Green Bay - Living Wage

Summary - A Community Specific Living Wage for Green Bay

The concept behind a living wage policies is simple. The still standing Federally set minimum wage of $7.25/hr is normally not enough for a person to access basic housing is most areas. The financial factors that play into this vary yearly, and from one area to another. The national average family size, consists of a family of four (two children). The following US federal poverty guidelines come from the US Dept. Of Health & Human Services at; "http://aspe.hhs.gov/poverty/" The US federal poverty guidelines are a simplification of the poverty thresholds. The poverty thresholds are somewhat arbitrary as they were created in the 1960's by multiplying a minimal food budget by three and has since been adjusted for inflation. For the most part, food stamp, and other government assistance program eligibility ends when your income exceeds the poverty level by 30% or more. The US Department of Housing and Urban Development (HUD) establishes and determines Fair Market Rents, based on national housing costs and a number of other financial factors. Their guidelines suggest no more than 30% of a persons gross monthly income should be spent on housing. The HHS Poverty guidelines + 30% is considered the standard national living wage, based on a 40 hour work week. The Universal Standard Living Wage is the amount of income and resources needed for a family of four to adequately meet the basic needs without assistance. This includes; Food, Housing, Transportation, Utilities, Childcare, Taxes, and Healthcare. It does not include; Savings, Restaurant meals, Funds for emergencies, or Renters' insurance. (When it comes to housing costs this usually equates to a two bedroom apartment.) The easiest way to calculate an area specific living wage is find the cost of living difference for your area using a cost of living comparison chart such as the quarterly data provided by ACCRA, a non-profit research organization for community and economic development. This chart/data is usually available from your local chamber of commerce. It should be noted that there are no actual known living wage policies or campaigns for the Green Bay, WI area. Eau Claire County, Dane County, Madison, and Milwaukee County appear the be the only areas in Wisconsin with policies. (see: "http://livingwagecampaign.org") Also see: "http://www.universallivingwage.org" The system describe above based of the poverty thresholds does not hold a lot of merit. Health care and transportation costs as well as housing have all skyrocketed. Using the above system with basis that is over 40 years old is unrealistic. For example in many areas you will find that the HUD's Fair Market Rent's are not strictly being followed. The EPI (Economic Policy Institute www.epi.org) family budget calculator has become well accepted by many. It's credibility generally supercedes the above system because they explain the family budget methodology and it takes into account present day financial factors.

Family of Four HHS Poverty

Nat. Living Wage

Year Guidelines + 30%=

$/hr

Difference Green Living from Bay Wage National index average

average

Annual

$/hr

1996 $15.600

$20,280 $9.75

98.1

1.9%

$19,895 $9.56

1997 $16,050

$20,865 $10.03 97.2

2.8%

$20,281 $9.75

1998 $16,450

$21,385 $10.28 97.5

2.5%

$20,850 $10.02

1999 $16,700

$21,710 $10.44 99.0

1.0%

$21,493 $10.33

2000 $17,050

$22,165 $10.66 99.4

0.6%

$22,032 $10.59

2001 $17,650

$22,945 $11.03 95.8

4.2%

$21,981 $10.57

2002 $18,100

$23,530 $11.31 96.0

4.0%

$22,589 $10.86

2003 $18,400

$23,920 $11.50 96.3

3.7%

$23,035 $11.07

2004 $18,850

$24,505 $11.78 95.1

4.9%

$23,304 $11.20

2005 $19,350 2006 $20,000

$25,155 $12.09 92.3 $26,000 $12.50 93.8

7.7% 6.2%

$23,218 $11.16 $24,388 $11.73

2007 $20,650

$26,845 $12.91 93.3

6.7%

$25,046 $12.04

2008 $21,200 2009 $22,050

$27,560 $13.25 92.4 $28,665 $13.78 NA

7.6% NA

$25,465 $12.24 NA NA

Compare 2003 to adjacent areas: 100% Difference Living composite from Wage index national $/hr average 84.1 15.9% $9.67 Clintonville 2003

Compare 2008 to adjacent areas: 100% composite index 81.4

Difference from national average 18.6%

Living Wage $/hr $10.78

Denmark

88.5

11.5%

$10.18

86.7

11.5%

$12.20

Marinette

84.0

16.0%

$9.66

82.5

17.5%

$10.93

New London

87.9

12.1%

$10.11

83.5

16.5%

$11.06

Oconto Falls

86.3

13.7%

$9.92

81.8

18.2%

$10.84

Peshtigo

87.1

12.9%

$10.01

85.2

14.8%

$11.29

Pulaski

90.7

9.3%

$10.43

87.5

12.5%

$12.07

Seymour

87.9

12.4%

$10.11

88.4

11.6%

$11.71

Shawano

87.6

12.4%

$10.07

83.1

16.9%

$11.01

Wrightstown

92.7

7.3%

$10.60

98.0

2.0%

$12.99

According to U.S. Census Bureau statistics, 7.4% of the families in Green Bay were living below the poverty level in 2000. The percentage was even higher (10.5) for individuals. Six years later, those percentages have to be rising.

EPI Basic Family 2002* 2003 2004 2005 2006 2007* 2008 Budget Calculator Green Bay, WI 2 Parents, 2 $15.32/hr $15.88/hr $16.45/hr $17.00/hr $17.56/hr $18.11/hr $23.38/hr Children Breakdown: Monthly housing $530

$541

$553

$564

$576

$587

$671

Monthly food Monthly child care Monthly transportation Monthly health care Monthly other necessities Monthly taxes Monthly total Annual total

$510 $710

$525 $721

$541 $732

$556 $743

$572 $754

$587 $765

$643 $1191

$222

$253

$283

$314

$344

$375

$404

$215

$238

$262

$285

$309

$332

$373

$320

$320

$320

$320

$320

$320

$316

$150 $2,657 $31,884

$155 $2,753 $33,036

$160 $2,851 $34,212

$164 $2,946 $35,352

$169 $3,044 $36,528

$174 $3,140 $37,680

$454 $4,052 $48,624

Percentage of all people in state living below family budget line in 2007 was 18%