Igniting a Paradigm Shift in Policymaking, Programming, and Personal Planning: The California Family Standard and Elder

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

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. 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. 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. 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. 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. 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. CA Family Economic Self-Sufficiency Standard • 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

9. Family StandardLos Angeles and Humboldt Counties

11. CA Elder Economic Security Standard Index • 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

12. Elder IndexAlameda & Riverside Counties

15. Paradigm Shift: Using the Tools • As abenchmarking toolfor 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 acounseling 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. 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. 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. 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. 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. 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. 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. The Continuum of Economic Security Federal Poverty Guidelines Family Standard Elder Index Savings/Assets • (1)Striving – Basic Needs Unmet • below Family Standard/Elder Index • (2)Surviving – Basic Needs Met • atFamily Standard/Elder Index • (3) Thriving – Basic Needs Met and Able to Save and Acquire Assets • above Family Standard/Elder Index Striving Surviving Thriving

23. Contact Information Susie Smith or Jenny Chung Insight Center for Community Economic Development (Oakland, CA) ssmith@insightcced.orgor jchung@insightcced.org; (510) 251-2600