The California Elder Economic Security Initiative ™

1. The California Elder Economic Security Initiative™ CARA Conference October 22, 2007 Susie Smith Californians for Family Economic Self-Sufficiency, a project of The Insight Center for Community Economic Development

2. Insight Center for Community Economic Development • Insight Center is a 38 year old national research and consulting organization dedicated to building economic health and opportunity in vulnerable communities • We partner with a diverse range of colleagues to develop innovative strategies and programs that result in systemic change and help people become, and remain, economically secure • Californians for Family Economic Self-Sufficiency(CFESS)

3. The Elder Economic Security Initiative™ program is… A multi-year project that offers a conceptual framework and concrete tools to shape public policies and programs to promote the economic well being of older adults, whether or not they have the capacity to be fully self-reliant or are in need of certain public supports to age in place with dignity.

4. Who is Involved in the Elder Economic Security Initiative™ (EESI™)? • Insight Center, Oakland, CA • Californians for Family Economic Self-Sufficiency (CFESS), a project of Insight Center, is a statewide network of 400+non-profit and public agencies • Wider Opportunities for Women, Washington, DC • Gerontology Institute at the University of Massachusetts • UCLA Center for Health Policy Research • Statewide CA-EESI Steering Committee • National EESI Advisory Board – guides national work and vetted methodology over 2 years

5. National EESI™Advisory Board Our National Research Partner: Gerontology Institute at UMass Boston AARP National Council on the Aging The Urban Institute Income Benefit and Policy Center National Committee to Preserve Social Security and Medicare Women's Institute for a Secure Retirement Health Policy Instituteat Georgetown Public Policy Institute Institute for Women’s Policy Research ACCRA-the Council for Community and Economic Research The National Caucus and Center on Black Aged, Inc. The Pension Rights Center National Academy of Social Insurance State EESI partners, and affiliate state EESI partners

6. California EESI Steering Committee California Community Foundation On Lok SeniorHealth John Muir/Mt. Diablo Community Health Fund National Council on Aging Alameda County Area Agency on Aging Senior Community Centers of San Diego U.S. Department of Labor, Women’s Bureau UCSF Institute for Health and Aging California Women’s Agenda St. Mary’s Center California State Senator Sheila Kuehl California Senate Subcommittee on Aging and Long Term Care Office of California State Senator Elaine Alquist California Advocates for Nursing Home Reform National Senior Citizens Law Center Plumbline Coaching and Consulting, Inc. Cal-Nev Community Action Partnership The Health Trust Fresno-Madera Area Agency on Aging Office of California State Assemblymember Patty Berg; UC Berkeley Center for the Infoline Sacramento Advanced Study of Aging Service Los Angeles County Area Agency on Aging Los Angeles City Area Agency on Aging Y & H Soda Foundation UCLA Center for Health Policy Research United Way of the Bay Area California Commission on the Status of Women Edgewood Center for Children and Families AARP The California Endowment Stanford Geriatric Education Center California Alliance for Retired Americans

7. The Goals To Provide a Framework to help guide: • Older adults’ decisions and choices, • Families and agencies that help care for them, • Aging Boomers as they plan for their futures, and • Public policy and programs at the national, state, and local level.

8. The Elder Economic Security Initiative™ program combines… • Coalition building, • Research, • Education, • Advocacy, and • A media strategy at the community, state, and national level.

9. Current State EESI™ Partners • Insight Center for Community Economic Development (CA) • MA Association of Older Americans (MA) • Health and Medicine Policy Research Group (IL) • Pathways PA (PA) • Wisconsin Women's Network (WI) • Expanding to include 15 more lead state partners

10. How does the EESI™ program work? We use a three-pronged approach: • Tabulate state Elder Economic Security Standard™ indexes using a standardized methodology; • Develop national, state, and local coalitions; and • Develop and implement a national, state, and local policy/programmatic agendas and priorities drawn from the findings of the Elder Standard index.

11. Elder poverty in CA is already a serious problem: 8% of CA adults age 65+ live below federal poverty in 2005 11% of San Diego adults age 65+ live below federal poverty in 2005 29% of all California’s older adults have incomes below double the poverty line ($19,600 single adult; $23,400 for two-person household) Significant increase in elders will strain mechanisms of support Standard tool used for assessing elders’ economic well-being is deeply flawed Why theCalifornia Elder Economic Security Standard™ index? The CA Elder Economic Security Standard™index: The new measure of income adequacy allows advocates to push for policy and programmatic changes that improve living standards and economic security

12. High Cost of Living: Impact on EldersElder Standard™ index shows… • What does it take for elders to age with dignity? • To remain in the community as their health and other needs change? • How costs vary by life circumstances: • Household, housing tenure, health, transportation, & need for long-term care

13. The Basic Assumptions • Considers market costs of independent living – without subsidies • Begins at age 65 • Assumes elders are retired

14. The Cost Data:Comparable - Area specific • Housing • Food • Health care and status • Transportation • Other needs

15. Federal Poverty Line v Elder Standard • The Federal Poverty Line: • Based on cost of food • “One size fits all” in every county and state of U.S. • Same across housing type • Same across health status • Describes poverty • Elder Standard: • ALL basic costs • Varies by county • Varies by household type • Varies by health status • Describes self-sufficiency

16. Sample Urban County Elder StandardDRAFT – Not for Distribution

17. Sample Urban County Elder StandardDRAFT – Not for Distribution

18. Elder Standard™ Index vs. Other Benchmarks One-Person Household • Elder Standard Range = $15,000 to $35,000 • Federal Poverty Guideline = $10,210 • SSI Payment in CA = $10,272 • Average Soc. Security Paym’t in SUC = $12,024 Two-Person Household • Elder Standard Range =$28,000 to $48,000 • Federal Poverty Guideline =$13,690 • SSI Payment in CA = $18,024 • Average Soc. Security Paym’t in SUC = $22,619

19. The Impact of Long-Term Care at Home in Massachusetts*(example of what will come for CA)

20. Sample Urban CountyResults Indicate… • High housing costs equal up to 70% of total expenses • For singles, healthcare is 2nd largest expense • For couples, food is 2nd largest expense

21. Sample Rural/Central Valley County

22. Sample Rural/Central Valley CountyDraft – Not for Distribution

23. Rural/Central Valley Elder Standard™ vs.Other Benchmarks One-Person Household • Elder Standard Range = $14,400 to $22,700 • Federal Poverty Guideline = $10,210 • SSI Payment in CA = $10,272 • Average Soc. Security Paym’t in SRC = $11,944 Two-Person Household • Elder Standard Range =$25,200 to $33,500 • Federal Poverty Guideline =$13,690 • SSI Payment in CA = $18,024 • Average Soc. Security Paym’t in SRC = $20,066

24. Sample Urban CountyResults Indicate… • High housing costs equal up to 38% of total expenses • Healthcare is 2nd largest expense for singles and couples • Food is 3rd largest expense

25. Summary of Findings, continued • Elders can’t make ends meet at the federal poverty level or average Social Security payment without supports in sample rural or urban counties in CA

26. Using the Elder Standard™ index • Education • Policy and Advocacy • Case Management • Community Planning • Programmatic Development • Financial Security

27. Proposed Action Plan • Inform • Elders • Legislators • Aging agencies • Governor’s Office • Identify • Gaps • Opportunities

28. Proposed Action Plan • Expand • Coalition of elders, advocacy orgs., public agencies, legislators, service providers • Promote • Legislative/ Administrative Action • Programmatic reforms • Change • Future Outlook

29. Change This Picture in the Future A Yardstick for Measuring Change • Develop new programs • Foster partnerships & collaborations • Create flexible networks Securing Income • Inform responsible retirement planning • Promote livable wages that provide livable retirement income • Strengthen Social Security & Medicare • Address Pension/Annuity Issues • Address debt issues Invest In • Expanding health care access/connectors • Manage cost of health care • Preserve and expand supply of affordable elder housing (rental, owner, supportive services) • Increasing options and access to long-term care • Strengthen elder consumer protections

30. Taking Project to Scale in CA • Statewide Release 1st Quarter of 2008 after Governor’s Budget Announcement • Statewide policy agenda • Public hearings / Stakeholder engagement event • Press release co-sponsored by key legislators • Local Coalition Building around the State • Identify lead agencies in key regions • Regional coalition - how data will help locally, create local policy agenda • Organize community forum/public event • Local public hearings

31. Next Steps • Calculate packages of LTC costs • Finalize statewide policy agenda and briefing • Release Elder Standard & Policy Agenda • Statewide and regionally • Expand CA-EESI Network • Launch “It’s Not Your Fault” Campaign • Listening Campaign on how data will help older adults in CA • Research: Analyze “above/below” numbers

32. Next Steps • Train organizations and public agencies on how to use Elder Standard • Encourage adoption of the Elder Standard by policymakers, public agencies, non-profit organizations, and foundations

33. Get involved! • Join statewide CA-EESI Coalition • Email CA-EESI@lists.insightcced.org • Join Local EESI coalitions • San Diego • LA • Bay Area • Sacramento • Attend Release Events • Press conferences, community forums, public hearings

34. Discussion: Elder Standard™index • What Programs & Policies Can Help Close the Income – Expense Gap in CA?

35. Discussion: Elder Standard™index • How would you use this information? • In Advocacy for yourselves and other older adults? • In direct service efforts? • Interest in joining CA-EESI Coalition • Email CA-EESI@lists.insightcced.org

36. Acknowledgements • California Elder Economic Security Initiative™ Steering Committee • Funders: The Health Trust, Alameda County AAA, LA County & City AAA, Wider Opportunities for Women, The California Community Foundation, The California Wellness Foundation, The California Endowment, Y & H Soda Foundation, United Way of the Bay Area

37. Next Steps/ Comments/ Questions For more information, please contact: Susie Smith: ssmith@Insightcced.org (510) 251-2600x108