Working people in the state are far worse off today than they were 35 years ago, according to a new report released Thursday by the advocacy group Connecticut Voices for Children.

Had worker pay in the state kept pace with productivity gains, Connecticut employees would make a median wage of more than $35 today, according to the report.

Instead, the median wage stood at $20.46 in the most recent period for which statistics are available.

Average pay for workers of color ranges between $7.25 and $8 less than for white employees. Only half of black Connecticut residents age 16 and up are working in the state, according to the report, the lowest proportion on record.

"Policymakers should keep these growing disparities in mind during current budget negotiations," Ellen Shemitz, executive director of Connecticut Voices for Children, said in a statement. "When we elevate demands for corporate tax relief above critical investments in health and educational services, we undermine the overarching economic goal of sustainable and shared prosperity."

Among the advocacy group's policy prescriptions are to provide more tax credits for families and balance property taxes so that schools get the resources they need in every community.

The report cited some positive trends in the state, including lower levels of unemployment over the past year.

Still, "the recovery has left behind many Connecticut residents, in particular people of color, young workers, those paid low wages and many with relatively low levels of education," a summary of the report said.

The report cited a 3 percent drop in median hourly pay over the past year and an even more severe 11 percent reduction over the past six years.

This has caused a "dramatic and increasing gap between the wealthies residents and the rest, making Connecticut second only to New York in income inequality," the report said.

Struggling families equal difficulties for children, the report said, threatening the health, school performance and future economic success of the next generation. 

One in 20 white children is in poverty, and the rate for blacks and Hispanics is one in three, according to the report.

"In failing to provide opportunities for success for all our children, we put the entire state's long-term success at risk," the report said.

l.howard@theday.com

Twitter: @KingstonLeeHow