How Much is Really Enough?Understanding Self-

Sufficiencyin the Border Region

Diana Pearce, Senior Lecturer & Director,Center for Woman's Welfare

University of Washington, School of Social Work pearce@u.washington.edu

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OverviewThe Self-Sufficiency Standard:

• The Why• The What• The How • The Where

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Median Income Compared toFederal Poverty Level

1963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

Median Family Income Current DollarsFederal Poverty Level

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.E8—Poverty guidelines for families of specified size, 1965–2010 (in dollars), http://www.ssa.gov/policy/docs/statcomps/supplement/2010/3e.html#table3.e8, and Gordon Fisher, U.S. Social Security Administration, The Development and History of the Poverty Thresholds, http://www.ssa.gov/history/fisheronpoverty.html.

Family of 4, 1963-2010

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The Federal Poverty Level is Too Low

$0

$10,000

$20,000

$30,000

$40,000

100% Federal Poverty Level

130% FPL = Food Stamps

Income Eligibility Levels for a Family of Three

165% FPL = AZ Child Care Assistance

185% FPL = WIC

175% FPL = AZ Kid-sCare (CHIP)

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The Federal Poverty Level does not vary by

Family Composition

2 Adults & 2 Young Kids

1 Adult & 3 Young Kids

2 Adults & 2 Older Kids

The Federal Poverty Level is $23,050 for all 3 of these families

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The Federal Poverty Level does not Vary by Place

San Diego Imperial Yuma

Pima Santa Cruz Cochise

Is the cost of living the same in these counties?

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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.

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Income Adequacy Should Measure the Market Basket of Needs

Housing Food Health Care

Transportation Child Care Taxes & Tax Credits

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How is the Standard Calculated?

San Diego County Pima County

$1,406 $860

$1,453$1,181

$780$718

$532

$548

$450

$450

$462

$376

$806

$360 Taxes and Tax Cred-itsMiscellaneousHealth CareTransportationFoodChild CareHousing

2 Adults1 Preschool-age child

1 School-age childMonthly

SSS= $5,889

Monthly SSS

= $4,494

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San Diego Imperial Yuma Pima Santa Cruz

Cochise

$14$10 $9 $9 $8 $8

$30$24

$19 $22$19 $19

Hourly Self-Sufficiency Standard Wages forCalifornia and Arizona Border Counties

One AdultOne Adult + One Preschooler + One School-age Child

The Standard Varies by Place and Family Type

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Laura Penny Executive Director

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Users of the Self-Sufficiency Standard in Arizona include: Non-profit organizations - for

public policy advocacy Government entities - for

evaluating economic development proposals

Individual businesses and business groups - to address childcare costs for their workers

The “Crunch”: The SSS reveals how Earnings & the CPI Are Not Keeping up

with Real Costs

San Diego County2000 - 2011

Yuma County2003 - 2012

32%

9%

59%

33%29% 24%

Two Adults with One Preschooler & One School-age Child

Median Earnings SSS (no taxes)SSS (no taxes) updated with CPI

The SSS Changes the Picture of Income Inadequacy

CT2000

NJ2005

CO2000

WA2000

PA2007

CA2007

MS2007

7% 7% 7% 8% 9% 10%

18%19% 20% 21% 21% 21%

31% 32%

Percentage of Households with Inad-equate IncomeFederal Poverty Level

Self-Sufficiency Standard

The SSS Shows the Impact of the Great Recession

PA2007

PA2010

9% 11%

21%26%

Percentage of Households with Inad-equate IncomeFederal Poverty Level

Self-Sufficiency Standard

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Using the StandardOnline tools help with:

• Financial literacy & basic budgeting

• Accessing benefits• Exploring strategies

to achieve financial, educational, and career goals

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No Work Supports:Self-Sufficiency Standard

Child Support, Child Care, SNAP/WIC,KidsCare, Housing

Housing; $860Housing; $345

Child Care; $1,181

Child Care; $33

Food ; $523

Food ; $180

Transportation; $288

Transportation; $288

Health Care ; $395

Health Care ; $137

Miscellaneous; $325

Miscellaneous; $325

Taxes; $596

Taxes; $86

Tax Credits; ($267)

Tax Credits; ($0)Child Support; ($227)

Standard Shows Impact of Works Supports

Total Wage Needed to Meet Basic Needs Without Work Supports: $3,901 per month

Total Wage Needed to Meet Basic Needs With Work Supports: $1,167 per month

Pima County, AZ 2012One Adult, One Preschooler, One School-age Child

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Standard is Used to Analyze Wages

$9$11

$14$41

$15$9

$35$10

$15$10

Food PreparationStock Clerks

Office Clerks GeneralGeneral Managers

Customer ServiceWaiters and Waitresses

Registered NursesCashiers

Administrative AssistantsRetail Salespersons

Hourly Median Wage

Top Ten Occupations in Arizona, 2012$23.60 per hourHourly Self-Sufficiency Wage: One Adult, One Preschooler, and One School-age Child in Pinal County, AZ

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Making Progress Toward Self-Sufficiency

Self-Sufficiency at Exit

Achieved SSS or bet-ter

More than half way to SSS

Less than half way to SSS

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 Standard www.selfsufficiencystandard.org

Diana Pearce, Senior Lecturer & DirectorCenter for Woman's Welfare

University of Washington School of Social Work pearce@u.washington.edu