L.A. INCOMES RISING, DATA SAYS; CENSUS FIGURES SHOW DECLINE IN POVERTY RANKS.

Byline: Daily News Staff and Wire Services

Los Angeles residents grew a little bit richer in 1997 and fewer lived in poverty, reflecting a national trend, the federal Census Bureau said Thursday.

The Los Angeles area's median household income rose from $37,765 in 1996 to $38,089 in 1997. And the poverty rate dipped, with 18.4 percent of area residents living in poverty in 1997, compared to 18.7 percent in 1996.

``In the middle of 1997, the local economy really started to roll,'' said Jack Kyser, chief economist with the Economic Development Corp. of Los Angeles County. ``We've got a lot of momentum right now.''

Los Angeles' prosperity mirrored conditions throughout the country, where a booming economy and expansive job market drove last year's household incomes and poverty rates to the pre-recession levels of 1989.

``The report shows that our growing economy continues to raise incomes, lift millions out of poverty and extend opportunity,'' said President Clinton, seizing on the good news. ``But we can't let these good times lull us into complacency. We must work even harder to make sure that as our nation races forward, we give everyone a chance to come along.''

The figures released Thursday offer strong proof that the middle and lower classes are benefiting from the economic recovery that opened the decade. Latinos and African-Americans, who comprise a disproportionate share of the nation's poor and whose income still lags significantly behind that of whites, showed the greatest earning improvements and poverty reductions from 1996 to 1997.

And yet poverty rates among both groups remain high, with 27.1 percent of Latinos and 26.5 percent of African-Americans living below the poverty line, defined as $16,400 for a family of four.

The data also shows that upper-income households have clearly fared better than their lower-income counterparts. The median income for the top fifth of money-earning households increased about $4,600, but rose only about $80 for households in the bottom fifth.

Thursday's report culminates three straight years of growth in the annual median household income - the amount at which 50 percent of the nation's households earn more or less. The figure jumped 1.9 percent to $37,005 in 1997, about the same as the 1989 figure when adjusted for inflation. That's up from $36,306 in 1996.

``The rich are getting richer and the poor are getting a little bit richer,'' said Daniel Weinberg, head of the Census Bureau's division of housing and household economic statistics.

And while the number of people living in poverty last year - about 35.6 million - was down only 900,000 from 1996, the national percentage of poor people fell from 13.7 percent to 13.3 percent, the lowest figure since 1991.

The South led all regions of the country in the percentage increase of median family income, rising from $33,166 to $34,345. The West followed at $39,162, up from $37,977, while the median figure in the Midwest increased from $37,418 to $38,316. The Northeast had the smallest increase, from $38,264 to $38,929.

Households headed by Latinos had a median income of $26,628 when adjusted for inflation, up 4.5 percent over 1996. The average income for African-American households jumped 4.3 percent, to $25,050. White household income increased by 2.5 percent, to $38,972.

Asian-Americans and Pacific Islanders had the nation's highest median household income, at $45,249.