1. October 14, 2009 Susie Smith Director, Californians for Economic Security Insight Center for Community Economic Development (www.insightcced.org); ssmith@insightcced.org;www.insightcced.orgssmith@insightcced.org (510) 251-2600 x108 Igniting a Paradigm Shift in Policymaking, Programming, and Personal Planning: The California Family Standard and Elder Index

2. 2009 CWDA Conference10/14/09Page No. 2 Presentation Overview Introduction: What is the Insight Center and CFES? What’s wrong with our current poverty measure? What does it really cost to live in California? Family Standard & Elder Index How have the Family Standard & Elder Index been applied in CA? Perspectives from Other States

3. 2009 CWDA Conference10/14/09Page No. 3 Insight Center Overview Formed in 1969, the Insight Center for Community Economic Development (formerly NEDLC) is a national research, consulting, and legal organization dedicated to building economic security in low-income communities. Insight Center Program Areas Workforce Development Early Care and Education Savings and Asset Building Legal Services

4. 2009 CWDA Conference10/14/09Page No. 4 Californians for Economic Security (CFES) CFES Vision All Californians will be able to meet their basic needs and advance to economic security CFES Mission Catalyze a paradigm shift in California to more accurately measure the real needs of working families and retired seniors CFES Approach Research + Coalition Building + Advocacy = Change

5. 2009 CWDA Conference10/14/09Page No. 5 CFES Strategies Grassroots/Ground up: -Local tools -Family Economic Self-Sufficiency Standard -Elder Economic Security Standard™ Index -Self-Sufficiency Calculator -Organizing, coalition-building, local advisory boards -Public education and media campaigns -Local policy and program change Top Down: -Policy advocacy at state and federal levels

6. 2009 CWDA Conference10/14/09Page No. 6 Family Economic Self-Sufficiency Project Developed in 1996, the Family Standard is calculated by Dr. Diana Pearce at the University of Washington The Family Standard has been calculated for 37 states and Washington D.C. Part of a national movement in partnership with D.C.- based Wider Opportunities for Women The California Family Standard is calculated for each of the state’s 58 counties

7. 2009 CWDA Conference10/14/09Page No. 7 Federal Poverty Guidelines v. Elder Index FPL: - Based on cost of food -“One size fits all” in every county and state of U.S. - Same across housing types -Same across health status - Describes poverty Family Standard/Elder Index: -ALL basic costs -Varies by county -Varies by household type -Varies by health status -Describes economic security

8. 2009 CWDA Conference10/14/09Page No. 8 County-specific cost-of-living index for people under 65 Income needed for housing, food, health care, child care, transportation, other basic needs 156 family types Based on public data sources Used by: Policymakers Direct service providers Public agencies Foundations Advocates Labor unions Working families CA Family Economic Self-Sufficiency Standard

9. 2009 CWDA Conference10/14/09Page No. 9 Family Standard Los Angeles and Humboldt Counties Monthly Expenses Los Angeles CountyHumboldt County One Adult Two Adults, Preschooler, School-age ChildOne Adult Two Adults, Preschooler, School-age Child Housing10411300636837 Child Care0112901013 Food234 729 241752 Transportation260 509 255500 Health Care102303142487 Miscellaneous @ 10%164399127359 Taxes/Credits403498252325 Family Standard Per Hour (per adult)$12.51$13.89$9.40$12.14 Family Standard Per Year$26,430$58,659$19,855$51,293

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11. 2009 CWDA Conference10/14/09Page No. 11 County-specific cost-of-living index for retired people 65 and older Income needed for housing, food, health care, transportation, other basic needs Individual and Couple 3 Housing Types Based on public data sources Used by: Policymakers Direct service providers Public agencies Foundations Advocates Seniors CA Elder Economic Security Standard Index

12. 2009 CWDA Conference10/14/09Page No. 12 Elder Index Alameda & Riverside Counties Monthly Expenses Alameda CountyRiverside County Owner w/o Mortgage Renter, One Bedroom Owner w/o Mortgage Renter, One Bedroom Housing$426$1,055$407$835 Food$302 $231 Transportation$202 Health Care = Good$293 $241 Miscellaneous @ 20%$244 $216 Elder Standard Index Per Month $1,467$2,096$1,298$1,725 Elder Standard Index Per Year $17,604$25,152$15,571$20,703

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15. 2009 CWDA Conference10/14/09Page No. 15 Paradigm Shift: Using the Tools As a benchmarking tool for client progress toward self-sufficiency Community Action Partnership of Riverside County and their local faith- based organization partners use the Family Standard to help families with short-term and long-term financial planning and budgeting As a counseling tool Chabot Community College (Hayward) and Berkeley City College use the Family Standard & Calculator with students who are receiving CalWORKs to help them find the benefits for which they are eligible, and to ID careers with self-sufficiency wages Empower Clients (not their fault!) Financial Planning (when/where to retire)

16. 2009 CWDA Conference10/14/09Page No. 16 Paradigm Shift: Using the Tools As priority-setting criteria for funding streams and program agendas United Way of the Bay Area has adopted the Self-Sufficiency Standard as a tool to prioritize and measure the effectiveness of funding strategies. As eligibility criteria for services Workforce Investment Boards in Sacramento, Pasadena, and San Bernardino, and Contra Costa are among those that have adopted a self-sufficiency measure for service eligibility, enabling lower-wage workers to access training. SF Community Living Fund uses Elder Index for access to long term care services ElderHelp Concierge Club uses Elder Index to set program rates

17. 2009 CWDA Conference10/14/09Page No. 17 Paradigm Shift: Using the Tools As a budget & advocacy tool for advocates and policymakers SF, LA, and statewide resolutions to modernize the FPL, and support MAP Act of 2009 AB 324 – The Elder Economic Dignity Act of 2009 (Institutionalize the Elder Index in CA) Passed CA legislature with bi-partisan support Over 100 organizational supporters including CWDA, C4A, AARP, NASW, Women’s Foundation of CA, CARA, OWL, etc) Make case to protect against cuts (e.g. LAO’s office) Overall: create responsible and effective public policy v. “bury your head in the sand FPL”

18. 2009 CWDA Conference10/14/09Page No. 18 Paradigm Shift: Using the Tools Mayor Villaraigosa on the Elder Index: “LA's elderly population deserves every opportunity and resource to overcome obstacles to a secure retirement. The Elder Index is an objective standard that identifies the real costs and challenges confronting seniors each and every day. We look forward to using it to more effectively tackle and address the housing needs and economic distress of all of our City's seniors."

19. 2009 CWDA Conference10/14/09Page No. 19 Paradigm Shift: Using the Tools As a program development and planning tool Strategic planning Get “credit” for people already serving Develop new funds, proof of families and seniors in need Measure program impact

20. 2009 CWDA Conference10/14/09Page No. 20 How the Standard is Used: Programs Example of Program Impact: Senior Community Centers of San Diego San Diego Elder Standard Index (Renter): $22,822 Potiker Family Senior Residence in San Diego:  200 units of very low-income senior housing.  Max income is $22,000. Average rents are about $450/month – or about $500 less than a market rate one-bedroom apartment. This is represents a savings of about $6,000 annually for each resident. A senior living at Potiker receives two meals daily – saving about $1,700 annually This senior, therefore, needs to earn a little more than $15,000 annually to have the rest of his/her needs met compared to a senior without assistance.

21. 2009 CWDA Conference10/14/09Page No. 21 Building the Movement: Examples from Other States Illinois -Family Standard used to employ sector strategies and respond to the demographics of the community Massachusetts -Elder Index used to increase Medicaid asset limits from $2,000 to $10,000 Washington -Family Standard used to counsel customers about income goals, career paths, and work supports; assess outcomes through data collection and benchmarking goals

22. 2009 CWDA Conference10/14/09Page No. 22 The Continuum of Economic Security (1) Striving – Basic Needs Unmet -below Family Standard/Elder Index (2) Surviving – Basic Needs Met -at Family Standard/Elder Index (3) Thriving – Basic Needs Met and Able to Save and Acquire Assets -above Family Standard/Elder Index Family Standard Elder Index ThrivingStrivingSurviving Federal Poverty Guidelines Savings/Assets

23. 2009 CWDA Conference10/14/09Page No. 23 Susie Smith or Jenny Chung Insight Center for Community Economic Development (Oakland, CA) ssmith@insightcced.orgssmith@insightcced.org or jchung@insightcced.org; (510) 251-2600jchung@insightcced.org Contact Information