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Significant Findings
The 2000 U.S. Census shows that the average income of people in New York whose income is in the bottom quintile (lowest 20%) fell by $794, or 5.9%, over the past 20 years, to $12,639. During the same period, average income among the top 20% of households rose by $56,812, or 54.1%, to $161,858. The top quintile had an average income of nearly thirteen times that of the lowest quintile. Twenty years ago that difference was only eight times as much.
Cortland County's economy lagged behind the growth rate of the national economy in the 1990s. Local job creation faltered just as the federal Welfare Reform Act of 1996 was enacted. This legislation put limits on the number of years a family could collect benefits. Still many families left welfare and entered the labor market.
This county, not unlike the nation, experienced a decade of growth in service sector jobs and a decrease in manufacturing jobs. Between 1990 and 2000, there was a 60% decrease in goods-producing jobs in the county. The manufacturing jobs lost were generally higher paying jobs with benefits. The entry-level service sector jobs that took their place were often part-time, minimum wage and without benefits. This made the transition from welfare to work difficult and resulted in people working more hours per week at several different jobs. Persons with pre-existing health conditions reported that it was difficult to find jobs that had health benefits. The high medical costs for people with disabilities and/or serious medical problems caused some to quit their jobs in order to obtain Medicaid. In January 2002, the NYS Legislature passed a bill for a Medicaid Buy-In Program. This allows persons with disabilities to hold a decent job and to purchase health insurance through Medicaid at a rate based on their ability to pay.
The new millennium has seen a renewed vigor in Cortland's economic development. Since 2000, there has been an infusion of new monies into Cortland County: $80 million in private sector investment in Cortland County (primarily through Borg Warner and Impact Sports); $8 million in small business loans were granted; and the state and federal government provided business and workforce development grants amounting to $8 million. The designation of Cortland County as an Empire Zone occurred in June 2001. This state program provides financial and tax incentives for businesses within the specified zone to remain in the county and for new ones to locate here. As of April 2002, 23 area businesses have been helped by this economic incentive package as they have invested $12.5 million into their businesses. Also NYS invested $2 million in Cortland County for farmland protection in the year 2000.
Yet, the county unemployment rate still remains higher than those of contiguous counties and the state as a whole. People need to work and they need enough wages to support the basic necessities of life. The cost of living index as a method of measuring the adequacy of wages is, by most accounts, outdated. It measures the cost of common items in a food basket. This was a valid measure 40 years ago but the percent of family income spent on housing now far exceeds the percent spent on food. Minimum wage jobs cannot support a family or even an individual. A new movement is advocating a livable wage standard to evaluate the adequacy of wages. This new standard takes into account all of the costs of basic necessities by geographic area. It looks at how much a family needs to be self sufficient in order to maintain their health and human dignity. Table EW-2 shows those data for Cortland County.
Agriculture still plays a significant role in the county's economy, but there are increasingly fewer farms. The total value of Cortland's agricultural products sold in 1997 was $37,447,000, a 15% decrease from the $43,204,000 in 1992. The county is known for its dairy industry. Milk sales account for 82% of the total value of agricultural products sold in the county from 164 dairy farms. There are 31,000 cows and calves in the county and 16,000 are involved in the production of 32.5 million gallons of milk per year. The number of sheep and cows is on the rise.
The Maple Festival brings merited attention to Marathon and the county's 15 local producers who are responsible for 3,725 gallons of maple syrup each year. Logging is also a large industry in the county.
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