These plants are large employers, employing 250 to 2,500 or more production workers. From 1980 to 1990, minority populations, as a percentage of their respective county populations, increased in all 16 counties with large meatpacking workforces (7 in Nebraska and 9 in Iowa). In 10 of the 16 counties, these increases were greater than the statewide increases. In Iowa, the percentage increase in the minority population in three of the nine counties with large meatpacking workforces exceeded the statewide increase of 24.8 percent. These increases ranged from 11.8 to 22.1 percent. Furthermore, the percentage of students with limited English proficiency significantly exceeded the statewide average of 1.3 percent of the total school enrollment in 5 of the 13 counties, ranging from 3.0 to 10.5 percent. Use of Medicaid

Like their states as a whole, each of the 23 counties with large meatpacking workforces in Nebraska and Iowa experienced an increase in the number of Medicaid recipients per 1,000 in population for 1996 compared with the number of recipients in 1990. Changes in Economic Conditions

From 1990 to 1995, many of the 23 counties with large meatpacking workforces in Nebraska and Iowa experienced improvements in their economic circumstances, according to two measures of economic well being—per capita incomes and retail sales (adjusted for inflation). In Nebraska, 6 of the 10 counties had increases that exceeded the statewide increases in at least one of these measures. The level of serious crime increased in five of the nine Iowa counties for which data were available, while the statewide average crime rate decreased for the periods reviewed. Community officials also noted that some workers and families who have been in the communities for several years have purchased single-family homes. While community officials characterized the physical housing conditions of the meatpacking plant workers as generally adequate, they expressed some concerns about the effect of increasing populations in their local areas on the affordability of housing and overcrowding. Illegal Aliens in the Workforce

INS has often found illegal aliens employed at meatpacking plants and has designated this industry, along with 14 others, as a priority concern in its efforts to deter the employment of illegal aliens in the United States. The District Director estimated that as many as 25 percent of the workers in meatpacking plants in Nebraska and Iowa were illegal aliens. Company officials said that despite their efforts to ensure that they hire only eligible workers, illegal aliens have gained jobs by presenting forged identification documents that the companies have not detected. Scope and Methodology

To examine changes in the Nebraska and Iowa counties with large meatpacking plant workforces, we interviewed and obtained information from officials in nine Nebraska and Iowa cities with large meatpacking workforces and obtained and analyzed data on population, school enrollments, health care, personal income, taxable retail sales, and crime from federal and state agencies.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed: (1) the population changes that have occurred in communities in Nebraska and Iowa with large meatpacking workforces; (2) the changes that have occurred in school enrollments, health care costs, economic conditions, and crime rates; (3) whether the housing conditions of plant workers and their families; and (4) if there is evidence that meatpacking companies have hired illegal aliens.

What GAO Found

GAO noted that: (1) from 1980 to 1990, 5 of the 16 counties with large meatpacking workforces in Iowa and Nebraska gained population; (2) minority populations (American Indians or Alaskan Natives, Asian or Pacific Islanders, African-Americans, and Hispanics) as a percentage of the total population grew in all 16 counties; (3) despite this growth, as of 1990, the proportion of minority populations in 11 of these counties remained smaller than the statewide proportions, which were 7.5 percent for Nebraska and 4.1 percent for Iowa; (4) school enrollments in 15 of the 23 counties with large meatpacking workforces increased more rapidly than statewide enrollments between 1987 and 1997; (5) furthermore, these counties experienced a large increase in the number of students with limited proficiency in English; (6) in 13 of the 23 counties with large meatpacking workforces, the increase in the number of Medicaid recipients per 1,000 in population exceeded the statewide increase of 54 percent in Nebraska and 39 percent in Iowa between 1990 and 1996; (7) in 18 of the 23 counties with large meatpacking workforces, there were improvements in at least one of two indicators of economic well-being--per capita incomes or taxable retail sales--from 1990 to 1995; (8) in many cases these improvements exceeded statewide gains; (9) the level of serious crime increased from 1986 to 1995 in 14 of the 19 counties with large meatpacking workforces for which crime data were available; (10) despite these increases, crime in 11 of the 19 counties was below statewide levels; (11) officials of nine Nebraska and Iowa communities said that the physical condition of housing occupied by newly employed workers is generally adequate; (12) the affordability of housing is a concern, especially for newly employed workers, and overcrowding has occurred among some workers and their families; (13) the Immigration and Naturalization Service (INS) has often found illegal aliens employed at meatpacking plants; (14) the Service's District Director for Nebraska and Iowa estimated that up to 25 percent of the workers in meatpacking plants in Nebraska and Iowa were illegal aliens; and (15) the efforts that meatpacking companies have made to avoid hiring illegal aliens have been hampered, according to INS officials, primarily because of the proliferation of forged documents and limited methods to ensure that those seeking employment are eligible to work in the United States.