NEEDS updating for methodology & discussion of tax added!!!! – pull from Peter’s methodology slidesThe family budgets we use in this study represent a very frugal and modest living standard. (Mention- our report has info for all Iowa counties across 21 different family types)Lead with Budget assumptions: USDA low cost food plan, HUD 40% market rate, transp. to/from work., as well as health care, federal and state income taxes, and clothing and other necessities. Child care -- Assumptions on ages of children – 1 child is 2-3 years old, 2nd child is 6-10(Appendix: complete explanation of the methodology). No money is included for debt payments or skill training; for entertainment, vacations, or restaurant meals, or even for savings for retirement or a child’s college education. You can see child care, housing, and transportation are the three largest components of a family budget. These expenses are exactly what get undercounted when determining federal poverty thresholds.Note that child care and health care are county-specific; food is national, clothing and HH expenses based on the midwest. Housing and transportation are county specific, as are property taxes (because rent is county level). Determined Single parent Family supporting wage for 1 child $18.08, 2 children $24.88. Two parents with 2 children, 1 working, 1 at home $19.56 with both working $14.49 each.Something here about total expenses; then we calculate what their earnings would need to be to bring home their calculated expenses.
While I have provided this information for the Cedar Rapids, MSA… (and just 4 different family sizes), we do have information on the Iowa Policy Project’s website for a greater number of family types for each county in Iowa – just click and the information will pop up.
Recovering Lost Opportunities: Supporting Today’s Workforce for a Brighter Tomorrow Community Condition Event October, 2012 Lily French Senior Policy Consultantwww.iowapolicyproject.org • www.iowapolicypoints.org • www.iowafiscal.org
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 WorkMonthly ExpensesChild care 531 845 - 845Clothing & household expenses 289 369 398 398Food 370 554 739 739Health care 337 437 588 588Rent and utilities 623 872 872 872Transportation 560 560 560 840Monthly total 2,711 3,637 3,157 4,282Annual Total Basic Expenses 32,527 43,649 37,886 51,389Income and TaxesBefore-tax earnings needed 36,151 49,769 39,110 57,977Less: Income & payroll taxes (4,007) (6,155) (3,539) (6,633)Plus: EITC & other credits 383 35 2,315 45Net after-tax income 32,527 43,649 37,886 51,389Family 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
On www.iowapolicyproject.org:Go to your county and click for Cost of Living table
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
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
Single parent, working full-timewith two children in Cedar Rapids (2010)
Education Benefits Individuals & Communities• With each successful educational attainment – Earnings rise – Unemployment and underemployment declines – Living in poverty declines
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
Contact Us• Lily French Senior Policy Consultant firstname.lastname@example.org• Peter Fisher 319-338-0773 Research Director www.iowapolicyproject.org email@example.com