimated, study shows.
CLEVELAND (AP) -- City officials are encouraged by new research that suggests Cleveland isn't as impoverished as previous research had shown.
The study concluded that Cleveland's buying power is greater than was indicated by a U.S. Census Bureau analysis released in August that ranked it as the big city with the highest poverty rate in the country.
"It shows there are disposable dollars in Cleveland neighborhoods that can support businesses and retail," said Daryl Rush, the city's community development director.
The study due for official release next week was done by Social Compact, a Maryland-based nonprofit that tries to show the hidden buying power in urban areas. It studies utility bills, credit reports, auto registrations and other sources to compile population and income estimates.
The city's population is much larger than the official government estimate of 461,000, Social Compact said. Its study claims Cleveland's population is actually about 588,000.
Overall income in Cleveland is much higher than estimated -- $7.6 billion instead of the 2000 Census estimate of $6.4 billion, according to Social Compact.
The study also found median home value in Cleveland to be $80,000, higher than the $71,000 listed by the Census.
Experts disagree
While the study provides a rare glimmer of hope for the city, experts already dispute at least some of the findings. Mark Salling, a demographer at Cleveland State University, said the Census often misses a few thousand people during its counts. But he said there's no way the Census missed more than 120,000 people.
"It's too extreme to accept at face value," Salling said. "It has no credibility in my mind."
But Rush praised the methodology behind Social Compact's report.
"It's a very good approach looking at the market," he said. "The traditional market-analysis model misses figures that are important to showing purchasing power."
City Council President Frank Jackson said the research affirms that businesses can be profitable in city neighborhoods.
Karin Ottesen, chief executive officer of Social Compact, said the group's findings in other cities have led to large investments.
The study was paid for by Key Bank and the Cleveland Foundation.
Mayor Jane Campbell on Friday held her second community summit on strategies to reduce poverty.
Greg Brown, executive director of the Center for Community Solutions and a top adviser to the mayor on poverty, said he will continue to work on a detailed strategy to help the working poor.