Dr. Diana Pearce, University of Washington School of Social Work Ways and Means Committee Work Session March 16, 2009 The Self-Sufficiency Standard: What.

Dr. Diana Pearce, University of Washington School of Social Work

Ways and Means Committee Work Session March 16, 2009

The Self-Sufficiency Standard: What it is, What it tells us, and Its Practical Uses for Washington

What a Difference a Measure Makes

What is the Self-Sufficiency Standard?

What Does the Standard Tell Us about Poverty in Washington State?

How Is the Standard Being Used?

#1 – What is the Self-Sufficiency Standard?

The Standard is an alternative, more realistic measure of “poverty” than the federal poverty measure

So what is wrong with the FPL?

What’s Wrong With the FPL?

Based on only one cost - food

No geographical variation

Outdated family assumptions

Does not incorporate changes in costs, or “new” costs

Defining the Self-Sufficiency Standard

It measures how much income is needed to meet basic needs—without public or private assistance

It varies by location and family composition

It assumes that all adults work full-time

Percentage of Standard Needed to Meet Basic NeedsOne Adult, One Preschooler, and One Schoolage ChildSpokane County, WA 2009 (Preliminary)

Housing

Child CareFood

Health Care

Taxes-Net*

Misc.

Transportation

The Self-Sufficiency Standard Compared to the Federal Poverty Level for Select Family TypesYakima County, WA 2009 (Preliminary)

$0

$10,000

$20,000

$30,000

$40,000

$50,000

Adult One AdultOne Preschooler

One Adult One Preschooler One Schoolage

Two Adults One PreschoolerOne Schoolage

Federal Poverty Level Annual Self-Sufficiency Wage

The Self-Sufficiency Wage for Select Counties One Adult, One Preschooler and One Schoolage Child Washington, 2009 (Preliminary)

$16.04

$16.95

$18.71

$18.90

$20.11

$21.52

$23.76

$24.78

Walla Walla County

Cowlitz County

Klickitat County

J efferson County

Thurston County

Clark County

King County (South)* *

Snohomish County(West County Cities)

**Assumes public transportation use

The Self-Sufficiency Standard is Measureable Across Time and Place

Calculated for 37 states, plus NYC & DC

#2- What Difference Does the Standard Make?- It changes the number who lack sufficient income:

Households Below the Standard

Households Below the Federal Poverty Level

Source: Pearce, D.M. (2007). Overlooked and Undercounted: Wages, Work and Poverty in Washington State. Available at http://www.selfsufficiencystandard.org/docs/Washington%20State%20Demographic.pdf

The Difference the Standard Makes It Changes our understanding of WHO

LACKS ADEQUATE INCOME The most common households lacking

sufficient income are White Headed by married couples with children Have at least one high school educated

worker in the household

82% of households in Washington State with incomes below the Standard have a worker in them

The Difference the Standard Makes Nevertheless, the burden of insufficient income

falls disproportionately on families w/ children

0%

10%

20%

30%

40%

50%

Households withNo Children

Households withchildren

Households withone or more child

under 6

% Below Federal Poverty Level% Below the Self-Sufficiency Standard

Though Western urban Washington is twice as expensive, much higher proportions of rural Eastern households lack adequate income

The Difference the Standard Makes The Standard allows us to analyze what

costs are burdens & the Impact of PUBLIC POLICIES

The Standard shows the amount of each cost, not just food

The Standard shows how benefits & tax credits help family budgets

Impact of the Addition of Work Supports on Monthly Costs and Self-Sufficiency Wage One Adult with One Preschooler and One Schoolage ChildKitsap County (Excluding Bainbridge Island), WA 2009 (Preliminary)

Self-Sufficiency Standard

Working Connections Child Care, Basic

Food, WIC*, & Apple Health for Kids

Housing $694 $694

Child Care $1,006 $50

Food $539 $386

Transportation $279 $279

Health Care $355 $115

Miscellaneous $287 $287

Taxes $489 $249

Earned Income Tax Credit (-) ($5) ($0)

Child Care Tax Credit (-) ($110) ($15)

Child Tax Credit (-) ($167) ($23)

Making Work Pay Credit (-) ($33) ($33)

Self-Sufficiency Wage (Monthly)

$3,334 $1,990

Modeling the Impact of the American Recovery and Reinvestment Act Two Adults, One Preschooler, and One Schoolage ChildBenton County (Excluding Kennewick/Richland), WA 2009 (preliminary)

Standard Excluding Stimulus Changes

Standard Including Stimulus Changes

Sum of Monthly Expenses $3,414 $3,414

Taxes $450 $410

Earned Income Tax Credit (-) ($5) ($78)

Child Care Tax Credit (-) ($100) ($110)

Child Tax Credit (-) ($167) ($167)

Making Work Pay Tax Credit (-) NA ($67)

Self-Sufficiency Wage

Hourly $10.21 per adult $9.67 per adult

Monthly $3,593 $3,402

Annual $43,112 $40,827

#3 -How Is the Standard Being Used?

1/3 of Workforce Boards use the Standard as their legislated measure of “self-sufficiency”

Online self-sufficiency calculators – in PA, CA, NYC, & in Washington State

Benchmark for program evaluation – “how are we doing at helping families achieve self-sufficiency?”

Practical Applications of the Standard Target scarce program resources to those

most in need

Evaluate economic development initiatives – such as Green jobs – regarding the adequacy of the new jobs’ wages

Guidelines for career counselors, to help guide training & occupational choices

Questions? For more information on the Self-

Sufficiency Standard and to know more about who is below the Standard in Washington State please visit:

www.selfsufficiencystandard.org