Post on 30-May-2018
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The Self-Sufficiency STandardfor OhiO 2008Pp o asst cmmt at ags
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OhiO AssOciAtiOn Of cOmmunity ActiOn Agencies
The Oho Assocaton of Communt Acton Agences (OACAA) epesents Ohos ft-two locall goened
communt acton oganzatons, coeng all eght-eght of Ohos countes. Communt Acton Agences ae
goened b boads made up of low-ncome people, local elected ofcals, and epesentates of the pate
secto. The pode a compehense menu of cost-effecte, one-stop seces to help Ohoans on the path to
self-sufcenc. Ohos Communt Acton Agences collectel, fo example, dect health cae to oe 231,000
patents a ea, pepae oe seen mllon meals fo low-ncome esdents, and pode Head Stat seces to
oughl seent-e pecent of all enolled chlden n Oho.
Fo futhe nfomaton on Oho Assocaton of Communt Acton Agences, go to http://www.oacaa.og/ o
tt:
Phlp E. Cole, Execute Decto
o asst cmmt at ags
50 W Boad St, Sute 1616
Columbus, OH 43215
Telephone: (614) 224-8500
center fOr WOmens WelfAre
The Cente fo Womens Welfae at the Unest of Washngton School of Socal Wok s deoted to futheng
the goal of economc justce fo women and the famles. The man wok of the Cente focuses on the
deelopment of the Self-Sufcenc Standad. Unde the decton of D. Dana Peace, the Cente patnes wth
a ange of goenment, non-pot, womens, chldens, and communt-based goups to:
1) eseach and ealuate publc polc elated to ncome adeuac;
2) ceate tools to assess and establsh ncome adeuac; and
3) deelop pogams and polces that stengthen publc nestment n low-ncome women, chlden, and
famles.
Fo moe nfomaton about the Centes pogams, o wok elated to the Self-Sufcenc Standad, call
(206) 685-5264. Full copes of ths epot can be ewed at http://www.wowonlne.og/oupogams/fess/.
Center for Womens WelfareUniversity of Washington, School of Social Work
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The Self-Sufficiency STandardFOr OHiO 2008
B Diana M. Peace, Ph.D. J 2008
DirectOr, center fOr WOmens WelfAre
uniVersity Of WAshingtOn schOOl Of sOciAl WOrK
PrePAreD fOr
OhiO AssOciAtiOn Of cOmmunity ActiOn Agencies
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The Self-Sufciency Standard for Ohio 2008
2008 Dana Peace, Oho Assocaton of Communt Acton Agences, and
Wde Oppotuntes fo Women
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PaThe Self-Sufcenc Standad was ognall deeloped b D. Dana Peace, whle seng as Decto of the
Women and Poet Poject at Wde Oppotuntes fo Women (WOW). The Fod Foundaton poded fundng
fo the Standads ognal deelopment.
The 2008 Oho Self-Sufcenc Standad epot has been pepaed though the coopeate effots of Lesl
Ecket, Saah Fckesen, Kaen Ganbeg, Cathene Hst, Lsa Manze, Kate Mogan, Maueen Newb, and
Agnes Oswaha at the Unest of Washngton, Cente fo Womens Welfae, and Phlp E. Cole of the Oho
Assocaton of Communt Acton Agences.
A numbe of othe people hae also contbuted to the deelopment of the Standad, ts calculaton, and/o
the wtng of state epots oe the last decade. Jennfe Books, Maueen Golga, and Kate Faa, fome
Dectos of Self-Sufcenc Pogams and Polces at WOW, hae been ke to the deelopment of ntates
that pomote the concept of self-sufcenc and the use of the Standad, and wee nstumental n facltatng
and nutung Faml Economc Self-Sufcenc (FESS) state coaltons. Addtonal past contbutos to the
Standad hae ncluded Laua Henze russell, Jance Hamlton Outtz, robeta Spalte-roth, Antona Juhasz,
Alce Gates, Alesha Dufee, Melane Laelle, Nna Dunnng, and Seook Jeong.
The 2008 Oho Self-Sufcenc Standad s the st edton. Ths epot, ncludng count specc nfomaton
fo moe than 70 faml tpes, s aalable onlne at http://www.oacaa.og. Hadcopes of ths epot ma be
odeed b callng Oho Assocaton of Communt Acton Agences at: (614) 224-8500.
The conclusons and opnons contaned wthn ths document do not necessal eect the opnons of those
lsted aboe. An mstakes ae the authos esponsblt.
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Tabe o f Contents
itt 1
How Much s Enough n Oho? 7
Compang the Standad to Othe Benchmaks of income 12
Compason of Oho Ctes to Othe U.S. Ctes 14
Modelng the impact of Wok Suppots 15
Closng the Gap Between Wages and the Standad 23
How the Self-Suffcenc Standad Has Been Used 28
Concluson 35
ets 37
Appendx A: Methodolog, Assumptons and Souces 43
Appendx B: The Self-Suffcenc Standad fo
Selected Faml Tpes n Oho 51
Appendx C: The Self-Suffcenc Standad as a Pecent of the Fedeal
Poet Leel, 2008 96
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As income inequality increases in the United States, more and more amilies are unable to stretch their wages to meet
the costs o basic necessities. Tough these amilies are oen not deemed poor by the ederal poverty measure, they
lack enough income to meet the rising costs o ood, housing, transportation, health care, and other essentials. Te
Sel-Suciency Standard meets the need or a measure o income adequacy that more accurately tracks and measures
the true cost o living acing American amilies today.
Te Sel-Suciency Standard measures how much income a amily o a certain composition in a given place needs to
adequately meet their basic needswithout public or private assistance.
Tis report explains how the Standard diers rom the ocial Federal Poverty Level; how it is calculated; what an
adequate income is or Ohio amilies; and how various public work supports, public policies, child support, and other
resources can help amilies move toward sel-suciency. Tis report concludes with a discussion o the varied ways the
Sel-Suciency Standard can be used as a tool or education and training, policy analysis, counseling, perormance
evaluation, and research.
Intodction
meAsuring incOme ADeQuAcy:PrOBlems With the feDerAlPOVerty leVel
How much income is enough or amilies to meet their
needs without public subsidies? Although determining
an exact dollar gure may be dicult, most people are
aware o whether or not their income is adequate. One
participant in a training program dened economic
sel-suciency as:
Being able to take care o yoursel and your
amily, you can pay the rent, you have a car or
transportation, you have a job and you can pay
your bills. You dont need to depend on anyone or
anything; you are o all assistance programs. You
can pay or daycare or your children, you can buy
groceries and you can pay or lie necessities.1
Te Federal Poverty Level (FPL), or ederal poverty
measure, is the ocial measurement used by the ederal
government to determine income adequacy.2 Families
are characterized as poor i their income is below the
Federal Poverty Level and not poor i it is above the
FPL. Te 2008 FPL or a single adult is $10,400 annually.
For each additional amily member the FPL increases
by $3,600 ($14,000 or a two-person amily, $17,600 or a
three-person amily, $21,200 or a our-person amily, and
so on). Te ederal poverty measure, however, has become
increasingly problematic and outdated as a measure o
income adequacy. Indeed, the Census Bureau itsel states,
the ocial poverty measure should be interpreted as a
statistical yardstick rather than as a complete description
o what people and amilies need to live.3 Despite the
known problems in the ederal poverty measure, it is still
used to calculate eligibility or a number o poverty and
work support programs.
Te most signicant shortcoming o the ederal poverty
measure is that or most amilies, in most places, it issimply not high enough. Because amilies can have
incomes above the ederal poverty measure and yet lack
sucient resources to adequately meet their basic needs,
most assistance programs use a multiple o the ederal
poverty measure to determine need. For instance, Ohios
Childrens Health Insurance Program, Healthy Start, is
available or amilies with incomes at or below 200% o
the FPL.4
Not only does the government consider the poverty line
to be low, but the general public does as well. More than
three out o ve Americans rated the threshold o being
poor as higher than the Federal Poverty Level. wo out o
ve Americans say a amily o our is poor with earnings
o nearly 150% o the FPL.5
However, simply raising the poverty level, or using a
multiple o the FPL, cannot solve the structural problems
inherent in the ocial poverty measure.
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2 the self-sufficiency stAnDArD fOr OhiO
In addition to the undamental problem o being too low,
there are our basic methodological problems with the
ederal poverty measure.
First, the measure is based on the cost o a single
itemoodrather than a market basket o basic
needs. Over our decades ago, when the Federal Poverty
Level was rst developed by Molly Orshansky, ood was
the only budget item or which the cost o meeting a
minimal standard, in this case nutrition, was known.
Te Department o Agriculture had determined
household ood budgets based on nutritional standards.
Because amilies spent about one-third o their income
on ood on average, this ood budget was multiplied
by three to determine the poverty level.6 Since then,
the poverty level has only been updated annually
using the Consumer Price Index (CPI). As a result the
percentage o the household budget devoted to ood has
remained rozen at one-third o the FPL even though
American amilies now spending on average only about
one-tenth o their income on ood.7 At the same time,
other costs have risen much astersuch as health care
and housingand new costs have arisen, such as child
care and taxes. None o these changes are, or can be,
refected in the ederal poverty measure.
Second, the ederal poverty measure implicitly uses
the demographic model o a two-parent amily with a
stay-at-home wie. Tis amily demographic no longer
refects the reality or diversity o American amilies
today. According to the U.S. Bureau o Labor Statistics,
both parents were employed in 62% o two-parent
amilies with children in 2006. Likewise, over 70% o
the adults in single adult amilies with children were
employed in 2006.8
Tird, the poverty measure does not distinguish between
costs or amilies in which the adults are employed and
those in which the adults are not employed. When the
poverty measure was rst developed, employment-
related costs were not a signicant expense or most
amilies: taxes were relatively low, transportation was
inexpensive, and child care or amilies with young
children was not common. However, today these
expenses are substantial, and thus the dierence in
costs between amilies with and without workingparents is considerable and variable.
Finally, the poverty measure does not vary by geographic
location. Tat is, the ederal poverty measure is the
same whether one lives in Louisiana or in the San
Francisco Bay area o Caliornia (with Alaska and
Hawaii being the only exceptions to the rule). However,
housing in the most expensive areas o the U.S. costs
nearly our times as much as in the least expensive
areas.9 Even within states, costs vary considerably.
For example, in Ohio, housing costs in Montgomery
County are up to 56% higher than in Van Wert County.
Te cost o child care varies even more by locality: child
care costs in Montgomery County are on average 66%
higher than the cost o child care in Van Wert County.
For these and other reasons, many researchers and
analysts have proposed revising the ederal poverty
measure. Suggested changes would refect twenty-
rst century needs, incorporate geographically based
dierences in costs, and respond to changes over time.10
In addition to the Sel-Suciency Standard, examples o
proposals or alternative measures o income adequacy
include living wages, the Basic Needs Budget, and the
National Academy o Sciences proposed alternatives.11
hOW the stAnDArD Differs frOmthe feDerAl POVerty meAsure
In order to provide a realistic measurement o the income
necessary or a given amily to meet their needs without
public or private assistance, the Sel-Suciency Standardaddresses each o the methodological problems with the
ederal poverty measure cited above.
A Maket Basket Appoach: Te Standard is based on
the individual cost o each basic need, which allows each
cost to increase at its own rate. Tus, the Standard does
not assume that ood is always one-third o a amilys
budget, as the ederal poverty measure does, nor does
it constrain any other cost to a xed percentage o the
budget.
THE MOST SiGNiFiCANT SHOrTCOMiNG OF
THE FEDErAL POvErTy MEASUrE iS THAT
FOr MOST FAMiLiES, iN MOST PLACES, THE
POvErTy LEvEL iS SiMPLy NOT HiGH ENOUGH.
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the self-sufficiency stAnDArD fOr OhiO 3
A Standad fo Woking Famiies: Te Standard
assumes all adults, regardless o household composition,
work ull-time,12and thereore includes all major costs
associated with employment(i.e., taxes, transportation,
and child care or amilies with young children).
Geogaphic Vaiation in Costs: Te Standard
incorporates geographical variations in costs. While
this is particularly important or housing, there is also
substantial geographic variation in child care, as well as
some variation in health care, ood, and transportation.
Unlike some proposed revisions to the poverty measure
the Standard uses actual costs and does not assume xed
relationships geographically between urban and rural
costs. Although rural areas generally have lower costs
than metropolitan areas, some rural areas (such as those
that are desirable tourist or second-home locations) have
costs as high as or higher than costs in a states urban
areas.
Acconting fo Fami Composition: Te Standard
accounts or cost variation by amily size and composition
(as does the FPL), but also by the ages o children.
While ood and health care costs are slightly lower
or younger children, child care costs can be much
higherparticularly or children not yet in schooland
are a substantial budget item not included in the ocialpoverty measure, even implicitly.
Incsion of Taxes and Tax Cedits: Te Standard
includes the net eect o taxes and tax credits. All taxes,
including state sales tax, payroll (Social Security and
Medicare) tax, and ederal, state, and city income taxes
are calculated into the Standard. Additionally, the ederal
Child and Dependent Care ax Credit (reerred to in the
Standard as the Child Care ax Credit or CCC), the
Earned Income ax Credit (EIC), and the Child ax
Credit (CC) are credited against the income requiredto meet basic needs.
Te Sel-Suciency Standard establishes a amily-
sustaining wage specic to most amilies throughout
the U.S. by making real-world assumptions, varying
data regionally and by amily type, and including the
net eect o taxes and tax credits. A Sel-Suciency
Wage means the amily or individual is on the road to
economic independence and is not orced to choose
between basic necessities (such as child care versus
nutritious ood or adequate housing versus health care).
However, it is important to note that the Standard is a
conservative measure that does not include long-term
needs (such as savings or college tuition), credit card or
other debt repayment, purchases o major items (such asa car or rerigerator) or emergency expenses.
the self-sufficiency stAnDArD:mOre thAn WAges AlOne
Using the Sel-Suciency Standard, a given amilys
income is deemed inadequate i it alls below the
appropriate threshold based on their amily type and
location. However, users o the Standard are urged to
think in terms o wage adequacy. Tat is, they should
ask: How close is a given wage to the Standard? Forexample, i the Standard or a certain amily type is $20
per hour, but the adult supporting the amily only earns
$10 per hour, then the latter wage has a wage adequacy
level o only 50%.
Despite the Standards use o income thresholds,
economic sel-suciency cannot always be achieved with
wages alone, or even with wages and benets together.
Sel-suciency is more than a job with a certain wage
and benets at one point in time. rue sel-suciency
is long-term economic security, making it a larger goal
toward which to strive as well as a process in which to
engage. As one person put it, Sel-suciency is a road
Im on.13
Central to attaining sel-suciency are access to
education, training, and jobs that provide real potential
or skill development and career advancement over the
long-term. Most individuals moving rom welare to
A SELF-SUFFiCiENCy WAGE MEANS THE
FAMiLy Or iNDiviDUAL iS ON THE rOAD TOECONOMiC iNDEPENDENCE AND iS NOT FOrCED
TO CHOOSE BETWEEN BASiC NECESSiTiES
(child care verSuS nuTriTional food, or
ADEqUATE HOUSiNG vErSUS HEALTH CArE).
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4 the self-sufficiency stAnDArD fOr OhiO
hOW the self-sufficiency stAnDArD is cAlculAteD
Several dierent criteria are required to make the Standard as consistent and accurate as possible, yet varied by
geography and amily composition. o the extent possible, the data used in the Sel-Suciency Standard are:
collected or calculated using standardized or equivalent methodology nationwide;
obtained rom scholarly or credible sources such as the U.S. Census Bureau;
updated annually; and
geographically- and/or age-specic, as appropriate.
Te Sel-Suciency Standard is calculated or 70 dierent amily types or all counties within a state. Family
types range rom one adult with no children, to one adult with one inant, one adult with one preschooler, and so
orth, up to two-adult amilies with three teenagers. While these amilies represent the majority o households,
the Standard can also be calculated or larger and multi-generational amilies.
Te Sel-Suciency Standard assumes adult household members work ull-time and thereore includes all
major costs associated with employment or every adult household member(i.e., taxes, transportation, and child
care or amilies with young children). Te data components o the Standard and the assumptions included
in the calculations are described below (more detailed inormation is included in Appendix A: Methodology,
Assumptions, and Sources).
Hosing: For housing costs, the Standard uses the most recent Fair Market Rents (FMRs), calculated annually
by the U.S. Department o Housing and Urban Development (HUD) or each states metropolitan and non-
metropolitan areas. FMRs include utilities (except telephone and cable) and refect the cost o housing that meets
basic standards o decency. In most cases, FMRs are set at the 40th percentile, meaning that 40% o the housing
in a given area is less expensive than the FMR.
Since HUD calculates only one set o FMRs or an entire metropolitan area, in multiple county metropolitan
areas the Standard uses the National Low Income Housing Coalition (NLIHC) median gross rents to calculate the
housing costs o the individual counties.
Chid Cae: o calculate the cost o child care, the Standard assumes market-rate costs (dened as the 75th
percentile) by setting, age, and geographical location. Most states, including Ohio, conduct or commission
market-rate surveys biannually or setting child care assistance reimbursement rates.
Te Standard assumes inants (children 0 to 2 years old) receive child care inamily day care. Preschoolers
(children 3 to 5 years old) are assumed to be in centercare. Costs or schoolage children (6 to 12 years old) assume
they receive care beore and aer school (part-time).
Food: Te Standard uses the U.S. Department o Agriculture (USDA) Low-Cost Food Plan or ood costs. Te
Low-Cost Food Plan was designed to meet minimum nutritional standards using realistic assumptions about
ood preparation time and consumption. However, it is still a very conservative estimate o ood costs. For
instance, the Low-Cost Food Plan does not allow or any take-out, ast-ood, or restaurant meals.
o vary costs within states, geographic dierences in ood costs are calculated using the ACCRA Cost o Living
Index, published by the Council or Community and Economic Research.
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the self-sufficiency stAnDArD fOr OhiO 5
Tanspotation: I there is an adequate public transportation system in a given area, the Standard assumes
workers use public transportation to get to and rom work. A public transportation system is considered
adequate i it is used by 7% or more o the working population in a given county. Te cost o public
transportation is calculated based on the price o a monthly adult pass. Tere are no counties in Ohio with 7% or
more o the working population using public transportation. Tereore all transportation costs in the Ohio 2008Standard are calculated based on private transportation.
Private transportation costs are based on the average costs o owning and operating a car. One car is assumed
or households with one adult and two cars are assumed or households with two adults. Costs are calculated
assuming that the car(s) will be used to commute to and rom work ve days per week, plus one trip per week or
shopping and errands. In addition, one adult in each household with young children is assumed to have a slightly
longer weekday trip to allow or linking trips to a day care site. For per-mile costs, driving cost data rom the
American Automobile Association is used. Te commuting distance is computed rom the National Household
ravel Survey.
Te auto insurance premium is the average premium cost or a given state, calculated by the National Associationo Insurance Commissioners. o create within state variation (regional or county) in auto insurance premiums,
ratios are created using sample premiums or the automobile insurance companies with the largest market shares
in the state.
o estimate the xed costs o car ownership, the Standard uses Consumer Expenditure Survey amounts or
amilies with incomes between the 20th and 40th percentile. Te xed costs include expenses such as re, the,
property damage and liability insurance, license, registration, taxes, repairs, monthly payments, and nance
charges. Te monthly variable costs (e.g., gas, oil, tires, and maintenance) are also included, but the initial cost o
purchasing a car is not.
Heath Cae: Te Standard assumes that an integral part o a Sel-Suciency Wage is employer-sponsoredhealth insurance or workers and their amilies. Te average health care premiums paid by workers are rom
the national Medical Panel Survey (MEPS) and vary or single adults and or a amily. o vary premium costs
by county or regions within each state, the Standard uses average premiums rom the health care insurance
companies with the largest market shares or with the widest coverage. Health care costs also include regional
out-o-pocket costs calculated or adults, inants, preschoolers, schoolage children, and teenagers obtained rom
the MEPS,
Misceaneos: Miscellaneous expenses are calculated by taking 10% o all other costs. Tis expense category
consists o all other essentials including clothing, shoes, paper products, diapers, nonprescription medicines,
cleaning products, household items, personal hygiene items, and telephone service. It does not allow or
recreation, entertainment, savings, or debt repayment.
Taxes: axes include ederal and state income tax, payroll taxes, and state and municipal sales tax where
applicable. Additionally, the Standard includes ederal tax credits (the Earned Income ax Credit, the Child Care
ax Credit, the Child ax Credit) and applicable state tax credits.
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6 the self-sufficiency stAnDArD fOr OhiO
work cannot achieve sel-suciency through stopgap
measures or in a single step, but require assistance,
guidance, and/or transitional work supports to become
sel-sucient over time. While meeting basic needs
may be more urgent than access to education and
training, true long-term sel-suciency increasinglyrequires human capital investments that enhance skills
as well as improve access to jobs with career potential.
Sel-suciency is not likely to be sustainable without a
technologically advanced and broad-based education,
which can provide the fexibility to move into new,
innovative, or nontraditional jobs and careers.
Although the Sel-Suciency Standard determines a
wage that is adequate withoutpublic benets, this does
not imply that public work supports are inappropriate
or unnecessary or Ohio amilies. For amilies who have
not yet achieved wage adequacy, public subsidies or
high-cost necessities such as child care, health care, and
housing are requently the only means to adequately
meet basic needs. Indeed, many amilies in Ohio rely on
public work supports to ll the gap between wages and
basic needs. Furthermore, the Sel-Suciency Standarddoes not imply that amilies at any income should be
completely sel-reliant and independent o one another
or the community at large. It is through interdependence
with community institutions and inormal networks
o riends, extended amily, and neighbors that many
amilies are able to meet both their non-economic and
economic needs.
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the self-sufficiency stAnDArD fOr OhiO 7
How Mch is Enogh in Ohio?
Te Sel-Suciency Standard varies by both amily type
and by geographic location because the amount o money
amilies need to be economically sel-sucient depends
on amily size, composition, childrens ages, and on the
state and county o residence. Tis section o the report
uses examples rom Cuyahoga, Belmont, and Franklin
counties to present an overview o how much is enough
to be economically sel-sucient in Ohio.
The Sef-Sfcienc Standad fo Seect Fami
Tpes: o illustrate how a Sel-Suciency Standard is
calculated, able 2 shows the monthly expenses and
the Sel-Suciency Wages in Cuyahoga County or our
amily types: one adult; one adult with one preschooler;one adult with one preschooler and one schoolage child;
and two adults with one preschooler and one schoolage
child.
In Cuyahoga County, a single adult needs to earn $8.88
per hour to be able to meet his/her basic needs. With
the addition o a preschooler child, amilies with one
adult need to earn $16.45 per hour, about $7 more per
hour than single adults require to be sel-sucient. Te
additional earnings nance the increased costs o a
two-bedroom housing unit (instead o one-bedroom)
plus ull-time child care, as well as increases in other
expenses. When a schoolage child is added to amilies
with one adult and one preschooler, the Sel-Suciency
Wage increases to $21.03 per hour to cover increased
child care, ood, and health care costs (housing costs do
not increase because the Standard assumes that up to two
children or two adults share a bedroom). Altogether, thisamily type in Cuyahoga County needs to earn wages
that are three times the amount o Ohios 2008 hourly
minimum wage o $7.00.14
Table 2. The Sef-Sfcienc Standad fo Seect Fami Tpes*Monthly Expenses and Shares of Total BudgetsCuahoga Count, OH 2008
mOnthly cOsts
One ADultOne ADult, One
PreschOOler
One AD ult,One PreschOOler,
One schOOlAge
tWO ADults,One PreschOOler,
One schOOlAge
cOsts % cOsts % cOsts % cOsts %
Hosing $598 38 $720 25 $720 19 $720 17
Chid Cae $0 0 $672 23 $1,144 31 $1,144 27
Food $223 14 $337 12 $505 14 $695 16
Tanspotation $216 14 $222 8 $222 6 $423 10
Heath Cae $137 9 $314 11 $335 9 $401 9
Misceaneos $117 8 $227 8 $293 8 $338 8
Taxes $273 17 $548 19 $749 20 $787 19
Eaned Income Tax Cedit (-) $0 0 $0 0 $0 0 $0 0
Chid Cae Tax Cedit (-) $0 0 ($63) -2 ($100) -3 ($100) -2
Chid Tax Cedit (-) $0 0 ($83) -3 ($167) -5 ($167) -4tOtAl Percent 100 100 100 100
self-sufficiency WAge
HOurly** $8.88 $16.45 $21.03 $12.05 pe adult***
mOnthly $1,563 $2,894 $3,701 $4,241 combned***
AnnuAl $18,758 $34,733 $44,413 $50,888 combned***
* The Standad s calculated b addng expenses and taxes and subtactng tax cedts. Taxes nclude fedeal, state, and ct ncome taxes (ncludng state taxcedts except state EiTC) and paoll taxes.
** The houl wage s calculated b ddng the monthl wage b 176 hous (8 hous pe da tmes 22 das pe month).
*** The houl wage fo famles wth two adults epesents the houl wage that each adult would need to ean, whle the monthl and annual wages epesentboth paents wages combned.
Note: Totals ma not add exactl due to oundng.
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8 the self-sufficiency stAnDArD fOr OhiO
When a second adult is added to the household,
creating a amily type o two adults and two childrena
preschooler and a schoolage childthe costs or basic
needs such as ood, transportation, and health care
increase somewhat. However, because the Standard
assumes both adults work ull-time, each adult must earn$12.05 per hour to meet the amilys needs.
In addition to the basic expenses such as housing and
child care, the Standard includes taxes and tax credits in
the calculation o the Sel-Suciency Wage. For example,
in able 2 amilies with one adult and one preschooler in
Cuyahoga County qualiy or a Child Care ax Credit o
$63 per month and a Child ax Credit o $83 per month.
Tese ederal tax credits are subtracted rom the other
expenses and taxes to calculate the Sel-Suciency Wage.
Appendix B o this report shows the monthly expenses,
taxes, tax credits, and Sel-Suciency Wages or eight
dierent amily types or each county in Ohio.
Pecentage of the Standad reqied to Meet
Basic Needs: Figure 1 shows the proportion o income
spent on each basic need or amilies with one adult,
one preschooler, and one schoolage child in Belmont
County. Each monthly expense is shown as a percentage
o the total income necessary or this amily type to be
sel-sucient. Families with two children (when one is
under schoolage) generally spend about hal their income
on housing and child care expenses alone. For this amily
type in Belmont County, child care accounts or 33%
and housing accounts or 22% o the amilys monthly
costs. Over hal (55%) o this amily types income is
spent on child care and housing alone. Te cost o ood or
this amily is 19% o total income, ar lower than the 33%
assumed by the methodology o the Federal Poverty Level.
Other expenses account or smaller shares o theStandard:
Health Care: Health care makes up 12%, a relatively
small share, o this amily types expenses. However,
the calculation or health care assumes employers both
provide health insurance or amilies and pay 79% o
the premium (the average proportion paid by Ohio
employers or amily coverage).15 For Ohio amilies who
do not have employer-sponsored health insurance, it is
Housing: 22%
Child Care: 33%
Food: 19%
Transportation: 8%
Health Care: 12%
Taxes - Net*: -4%
Miscellaneous: 9%
-20%
0%
20%
40%
60%
80%
100%
PERCENT OF TOTAL BUDGET
Fgue 1. Pecent of the Sef-Sfcienc StandadNeeded to Meet Basic NeedsOne Adult, One Preschooler, and One Schoolage ChildBelmont Count, OH 2008
*Pecentages nclude the net effect of taxes and tax cedts. Thus, the pecent-age of ncome needed fo taxes s actuall 11%, but wth tax cedts, the amountowed n taxes s -4% because the amount eceed n tax cedts s hghe thanthe amount owed. Please see the text fo an explanaton of the teatment oftax cedts n modelng.Note: The annual Self-Sufcenc Wage fo One Adult, One Peschoole and OneSchoolage Chld n Belmont Count, OH s $29,867.
likely that health care costs would account or a greater
proportion o the amily budget than shown in Figure 1.
ransportation: ransportation costs account or
8% o total monthly costs. Te Standard or Belmont
County has been calculated assuming workers use
private transportation to get to and rom work.
Miscellaneous: Miscellaneous items (such as clothing
and household items) make up 9% o household costs.
axes and ax Credits: Net taxes and tax credits
account or -4% o the total monthly costs. Note that
this tax percentage includes all tax credits as i they
were received monthly, although credits are generally
not received until the ollowing year when taxes are
led. Te net taxes are negative because the amount
received in tax credits is more than the amount owed.
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the self-sufficiency stAnDArD fOr OhiO 9
I it were assumed, as is generally the case or most
amilies, that tax credits are received annually in a
lump sum, then the monthly tax burden or this amily
in Belmont County would be 11% o total costs.
The Sef-Sfcienc Standad fo Seect Fami
Tpes Compaed to the Fedea Povet leve:
Figure 2 uses Franklin County to provide another
illustration o how the Sel-Suciency Wage varies by
amily type as well as how the Standard compares to
the Federal Poverty Level. Te bar chart shows that
single adults in Franklin County need a yearly income
o $17,652 to be sel-sucient, while single adults
with one preschooler child must earn nearly twice as
much, or $34,260 per year. Families with one adult
and two childrenone preschooler and one schoolage
childmust earn $43,730 per year to meet their basic
needs. With the addition o a second adultor a amily
type o two adults, one preschooler, and one schoolage
childthe total income necessary to meet basic needs is
$49,818 in Franklin County.
Te Federal Poverty Level is considerably lower than
the Sel-Suciency Wage or each o these amily types.
Te 2008 FPL starts at $10,400 or one adult, $7,000
less than the Sel-Suciency Wage or one adult in
Franklin County. With the addition o each amily
member the FPL increases by $3,600 per year while the
Standard varies byamily composition and thereoredoes not increase by a constant actor with the addition
o each amily member. For instance, the addition o a
preschooler child to the single adult increases the Sel-
Suciency Wage by over $16,000 per year, over our
times the FPL increase o $3,600 or an additional amily
member. Te much larger increase in the Sel-Suciency
Standard refects the substantial costs o adding a young
child to a household, including child care, housing, and
health care. Te addition o a schoolage child to this
$34,260($16.22/hr)
$43,730($20.71/hr)
$49,818($11.79/hrper adult)*
$17,652($8.36/hr)
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Adult One AdultOne Preschooler
One AdultOne PreschoolerOne Schoolage
Two AdultsOne PreschoolerOne Schoolage
FPL = $10,400
FPL = $14,000FPL = $17,600
FPL = $21,200
ANNUAL SELF-SUFFICIENCY STANDARD WAGE
Fgue 2. The Sef-Sfcienc Standad fo Seect Fami TpesFankln Count, OH 2008
*The houl wage fo two adult famles epesents the houl wage that each adult would need to ean; the annual wages epesent both adults' wages combned.
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10 the self-sufficiency stAnDArD fOr OhiO
amily type adds an additional $10,000 annually to the
Sel-Suciency Wage; though less than the additional
income needed or a younger child, it is still more than
two and a hal times the additional income allotted
by the FPL or an additional amily member. Adding
a second adult to the amily type o one adult withone preschooler and one schoolage child increases the
Sel-Suciency Wage by about $6,000, considerably less
than the additional income needed or an additional
preschooler or schoolage child, but still more than the
increase in the FPL.
While the Sel-Suciency Standard or a single adult in
Franklin County is 170% o the FPL, the substantial costs
associated with children, especially young children, raises
Fgue 3. Map of Conties b leve of Anna Sef-Sfcienc WageOne Adult and One Preschooler, OH 2008
$22,949 - $23,994
$24,123 - $25,892
$26,024 - $27,868
$28,008 - $32,854
$33,969 - $37,373
Adams
Allen
Ashland
Ashtabula
Athens
Auglaize
Belmont
Brown
Butler
Carroll
Champaign
Clark
Clermont
Clinton
Columbiana
Coshocton
Crawford
Cuyahoga
Darke
Defiance
Delaware
Erie
Fairfield
Franklin
Fulton
Gallia
Geauga
Greene
Guernsey
Hamilton
Hancock
Hardin
Harrison
Henry
Highland
Hocking
Holmes
Huron
Jackson
JeffersonKnox
Lake
Lawrence
Licking
Logan
Lorain
Lucas
Madison
Mahoning
Marion
Medina
Meigs
Mercer
Miami
MonroeMontgomery
Morgan
Morrow
Muskingum
Noble
Ottawa
Paulding
PerryPickaway
Pike
Portage
Preble
Putnam
Richland
Ross
Sandusky
Scioto
Seneca
Shelby
Stark
Summit
Trumbull
Tuscarawas
Union
Van Wert
Vinton
WarrenWashington
Wayne
Williams
Wood
Wyandot
Fayette
the Sel-Suciency Standard or one adult amilies with
two childrena preschooler and a schoolage childin
Franklin County to nearly 250% o the FPL. Although
adding a second adult to a amily with two children
does not increase costs substantially, the resulting Sel-
Suciency Standard is still 235% o the FPL. Appendix Cshows the Sel-Suciency Standard as a percentage o the
Federal Poverty Level or all counties in Ohio or three
dierent amily types.
Geogaphic Vaiation in the Sef-Sfcienc
Standad: In addition to varying by amily composition,
the Sel-Suciency Standard also varies by geographic
location. Te map below (Figure 3), visually displays the
geographical variation in the cost o meeting basic needs
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the self-sufficiency stAnDArD fOr OhiO 11
across Ohios counties or amilies with one adult and
one preschooler. Figure 3 groups counties into ve wage
ranges.
In Ohio, the Sel-Suciency Standard or a single adult
with one preschooler ranges rom just under $23,000 to
just over $37,000 depending on the county. Te highest
cost counties surround Cincinnati, Cleveland, and
Columbus while the lowest cost counties are concentrated
along the western border and the southeastern section o
the state.
Figure 3 reveals a noticeable trend throughout Ohio in
which urban and suburban counties have the highest
Sel-Suciency Wages. As counties get urther away
rom the sizeable cities the Sel-Suciency Standard
declines, with rural counties experiencing the lowestSel-Suciency Wages.
Warren County, located northeast o Cincinnati
(Hamilton County), has the highest Sel-Suciency
Standard or amilies with one adult and one preschooler
in Ohio, at $37,373 per year. Te second and third most
expensive counties in Ohio are Geauga and Medina,
both o which border Cleveland (Cuyahoga County).
Te ourth most expensive county in Ohio is Delaware
County, which borders Columbus (Franklin County)
to the north. In Ohio, the Sel-Suciency Wages in
suburban counties that surround urban areas are oen
higher than the Sel-Suciency Wages o the cities
themselves or one adult and one preschooler amilies.
Noble and Morgan counties in southeastern Ohio are
the least expensive or amilies with one adult and one
preschooler with Sel-Suciency Wages o just under
$23,000 per year. Southeastern Ohio is among the lowest
cost areas o the state or this amily type, with the
exception o Athens County, where Ohio University is
located. Four counties along Ohios western border with
Indiana are also in the lowest cost group o counties
or this amily type, where Sel-Suciency Wages are
between $23,000 and $24,000 per year.
Variations in the cost o housing and child care accountor much o the geographic dierence in the Standard
across counties or this amily type. For example, in
Noble County housing is $555 or a two-bedroom unit
while in Warren County it is $903. Likewise, child care
or one preschooler is $445 per month in Noble County
but $760 per month in Warren County.
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12 the self-sufficiency stAnDArD fOr OhiO
Compaing the Standad to Othe Benchmaks of Income
o put the Standard in context, it is useul to compare it
to other commonly used measures o income adequacy.
In Figure 4, a comparison is made between the Sel-
Suciency Standard and our other benchmarks o
income:
public assistance: emporary Assistance or Needy
Families (ANF), Food Stamps Program, and WIC
(Women, Inants and Children);
the Federal Poverty Level (FPL) or a amily o three;
the Ohio State minimum wage; and
the median amily income or a amily o three in
Marion County.
For this comparison, income benchmarks are shown
or three-person amiliesone adult, one preschooler,
and one schoolage childin Marion County. (Note
that this set o benchmarks is not meant to show how a
amily would move rom a lower income to economic
sel-suciency. Rather, the concept o sel-suciency
assumes a gradual progression that takes place over time.)
Where relevant, the comparison benchmarks are also or
three-person amilies. However, none are as specic as
the Standard in terms o age and number o children and/
or geographic location. As indicated in the ourth bar
rom the le in Figure 4, the Sel-Suciency Wage or this
amily type in Marion County is $35,556 per year.
TANF, Food Stamps and WIC: Te rst bar on the le
in Figure 4 demonstrates the income o the basic public
assistance package, including the cash value o oodstamps, WIC, and the ANF cash grant, and assuming no
wage or other income. Te total public assistance package
amounts to $10,022 per year or three-person amilies
Fgue 4. The Sef-Sfcienc Compaed to othe Benchmaks, 2008One Adult, One Preschooler, and One Schoolage ChildMaon Count, OH 2008
* The TANF beneft s $4,476 annuall ($373 pe month), Food Stamps beneft s $5,112 annuall ($426 pe month), and the WiC beneft s $434annuall ($36.13 pe month) fo a faml of thee n Oho.
**The Oho mnmum wage s $7.00 pe hou fo 2008. Calculated befoe taxes and tax cedts ths amounts to $14,784 pe ea. The thd bancludes the net effect of the addton of tax cedts (EiTC, CTC, and CCTC) and the subtacton of fedeal, state, and ct taxes.
$18,628$17,600
$10,022
$47,700
$35,556
$0
Welfare: TANF, FoodStamps and WIC*
Federal PovertyLevel
Full-Time MinimumWage**
Self-SufficiencyWage
Median FamilyIncome
80% MI =$38,160
Low
Income
50% MI =$23,850
VeryLow Incom
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
ANNUAL INCOME
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the self-sufficiency stAnDArD fOr OhiO 13
in Ohio. Tis amount is just 28% o the Sel-Suciency
Standard or a three-person amily in Marion County and
is 57% o the Federal Poverty Level (FPL).
Fedea Povet leve: According to the 2008
ederal poverty guidelines, a amily consisting o one
adult and two children would be considered poor
with an income o$17,600 annually or lessregardless
o where they live, or the age o their children. Te
Sel-Suciency Wage or amilies with one adult, one
preschooler, and one schoolage child in Marion County
is over two times (200%) the Federal Poverty Level or
three-person amilies. Even in Noble County, the least
expensive county in Ohio or this amily type, the Sel-
Suciency Wage is still over one and a hal times (161%)
the ocial poverty line. Because 100% o the FPL is too
low compared to real needs, many policy makers have
turned to using 200% o the FPL as a better measure o
poverty. Although 200% o the FPL is an improvement,
the measure still does not refect substantial variations in
costs aced by amilies o dierent compositions or living
in dierent places. Appendix C demonstrates that the
percent o the Federal Poverty Level needed to meet basic
needs varies greatly across counties and amily types,
ranging rom 161% o the FPL in Noble County to 260%
o the FPL in Warren County or amilies with one adult,
one preschooler, and one schoolage child.
Minimm Wage: Te Ohio 2008 minimum wage is
$7.00 per hour. A ull-time worker at $7.00 per hour earns
$14,784 per year. Aer subtracting payroll taxes (Social
Security and Medicare) and adding tax credits when
eligible (the Earned Income ax Credit, Child ax Credit,
and Child Care ax Credit), this worker would have a net
cash income o$18,628 per year. Tis amount is more
than the workers earnings alone because the tax credits
or which the amily qualies are more than the taxes
owed.
With the addition o ederal and state tax credits, a
ull-time job at the minimum wage provides 52% o the
amount needed to be sel-sucient or this amily type in
Marion County. However, i it is assumed that the worker
pays taxes monthly through withholding, but does not
receive tax credits on a monthly basis (as is true o most
workers), she will only receive $13,804 during the year.
Tis amounts to just 39% o the Sel-Suciency Standard.
Median Fami Income: Median amily income (hal
o an areas amilies have incomes above this amount
and hal have incomes below this amount) is a rough
measure o the relative cost o living in an area. Te
U.S. Department o Housing and Urban Development(HUD) uses area median amily income as a standard
to assess amilies needs or housing assistance. Tose
with incomes between 50% and 80% o the median area
income are considered Low Income while those with
incomes below 50% o the median income are considered
Very Low Income.16 Te median income or a three-
person amily in Marion County is $47,700 annually.
Tereore, a amily o three living in Marion County
with an income between $23,850 and $38,160between
50% and 80% o the median incomeis considered LowIncome. Te Sel-Suciency Standard o $35,556 or
this amily type in Marion County is 75% o the median
amily income, which alls within HUDs denition o
Low Income.17 Tis suggests that a substantial portion o
Ohio amilies lack adequate income to meet their needs,
and that the Standard is set at a level that is neither too
high nor too low.
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14 the self-sufficiency stAnDArD fOr OhiO
Compaison of Ohio Cities to Othe u.S. Cities
Te Sel-Suciency Standard has been completed or
37 states, plus the Washington, D.C. Metro Area and
New York City. Because the Standard uses the same
methodology across states, the cost o meeting basic
needs or a given amily type in dierent states can be
directly compared.
In Figure 5, the Standard or Cleveland (Cuyahoga
County) and Cincinnati (Hamilton County) are compared
to the Standard or counties that include the ollowing
cities: Chicago, IL; Indianapolis, IN; Jacksonville, FL;
Kansas City, MO; Louisville, KY; Milwaukee, WI;
Nashville, N; Portland, OR; and San Diego, CA.
Since the Standards or these places were completed in
dierent years, all numbers have been updated to 2008
dollars or the purpose o this analysis. While costs are
likely to increase at varying rates in dierent places,
or the sake o consistency the U.S. Bureau o Labor
Statistics Consumer Price Index (CPI) is used to estimate
infation when updating other Standards or this analysis.
Te wages shown in Figure 5 are Sel-Suciency Wages
or amilies with one adult, one preschooler, and one
schoolage child. In Cleveland, the adult must earn a wageo $21.03 per hour to be sel-sucient, making Cleveland
the ourth most expensive city in this comparison. San
Diego, Milwaukee and Chicago each have higher Wages
than Cleveland. Te most expensive city shown in Figure
5 is San Diego, with a Sel-Suciency Wage o $24.98
per hour. In San Diego this amily type requires about
$4.00 more per hour than in Cleveland to meet basic
needs. Louisville has the most comparable cost o living
to Cleveland, where this amily type requires a Wage o
$20.91, only 12 cents less per hour than in Cleveland. Te
Wage in Cleveland is over $5.00 per hour more than the
Sel-Suciency Wages o the two least expensive cities
shown, Portland and Indianapolis.
Cincinnatis hourly Sel-Suciency Wage or this amily
type is $19.96, midway between the most expensive and
least expensive cities in this comparison. Kansas City,
Jacksonville, Nashville, Indianapolis and Portland are
all less expensive than Cincinnati. Kansas City has the
most comparable Sel-Suciency Wage or this amily
type, where the adult needs to earn 68 cents less per hour
than in Cincinnati. Although it is more expensive orthis amily type to live in Cleveland than in Cincinnati,
the dierence amounts to just over one dollar per hour
between these two Ohio cities.
Te Sel-Suciency Wages or Cleveland and
Cincinnati are calculated assuming amilies use
private transportation. Public transportation costs are
signicantly less than the cost o owning and operating
a car; thus, in areas where private transportation costs
are assumed, the Wage refects higher transportation
expenses. Residents o these cities who use public transit
in place o private transportation may nd their cost o
living is lower than that refected in the Standard.
While both Cleveland and Cincinnati are less expensive
than some o the places with which they have been
compared, amilies with one adult, one preschooler, and
one schoolage child still require an hourly wage that is
nearly three times Ohios 2008 minimum wage o $7.00
per hour to meet their basic needs.
Fgue 5. The Sef-Sfcienc Wage fo Ceveand andCincinnati, OH Compaed to Othe u.S. Cities, 2008*One Adult with One Preschooler and One Schoolage Child
SELECT U.S. CITIES
$15.32
$19.28
$20.91
$22.55
$24.98
$18.75
$16.02
$21.66
$21.03
$17.94
$19.96
Portland, OR**
Indianapolis, IN
Nashville, TN
Jacksonville, FL
Kansas City, MO
Cincinnati, OH
Louisville, KY
Cleveland, OH
Chicago, IL**
Milwaukee, WI
San Diego, CA**
HOURLY SELF-SUFFICIENCY WAGE
*Wages ae updated to Apl 20 08 usng the Consume Pce index.**Wage calculated assumng faml uses publc tanspotaton.
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the self-sufficiency stAnDArD fOr OhiO 15
Modeing the Impact of Wok Sppots
While the Sel-Suciency Standard provides the amount
o income that meets a amilys basic needs without
public or private assistance, many amilies cannot achieve
sel-suciency immediately. Work supports can help
working amilies achieve stability without needing
to choose between basic needs, such as scrimping on
nutrition, living in overcrowded or substandard housing,
or leaving children in unsae and/or non-stimulating
environments. Work supports include programs such as:
child care assistance;
health care (Medicaid or Ohios Childrens Health
Insurance Program);
housing assistance (including Section 8 vouchers and
public housing);
emporary Assistance or Needy Families (ANF) cash
assistance;
the Food Stamp Program; and
Women, Inants and Children (WIC) programs.
Work supports can also oer stability to help a amily
retain employment, a necessary condition or improving
wages.
Below is a brie discussion o each work support modeled
in ables 3 and 4. Child support, although not a work
support per se, can assist a amily in meeting basic needs
and so is also modeled. In addition, an explanation
o how and why the taxes and tax credits are treated
dierently in the modeling tables than in the Sel-
Suciency Standard is provided.
Chid Sppot: Child support payments rom absent,
non-custodial parents can be a valuable addition to some
amily budgets, even in cases where the non-custodialparents income is relatively low. When both parents
provide support to meet their childrens needs, whatever
the amount, children are likely to benet.
Chid Cae: Since child care is one o the major
expenses or amilies with children, a child care subsidy
can substantially reduce this expense. For this reason,
child care assistance is modeled separately as well as in
combination with other work supports. Te addition o a
child care subsidy generally provides amilies the greatest
nancial relie o any work support.
Heath Cae: While health care expenses are a relatively
small cost item in the Standard (about 10%), healthcare coverage is essential. As previously discussed, the
Standard assumes that a Sel-Suciency Wage includes
employer-sponsored health insurance or workers and
their amilies, with the cost partially nanced by the
employer. Without health benets, most people would
nd it dicult, and oen prohibitively expensive, to meet
their amilies health care needs. Without health care
coverage, an illness or injury in a amily can become a
very serious nancial crisis.
However, with the expansions o the ederal andstate-supported Childrens Health Insurance Program
(SCHIP), known in Ohio as Healthy Start, many working
amilies now have the option o covering their childrens
health care needs when their employer does not oer
amily coverage and the amily does not qualiy or
Medicaid. Families that enter the workorce rom ANF
may be eligible or continued coverage by Medicaid
or themselves and their children or up to 12 months
through the ransitional Medicaid program.18 Aer that
time, and or those amilies not transitioning o ANF,children can be covered by Ohios Healthy Start Program
as long as amily income is at or below 200% o the FPL.19
Food Stamps and Women, Infants and Chiden
(WIC) Pogams: Most households with a gross monthly
income o 130% or less o the Federal Poverty Level (FPL)
are eligible or the ederal Food Stamp Program. Tis
program, administered by individual states, provides
crucial support to needy households. Additional ly, Ohios
WOrK SUPPOrTSCAN HELP A WOrKiNG
FAMiLy ACHiEvE STABiLiTy WiTHOUT
SCriMPiNG ON NUTriTiON, LiviNG iN
OvErCrOWDED Or SUBSTANDArD HOUSiNG,
Or LEAviNG CHiLDrEN iN UNSAFE AND/Or
NON-STiMULATiNG ENvirONMENTS.
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16 the self-sufficiency stAnDArD fOr OhiO
WIC program helps pay or specic nutrient-rich oods
and nutrition counseling or pregnant or postpartum
women, inants, and children up to age ve i their
income alls at or below 185% o the FPL.20 For those who
qualiy, the work support tables include ood stamps and
WIC benets in the calculation o ood costs.
Hosing: As with the child care subsidy, housing
assistance is a major support or amilies, as housing is
usually the largest expense or the second largest expense
when child care costs are high. Housing assistance
typically reduces housing costs to 30% o the households
income. Families with incomes below 80% o HUDs
area median amily income are considered low income
and are thereore eligible or ederal housing assistance.
However, housing subsidies are limited due to unding
availability and most new program participants must be
amilies with extremely low income (dened by HUD as
income below 30% o area median income).
Tax Cedits: ax credits can also provide needed
income or amilies. Te Standard shows tax credits
as i they are received monthly. However, or the work
supports modeled in able 3 (Columns 26), the
reundable ederal EIC and the additional reundable
portion o the Child ax Credit (CC) are shown as
received annually. Te Child Care ax Credit, which isnot reundable, is only shown as a monthly credit against
ederal taxes, i any, in both the Sel-Suciency Standard
and in the modeling columns o the table.
Te tax credits are shown annually in able 3 in order
to be as realistic as possible. Although by law a amily
can receive part o their EIC on a monthly basis
(called Advance EIC), many workers preer to receive
it annually as a lump sum. In act, nearly all amilies
receive the ederal and state EIC as a single payment the
ollowing year when they le their tax returns.21 Manyamilies preer to use the EIC as orced savings to pay
or larger items that are important amily needs, such as
paying the security deposit or housing, buying a car, or
settling debts.22 Tereore, in Columns 2-7 o able 3, the
total amount o the reundable EIC the amily would
receive annually (when they le their taxes) is shown in
the rst shaded line at the bottom o the table instead o
being shown monthly as in the Sel-Suciency Standard
column. Tis is based on the assumption that the adult
works at this same wage, ull-time, or the year.
Like the EIC, the ederal CC is shown as received
monthly in the Sel-Suciency Standard. However, or
the modeled work support columns, the CC is split
into two amounts with only the portion that can be used
to oset any remaining (aer the CCC) ederal taxes
owed shown monthly, while the additional reundable
portion o the CC is shown as a lump sum received
annually in the second shaded line o able 3. Note that
one cannot legally receive the additional reundable
portion o the Child ax Credit on a monthly basis.
tABle 3 mODeling the imPActOf WOrK suPPOrts AnD chilDsuPPOrt in frAnKlin cOuntyIn able 3, the impact o adding work supports and
child support is modeled or amilies with one adult, one
preschooler, and one schoolage child living in Franklin
County. Costs that have been reduced by these supports
are indicated with bold ont in the table.
The Sef-Sfcienc Standad (Comn 1): Te rst
column o able 3 shows the Sel-Suciency Standard
without any work (or other) supports to reduce costs
(except tax credits where applicable) or amilies with oneadult, one preschooler, and one schoolage child living
in Franklin County. Tis amily type has monthly child
care expenses o $1,194 and monthly housing costs o
$729. Te adult in this amily must earn a Sel-Suciency
Wage o $3,644 per month, or $20.71 per hour working
ull-time.
Chid Sppot (Comn 2): In Column 2, child support
is added to the Sel-Suciency Standard column. Te
child support payment o $286 per month is the average
amount received by amilies participating in the Child
Support Enorcement Program in Ohio.23 Unlike
additional earned income, child support is not taxable,
and can reduce the amount amilies need to earn both
directly and indirectly through reduced taxes, thus
having a strong impact on helping amilies meet their
needs. Overall, with child support the wage needed to
meet basic needs is reduced to $3,276 per month ($18.61
per hour).
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the self-sufficiency stAnDArD fOr OhiO 17
Chid Cae (Comn 3): In Column 3, the rst work
supportchild careis added. Ohios child care
assistance program provides child care assistance or
amilies with incomes at or below 275% o the FPL.24 Tis
support reduces child care costs substantially rom $1,194
to a co-payment o $219 per month. Te addition o child
care assistance reduces the sel-suciency wage or this
amily type in Franklin County rom $3,276 to $2,500
per month (rom $18.61 to $14.21 per hour).
Chid Cae, Food Stamps, WIC, and Medicaid
(Comn 4): For adults moving rom welare to work,
child care, ood stamps, WIC, and Medicaid comprise the
typical package o benets. In Column 4, it is assumed
that Medicaid will cover all o the amilys health care
expenses, reducing health care costs rom $296 per
month to zero. Tis amily types income is too high to
qualiy or ood stamps however the amily is eligible or
WIC benets, reducing ood costs rom $457 to $421 per
month. Te reduced health care and ood costs decrease
the wage needed to meet basic needs, thereore lowering
the child care co-payment rom $219 in Column 3 to $182
in Column 4. ogether, child care assistance, WIC, and
Medicaid lower the wage required to meet basic needs to
just $2,074 per month.
Chid Cae, Food Stamps, WIC, and Ohio Heath
Stat (Comn 5): Aer one year, amilies making the
transition rom welare to work lose Medicaid coverage
or the entire amily. However, children are eligible or
Table 3.Impact of the Addition of Chid Sppot and Wok Sppots onMonth Costs and Sef-Sfcienc WageOne Adult with One Preschooler and One Schoolage ChildFankln Count, OH 2008
mOnthly cOsts:
#1
chilD suPPOrt AnD WOrK suPPOrts
#2 #3 #4 #5 #6
self-sufficiency
stAnDArDChid Sppot Chid Cae
Chid Cae,[Food Stamps]/
WIC* &Medicaid
Chid Cae,[Food Stamps]/
WIC & OHHeath Stat
Hosing, ChidCae, [Food
Stamps]/ WIC& OH Heath
Stat
Hosing $729 $729 $729 $729 $729 $625
Chid Cae $1,194 $1,194 $219 $182 $200 $188
Food $457 $457 $457 $421 $421 $421
Tanspotation $217 $217 $217 $217 $217 $217
Heath Cae $296 $296 $296 $0 $125 $125
Misceaneos $289 $289 $289 $289 $289 $289
Taxes $729 $592 $389 $288 $327 $295Eaned Income Tax Cedit $0 ** ** ** ** **
Chid Cae Tax Cedit (-) -$100 -$110 -$59 -$53 -$58 -$55
Chid Tax Cedit (-) -$167 -$102 -$37 $0 -$12 -$2
Chid Sppot -286
self-sufficiency WAge:
hOurly $20.71 $18.61 $14.21 $11.78 $12.72 $11.96
mOnthly $3,644 $3,276 $2,500 $2,074 $2,239 $2,105
AnnuAl $43,730 $39,309 $30,006 $24,885 $26,867 $25,256
Tota Fedea EITC(anna efndabe)
$0 $1,820 $2,898 $2,481 $2,820
Tota Fedea CTC(anna efndabe)** $771 $1,556 $1,925 $1,859 $1,960
* WiC s the Specal Supplemental Nutton Pogam fo Women, infants and Chlden (WiC). in Oho the aeage monthl WiC benet s $36.13 (Fy2007).
** See the tax cedts dscusson at the begnnng of ths secton ttled Modelng the impact of Wok Suppots.
Note: Wok suppots n backets [ ] ndcate that we attempted to model ths wok suppot; howee, f the ncome was hgh enough to meet the faml's needs, twas too hgh to ualf fo the wok suppot.
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18 the self-sufficiency stAnDArD fOr OhiO
Ohios Childrens Health Insurance Program, Healthy
Start, i the amilys income is below 200% o the FPL.
Under these circumstances, the adult in this amily
type would pay only or the cost o her own health care,
which is her share o the health insurance premium
available through her employer and her out-o-pocketcosts. Column 5 shows the same work support package as
Column 4, except that Ohio Healthy Start, which covers
only the children, has been substituted or Medicaid
or the whole amily. As a result, the cost o health care
increases to $125 per month to cover the adults costs.
Te higher wage this amily needs in order to cover the
adults health care increases the child care co-payment
rom $182 to $200 per month. Te amily still qualies
or WIC, keeping their ood costs at $421 per month. Te
amily goes rom needing to earn $2,074 per month inColumn 4 to needing to earn $2,239 per month ($12.72
per hour) to meet the amilys basic needs in Column 5.
Hosing, Chid Cae, Food Stamps, WIC, and
Ohio Heath Stat (Comn 6): In the nal column,
housing assistance is added to the work support package
modeled in Column 5. Housing assistance generally
reduces the cost o housing to 30% o income. In this
case, housing assistance reduces housing costs rom
$729 to $625 per month. Te cost o health care remains
$125 per month and ood costs remain $421 per month.However, the decrease in the cost o housing lowers the
total income needed, thereore slightly reducing the
child care co-payment to $188 per month. With the ull
benet package, the single parent with one preschooler
and one schoolage child in Franklin County needs to
earn just $2,105 per month ($11.96 per hour) to meet
her amilys basic needs. Note that even with all work
supports modeled, this wage is still nearly ve dollars
more than the 2008 Ohio minimum wage o $7.00 per
hour. Additionally, at this wage level, this amily type inFranklin County is eligible or nearly $5,000 in annual
reundable tax credits i the adult worked at this wage
throughout the year.
tABle 4 - mODeling the imPActOf WOrK suPPOrts On WAgeADeQuAcy in frAnKlin cOunty
While able 3 shows how child support and work
supports reduce the wage needed, able 4 starts with
various wages and asks How adequate are these
wages in meeting a amilys needs, with and without
various combinations o work supports? In able 4,
and throughout the Sel-Suciency Standard, wage
adequacy is dened as the degree to which a given wage
is adequate to meet basic needs, taking into accountvarious work supportsor lack thereo. I wage adequacy
is at or above 100%, the wage is enough or more than
enough to meet 100% or more o the amilys basic needs.
o model wage adequacy, able 4 uses Franklin County
and the same amily type (one adult with one preschooler
and one schoolage child) as able 3. Costs that are
reduced by work supports in able 4 are shown in bold.
As in able 3, it is assumed that the reundable ederal
EIC and the additional reundable portion o the CC
are received annually. Tereore, these credits are not
shown in able 4 as available to reduce costs monthly, but
again the annual credits are shown in shaded rows at the
bottom o each panel.
In each Panel o able 4, Column 1 models the 2008 Ohio
minimum wage o $7.00 per hour. Columns 2 through 5
model median hourly wages o selected occupations in
Columbus, Ohio. Column 2 models the median hourly
wage or cashiers, $8.25 per hour. Column 3 models
$9.31, the median wage or child care workers. In Column4 the median wage or nursing aides, orderlies, and
attendants is modeled at $11.63 per hour. Te last column
models $13.86, the median wage or truck drivers (light
or delivery services).25
In able 4, Panel A provides a baseline, that is the
adequacy o wages at ve wage levels when there are no
work supports (wages only). Using the same ve wage
levels, Panel B models the impact o child care assistance
alone on wage adequacy; Panel C models child care, ood
stamps/WIC, and Ohio Healthy Start; and Panel D addsa housing subsidy to the supports modeled in Panel C.
Pane ANo Wok Sppots (Wages On): In Panel
A, the amily does not receive work supports. In Column
1, the adult earning the minimum wage o $7.00 per
hour or a total monthly income o $1,232, excluding
tax credits, experiences a shortall o $2,088 and has a
wage adequacy o just 37%. In other words, working
ull-time at the Ohio minimum wage, without any other
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the self-sufficiency stAnDArD fOr OhiO 19
support or resources, provides little more than one-third
o the income needed to meet the needs o amilies with
one adult, one preschooler, and one schoolage child in
Franklin County. In the second column o Panel A, the
median wage o $8.25 per hour or cashiers has a wage
adequacy o43%. Column 3 models child care workers,$9.31 per hour, at which the amilys wage adequacy is
49%. In Column 4, $11.63 per hour, the median wage
or nursing aides, orderlies, and attendants, has a wage
adequacy o60%. At $13.86 per hour in the last column,
the median wage or truck drivers, wage adequacy
reaches 71%.
Pane BChid Cae: When the amily receives child
care assistance, it reduces their expenses and raises wage
adequacy, as shown in Panel B. At $7.00 per hour, child
care assistance alone decreases the monthly cost o child
care rom $1,194 to just $77, increasing wage adequacy
rom 37% with no work supports to 56% with child care
assistance. At $8.25 per hour, the monthly child care
co-payment is $105, increasing wage adequacy rom
43% to 64%. In columns 3 and 4, at $9.31 and $11.63 per
hour, the monthly costs o child care are $127 and $182
respectively, and wage adequacy increases to 71% and
86%. In the last column, child care assistance brings the
wage adequacy or truck drivers to 98%, nearly enough to
meet all the basic needs or this amily type.
Pane CChid Cae, Food Stamps, WIC, and Ohio
Heath Stat: Receiving help with health care and
ood costs urther increases wage adequacy. At wages
below 200% o the FPL the cost o childrens health care
is covered by Ohio Healthy Start, reducing health care
costs rom $296 to $125 per month. At $7.00, $8.25, and
$9.31 per hour the amily is eligible or both ood stamps
and WIC, reducing ood costs rom $457 to $125, $191,
and $249 per month respectively. At $11.63 and $13.86
per hour the amily is no longer eligible or ood stamps,
but is eligible or WIC, reducing ood costs to $421 per
month. Te child care assistance co-payments remain the
same as in Panel B or each wage level. At the minimum
wage o $7.00 per hour, the additions o ood stamps,
WIC, and Ohio Healthy Start to child care assistance
increases wage adequacy to 72% so that this amily
type is now able to cover nearly three quarters o their
basic needs. At $8.25, $9.31, and $11.63 per hour, wage
adequacy increases to 80%, 86% and 94% respectively.
At $13.86 per hour the wage adequacy reaches over 100%
with this package o benets and the amily is able to
meet all o their basic needs and have a monthly surplus
in income o $166.
Pane DHosing, Chid Cae, Food Stamps,
WIC, and Ohio Heath Stat: With the addition
o housing assistance, housing costs are reduced rom
$729 to between $370 and $614 or all but the highest
wage level. Te costs o child care, ood, and health care
remain the same as in Panel C. Te ull package o work
supports modeled in Panel Dhousing assistance, child
care assistance, ood stamps, WIC, and Ohio Healthy
Startincreases wage adequacy to over 90% or all wage
levels while truck drivers remain at over 100% wage
adequacy. At the lowest wage o $7.00, the ull package o
work supports brings wage adequacy to 92%. At $8.25,
$9.31, and $11.63 wage adequacy is nearly100%, leaving
shortalls in income o just $71 or less per month.
imPOrtAnce AnD AVAilABility OfWOrK suPPOrts
When assisted temporarily with work supports until they
are able to earn Sel-Suciency Wages, amilies are able
to meet their basic needs as they enter or re-enter the
workorce. Tus, work support programs and tax policies
can play a critical role in helping amilies move towards
economic sel-suciency. Unortunately, the various
work supports modeled here are not available to all who
need them.
Hosing: Nationally, nearly two million amilies
received ederally assisted housing vouchers in 2007.26
However, according to the Center on Budget and Policy
Priorities (CBPP), 15 million low-income amilies have
unaordable housing costs (exceeding 30% o theirincome) while an additional nine million households
have severe housing cost burdens (exceeding 50% o their
income).27 O those receiving ederal housing assistance,
59% are amilies with children.28 In Ohio, about 82,000
amilies received ederally assisted housing vouchers in
2005. However, the CBPP estimates that during the same
year there were 591,578 low-income amilies in Ohio
with unaordable housing-cost burdens. Tereore less
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20 the self-sufficiency stAnDArD fOr OhiO
Table 4.Impact of Wok Sppots on Wage AdeqacOne Adult with One Preschooler and One Schoolage ChildFankln Count, OH 2008
#1 #2 #3 #4 #5
Ohio MinimmWage
MEDIAN HOurly WAGE OF SElECT COluMBuS, OHIO OCCuPATIONS*
CashiesChid CaeWokes
Nsing Aides,Odeies, and
Attendants
Tck Dives,light/Deive
hOurly WAge: $7.00 $8.25 $9.31 $11.63 $13.86
tOtAl mOnthly incOme: $1,232 $1,452 $1,639 $2,047 $2,439
PAnel A: nO WOrK suPPOrts
mOnthly cOsts:
Hosing $729 $729 $729 $729 $729
Chid Cae $1,194 $1,194 $1,194 $1,194 $1,194
Food $457 $457 $457 $457 $457
Tanspotation $217 $217 $217 $217 $217
Heath Cae $296 $296 $296 $296 $296
Misceaneos $289 $289 $289 $289 $289
Taxes $138 $160 $187 $271 $363
Eaned Income Tax Cedit (-) ** ** ** ** **
Chid Cae Tax Cedit (-) $0 $0 ($10) ($51) ($90)
Chid Tax Cedit (-) $0 $0 $0 $0 $0
tOtAl mOnthly eXPenses $3,320 $3,341 $3,359 $3,402 $3,455
SHOrTFAll (-) Or SurPluS ($2,088) ($1,889) ($1,721) ($1,355) ($1,016)
WAge ADeQuAcyTota Income/Tota Expenses
37% 43% 49% 60% 71%
PAnel B: chilD cAre
mOnthly cOsts:
Hosing $729 $729 $729 $729 $729
Chid Cae $77 $105 $127 $182 $219
Food $457 $457 $457 $457 $457
Tanspotation $217 $217 $217 $217 $217
Heath Cae $296 $296 $296 $296 $296
Misceaneos $289 $289 $289 $289 $289
Taxes $138 $160 $187 $271 $363
Eaned Income Tax Cedit (-) ** ** ** ** **
Chid Cae Tax Cedit (-) $0 $0 ($10) ($51) ($90)
Chid Tax Cedit (-) $0 $0 $0 $0 $0
tOtAl mOnthly eXPenses $2,204 $2,253 $2,293 $2,390 $2,480
SHOrTFAll (-) Or SurPluS ($972) ($801) ($654) ($343) ($41)
WAge ADeQuAcyTota Income/Tota Expenses
56% 64% 71% 86% 98%
Tota Fedea EITC(anna efndabe)**
$4,824 $4,469 $3,998 $2,966 $1,974
Tota Fedea CTC(anna efndabe)**
$410 $806 $1,142 $1,877 $2,000
*U.S. Depatment of Labo, Bueau of Labo Statstcs. Ma 2007 state occupatonal emploment and wage estmates: Columbus, Oho. reteed June 16, 2008 fomhttp://www.bls.go/oes/cuent/oes_18140.htm**EiTC s not eceed as a cedt aganst taxes, so t s not shown as a monthl tax cedt; lkewse, onl the nonefundable poton of the Chld Tax Cedt (whch sa cedt aganst fedeal taxes) s shown, f an (see text fo explanaton).
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the self-sufficiency stAnDArD fOr OhiO 21
Table 4. (Contnued)Impact of Wok Sppots on Wage AdeqacOne Adult with One Preschooler and One Schoolage ChildFankln Count, OH 2008
#1
Ohio MinimmWage
#2 #3 #4 #5
MEDIAN HOurly WAGE OF SElECT COluMBuS, OHIO OCCuPATIONS*
CashiesChid CaeWokes
Nsing Aides,Odeies, and
Attendants
Tck Dives,light/Deive
hOurly WAge: $7.00 $8.25 $9.31 $11.63 $13.86
tOtAl mOnthly incOme: $1,232 $1,452 $1,639 $2,047 $2,439
PANEl C: CHIlD CArE, FOOD STAMPS/WIC, OH HEAlTHy STArT
mOnthly cOsts:
Hosing $729 $729 $729 $729 $729
Chid Cae $77 $105 $127 $182 $219
Food $125 $191 $249 $421 $421
Tanspotation $217 $217 $217 $217 $217
Heath Cae $125 $125 $125 $125 $125Misceaneos $289 $289 $289 $289 $289
Taxes $138 $160 $187 $271 $363
Eaned Income Tax Cedit (-) ** ** ** ** **
Chid Cae Tax Cedit (-) $0 $0 ($10) ($51) ($90)
Chid Tax Cedit (-) $0 $0 $0 $0 $0
tOtAl mOnthly eXPenses $1,701 $1,817 $1,914 $2,184 $2,274
SHOrTFAll (-) Or SurPluS ($469) ($365) ($275) ($137) $166
WAge ADeQuAcyTota Income/Tota Expenses
72% 80% 86% 94% 107%
PANEl D: HOuSING, CHIlD CArE, FOOD STAMPS/WIC, OH HEAlTHy STArT
mOnthly cOsts:Hosing $370 $436 $492 $614 $729
Chid Cae $77 $105 $127 $182 $219
Food $125 $191 $249 $421 $421
Tanspotation $217 $217 $217 $217 $217
Heath Cae $125 $125 $125 $125 $125
Misceaneos $289 $289 $289 $289 $289
Taxes $138 $160 $187 $271 $363
Eaned Income Tax Cedit (-) ** ** ** ** **
Chid Cae Tax Cedit (-) $0 $0 ($10) ($51) ($90)
Chid Tax Cedit (-) $0 $0 $0 $0 $0
tOtAl mOnthly eXPenses $1,341 $1,523 $1,676 $2,069 $2,274SHOrTFAll (-) Or SurPluS ($109) ($71) ($38) ($22) $166
WAge ADeQuAcyTota Income/Tota Expenses
92% 95% 98% 99% 107%
Tota Fedea EITC(anna efndabe)**
$4,824 $4,469 $3,998 $2,966 $1,974
Tota Fedea CTC(anna efndabe)**
$410 $80 6 $1,142 $1,877 $2,000
*U.S. Depatment of Labo, Bueau of Labo Statstcs. Ma 2007 state occupatonal emploment and wage estmates: Columbus, Oho. reteed June 16, 2008 fomhttp://www.bls.go/oes/cuent/oes_18140.htm** EiTC s not eceed as a cedt aganst taxes, so t s not shown as a monthl tax cedt; lkewse, onl the nonefundable poton of the Chld Tax Cedt (whch sa cedt aganst fedeal taxes) s shown, f an (see text fo explanaton).
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22 the self-sufficiency stAnDArD fOr OhiO
than one out o every seven eligible amilies received
assistance.29
Food: Nationally, enrollment in the Food Stamp
Program has increased steadily since 2002, reaching
26.5 million people or 11.8 million households in 2007.30
In Ohio, participation in the Food Stamp Program
has increased by 25% since 2003, reaching 1,076,764
participants or 492,811 households in scal year 2007.31
However, it is likely that many amilies who leave
ANF cash assistance programs to begin employment
remain eligible or ood stamps that they do not receive.
Te Center on Budget and Policy Priorities states that
Research by both the Department o Health and
Human Services and the Urban Institute has shown
that ewer than hal o the individuals who leave ANF
cash assistance continue to participate in the Food
Stamp Program despite earning low wages and (in most
cases) remaining eligible or ood stamp benets.32
According to the Urban Institute nearly 30% o children
under age six were children o immigrants in 2002.33
Documented immigrants are excluded rom ederal
benets or ve years aer entry into the U.S., and
undocumented immigrants are always ineligible or ood
stamps. Although citizen children o non-citizen parents
are eligible or benets, it is likely that ew non-citizen
parents apply or ederal benets, either due to perceivedrisk or lack o knowledge.34 Tus, a large number o low-
income children may not receive ood benets because o
their parents citizenship status.
Chid Cae: According to calculations done by the
National Womens Law Center, the FY 2007 Federal
Child Care and Development Block Grant (CCDBG)
was nearly $500 million less than the grant or FY 2002,
when adjusted or infation.35 Although some states made
progress in improving child care assistance policies
in 2006-2007, 17 states continue to have waiting lists
or have rozen new intakes or amilies seeking child
care assistance in 2007. Ohio, however, did not have a
waiting list as o 2007.36 Additionally, in over 25 states
co-payments made up a greater percentage o parents
income in 2007 than in 2001. For amilies in Ohio
with incomes at 150% o the FPL and with one or more
children in care, child care co-payments made up 9%
o amilies incomes in 2007, an increase rom 5% o
amilies incomes in 2001.37 Low-wage working parents
continue to ace barriers to accessing quality child care.
In Ohio, there were about 415,000 children under age six
(and about 1,000,000 children under age 19) in amilies
with incomes below 200% o the FPL in 2006.38 However,only about 46,600 children (in 26,200 amilies) in Ohio
received Child Care and Development Fund (CCDF)
subsidies in scal year 2005.39 Tis amounts to just 11%
o Ohios eligible children under age six (or 5% o Ohios
eligible children under age 19) receiving child care
subsidies in 2006.
Heath Insance: According to the Center on Budget
and Policy Priorities, nearly 16% o Americans lacked
health insurance in 2006, compared to 14% in 2001;
meanwhile, the percentage o uninsured children
nationwide has remained relatively steady between
2001 and 2006.40 However, Families USA reports since
2001, low-income childrens access to health insurance
coverage has been negatively aected by state budget
cuts resulting rom the scal pressures o the 2001
economic recession.41 Although SCHIP has expanded
since 2001, the number o uninsured children has
continued to increase at an even aster pace. According to
the CBPP, the main reason that both children and adults
have been losing ground in health insurance coverage isthe erosion o employer-sponsored insurance.42 Ohios
Healthy Start served 218,529 children and teens under
19 years o age in Fiscal Year 2006.43 According to U.S.
Census Health Insurance Data (2006), 4.5% o Ohios
children in amilies at or below 200% o the Federal
Poverty Level do not have health insurance.44
Chid Sppot: Despite the act that 60% o all custodial
parents in the United States have child support awards,
less than hal o those awarded child support actually
receive the ull amount owed to them, while one-quarter
o custodial parents awarded child support receive no
payment at all.45 When amilies receive payments with
the assistance o a state department o child support
enorcement agencies, the national average amount
received is $235 per amily, and in Ohio the state average
is $285.61 per amily.46
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the self-sufficiency stAnDArD fOr OhiO 23
Cosing the Gap Between Wages and the Standad
Many amilies do not earn Sel-Suciency Wages,
particularly i they have recently entered (or re-entered)
the workorce or live in high cost or low-wage areas. Such
amilies cannot aord their housing and ood and child
care; much less other expenses and are orced to choose
between basic needs. Tis section provides strategies
to close the gap between wages earned and the cost o
meeting all basic needs or working amilies.
able 5 below shows average wages or Ohios top ten
occupations (by number o employees). Te data was
collected by the Bureau o Labor Statistics (BLS) rom
the 2006 National Survey o Employers and updated
using the Consumer Price Index to 2008. Families withone adult, one preschooler, and one schoolage child in
Cuyahoga County require $44,413 per year or $21.03
per hour (without work supports) to be sel-sucient.
Only three o the top ten occupational categories in
Ohio provide average wages above the Sel-Suciency
Standard or this amily type (education, training,
and library occupations; health care practitioners and
technical occupations; and business and nancial
operations occupations). Te most common Ohio
occupational categoryoce and administrative support
occupationshas an average wage o $30,650, which is
nearly $14,000 less than the Sel-Suciency Wage or
this amily type in Cuyahoga County. Te ourth most
common Ohio occupational categoryood preparation
and serv inghas an average wage o $17,895, less than
hal o the Sel-Suciency Wage or this amily type in
Cuyahoga County.
Tus, Ohios most common occupations have wages that
are on average substantially below the minimum level
o sel-suciency. Te gap between wages and expenses
presents a challenge or state and local agencies to seek
strategies that will aid amilies striving to reach sel-
suciency.
strAtegies tO clOse the gAP
Tere are two basic approaches or individuals to closethe income gap: reduce costs or raise incomes. Te rst
approach, modeled and discussed in the previous section,
reduces costs through subsidies and supports, such as
child support, ood stamps, and child care assistance.
Strategies or the second approach, raising incomes,
are detailed below. Note, however, that reducing costs
and raising incomes are not mutually exclusive, but can
and should be used sequentially or in tandem. Some
parents may, or instance, receive education and training
leading to new jobs, yet continue to have their incomessupplemented by work supports until their wages reach
the sel-sucien