Today, again, Tim Lohrentz, Program Specialist at National Economic Development and Law Center
(NEDLC), is the guest blogger.
One of the strategies that NEDLC utilizes to counter the
low-wages in many entry-level and lower-skilled jobs is to advocate for use of
the family economic self-sufficiency standard to be adopted by state or local
workforce investment boards (WIBs). In a practical sense this would set the
wage goal for performance outcomes for the WIBs at or close to the
self-sufficiency level. In addition, it might limit the WIBs to partner only with
employers who ensure that all or most of their job openings are at or close to the
self-sufficiency level.
For readers not familiar with the family economic self-sufficiency
standard initiative, I will provide a little background. It is national effort
led by Wider Opportunities for Women
and carried out in each state by local partners. For California we are the lead partner. The
self-sufficiency standard is different for each family type, just like the
federal poverty threshold. While the federal poverty threshold was originally meant
to define the income level that was unequivocally inadequate, the self-sufficiency standard intends to state the
income level that is unequivocally adequate
for a given family in a given place. Unlike the federal poverty guidelines,
which only vary for Hawaii and Alaska, the
self-sufficiency standard varies for each county. Therefore, while in Los Angeles County the
2003 standard was $46,670 for a single parent with two young children – more
than three times the federal poverty threshold – in Custer County, Oklahoma,
where I was born, the standard for this same family is about half that -
$24,000.
As I mentioned, we lead this effort in California through the Californians for
Economic Self-Sufficiency coalition (CFESS). Readers in California may wish to join the CFESS listserv. Our CFESS
efforts are greatly enhanced through the use of our online self-sufficiency calculator,
which is also available in Spanish and Chinese. You will notice that a password
is needed. Please don’t let that hinder you from checking out the calculator.
We do that because we like to provide technical assistance to those groups who
plan on using the calculator in order to maximize its potential.
The self-sufficiency standard takes into account varying
levels of public assistance as well as other public policies that can reduce the
cost of living for low-income families. For example, in counties with widespread and accessible public
transportation, the monthly transportation cost in the standard is set lower.
We still need to enhance the policy responsive nature of the standard related
to housing, health-care, child-care, and food security policies.
While linking the standard to local policies may seem a bit
academic, if implemented in a way that is binding, it could provide a major
incentive for local policies that support working poor families. For example,
if a county’s minimum wage – or the living wage level for those doing business
with the county – was pegged to the county’s self-sufficiency standard, there
would be a lot of push from the county and local employers to have the standard
set as low as possible. How could a county lower its standard? By adopting policies,
for example, which significantly increase access to affordable housing, child-care
subsidies, and universal health care.
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