Homelessness and poverty are inextricably linked. Poor people are frequently unable to pay for housing, food, child care, health care, and education. Difficult choices must be made when limited resources cover only some of these necessities. Often it is housing, which absorbs a high proportion of income, that must be dropped. Being poor means being an illness, an accident, or a paycheck away from living on the streets.
    In 1997, 13.3% of the U.S. population, or 35.6 million people, lived in poverty (U.S. Bureau of the Census, 1998a). While the number of poor people remains has not changed much in recent years, the number of people living in extreme poverty has increased. In 1997, 14.6 million people -- 41% of all poor persons -- had incomes of less than half the poverty level. This represents an increase of over 500,000 from 1995. Forty percent of persons living in poverty are children; in fact, the 1997 poverty rate of 19.9% for children is almost twice as high as the poverty rate for any other age group.
    Two factors help account for increasing poverty: eroding employment opportunities for large segments of the workforce, and the declining value and availability of public assistance.