Executive Summary
The government's procedures for defining the poverty
population have been criticized for many years. These criticisms
make it difficult to determine a family's true standard of living
and the effectiveness of the government policy in reducing poverty.
The Self-Sufficiency Standard (SSS) uses innovative
methodology to calculate the cost of living in a local area. Using
data from federal and state sources for Ohio, the cost of rent,
child-care, food, medical care and transportation were calculated.
These expenses plus taxes yield the minimum amount of income a
family needs to live on without relying on public and private aid.
For the state of Ohio, the SSS ranges from a low of $11,810
for a single adult to a high of $30,679 for a single parent with
three pre-teen children in the household. For a two-parent family
with two pre-school age children, the SSS is $26,515. Comparable
figures in Butler County, Ohio, are $12,260 for a single adult,
$34,706 for a single parent with three pre-teen children and
$29,300 for a two-parent family with two pre-school age children.
The SSS is sensitive to the number and ages of children.
When children are young, the SSS is higher, reflecting the burden
of child-care expenses that must be paid in order for the parent to
work. As children get older, child-care outlays decline, which
reduces the SSS for families with teenage children.
The SSS ranges from 35 percent to 88 percent in excess of
the poverty line for the typical Ohio family. In Butler County,
Ohio, one family type (a single parent with three pre-teen
children) had an SSS income that was more than twice as high as the
poverty line.
The trade and service sectors of Ohio's economy are
projected to be the fastest growing sectors in the next decade.
These industries are also likely to offer job opportunities to low-skill workers seeking to attain a self-sufficient income. It is
noteworthy, then, that the SSS is higher than the average wage in
these industries for families with the greatest child-care needs
(i.e., those with two or more pre-teen children).
This report recommends increased child-care subsidies, non-traditional employment for women and targeting training for high-wage jobs to increase the incomes of Ohio's citizens.