2009 cwda conference 10/14/09

October 14, 2009

Susie Smith Director, Californians for Economic Security Insight Center for Community Economic Development (www.insightcced.org); [email protected]; (510) 251-2600 x108

Igniting a Paradigm Shift in Policymaking, Programming, and Personal Planning:

The California Family Standard and Elder Index

2009 CWDA Conference 10/14/09 Page No. 2

Presentation Overview

• Introduction: What is the Insight Center and CFES?

• What’s wrong with our current poverty measure?

• What does it really cost to live in California? Family Standard & Elder Index

• How have the Family Standard & Elder Index been applied in CA?

• Perspectives from Other States


Insight Center Overview

Formed in 1969, the Insight Center for Community Economic Development (formerly NEDLC) is a

national research, consulting, and legal organization dedicated to building economic

security in low-income communities.

Insight Center Program Areas

Workforce Development Early Care and Education

Savings and Asset Building Legal Services


Californians for Economic Security (CFES)

CFES VisionAll Californians will be able to meet their basic needs

and advance to economic security

CFES MissionCatalyze a paradigm shift in California to more

accurately measure the real needs of working families and retired seniors

CFES ApproachResearch + Coalition Building + Advocacy = Change


CFES Strategies• Grassroots/Ground up:

- Local tools- Family Economic Self-Sufficiency Standard - Elder Economic Security Standard™ Index- Self-Sufficiency Calculator

- Organizing, coalition-building, local advisory boards- Public education and media campaigns- Local policy and program change

• Top Down:- Policy advocacy at state and federal levels


Family Economic Self-Sufficiency Project

• Developed in 1996, the Family Standard is calculated by Dr. Diana Pearce at the University of Washington

• The Family Standard has been calculated for 37 states and Washington D.C.

• Part of a national movement in partnership with D.C.-based Wider Opportunities for Women

• The California Family Standard is calculated for each of the state’s 58 counties


Federal Poverty Guidelines v. Elder Index

FPL:

- Based on cost of

food

- “One size fits all” in

every county and state

of U.S.

- Same across housing

types

- Same across health

status

- Describes poverty

Family Standard/Elder Index:

- ALL basic costs

- Varies by county

- Varies by household type

- Varies by health status

- Describes economic security


• County-specific cost-of-living index for people under 65

• Income needed for housing, food, health care, child care, transportation, other basic needs

• 156 family types

• Based on public data sources

• Used by: • Policymakers• Direct service providers• Public agencies• Foundations• Advocates• Labor unions• Working families

CA Family Economic Self-Sufficiency Standard


Family StandardLos Angeles and Humboldt Counties

Monthly Expenses

Los Angeles County Humboldt County

One Adult

Two Adults, Preschooler,

School-age Child One Adult

Two Adults, Preschooler,

School-age Child

Housing 1041 1300 636 837

Child Care 0 1129 0 1013

Food 234 729 241 752

Transportation 260 509 255 500

Health Care 102 303 142 487

Miscellaneous @ 10% 164 399 127 359

Taxes/Credits 403 498 252 325

Family Standard Per Hour (per adult) $12.51 $13.89 $9.40 $12.14

Family Standard Per Year $26,430 $58,659 $19,855 $51,293


• County-specific cost-of-living index for retired people 65 and older

• Income needed for housing, food, health care, transportation, other basic needs

• Individual and Couple

• 3 Housing Types

• Based on public data sources

• Used by: • Policymakers• Direct service providers• Public agencies• Foundations• Advocates• Seniors

CA Elder Economic Security Standard Index


Elder IndexAlameda & Riverside Counties

Monthly Expenses

Alameda County Riverside County

Owner w/o Mortgage

Renter, One

BedroomOwner w/o Mortgage

Renter, One

Bedroom

Housing $426 $1,055 $407 $835

Food $302 $302 $231 $231

Transportation $202 $202 $202 $202

Health Care = Good $293 $293 $241 $241

Miscellaneous @ 20% $244 $244 $216 $216

Elder Standard Index Per Month

$1,467 $2,096 $1,298 $1,725

Elder Standard IndexPer Year

$17,604 $25,152 $15,571 $20,703


Paradigm Shift: Using the Tools

• As a benchmarking tool for client progress toward self-sufficiency• Community Action Partnership of Riverside County and their local faith-

based organization partners use the Family Standard to help families with short-term and long-term financial planning and budgeting

• As a counseling tool • Chabot Community College (Hayward) and Berkeley City College use

the Family Standard & Calculator with students who are receiving CalWORKs to help them find the benefits for which they are eligible, and to ID careers with self-sufficiency wages

• Empower Clients (not their fault!)• Financial Planning (when/where to retire)



• As priority-setting criteria for funding streams and program agendas • United Way of the Bay Area has adopted the Self-Sufficiency Standard

as a tool to prioritize and measure the effectiveness of funding strategies.

• As eligibility criteria for services• Workforce Investment Boards in Sacramento, Pasadena, and San

Bernardino, and Contra Costa are among those that have adopted a self-sufficiency measure for service eligibility, enabling lower-wage workers to access training.

• SF Community Living Fund uses Elder Index for access to long term care services

• ElderHelp Concierge Club uses Elder Index to set program rates



• As a budget & advocacy tool for advocates and policymakers• SF, LA, and statewide resolutions to modernize the FPL, and

support MAP Act of 2009• AB 324 – The Elder Economic Dignity Act of 2009

(Institutionalize the Elder Index in CA)• Passed CA legislature with bi-partisan support • Over 100 organizational supporters including CWDA, C4A, AARP,

NASW, Women’s Foundation of CA, CARA, OWL, etc)• Make case to protect against cuts (e.g. LAO’s office)• Overall: create responsible and effective public policy v.

“bury your head in the sand FPL”



Mayor Villaraigosa on the Elder Index:

“LA's elderly population deserves every opportunity and resource to overcome obstacles to a secure retirement. The Elder Index is an objective standard that identifies the real costs and challenges confronting seniors each and every day. We look forward to using it to more effectively tackle and address the housing needs and economic distress of all of our City's seniors."



• As a program development and planning tool

• Strategic planning• Get “credit” for people already serving• Develop new funds, proof of families and seniors in

need• Measure program impact


How the Standard is Used: Programs

Example of Program Impact: Senior Community Centers of San Diego• San Diego Elder Standard Index (Renter): $22,822• Potiker Family Senior Residence in San Diego:

200 units of very low-income senior housing. Max income is $22,000.

• Average rents are about $450/month – or about $500 less than a market rate one-bedroom apartment. This is represents a savings of about $6,000 annually for each resident.

• A senior living at Potiker receives two meals daily – saving about $1,700 annually

• This senior, therefore, needs to earn a little more than $15,000 annually to have the rest of his/her needs met compared to a senior without assistance.


Building the Movement: Examples from Other States

• Illinois- Family Standard used to employ sector strategies and

respond to the demographics of the community

• Massachusetts- Elder Index used to increase Medicaid asset limits

from $2,000 to $10,000

• Washington- Family Standard used to counsel customers about

income goals, career paths, and work supports; assess outcomes through data collection and benchmarking goals


The Continuum of Economic Security

• (1) Striving – Basic Needs Unmet- below Family Standard/Elder Index

• (2) Surviving – Basic Needs Met- at Family Standard/Elder Index

• (3) Thriving – Basic Needs Met and Able to Save and Acquire Assets- above Family Standard/Elder Index

Family StandardElder Index

ThrivingStriving Surviving

Federal Poverty Guidelines

Savings/Assets


Susie Smith or Jenny ChungInsight Center for Community Economic Development (Oakland, CA)

[email protected] or [email protected]; (510) 251-2600

Contact Information

2009 cwda conference 10/14/09

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