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Two out of every five New York City youths live in poverty, compared to one in five nationally, a report from the Federation of Protestant Welfare Agencies Inc. in New York state said Thursday. A former welfare mother, Theresa Funiciello, now a fellow at Columbia University, authored the report that also found one out of every four children in New York state is poor. Federation officials said the findings point out the need for larger welfare checks. "It would seem self-evident that increased welfare benefits for needy families would be the most imediately effective method of reducing child poverty," said Mary McLaughlin, Federation executive director and chief executive officer.