Poverty rose and incomes fell in Michigan last year, the U.S. Census Bureau reported Tuesday, providing further evidence of the economic downturn gripping the state.

Michigan was the only state where the poverty rate climbed between 2006 and 2007, according to the bureau's annual American Community Survey. While the nation's median household income climbed during the same period, Michigan's went the other way.

"It's really a depressing picture," said Amy Rynell, director of the Heartland Alliance Mid-America Institute on Poverty, an advocacy group based in Chicago.

The statistics reinforce the extent to which the auto industry's downward plunge has caused a ripple effect across the state.

Gov. Jennifer Granholm has emphasized diversifying Michigan's economy, promoting growth of industries such as defense contracting, alternative energy and film production. The Democratic governor and lawmakers this year boosted tax incentives for businesses adding jobs.

Last week, Granholm announced 20 new business expansions or relocations expected to bring $658 million in new investment to the state.

Whether such improvements will be enough to offset continued gloomy news from the automotive sector remains to be seen. But the 2007 statistics offer little reason for optimism.

Michigan's poverty rate was 14 percent, up from 13.5 percent in 2006 and a full percentage point above the national rate, which was virtually unchanged during the same period. The state's rate has grown steadily since 2008, when it was just above 10 percent.

Census data also showed Michigan's rate of "extreme poverty" — a yearly income of less than half the poverty threshold, or $10,325 for a family of four — jumped from 6 percent in 2006 to 6.5 percent last year. Eight years ago, the rate was 4.8 percent.

"We know that people with incomes that low are living in unsafe conditions," Rynell said. "Children probably are not getting enough healthy food to eat. People may be living in shelters. Seniors are likely skipping dosages of medication to make ends meet."

The child poverty rate increased from 17.8 percent to 19 percent between 2006-07, while the national rate stood at 17.6 percent.

Meanwhile, Michigan's 2007 median income of $47,950 was down 1.2 percent, or $596, from the 2006 median of $48,546. Its nationwide ranking slid from 24th to 27th.

"We know that many people are struggling harder and harder just to get by, and more vulnerable people are turning to public services for help," said Sharon Parks, president and CEO of the Michigan League for Human Services. "This reinforces the need to strengthen our strained safety net, and policymakers must pay attention to these startling figures."

In another report released Tuesday, the Census Bureau said 11 percent of Michigan residents had no health insurance coverage in 2007 — up from 10.4 percent in 2006 and 9.1 percent at the beginning of the decade.

But that was one category in which Michigan fared better than most other states. The national average of uninsured citizens was 15.5 percent, and Michigan ranked 11th best nationally in providing health coverage.

More than 18 percent of Michigan residents get some type of assistance through the state Department of Human Services, said Sheryl Thompson, acting director of outstate operations.

Although general cash assistance is declining, programs that provide food and emergency help with energy and medical bills are growing steadily. The Food Assistance Program is up 136 percent since December 2000.

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On the Net:

—U.S. Census Bureau: http://www.census.gov