How Much is Really Enough Understanding SelfSufficiency in

How Much is Really Enough? Understanding Self-Sufficiency in the Border Region Diana Pearce, Senior Lecturer & Director, Center for Woman's Welfare University of Washington, School of Social Work pearce@u. washington. edu

Overview The Self-Sufficiency Standard: • • The Why The What The How The Where 2

Median Income Compared to Federal Poverty Level Family of 4, 1963 -2010 $80, 000 Median Family Income Current Dollars $70, 000 Federal Poverty Level $60, 000 $50, 000 $40, 000 $30, 000 $20, 000 $10, 000 75 19 77 19 79 19 81 19 83 19 85 19 87 19 89 19 91 19 93 19 95 19 97 19 99 20 01 20 03 20 05 20 07 20 09 19 71 73 19 19 67 69 19 19 63 65 $0 Source: U. S. Census Bureau, Current Population Survey, Annual Social and Economic Supplements, http: //www. census. gov/hhes/www/income/data/historical/families/index. html, U. S. Social Security Administration, Annual Statistical Supplemental, Table 3. E 8—Poverty guidelines for families of specified size, 1965– 2010 (in dollars), http: //www. ssa. gov/policy/docs/statcomps/supplement/2010/3 e. html#table 3. e 8, and Gordon Fisher, U. S. 3 Social Security Administration, The Development and History of the Poverty Thresholds, http: //www. ssa. gov/history/fisheronpoverty. html.

The Federal Poverty Level is Too Low Income Eligibility Levels for a Family of Three $40, 000 185% FPL = WIC $30, 000 $20, 000 $10, 000 165% FPL = AZ Child Care Assistance 175% FPL = AZ Kids. Care (CHIP) 130% FPL = Food Stamps 100% Federal Poverty Level 4

The Federal Poverty Level does not vary by Family Composition The Federal Poverty Level is $23, 050 for all 3 of these families 2 Adults & 2 Young Kids 1 Adult & 3 Young Kids 2 Adults & 2 Older Kids 5

The Federal Poverty Level does not Vary by Place Is the cost of living the same in these counties? San Diego Imperial Yuma Pima Santa Cruz Cochise 6

What is the Self-Sufficiency Standard? The Self. Sufficiency Standard defines how much income a family (of a given composition, in a given place) needs to adequately meet their basic needs— without public or private assistance. 7

Income Adequacy Should Measure the Market Basket of Needs Housing Food Health Care Transportation Child Care Taxes & Tax Credits 8

How is the Standard Calculated? 2 Adults 1 Preschool-age child 1 School-age child Monthly SSS = $5, 889 $806 $462 $450 $532 $780 $1, 453 Monthly SSS = $4, 494 $360 $376 $450 $548 $718 $1, 181 $1, 406 San Diego County $860 Taxes and Tax Credits Miscellaneous Health Care Transportation Food Child Care Housing Pima County 9

The Standard Varies by Place and Family Type Hourly Self-Sufficiency Standard Wages for California and Arizona Border Counties One Adult + One Preschooler + One School-age Child $30 $24 $22 $19 $19 $14 San Diego $10 $9 Imperial Yuma $9 Pima $8 Santa Cruz $8 Cochise 10

Laura Penny Executive Director 11

Users of the Self-Sufficiency Standard in Arizona include: v Non-profit organizations - for public policy advocacy v Government entities - for evaluating economic development proposals v Individual businesses and business groups - to address childcare costs for their workers 12

The “Crunch”: The SSS reveals how Earnings & the CPI Are Not Keeping up with Real Costs Two Adults with One Preschooler & One School-age Child Median Earnings SSS (no taxes) updated with CPI 59% 32% 33% 29% 24% 9% San Diego County 2000 - 2011 Yuma County 2003 - 2012

The SSS Changes the Picture of Income Inadequacy Percentage of Households with Inadequate Income Federal Poverty Level Self-Sufficiency Standard 19% 7% CT 2000 20% 7% NJ 2005 21% 7% CO 2000 31% 21% 8% WA 2000 21% 9% PA 2007 32% 18% 10% CA 2007 MS 2007

The SSS Shows the Impact of the Great Recession Percentage of Households with Inadequate Income Federal Poverty Level Self-Sufficiency Standard 26% 21% 11% 9% PA 2007 PA 2010

Using the Standard Online tools help with: • • • Financial literacy & basic budgeting Accessing benefits Exploring strategies to achieve financial, educational, and career goals 16

Standard Shows Impact of Works Supports Total Wage Needed to Meet Basic Needs Without Work Supports: $3, 901 per month Taxes, $596 Miscellaneous, $325 Health Care , $395 Transportation, $288 Food , $523 Child Care, $1, 181 Housing, $860 Tax Credits, ($267) No Work Supports: Self-Sufficiency Standard Pima County, AZ 2012 One Adult, One Preschooler, One School-age Child Total Wage Needed to Meet Basic Needs With Work Supports: $1, 167 per month Miscellaneous, Taxes, $86 $325 Health Care , $137 Transportation, $288 Food , $180 Child Care, $33 Housing, $345 Child Support, Tax Credits, ($0) ($227) Child Support, Child Care, SNAP/WIC, Kids. Care, Housing 17

Standard is Used to Analyze Wages $23. 60 per hour Hourly Self-Sufficiency Wage: One Adult, One Preschooler, and One School-age Child in Pinal County, AZ 18

Making Progress Toward Self-Sufficiency Seattle-King County: Using the Self-Sufficiency Standard & the online calculator with clients, 2004 -2008, 69% of customers had wages at 100% or above their specific Standard at exit Self-Sufficiency at Exit Achieved SSS or better More than half way to SSS Less than half way to SSS 19

Self-Sufficiency Standard www. selfsufficiencystandard. org Diana Pearce, Senior Lecturer & Director Center for Woman's Welfare University of Washington School of Social Work pearce@u. washington. edu