1.
Recovering Lost Opportunities:
Supporting Today’s Workforce
for a Brighter Tomorrow
Community Condition Event
October, 2012
Lily French
Senior Policy Consultant
www.iowapolicyproject.org • www.iowapolicypoints.org • www.iowafiscal.org

2.
Cost of Living for Cedar Rapids MSA, 2011
(Linn, Benton & Jones Counties)
Single Parent Married Couple: Two Children**
One child* Two children** One Works Both Work
Monthly Expenses
Child care 531 845 - 845
Clothing & household expenses 289 369 398 398
Food 370 554 739 739
Health care 337 437 588 588
Rent and utilities 623 872 872 872
Transportation 560 560 560 840
Monthly total 2,711 3,637 3,157 4,282
Annual Total Basic Expenses 32,527 43,649 37,886 51,389
Income and Taxes
Before-tax earnings needed 36,151 49,769 39,110 57,977
Less: Income & payroll taxes (4,007) (6,155) (3,539) (6,633)
Plus: EITC & other credits 383 35 2,315 45
Net after-tax income 32,527 43,649 37,886 51,389
Family supporting hourly wage $18.08 $24.88 $19.56 $14.49
*One child age 2 or 3 **One child age 2 or 3, one child age 6-10

3.
On www.iowapolicyproject.org:
Go to your county and click for Cost of Living table

4.
Comparing Poverty Guidelines &
Family Supporting Wages
Family Type Family Supporting Federal Poverty
Annual Income Guidelines
Single adult $20,102 $10,890
Single parent, one child $32,221 $14,710
(under 5)
Single parent, two $42,471 $18,530
children (ages 3, 10)
Two parents, one child $31,711 - $41,143 $18,530
(under 5)
Two parents, two $37,108 - $50,193 $22,350
children (ages 3, 10)
Source: 2011 HHS Poverty Guidelines http://aspe.hhs.gov/poverty/11poverty.shtml

5.
Iowans Struggling to Get By in 2011
• Estimated proportion of working Iowa families with income
below a basic needs budget
Proportion Margin of
Below Error
Statewide
Single persons 28.0% 3.0%
Married couples without children 12.1% 1.8%
Married couples with children under 18 22.9% 2.3%
Single parents 74.0% 7.8%
All households 22.7% 1.4%
Linn County: All households 18.7% 2.8%
Source: The Cost of Living in Iowa, Iowa Policy Project, 2012

6.
Single parent, working full-time
with two children in Cedar Rapids (2010)

7.
With each level of attainment

8.
Education Benefits
Individuals & Communities
• With each successful educational attainment
– Earnings rise
– Unemployment and underemployment declines
– Living in poverty declines

9.
Education Benefits the State’s Budget
• Investments in postsecondary education for
low-income adults generates income tax
revenues more than double the state’s
program costs
– Associate’s degree - $3.70 for every dollar
– Bachelor’s degree - $2.40 for every dollar

10.
Contact Us
• Lily French
Senior Policy Consultant
lily-french@uiowa.edu
• Peter Fisher 319-338-0773
Research Director
www.iowapolicyproject.org
pfisher@iowapolicyproject.org