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

1. The Self-Sufficiency Standard: What it is, What it tells us, and Its Practical Uses for Washington Dr. Diana Pearce, University of Washington School of Social Work Ways and Means Committee Work Session March 16, 2009

2. 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?

3. #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?

4. 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 • Based on only one cost - food • No geographical variation • Outdated family assumptions • Does not incorporate changes in costs, or “new” costs

5. 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

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

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

8. The Self-Sufficiency Wage for Select Counties One Adult, One Preschooler and One Schoolage ChildWashington, 2009 (Preliminary) **Assumes public transportation use

9. The Self-Sufficiency Standard is Measureable Across Time and Place • Calculated for 37 states, plus NYC & DC

10. #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

11. 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

12. The Difference the Standard Makes • Nevertheless, the burden of insufficient income falls disproportionately on families w/ children

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

14. 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

15. 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)

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

17. #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?”

18. 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

19. 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