US Supplemental Poverty measure according to the Commerce Department will now take into account a wider range of expenses and income to create a truer portrait of which Americans are financially fragile. (http://www.washingtonpost.com/wp-dyn/content/article/2010/03/02/AR2010030202316_pf.html)
The old definition was based on the cost of food and a family’s cash income. The new measure acknowledges that food has become a smaller share of poor families’ costs and will consider expenses such as housing, utilities, child care and medical treatment. It will also include financial help from housing and food subsidies and money from jobs as well as cash assistance programs (TANF and other welfare aid?).
Two years ago, New York initiated these new measures and their poverty rate was 22% by the new formula, 18% under the old.
New York Times:
The old standard is anachronistic as it was based on the Agriculture Department’s cheapest meal plan and on the assumption that the average family spends 1/3 of total income on food.
Federal officials describe the supplemental measure as experimental and a work in progress. It establishes a poverty threshold that depends on the cost of food, shelter, clothing and utilities “plus a little more” for “a population that is not poor but is somewhat below the median.”
The threshold would be adjusted to calculate the value of in-kind benefits, like food stamps, and whether homeowners have a mortgage. Tax credits would be added to the total income and benefits; taxes, work expenses (including commuting and child care), and out-of-pocket medical costs would be deducted.
VISTA Carrie:
I will earn this year $10296 in disposable income. My rent is $500, paid by Section 8 through Meade County Housing Authority which adds up to $6000 annually. My childcare will be covered up to $300/month at $3600 annually if I use all of it. I’m not sure what insurance costs per month, but it’s provided for myself and my son. My Food Stamps are (for myself) $200/month and including my son for a family of two $367/month so annually between $2400-4404.
My outgoing expenses are transportation and utilities, mostly. My car takes about $35 to fill up once a week, so $1820 annually. I just moved in to my place, but my utilities were estimated at $55/month for natural gas and $40/month for electricity. Since I have not yet received a bill for these services, I will use those numbers for my calculations. Gas to cook with, heat my home and water, will be around $660/year; electricity for that same year should be around $480. I have to pay a pet rent monthly for $30/pet and I have three. So $360/year/pet for a grand total of $1080, and we must add a $300 deposit per pet in addition to the monthly privilege fee: $900. My outgoing for this year will be: $4940 (deposit + monthlies). That doesn't leave me a whole heck of a lot of income to play with.
By “play with” I must include my membership to the YMCA and my cell phone bill. I received a sponsorship for the gym which means I pay $16.85/month for a single-parent family membership. The membership includes my son, so I feel that it’s worth the expense for both of us to be members: $202.2 for the year is quite a bargain when it concerns our physical health and well-being (now we're up to$5142 annual expenses). So my annual disposable will now be $5154.
My cell phone bill is $107/month. Because Verizon generously offers a discount to government employees, my bill will be $60! Which comes out to $720 for the year and brings me down to $4434.
This means that to eat out, to visit a national park, go to a movie or even rent one at the Red Box, toilet paper and Saran Wrap, toothbrushes and paste, shampoo and conditioner, razors, deodorant, toilet cleaner and other consumable products not covered by my Food Stamps, must come from a monthly income, after the bare essentials, cell phone and gym membership, of $369.5. In a four week month, that’s about $92.375 per week and $11.92 per day for a 31-day month. True, that’s more than I’d get if I were one of those kids in an undeveloped country, but I’m making $4.95/hour! If I add in my total Food Stamp benefits, I still only come out to $7.05/hour.
So am I poor? The 2008 threshold for one individual under age 65 is $11,201 according to http://www.irp.wisc.edu/faqs/faq1.htm and my family consists of two. Since my total income is below the poverty threshold for one, I must look further to find the threshold appropriate for my family size. Two people are living below the poverty line if the total annual household income is below $14,051. If I include my Food Stamps as income, and my annual for Food Stamps is $4404 for the two of us (we’re at a total of $14,700 right now, FS + my cash award) and my rental assistance which will be $6000 by the end of the year which brings me up to $20,700 for my family of two if we include my supplemental housing and food assistance.
So I must not be poor.
Fancy that.
My VISTA, though a Vow of Poverty, will keep my head above the water while I work in service to those who are involuntarily poor.
Fancy that.
My VISTA, though a Vow of Poverty, will keep my head above the water while I work in service to those who are involuntarily poor.
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