setting the standard for america’s working families the family economic self-sufficiency project...
TRANSCRIPT
Setting the Standard for America’s Working Families
The Family Economic Self-Sufficiency Project and the Self-Sufficiency Standard
Presented by:Joan A. Kuriansky, Executive Director Wider Opportunities for Women, Inc., Washington, DC
1001 Connecticut Avenue, NW, Suite 930, Washington, DC 20036
2
Today’s Presentation
Wider Opportunities for Women Background on the Family
Economic Self-Sufficiency (FESS) Project
What the Self-Sufficiency Standard Is and How It Is Calculated
How the Standard Has Been Used
3
Why WOW Launched the FESS Project
Our Challenge: How to measure the circumstances and obstacles facing
low- income families trying to become economically secure?
How to develop programs and policies that increase opportunities for low-income families that move families toward economic self-sufficiency
How to affect the public and policy makers about the needs of these families?
How to mobilize a community to act with and on behalf of these families?
4
The Family Economic Self-Sufficiency Project
The Six Strategies for Self-Sufficiency:
Targeting high wage jobs
Promoting NTO for women
Micro credit
IDA
Functional Literacy
Self-Sufficiency Standard
5
The Family Economic Self-Sufficiency Project
Who we are today:
36 State partners with state wide coalitions representing over 2,000 community based organizations, state and local government, employers and labor.
6
What is the Self-Sufficiency Standard? Amount of income required to meet
basic needs (including taxes) in the regular “market place” w/o public
subsidies or private/informal subsidies Public subsidies = Food Stamps,
Medicaid, subsidized child care, etc.
Private subsidies = free baby-sitting by a relative, food provided by churches or food banks, shared housing, etc.
Lead Researcher: Dr. Diana Pearce, University of Washington
7
How is the Standard Different from the FPL
The FPL is based on 2-parent family modelassumes only 1 parent works in 2-parentfamilies & no workers in single-parent families.
The Standard assumes that all adults work full-time—includes costs of working, i.e., transportation & taxes, & for families with young children, child care.
The FPL is based on the cost of food and assumes that
food is 1/3 of the family budget.
The Standard is calculated differently—based on costs of all basic needs, updated annually, allowing costs to increase at different rates.
8
How the Standard & povertymeasure are different
The FPL only distinguish by family size andnumber of children
The Standard varies costs by the age of children—especially important for child care, but food and medical care costs also vary by age.
The FPL assumes costs are the same, no matterwhere you live
The Standard varies by geographical location—most important for housing, but also geographic variation in costs of child care, health care & transportation.
9
Assumptions
All Adults work full time No family members with special needs No frills budget No one time purchases ( furniture, car,
appliances) No savings No loan payments
10
7 Basic Categories of Expenditures
Housing: Fair Market Rents set by HUD, including basic utilities
Food: USDA Low-Cost Food Plan Child Care: State Child Care Market Rate Survey Transportation: Public Transportation or Costs of
owning and operating an average car (Natl. Assoc. of Insurance Commiss. on Consumer Expenditures)
Health Care: Average employee premiums and out of pocket costs for employer-sponsored insurance
Miscellaneous: 10% of all other costs Taxes: Federal income and payroll taxes, state and
local sales taxes minus low-income tax credits.
The Self-Sufficiency Standard for Los Angeles, CA 2003
One AdultOne Adult, One
Preschooler
One Adult, One Preschooler, One
Schoolage
Two Adults, One Preschooler, One
Schoolage
Monthly Costs
Housing $807 $1,021 $1,021 $1,021
Child Care $0 $672 $1,056 $1,056
Food $182 $276 $411 $565
Transportation $242 $248 $248 $475
Health Care $72 $219 $238 $276
Miscellaneous $130 $244 $297 $339
Taxes $295 $462 $534 $583
Earned Income Tax Credit (-) $0 $0 $0 $0
Child Care Tax Credit (-) $0 -$60 -$105 -$100
Child Tax Credit (-) $0 -$83 -$167 -$167
Self-Sufficiency Wage-- Hourly $9.83 $17.03 $20.07 $11.50 per adult
Monthly $1,729 $2,998 $3,533 $4,049
Annual $20,751 $35,977 $42,392 $48,590
12
Percentage of Income Needed to Meet Basic Needs, 2002 Maricopa County Arizona – one parent, one preschooler,
one school age
H e a l t h C a r e 9 %
C h i l d C a r e2 6 %
H o u s i n g2 4 %
M i s c e l l a n e o us
8%
T a x e s - N e t*
1 3 %
F o o d 1 2 %
T r a n s p o r t-
a t i o n
8 %
13
The Standard Compared to Other Benchmarks, 2002 (Tucson, AZ - one parent, one preschooler, one school age child)
$8,436
$15,020$13,898
$18,432
$34,159
$44,300
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
Welfare and FoodStamps*
Federal PovertyLine
Full-TimeMinimumWage***
Tucson LivingWage**
Self-SufficiencyWage
Median FamilyIncome
50%
14
The Standard Helps Us Understand
It is not about bad budgeting It is not just about the poor- a large part of the
population falls in the gap There is little or no cushion when things go wrong To get by month to month, families often have to
make hard choices• Run up credit bills or take out usurious loans;• forsake needed medical care or obtain free food• Many families don’t get by• Foreclosure, family stress, substance abuse,
domestic abuse
15
The Impact of Work Support
#2 #3 #4
Self-Sufficiency Standard
Child Support
Child Care & Health Care[Medi-Cal]
Housing, Child Care, Food Stamps & Health Care [Healthy Families]
Housing $921 $921 $921 $315
Child Care $1,496 $1,496 $0 $0
Food $325 $325 $325 $200
Transportation $49 $49 $49 $49
Health Care $288 $288 $0 $104
Miscellaneous $308 $308 $308 $308
Taxes $818 $686 $205 $67
Child Care Tax Credit (-) -$80 -$80 $0 $0
Child Tax Credit (-) -$83 -$83 -$74 $0
Child Support $0 -$309 $0 $0
Monthly Self-Sufficiency Wage $4,041 $3,600 $1,734 $1,043
Total Federal EITC (annual)
$0 $0 $2,179 $3,888
Monthly Costs:
#1 SUBSIDIES
Impact of Subsidies on Monthly Costs, Single Parent w/ One Infant & One Preschool-age Child, Contra Costa County, CA (Oakland PMSA), 2000
16
“Coming Up Short” National Snapshot of Impact of
Wages and Work Supports
Minimum wage covers only 34% of costs on average. Subsidized childcare makes a significant difference
(can reduce cost by as much as 35%)
At $12/hour a family meets only 72% of its costs on average.
Key is the interaction between state and federal policy.
17
“Overlooked and Undercounted”
Report shows how California families are faring in relation to the Standard - 1/5 of SF Bay Area below SSS; 1/3 rd in L.A.
Shows not just who is below the Standard, but what their
characteristics are - more than 1/2 Latino households- more than 1 out of 4 households with one full time worker can’t meet basic needs- 78% households with 4 or more children are likely to live below self sufficiency
Broadens discussion about whether which policies and programs are working w/ info on who is “making it” and who is not
18
How the Standard Has Been Used
To affect policy changes:
Assess impact of different work support policies
Establish co-payment schedules for childcare assistance
Evaluate tax reform policies, sales tax vs change in municipal a income state tax
Establish living wage ordinances
19
How the Standard Has Been Used?
To affect change in workforce policy: WOW and NAWB survey-more than 30% of
Local WIB’s used self sufficiency measure like WOW’s to affect policy
Expand eligibility for intensive and training services
Assess segments of job seekers who are being served
Direct training money Goal in economic development/sector projects
20
How the Standard Has Been Used?
To assess program effectiveness:
VA Joint Legislative Audit and Review Commission (JLARC) used VA Standard to assess economic outcomes for DSS clients
To assist individuals and their caseworkers
• NYC Head Start and welfare offices
• Seattle One Stop counselors
• Philadelphia Office of Aging
21
The Budget Worksheet and Self-Sufficiency Calculators
PA piloted The Self-Sufficiency Standard Budget Worksheet and now there are online Self-Sufficiency Calculators in NYC, IL, and WA
Starts w/ the Self-Sufficiency Standard Lets individual plug in real costs &
subsidies Tests various wages ability to cover costs
22
How the Standard Has Been Used
To affect Public debate:
Miami Prosperity Campaign Wyoming Family and Children Initiative The Bay Area “Bottom Line Report” State legislation to institutionalize standard Federal legislation
23
Moving Forward:Public Policies to Promote Self-Sufficiency
-Renew investment in job skills training aimed at good paying jobs
-Expand access to higher education
-Economic development strategies targeted to quality jobs
-Increase minimum wage
-Expand of public or subsidized health insurance
-Streamline application process for public benefits
-Tax relief for low-income working families
-Stronger regulation of high-cost financial services
-Subsidized saving programs
-Family leave benefits/unemployment insurance
24
How You Can Be Involved …
Contact:
Wider Opportunities for Women
1001 Connecticut Ave, NW Suite 930
Washington, D.C. 20036
(202) 464-1596
www.SixStrategies.org
Kate Farrar, FESS Program Associate