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Orange County Benchmarking and Target Industry Analysis: Spotlight

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Figure 14: Per Capita Personal Income of <strong>Orange</strong> <strong>County</strong>, Indiana <strong>and</strong> the U.S., 1970 to 2009<br />

$45,000<br />

$40,000<br />

$35,000<br />

$30,000<br />

$25,000<br />

$20,000<br />

$15,000<br />

$10,000<br />

$5,000<br />

$-<br />

Source: Bureau of Economic <strong>Analysis</strong><br />

Indiana <strong>Orange</strong> United States<br />

To better underst<strong>and</strong> the composition of personal income, Table 8 breaks down the components<br />

comprising the bulk of personal income. <strong>Orange</strong> <strong>County</strong> is fairly similar to the state <strong>and</strong> nation in all<br />

categories except personal current transfer receipts.<br />

� Net earnings by place of residence (which includes wages earned at the workplace adjusted for<br />

government <strong>and</strong> social insurance contributions <strong>and</strong> residence) comprises the largest share of<br />

personal income. Wages <strong>and</strong> salaries are the primary component of net earnings, followed by<br />

supplements to wages <strong>and</strong> salaries (i.e., employer contributions to employee pension <strong>and</strong><br />

insurance funds <strong>and</strong> for government social insurance).<br />

� The smallest major category of income for all areas was dividends, interest <strong>and</strong> rent, comprising<br />

less than one‐fifth of each area’s personal income.<br />

� The remainder of personal income is derived from personal current transfer receipts, which are<br />

government payments to individuals for which no services are performed. Consistent with local<br />

community leaders’ intuitions, <strong>Orange</strong> <strong>County</strong> residents are more dependent on such<br />

government payments than are residents of the state <strong>and</strong> nation, primarily for medical benefits<br />

<strong>and</strong> retirement <strong>and</strong> disability insurance benefits (43.7 <strong>and</strong> 35.3 percent of current transfer<br />

receipts, respectively). The 27.8 percent of personal income coming from government payments<br />

might help explain recurring themes in the area such as the receipt of free or subsidized lunches<br />

in the county schools (51 percent in 2010), common perceptions that local citizens want “h<strong>and</strong>‐<br />

outs,” <strong>and</strong> the categorization of the county as being one of the poorest in the state.<br />

26

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