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In This Issue...
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How Much Do Local Households Need to Survive?
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Driving Impaired: The Costs & Consequences
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How Much Do Local Households Need to Survive?
And What Can Area Agencies and Governments Do To Help?
By Linda Fridy
Two can't live as cheaply as one, in spite of the old saying, and how much they need depends greatly on who the two are. A just-released study by the United Way shows those differences by measuring what households in Santa Cruz County need to survive using an alternative to the federal poverty formula.
Based on the self-sufficiency standard, the study shows that 28 percent of county households are not earning enough to meet this adequacy level, which includes costs for housing, child care, transportation and taxes along with food.
It also varies by geographic areas, so the high cost of housing in Santa Cruz County is factored into local calculations.
The standard does not set aside money for restaurant or take-out food, savings, emergency funds, or credit card or loan payments.
Why use another measurement? The self-sufficiency standard paints a different picture than the federal method. Those statistics show only 6 percent of Santa Cruz County households at the federal poverty level.
The federal poverty level comes only from food costs. When it was created in the 1960s, it used a 1955 study that showed food costs represent one-third of a family's budget. It then multiplied the expense of minimum, emergency-level food by three to establish the "poverty level" for differently sized households.
The formula has never been changed except to adjust the cost of food and does not vary by location, but assumes that expenses are similar across the country.
Who Struggles Locally?
The self-sufficiency standard, by comparison, reflects the different needs of different households.
In Santa Cruz County, the study calculated that a single adult living alone needs to earn $28,404 annually, while two adults sharing housing need a combined $37,380.
When the adults in a household work and have a preschool age child, the cost of childcare raises how much is needed. The study estimated that two working adults in Santa Cruz County with an infant must earn $57,636 annually to cover all their expenses, including $846 a month for someone to watch the baby. Although food costs increase, the standard shows that a local family of two adults and two teenagers needs less: $46,902.
The United Way study, sponsored locally by the Santa Cruz Community Credit Union, calculated that 19,813 households in the county fell below the self-sufficiency standard. The work was based on information from 2007 census info, which did not reflect the current recession.
Most of the adults in struggling Santa Cruz County families work - 91.4 percent, the study shows. They just don't earn enough to meet all needs.
Those who did not graduate from high school are the most likely to fall below the county standard, at 58.5 percent. However, college graduates can also have trouble making ends meet.
The study found 13.7 percent of households where adults have a college degree still do not meet the income standard for their demographics.
Latinos are the largest ethnic group below the standard in Santa Cruz County at 46.7 percent of that category, while 26.8 percent of Asian and Pacific islanders and 23.2 percent of white households struggle.
More than half of single mothers in the county, 56.5 percent, do not meet the self-sufficiency standard, but married couples with children (30.9 percent) and those without children (22.2 percent) also posted significant numbers living below the sufficiency standard.
Compared to other Bay Area counties, Santa Cruz County had the highest percentage of households earning less than the self-sufficiency standard. Statewide, it ranked 23.
The United Way's California self-sufficiency study listed Santa Cruz County among those with the highest costs for achieving stability.
What To Do?
At the Dec. 2 preview of the study results for local leaders, the numbers did not surprise many who regularly work with people to fill in gaps. The discussion centered on how to use the information.
The study highlighted two factors that have a significant impact on income and expenses: education and child rearing.
"Education can really be one of the best assets someone can acquire," said Denise Gammal from United Way of the Bay Area, who presented the study. She added, "It's really expensive to raise kids."
Given that information, Celia Organista of Community Bridges said agencies such as her non-profit need to focus more on young adults, encouraging them to continue in education and choose a path that gives them better financial options.
"We're doing things for people who are already in trouble. Why don't we do more for people who are younger?" she asked.
Cynthia Matthews, a long-time director of Planned Parenthood and a current Santa Cruz city councilwoman, recommended that local organizations partner with the business community to provide opportunities for the workforce.
Carlos Palacios, city manager of Watsonville, said governments and agencies need to identify existing successful programs, such as Youth Build, and advocate that they get stimulus funding, rather than creating new, untested approaches.
Many attendees said the county needs a more united voice for anti-poverty advocacy. Several also suggested focusing on a single issue, such as affordable housing, for a period to create more awareness of individual issues.
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