security - Institute for Women's Policy Research

THE BASIC

ECONOMIC

SECURITY

TABLES

™

FOR THE

WASHINGTON, DC METRO AREA

A PROJECT OF WIDER OPPORTUNITIES FOR WOMEN’S FAMILY ECONOMIC SECURITY PROGRAM

2010

THE BASIC

ECONOMIC

SECURITY

TABLES

™

FOR THE

WASHINGTON, DC METRO AREA

2010

© Copyright Wider Opportunities for Women, 2010. The Basic Economic Security TablesTM (BEST) are tabulated by Wider Opportunities for Women (WOW) and the Center for Social Development (CSD) at Washington University in St. Louis as part of the national BEST Initiative led by WOW.

Wider Opportunities for Women (WOW) Wider Opportunities for Women (WOW) works nationally and in its home community of Washington, DC to achieve economic independence and equality of opportunity for women and their families at all stages of life. For over 40 years, WOW has been a leader in the areas of nontraditional employment, job training and education, welfare-to-work and workforce development policy. Since 1995, WOW has been devoted to the self-sufficiency of women and their families through the national Family Economic Security (FES) Project. Through FES, WOW has reframed the national debate on social policies and programs from one that focuses on poverty to one that focuses on what it takes families to make ends meet. Building on FES, WOW has expanded to meet its intergenerational mission of economic independence for women at all stages of life with the Elder Economic Security Initiative.

Center for Social Development, Washington University in St. Louis The Center for Social Development conducts research that informs how individuals, families, and communities increase capacity, formulate and reach life goals, and contribute to the economy and society. The Center for Social Development’s principal focus is on families and communities at the bottom of society. Major areas of work include Asset Building and Civic Engagement & Service.

Development of The Basic Economic Security Tables Index is funded by the Washington Area Women’s Foundation, the Ford Foundation and the Freddie Mac Foundation.

2010

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TABLE OF

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Introduction................................................................................................................................................................................................. 1 What Is a Basic Economic Security Table?................................................................................................................................................. 2 How Is Savings Related to Economic Security?......................................................................................................................................... 6 BEST Focus: Economic Security Budget................................................................................................................................................... 15 BEST Focus: Adult Education and Training Expenses.............................................................................................................................. 16 How Close are DC Metro Area Workers to Economic Security?............................................................................................................. 17

Do DC Metro Area Jobs Provide BEST Incomes?..................................................................................................................................... 19 Appendix A: DC Metro Area BEST Data Sources..................................................................................................................................... 23 Appendix B: DC Metro Area BEST Annual Incomes for a Single Worker (Map).................................................................................... 26 Appendix C: DC Metro Area BEST Annual Incomes for a Family of Three (Map).................................................................................. 27 Appendix D: DC Metro Area BEST Annual Incomes for a Family of Four (Map).................................................................................... 28 Appendix E: DC Metro Area Basic Economic Security Tables, 2010, by Area and Family Type............................................................ 29 Appendix F: DC Metro Area Basic Economic Security Tables, by Area, Family Type and Receipt of Employment-based Benefits ..................................................................................................................................................................... 30 Appendix G: Basic Economic Security Tables Expenses for Single Workers, 2010 (Pie Charts).......................................................... 31 Appendix H: Average Community College Education Expenses for a Single Worker, 2010................................................................. 34 Appendix I: Basic Economic Security Tables vs. Benchmark Incomes, by Jurisdiction and Family Type............................................ 37 Appendix J: DC Metro Area Basic Economic Security Tables, 2010, Compared to The Self-Sufficiency Standard for the Washington, DC Metropolitan Area, 2005 ................................................................................................................................. 43 Appendix K: Health Care Reform and the BEST....................................................................................................................................... 44 Appendix L: Additional Tax Information................................................................................................................................................... 46 Appendix M: DC Metro Area Basic Economic Security Tables, 2010..................................................................................................... 47 Works Cited................................................................................................................................................................................................ 72 Acknowledgements................................................................................................................................................................................... 78

ONTENTS Table 1: DC Metro Area Basic Economic Security Tables, 2010, by Jurisdiction ...................................................................................................11 Table 2: Alexandria, VA Basic Economic Security Tables, 2010, Selected Family Types .......................................................................................11

Table 3: Arlington County, VA Basic Economic Security Tables, 2010, Selected Family Types .............................................................................12 Table 4: Fairfax County, VA Basic Economic Security Tables, 2010, Selected Family Types .................................................................................12 Table 5: Montgomery County, MD Basic Economic Security Tables, 2010, Selected Family Types ......................................................................13 Table 6: Prince George’s County, MD Basic Economic Security Tables, 2010, Selected Family Types .................................................................13 Table 7: Washington, DC Basic Economic Security Tables, 2010, Selected Family Types .....................................................................................14 Figure 1: Montgomery County, MD Basic Economic Security Tables Expenses for a Single Worker, 2010.........................................................15 Figure 2: Montgomery County, MD Basic Economic Security Tables Expenses for a Single Worker, 1 Preschooler and 1 Schoolchild, 2010.....................................................................................................................................................................15 Table 8: Arlington County, VA Community College Education Expenses for a Working Adult, 2010....................................................................16 Figure 3: Fairfax County, VA Basic Economic Security Tables for a Single Worker vs. Fairfax County Benchmark Incomes, 2010.........................................................................................................................................................................................17 Figure 4: Prince George’s County, MD Basic Economic Security Tables for a Single Worker, 1 Preschooler and 1 Schoolchild vs. Prince George’s County Benchmark Incomes, 2010............................................................................................................18 Figure 5: Washington, DC Basic Economic Security Tables for Two Workers, 1 Preschooler and 1 Schoolchild vs. District Benchmark Incomes, 2010...........................................................................................................................................................................18 Figure 6: Private Sector Jobs in the DC Metro Area by Industry Sector, 2010 & 2016..........................................................................................19 Table 9: Value of Employment-based Benefits, per Hour, to Workers in the DC Metro Area, 2010..................................................................... 20 Figure 7: Median DC Metro Area Basic Economic Security Tables Indexes, by Family Type vs. Average Wages of Selected DC Metro Area Occupations with High Projected Annual Growth through 2016..................................................................................................21 Figure 8: Projected Job Growth in the DC Metro Area through 2016, by Education Level .................................................................................. 22 Appendix A: DC Metro Area BEST Data Sources..................................................................................................................................................... 23 Appendix B: DC Metro Area BEST Annual Incomes for a Single Worker (Map).................................................................................................... 26 Appendix C: DC Metro Area BEST Annual Incomes for a Family of Three (Map).................................................................................................. 27 Appendix D: DC Metro Area BEST Annual Incomes for a Family of Four (Map).................................................................................................... 28 Appendix E: DC Metro Area Basic Economic Security Tables, 2010, by Jurisdiction and Family Type ............................................................... 29 Appendix F: DC Metro Area Basic Economic Security Tables, 2010, by Jurisdiction, Family Type and Receipt of Employment-based Benefits ..................................................................................................................................................................................... 30 Appendix G: Basic Economic Security Tables Expenses, 2010, by Jurisdiction and Family Type (Pie Charts).....................................................31 Appendix H: Average Community College Education Expenses for a Single Worker, by Jurisdiction and Family Type, 2010........................... 34 Appendix I: Basic Economic Security Tables, 2010 vs. Benchmark Incomes, by Jurisdiction and Family Type...................................................37 Appendix J: DC Metro Area Basic Economic Security Tables, 2010, vs. The Self-Sufficiency Standard for the Washington, DC Metropolitan Area, 2005 .................................................................................................................................................................................... 43 Appendix M: DC Metro Area Basic Economic Security Tables, 2010 (by jurisdiction, listed alphabetically).......................................................47

INTRODUCTION The Basic Economic Security TablesTM Index (BEST) is a measure of the basic needs and assets workers require for economic security throughout a lifetime and across generations. The BEST follows on a long history of research defining families’ spending and income needs, but reflects a modern economy and contemporary understanding of how families achieve financial stability. The BEST captures the local variance in prices which determine how well incomes allow families to make ends meet. State and county of residence directly affect how much typical economically secure DC metro area residents spend on BEST expenses and how much they need to save. Housing expenses, for example—both rent values and homeownership requirements—vary widely among the counties and cities in the DC metro area. BEST expenses and savings requirements are therefore calculated for the City of Alexandria, Arlington County and Fairfax County in Virginia, for Montgomery County and Prince George’s County in Maryland, and for Washington, DC. The BEST improves on the descriptive power of earlier budget standards by presenting the specific needs of more than 400 family types–all possible one- or twoadult families with up to six children.1 BEST values for adults are not age-specific, and are applicable to any independent working adult.2 To further improve understanding of worker expenses and income needs, the BEST calculates separate income requirements for workers with and workers without access to employment-based benefits. Receipt of benefits–namely employer-sponsored health insurance and employment-based retirement plans–can be critical to short- and long-term economic security, and can prevent workers from suffering marked declines in stability, or even impoverishment. The Index also distinguishes

between workers who are and are not covered by unemployment insurance. Those without access to unemployment insurance require greater emergency savings to insulate them from instability, as they cannot count on unemployment insurance to replace lost income. By definition, “good jobs” provide access to each of these benefits; low-paying, part-time and temporary jobs commonly do not. The BEST Index is a starting point for workers who want to achieve financial stability, and for the policymakers, advocates, researchers and service providers who help workers build security in their states, counties and local communities. BEST users improve lives by: n Benchmarking wages, worker welfare and local economic stability n Evaluating economic development and economic development opportunities n Identifying jobs and careers that provide the economic security wages that support stable communities n Evaluating education and training needs n Improving workers’ and students’ financial planning n Evaluating and improving the efficacy of publicly funded programs n Helping those working on policy issues across the life course, from early childhood to aging, find common ground and a common language n Promoting the savings that creates essential shortand long-term asset building and economic stability n Identifying who is and is not participating fully in local economies n Changing the public’s understanding of economic security n Creating far-sighted public policy

2010

1

What Is a Basic Economic Security Table? The core BEST Index contains basic budget items essential to all workers’ health and safety: housing, utilities, food and essential personal and household items such as clothing, household products and a landline telephone. Because the BEST is an exploration of the minimum income families require to achieve security, it assumes that single heads of household and both adults in a two-adult household work outside of the home; all BEST workers therefore incur transportation costs, and all parents with children must pay child care costs. Workers also pay federal and state taxes, net of tax credits, on the income needed to pay for their basic needs. Basic needs are not enough to ensure financial stability. Workers who live below their family’s BEST Index must ask themselves whether their incomes are enough to see them through the next emergency, such as a job loss or a health care crisis. What about next year, or their next stage of life? Will their incomes allow them to develop the short- and long-term assets that defeat fear and in-

Housing and Utilities Shelter and utilities are a worker’s most basic needs, and often the most costly. Basic Economic Security Tables, 2010 (Workers with Employment-based Benefits)

Washington, DC Monthly Expenses for: 1 Worker

Housing Utilities

$814 $162

Note: “Benefits” include unemployment insurance and employment-based health insurance and retirement plans.

BEST housing expenses are adjusted US Department of Housing and Urban Development (HUD) Fair Market Rents (FMR). An FMR is the rent at the 40th percentile of the rent distribution within a city or county. Because rent and utility expenses have increased at different rates in recent years, 2 Washington, DC Metro Area BEST

security? The BEST includes assets in its definition of security to address workers’ future needs, and to help move policy discussions from poverty and survival to stability. Emergency and retirement savings are critical, preventing corroded economic security, weakened families and impoverishment. Such saving is necessary for all workers, over the course of a work life, and is therefore included in the core BEST Index. Education and homeownership savings, foundations of the American dream, are also included in the BEST. However, while education and homeownership can clearly improve a family’s economic security—and some DC metro area residents currently reap the rewards of such investments—saving for a child’s bachelor’s degree and saving for home purchase are options not essential to economic security, and whether or not home purchase leads to improved economic security is currently a subject of debate. As a result, education and homeownership savings are presented as addenda to the core BEST Index. To demonstrate how the BEST is built, The Basic Economic Security Tables Index for the Washington, DC Metro Area builds below the BEST for a single adult worker with no children who lives and works in Washington, DC. or additional information on BEST expenses and savings and the BEST methodology, see The Basic Economic Security Tables: Washington, DC Metro Area Methodology and Supplemental Data, available at www.wowonline.org.

they are displayed separately. FMRs are separated into rent and utilities values using expense ratios created by HUD during the annual FMR update process. Rent expense is based on a home’s number of bedrooms; the BEST assumes an adult worker does not share a bedroom with children, two adult workers share a bedroom and no more than two children share one bedroom.

Food The US Department of Agriculture’s (USDA) Center for Nutrition Policy and Promotion (CNPP) produces four official food plans which price Americans’ daily nutrition needs. The plans reflect current dietary recommendations, food consumption patterns and food prices. BEST food costs are taken from the USDA Low-Cost Food Plan, which is slightly less austere than the least costly USDA

food plan (Thrifty Food Plan), but it still presents an age-specific, no-frills diet consisting entirely of foods prepared and eaten at home. Basic Economic Security Tables, 2010 (Workers with Employment-based Benefits)


Housing Utilities Food

$814 $162 $301


Where possible, food costs are adjusted to reflect local differences in costs within the DC metro area using ACCRA Cost of Living Index data.

Transportation Public transportation can greatly reduce the cost of commuting and running essential errands. It is widely available within Washington, DC, and used by a large minority of DC residents on a regular basis. Commuters who live outside of the District and commute into the city also often use public transit (US Department of Transportation 2000). However, transportation planning data show that the majority of workers outside of the District do not use public transportation on a regular basis, and public transportation does not completely relieve an economically secure family’s need for a car.

Transportation costs for drivers include fuel, maintenance costs, insurance, finance charges (not down payment or purchase costs), license and registration fees and depreciation (the largest cost of car ownership). Within the District, workers purchase 7-day Metro bus and rail passes. Fuel, maintenance and depreciation expenses are based on the average number of miles driven by DC metro area residents in Virginia and Maryland. Miles driven by one- and two-parent families include trips to and from work, to purchase gasoline, to transport children to and from care, occasional medical visits and one shopping trip per week. Trips to and from school for students are included in calculations of education savings and adult education and training expenses. Automobile insurance quotes are obtained for a “standard” insurance policy at the zip code level, from Traveler’s Auto Insurance, Erie Insurance, and Geico. Insurance companies are those with the most market share (as determined by the local governments) and least cost for a comprehensive insurance policy. Per-gallon fuel expenses are average expenses in the Lower-Atlantic and CentralAtlantic regions as of March 2010.

Child Care Quality child care allows parents to work secure in the knowledge that their children are being well supervised and that their needs are being met throughout the workday or night.

Basic Economic Security Tables, 2010 (Workers with Employment-based Benefits)

Basic Economic Security Tables, 2010

Washington, DC

(Workers with Employment-based Benefits)

Washington, DC

Monthly Expenses for: 1 Worker

Housing Utilities Food Transportation

$814 $162 $301 $210


As a result, BEST transportation expenses are calculated assuming ownership of a small sedan for workers outside of Washington, DC. The BEST assumes that the majority of couples who are unable to rely completely on mass transit for commuting, shopping, etc. will be unable to share a car to get to work. Families with two working adults therefore bear the cost of owning two cars. Families within Washington, DC are assumed to use only mass transit.


Housing Utilities Food Transportation Child Care

$814 $162 $301 $210 $0


BEST child care expenses are age-specific market rates taken from state childcare market rate surveys conducted in Virginia, Maryland, and the District. Child care center and family care costs are calculated separately for infants, toddlers, preschoolers and schoolchildren. A single weighted cost for infants and toddlers is presented under the category, “Infant.” Because more infants are cared for in homes than 2010

3

in care centers, BEST calculations use infant and toddler costs for family child care (care provided in a private home). All care, whether provided in homes or provided in centers, is licensed care. Child care center rates are used for all other age categories. The 75th percentile of the distribution of all rates found within a county or city is used for both center care and family care.

Washington, DC

Personal and Household Items are goods and services not enumerated in the BEST, but necessary for good health, safety, employment and a basic level of participation in the economy. Clothing, housekeeping supplies, personal care products, a landline telephone, minimal life insurance and bank fees are captured under this heading. Basic Economic Security Tables, 2010 (Workers with Employment-based Benefits)


$814 $162 $301 $210 $0 $344


BEST personal and household items expense is equal to 27% of a family’s housing, utility and food expenses, based on renters’ average expenditure data found in the US Bureau of Labor Statistics’ Consumer Expenditure Survey, which records American consumers’ annual spending patterns.

Health Care Rising health care costs have been a source of concern for many years, and lack of health insurance and sufficient care may be the greatest threat to a worker’s security. BEST health care costs are health insurance premiums and out-of-pocket costs. Because many private sector workers don’t have access to or don’t purchase health insurance through their work (approximately 35% of District workers, 47% of Maryland workers and 45% of Virginia workers), health care expense is calculated separately for workers with employer-sponsored insurance (ESI) and those with non-employer-sponsored insurance (NESI) purchased in the marketplace

4 Washington, DC Metro Area BEST


Personal and Household Items

Housing Utilities Food Transportation Child Care Personal & Household Items

by individuals. Health care premiums for workers with ESI are average premiums, by state, for individual, employee-plus-one or family coverage. Out-of-pocket expenses are average expenses by age group. Health care costs therefore reflect ages of household members and family size.


Housing Utilities Food Transportation Child Care Personal & Household Items Health Care

$814 $162 $301 $210 $0 $344 $148


Employer-sponsored health insurance costs are obtained from the US Department of Health and Human Services Medical Expenditure Panel Survey (MEPS). Research suggests that having “catastrophic” health insurance—those least expensive plans defined by high deductibles, limited hospitalization coverage and a potential need to utilize Healthcare Savings Plans—causes consumers to forgo desirable or even necessary care. As a result, BEST NESI premiums are those for the least expensive plans which approximate typical ESI plans. The most typical ESI plans are defined by coverage, deductible and copayments/coinsurance. The insurers offering the plans priced for the BEST in the DC metro area are United Healthcare, Kaiser Permanente and BlueCross BlueShield. See Appendix K for information on how the Patient Protection and Affordable Care Act of 2010, passed in March 2010, could affect health care insurance and costs in the DC metro area.

Taxes and Tax Credits All BEST families earn income and pay taxes, and all family income is assumed to be earned income. Tax filers do not itemize deductions. Families who cannot participate in employment-based retirement plans (e.g. pensions or 401(k) plans) save through traditional IRAs and contributions are tax deductible. Federal payroll taxes and federal, state and local income taxes are calculated for each family type in

each DC metro area BEST jurisdiction. Sales taxes are calculated based on personal and household item spending. Tax credits calculated include: 1) federal EITC; 2) federal child tax credit; 3) federal child and dependent care credit; 4) federal Making Work Pay credit; 5) state and county EITC, dependent care credits and child care credits.3 The American Recovery & Reinvestment Act created tax credit changes that benefit DC metro area families. The changes apply to 2009 and 2010 tax returns and are included in the BEST tax calculations. Basic Economic Security Tables, 2010 (Workers with Employment-based Benefits)

Additional information on tax credits and the American Recovery & Reinvestment Act can be found in Appendix L. While many BEST families require incomes in the 25% or 28% federal tax bracket, deductions and credits greatly reduce effective tax rates. The BEST displays gross, pre-credit taxes. Tax credits, refundable and non-refundable, are presented together, but separate from pre-credit taxes. While refundable credits, such as the Earned Income Tax Credit (EITC), which are paid to filers whose credits exceed taxes owed, are normally received as lump sums following the April 15 filing deadline, the BEST measure expresses these credits as monthly amounts.


Housing Utilities Food Transportation Child Care Personal & Household Items Health Care Taxes Tax Credits

$814 $162 $301 $210 $0 $344 $148 $513 -$34


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How Is Savings Related to Economic Security? Meeting basic monthly living expenses alone leaves a family short of genuine financial stability. Workers must develop assets to attain both short-term and lifelong economic security. The BEST therefore suggests how much workers should save to reach modest asset development goals. At a minimum, workers seeking security need to save for emergencies throughout their lives, and need to save, preferably early and consistently, for retirement. Workers often rely on conventional wisdom when saving. The BEST tests such traditional notions of need. Do families require three month’s income as emergency savings? Will families need 70-80% of their pre-retirement annual incomes during retirement? Is the traditional wisdom relevant to families living at various points along the income spectrum? BEST savings estimates are conservative. While the Index is innovative, workers build their assets and security in the simplest and least expensive manner available to savers.4 Aside from relevant tax credits, they develop assets without assistance from public policies designed to promote savings. (This allows the Index to be used for any number of future public policy analyses.) BEST assets are: n Emergency savings that allow families to weather a typical period of unemployment n Retirement savings that will allow seniors to make ends meet and age in their communities n Education savings that will allow families to finance community college and a bachelor’s degree without incurring debt n Homeownership savings which allow workers to purchase a modest home To arrive at minimum savings requirements, the BEST assumes that workers begin to save early, while in their 20s, and save for long periods. Workers save consistently, every month. Because the BEST budget suggests a comprehensive pathway to lifelong economic security, each savings type is important and reserved for its specific purpose. Retirement sav6 Washington, DC Metro Area BEST

ings, for example, is not drawn upon as emergency savings. The BEST Index is a measure of what a family needs, not what DC metro area families currently have and owe. There is no debt included within the Index. It was created as a deliberate exploration of the income levels and savings that would allow families to avoid being forced into debt, whether by instability within the greater economy or by deteriorating personal finances. The Index includes only the basic expenses and savings required for fundamental economic security; if a family is able to attain the Index, members do not need to borrow to achieve basic security unless they experience exceptional expenses, such as catastrophic health conditions or uncommonly long periods of unemployment, not already included directly or indirectly in BEST expenses and savings amounts. While families must save over time, the BEST Index does not suggest a “normal” saving pattern over a family’s life course. It does, however, use assumptions based on typical experiences—the most common ages for retirement, college attendance and home purchase—as the basis for savings periods and amounts.

Emergency Savings An emergency may take the form of a sudden income loss, such as unemployment or family breakup, or may be an unexpected increase in expenses, such as medical expenses or automotive repair. Emergency savings, savings in bank accounts or other liquid assets reserved for unforeseen economic losses, are critical economic resources for families who must meet their basic needs when their incomes are insufficient. Hardships stemming from emergencies, such as evictions, utility shut-offs or hunger, inhibit children’s healthy development and have negative impacts on adults’ physical and mental health (Lerman & McKernan 2008). In addition to supporting basic, immediate needs, emergency savings can prevent families from sacrificing long-term development goals for short-term economic gains (e.g. dropping out of school to earn or using retirement account savings) and slowing their progress toward genuine economic security. Approximately 30% of US families did not have enough liquid assets for financial emergencies in 2007; the rate is even higher (68%) for families with incomes in the bottom 20% (Ratcliffe & Vinopal 2009). BEST emergency savings is the amount of savings

needed to meet basic needs during a “typical” period of unemployment, defined as the median term of unemployment, 8.9 weeks, during the most recent complete business cycle (2001-2007). A family must save enough to replace their current BEST income. Basic Economic Security Tables, 2010 (Workers with Employment-based Benefits)


Housing Utilities Food Transportation Child Care Personal & Household Items Health Care Emergency Savings Taxes Tax Credits

$814 $162 $301 $210 $0 $344 $148 $93 $513 -$34


While families often conserve resources during periods of unemployment, the needs captured by the BEST are already limited to basic needs. Major lifestyle changes, such as moving, selling an auto or dropping health insurance, are dramatic, destabilizing and difficult to accomplish in the short-term. The BEST assumes that families do not reduce their income needs during the period of unemployment.

Monthly Emergency Savings with and without Unemployment Insurance According to the US Department of Labor, only 20% of unemployed Washington, DC workers, 41% of unemployed Maryland workers, and 30% of unemployed Virginia workers were covered by unemployment insurance (UI) in 2009. After the federal government’s implementation of Emergency Unemployment Compensation, 31% of unemployed District workers, 59% of unemployed Maryland workers, and 43% of unemployed Virginia workers had access to UI (US Department of Labor 2009). Monthly emergency savings are therefore calculated separately for workers with and without unemployment insurance. The difference is particularly relevant to low-income families, as UI replaces only a portion of monthly wages, and many low-wage and part-time workers are not eligible for unemployment insurance. (UI access rules vary by state; see the US Department of Labor website for more information). Furthermore, low-income workers commonly have limited access to the debt market, and are more likely to turn to predatory lending to finance their

spending during unemployment, which threatens their ability to maintain even a modest degree of economic security (Sullivan 2008). Monthly emergency savings amounts for workers with access to UI are calculated in the same manner as amounts for those without UI, with the additional assumption that 22%-34% of needs during unemployment are financed by UI benefits—in 2009, District of Columbia workers with access to UI received, on average, 22% of their pre-unemployment wages in benefits (up to the maximum UI benefit of $1,436 per month); Maryland workers received 34% of their pre-unemployment wages (up to the maximum UI benefit of $1,520 per month); and Virginia workers received 34% of their pre-unemployment wages (up to the maximum UI benefit of $1,512 per month). A worker with access to unemployment insurance saves for the remaining 66%-78% of BEST monthly expenses. Workers without access save to replace their entire pre-unemployment BEST monthly income. During the current economic downturn, many DC metro area families have suffered long periods of unemployment. The median term of unemployment was 15.1 weeks in 2009. Even families who save scrupulously will have trouble avoiding exceptional declines in security when faced with such a crisis. The BEST, therefore, does not include the current incomplete business cycle in its calculations. However, additional emergency savings scenarios, such as those for workers facing exceptional periods of unemployment, can be found in The Basic Economic Security Tables: Washington, DC Metro Area Methodology and Supplemental Data.

Retirement Savings Workers who save early and consistently are more likely to achieve economic security in retirement. Traditional sources of retirement income include Social Security, employer-sponsored retirement accounts, such as pensions or 401(k) plans, and savings. Social Security income alone does not meet current basic financial needs among elders, and pension income is increasingly uncommon. These trends are likely to continue. Assets are therefore critical economic resources for retirees who must maintain economic security during retirement. Asset income contributes approximately 16% of total income for today’s elders (He, Sengupta, Velkoff & DeBarros 2005). This is far from ideal, and retirement savings rates need to increase—most notably for the 23% of the American population for whom Social Security accounts for at least 90% of total retirement income (AARP Public Policy Institute 2009). 2010

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Washington, DC Monthly Expenses for: 1 Worker Housing

Utilities Food Transportation Child Care Personal & Household Items Health Care Emergency Savings Retirement Savings Taxes Tax Credits Monthly Total Annual Total Hourly Wage

$814

$162 $301 $210 $0 $344 $148 $93 $87 $513 -$34 $2,638 $31,656 $14.99


BEST retirement savings is the amount of savings, less average Social Security benefits, that workers need at time of retirement to remain economically secure throughout an average retirement period.

Developing a Retirement Saving Goal To establish a goal for workers’ retirement income, the BEST uses the WOW-GI Elder Economic Security StandardTM Index (Elder Index). The Elder Index is a geographically-based measure of the income retirees 65 and older require to make ends meet and remain in their homes and communities.5 The Elder Index, a budget standard similar to the BEST, is a conservative estimate of housing, food, transportation, healthcare and miscellaneous needs specific to seniors, and is estimated for each DC metro area BEST jurisdiction and the region as a whole. Together, the BEST and Elder Index measure economic security needs across a lifetime. More information on the Elder Index is found in The Basic Economic Security Tables: Washington, DC Metro Area Methodology and Supplemental Data and The WOW-GI National Elder Economic Security Standard: A Methodology to Determine Economic Security for Elders. In assessing economic resources among retirees, the BEST assumes that elder households will have income from Social Security, but not from a pension plan. In 2008, only 21% of private industry workers had access to employment-based pension plans (US Bureau of Labor Statistics, “Table 2: Retirement benefits: Access, participation, and take-up rates” 2009) and the number has been decreasing. In contrast, Social Security income is received by 91% of elders 8 Washington, DC Metro Area BEST

and is a critical income source among elder households (He, Sengupta, Velkoff & DeBarros 2005). The DC metro area BEST assumes that elder households are renters. Like the Elder Index, the BEST assumes elders stay in their homes communities and do not receive care in an institutional setting (e.g. nursing homes or assisted living facilities). The number of years spent in retirement is based on life expectancy. Additional retirement savings scenarios, such as those of workers who begin saving later in their careers, and additional information on the Elder Index can be found in The Basic Economic Security Tables: Washington, DC Metro Area Methodology and Supplemental Data.

Monthly Retirement Savings with and without Employment-Based Retirement Benefits The BEST assumes that workers with employmentbased retirement benefits save into a defined contribution plan, such as a 401(k) plan, and that their employers match the national average of 66.06 cents for every dollar the worker contributes (DworakFisher 2007). Workers without employment-based retirement savings are assumed to save into Individual Retirement Accounts and receive income tax benefits for their retirement savings.

Additional Asset Building Savings Education Savings Among the opportunities assets may offer, education and homeownership stand out due to their long-term and multiple impacts on individuals and families. Education, especially college education, is a key to social and economic success in the current economy. A college degree or certification is a required credential for most well-paying jobs; in today’s economy, a high school diploma is rarely sufficient for a “good job,” and the earnings gap between those with and without college degrees is widening (Acemoglu 2002; Wilson 1996). Because of the high cost of college, income alone is rarely sufficient to meet the burden of tuition and associated costs, so increasing numbers of potential students—recent high school graduates and independent working adults who need to return to school to pursue security wages—are unable to afford college and face the widening earnings gap.



$814

Utilities $162 Food $301 Transportation $210 Child Care $0 Personal & Household Items $344 Health Care $148 Emergency Savings $93 Retirement Savings $87 Taxes $513 Tax Credits -$34 Monthly Total $2,638 Annual Total $31,656 Hourly Wage $14.99 Additional Asset Building Savings Children's Higher Education $0 Note: “Benefits” include unemployment insurance and employment-based health insurance and retirement plans.

Under the heading “Additional Asset Building Savings”, the BEST includes the monthly savings amount needed to finance a child’s post-secondary education without incurring debt. (The cost of postsecondary education for an independent adult at local community colleges is calculated separately, outside of the basic table, and can found in the BEST Focus below on page 16. Because the BEST investigates least costly options, it assumes that parents save consistently for 17 years prior to their children’s post-secondary education and that the child attains his post-secondary education degree in the most economical way: the child lives at home and attends community college for the first two years, and then transfers to a public (state or state-subsidized) university for a bachelor’s degree. The student attends community college in the city or county of her residence; and the child attends the in-state public university of her choice without geographic restrictions. Students in the District of Columbia may participate in the DC Tuition Assistance Grant program, which pays the difference between out-of-state and in-state tuition at public or historically black colleges and universities in other states. The BEST assumes that parents save into College Saving Plan (529 Plan) accounts because earnings in these accounts are tax-free. The child attends educational institutions as a full-time student and finishes college with a bachelor’s degree in four years. Full-time enrollment is assumed since part-time attendance is a risk factor

for dropping out of college (Kazis 2002; Wei & Horn 2002). College costs consist of: (1) tuition and required fees; (2) books and supplies; (3) transportation; and (4) room and board. Accordingly, college cost is calculated by summing these four items for four years of education. Since the BEST assumes that a child attends community college in his county or city of residence, community college cost is calculated at the county or city level, and ranges from $123 per credit in Virginia to $166 per credit in Montgomery County, Maryland. The BEST Index uses statewide average college cost for public and public-supported four-year universities. In addition to parents’ savings, financial aid and student earnings are important economic resources for financing college education (Choy & Berker 2003). The BEST takes grants into account, but does not include educational loans because young college graduates without educational loans are in a better position to pursue their careers and other long-term goals, including savings essential to economic security (Nam, Huang & Sherraden 2008; Shapiro 2004). College students’ earnings are also substantial, as many of them work long hours, even during the school year. The typical full-time college student in the US works an average of more than 20 hours per week while enrolled and almost 40 hours per week during summer breaks (Choy & Berker 2003). Although student employment is a benefit in several respects, excessive work may defer academic achievement and increase the risk of dropping out of college (Bradburn & Carroll 2002; Wei & Horn 2002).

Homeownership Savings Homeownership improves families’ well-being in multiple ways. As a symbol of the “American Dream,” homeownership is likely to provide residential stability, enhance social capital and civic engagement and boost self-esteem, while offering material benefits such as asset accumulation through home equity. The quality of public schools and public services tends to be higher in areas with higher homeownership rates than those consisting mainly of renters (Lerman & McKernan 2008; Shapiro & Johnson 2005). Empirical evidence shows a connection between homeownership and children’s outcomes; children of homeowners are more likely to do better in terms of cognitive skills, academic performance, emotional development and formal educational attainment than children of renters (Green & White 1997; Kane & Spizman 1994; Lerman & McKernan 2008; Zhan & Sherraden 2003).

2010

9



$814

Utilities $162 Food $301 Transportation $210 Child Care $0 Personal & Household Items $344 Health Care $148 Emergency Savings $93 Retirement Savings $87 Taxes $513 Tax Credits -$34 Monthly Total $2,638 Annual Total $31,656 Hourly Wage $14.99 Additional Asset Building Savings Children's Higher Education $0 Homeownership $440 Note: “Benefits” include unemployment insurance and employment-based health insurance and retirement plans.

Developing a Homeownership Savings Goal Homeownership savings in the BEST Index is defined as the amount of savings needed for a

Despite assets’ potential benefits, there have been few public policies aimed at asset building among low- and moderate-income families. Traditional asset-building policies are mostly tax-based (e.g. tax exemptions or tax credits). Examples include tax exemptions on mortgage interest, retirement savings (e.g. Individual Retirement Accounts and 401(k) plans) and college education accounts (529 College Saving Plans). Under these policies, middle-income and high-income families are more likely to benefit than low-income families. At the same time, lowincome families have been discouraged from accumulating assets by restrictive asset eligibility tests in most public assistance programs; these tests force low-income families to maintain a very low level of asset ownership to remain eligible for public benefits (Nam, Ratcliffe & McKernan 2008; Sherraden 2001).


family to buy a home in each of the DC metro area’s BEST jurisdictions. Because smaller down payments may result in lower, or even negative, returns on investments in homes, the BEST assumes that a worker obtains a standard 30-year loan and saves over a 10-year period for a down payment of 20% of the home price. Workers also save for average closing costs, expressed as a percentage of home purchase price (1.8% in Washington, DC, 1.7% in Maryland and 1.9% in Virginia). To improve the likelihood that a worker’s house will retain its value or appreciate, home prices are lower quartile (25th percentile) home values for each DC metro area city or county. Home prices are adjusted by family size under the assumption that one or two adults need a one-bedroom house and an additional bedroom is needed by two children. Use of the 25th percentile is consistent with the asset building literature, which suggests a lower quartile home price as a “starter” home (Nam, Huang & Sherraden 2008). More information on homeownership and additional homeownership savings scenarios—such as for workers whose down payments are less than 20%, or for workers who participate in homeownership programs in the DC metro area—can be found in The Basic Economic Security Tables: Washington, DC Metro Area Methodology and Supplemental Data.

The past decade has witnessed the emergence of new social policies that embrace asset building among low-income families. These new policies aim to move beyond traditional income maintenance goals and promote long-term economic security. Federal and state governments have relaxed asset eligibility rules in public assistance programs while supporting programs that offer Individual Development Accounts (IDAs), matched saving programs for low- tomoderate-income families (Nam, Ratcliff & McKernan 2008; Sherraden & Barr 2005). The new focus on assets suggests that including assets and savings components as both core and ancillary components of measures of income adequacy will increasingly become the norm in benchmarking true economic security.

Table 1: Basic Economic Security Tables, 2010 (Workers with Employment-based Benefits)

DC Metro Area, by Jurisdiction Monthly Expenses for: 1 Worker Washington, DC Housing Utilities Food Transportation Child Care Personal & Household Items Health Care Emergency Savings Retirement Savings Taxes Tax Credits Monthly Total (per Worker) Annual Total Hourly Wage (per Worker) Children's Higher Education Homeownership

Prince George's County, MD

Alexandria, VA

Arlington County, VA

Montgomery County, MD

Fairfax County, VA

$1,222 $128 $271 $429 $0 $437 $147 $128 $136 $741 -$34 $3,605 $43,260 $20.48

$1,210 $186 $294 $453 $0 $456 $145 $140 $144 $951 -$34 $3,945 $47,340 $22.41

$1,356 $164 $301 $438 $0 $491 $147 $143 $156 $878 -$34 $4,040 $48,480 $22.95

$0 $449

$0 $345

$0 $428

$814 $958 $1,154 $162 $171 $129 $301 $271 $271 $210 $471 $440 $0 $0 $0 $344 $378 $419 $148 $145 $147 $93 $119 $124 $87 $109 $128 $513 $782 $709 -$34 -$34 -$34 $2,638 $3,370 $3,486 $31,656 $40,440 $41,832 $14.99 $19.15 $19.81 Additional Asset Building Savings $0 $0 $0 $440 $264 $379



Alexandria, VA, Selected Family Types Monthly Expenses Housing Utilities Food Transportation Child Care Personal & Household Items Health Care Emergency Savings Retirement Savings Taxes Tax Credits Monthly Total (per Worker) Annual Total Hourly Wage (per Worker) Children's Higher Education Homeownership

1 Worker

1 Worker, 1 Infant

1 Worker, 1 Preschooler, 1 Schoolchild

$1,154 $1,313 $1,313 $129 $147 $147 $271 $391 $584 $440 $482 $482 $0 $862 $2,009 $419 $499 $551 $147 $291 $447 $124 $187 $271 $128 $128 $128 $709 $1,145 $1,784 -$34 -$168 -$301 $3,486 $5,277 $7,415 $41,832 $63,324 $88,980 $19.81 $29.98 $42.13 Additional Asset Building Savings $0 $56 $113 $379 $477 $477

2 Workers

2 Workers, 1 Preschooler, 1 Schoolchild

$1,154 $129 $497 $613 $0 $480 $326 $151 $264 $712 -$67 $2,129 $51,096 $12.10

$1,313 $147 $782 $655 $2,009 $605 $508 $296 $264 $1,717 -$334 $3,981 $95,544 $22.62

$0 $379

$113 $477


2010 11


Arlington County, VA, Selected Family Types Monthly Expenses

1 Worker

Housing Utilities Food Transportation Child Care Personal & Household Items Health Care Emergency Savings Retirement Savings Taxes Tax Credits Monthly Total (per Worker) Annual Total Hourly Wage (per Worker) Children's Higher Education Homeownership

1 Worker, 1 Infant


2 Workers


$1,222 $128 $497 $599 $0 $498 $326 $155 $279 $743 -$67 $2,190 $52,560 $12.44

$1,394 $147 $782 $641 $2,322 $627 $508 $324 $279 $1,888 -$334 $4,289 $102,936 $24.37

$0 $449

$113 $565

$1,222 $1,394 $1,394 $128 $147 $147 $271 $391 $584 $429 $470 $470 $0 $1,043 $2,322 $437 $521 $573 $147 $291 $447 $128 $202 $305 $136 $136 $136 $741 $1,259 $2,035 -$34 -$168 -$267 $3,605 $5,686 $8,146 $43,260 $68,232 $97,752 $20.48 $32.31 $46.28 Additional Asset Building Savings $0 $56 $113 $449 $565 $565



Fairfax County, VA, Selected Family Types Monthly Expenses Housing Utilities Food Transportation Child Care Personal & Household Items Health Care Emergency Savings Retirement Savings Taxes Tax Credits Monthly Total (per Worker) Annual Total Hourly Wage (per Worker) Children's Higher Education Homeownership

1 Worker

1 Worker, 1 Infant


$1,356 $1,546 $1,546 $164 $188 $188 $301 $434 $648 $438 $479 $479 $0 $922 $2,210 $491 $585 $643 $147 $291 $447 $143 $213 $324 $156 $156 $156 $878 $1,344 $2,185 -$34 -$168 -$267 $4,040 $5,990 $8,559 $48,480 $71,880 $102,708 $22.95 $34.03 $48.63 Additional Asset Building Savings $0 $56 $113 $428 $538 $538



2 Workers


$1,356 $164 $552 $611 $0 $559 $326 $173 $320 $871 -$67 $2,432 $58,368 $13.82

$1,546 $188 $868 $652 $2,210 $702 $508 $345 $320 $2,007 -$334 $4,506 $108,144 $25.60

$0 $428

$113 $538


Montgomery County, MD, Selected Family Types Monthly Expenses

1 Worker

Housing Utilities Food Transportation Child Care Personal & Household Items Health Care Emergency Savings Retirement Savings Taxes Tax Credits Monthly Total (per Worker) Annual Total Hourly Wage (per Worker) Children's Higher Education Homeownership

1 Worker, 1 Infant


$1,210 $1,378 $1,378 $186 $212 $212 $294 $425 $635 $453 $496 $496 $0 $1,098 $2,102 $456 $544 $600 $145 $298 $452 $140 $218 $301 $144 $144 $144 $951 $1,488 $2,149 -$34 -$168 -$267 $3,945 $6,133 $8,202 $47,340 $73,596 $98,424 $22.41 $34.85 $46.60 Additional Asset Building Savings $0 $75 $151 $345 $434 $434

2 Workers


$1,210 $186 $540 $629 $0 $522 $333 $169 $301 $949 -$67 $2,386 $57,264 $13.56

$1,378 $212 $850 $672 $2,102 $658 $514 $324 $301 $2,020 -$334 $4,348 $104,352 $24.70

$0 $345

$151 $434



Prince George’s County, MD, Selected Family Types Monthly Expenses Housing Utilities Food Transportation Child Care Personal & Household Items Health Care Emergency Savings Retirement Savings Taxes Tax Credits Monthly Total (per Worker) Annual Total Hourly Wage (per Worker) Children's Higher Education Homeownership

1 Worker

1 Worker, 1 Infant


$958 $1,093 $1,093 $171 $195 $195 $271 $391 $584 $471 $514 $514 $0 $892 $1,524 $378 $453 $505 $145 $298 $452 $119 $183 $227 $109 $109 $109 $782 $1,195 $1,508 -$34 -$168 -$301 $3,370 $5,155 $6,410 $40,440 $61,860 $76,920 $19.15 $29.29 $36.42 Additional Asset Building Savings $0 $74 $148 $264 $332 $332

2 Workers


$958 $171 $497 $659 $0 $439 $333 $147 $231 $773 -$67 $2,070 $49,680 $11.76

$1,093 $195 $782 $702 $1,524 $558 $514 $250 $231 $1,531 -$334 $3,523 $84,552 $20.02

$0 $264

$148 $332


2010 13


Washington, DC, Selected Family Types Monthly Expenses Housing Utilities Food Transportation Child Care Personal & Household Items Health Care Emergency Savings Retirement Savings Taxes Tax Credits Monthly Total (per Worker) Annual Total Hourly Wage (per Worker) Children's Higher Education Homeownership

1 Worker

1 Worker, 1 Infant


$814 $928 $928 $162 $185 $185 $301 $434 $648 $210 $210 $210 $0 $1,181 $2,456 $344 $417 $475 $148 $304 $445 $93 $169 $262 $87 $87 $87 $513 $1,048 $1,777 -$34 -$184 -$333 $2,638 $4,779 $7,140 $31,656 $57,348 $85,680 $14.99 $27.15 $40.57 Additional Asset Building Savings $0 $53 $107 $440 $553 $553



2 Workers


$814 $162 $552 $420 $0 $412 $339 $123 $182 $534 -$67 $1,735 $41,640 $9.86

$928 $185 $868 $420 $2,456 $534 $507 $294 $182 $1,825 -$366 $3,916 $93,984 $22.25

$0 $440

$107 $553

BEST FOCUS ECONOMIC SECURITY BUDGET Figures 1 and 2 break down the spending of workers living on the edge of economic security. In the DC metro area, a single worker’s greatest expense is housing. Other large expenses include transportation and taxes. As family size grows, housing cost increases, but decreases as a proportion of total spending, as all other expenses also increase.

net taxes in Prince George’s County, MD, where twoparent families must devote, on average, approximately 18.5% of income to taxes.

The smallest BEST expenses are emergency and retirement savings, and Figures 1 and 2 demonstrate the relative low cost of intermediate- and long-term stability. Together, BEST retirement and emergency savings requirements BEST child care costs exceed typical rents and become comprise just 8% of the BEST budget for a single adult, a family’s greatest expense once a family includes two and lower proportions for larger families. Such savings young children, regardless of where in the DC metro area represents an economic security budget’s “low-hanging a family lives. As the number of children in a family infruit,” family and community stability that can be creases, childcare costs grow dramatically, and while other purchased through livable incomes, reductions in other expenses also increase, they decrease as a proportion of Figure 1:MD Montgomery County, MD Basic Economic Security Tables Expenses for a Single Wo Figure 1: Montgomery County, Basic Economic Security Tables Expenses for atoSingle Worker, 2010 expenses, broadened access employment-based benefits total BEST expenses. and innovative policies promoting savings. 2:the Montgomery County, MD Basic Economic Security Tables Worker, Expenses for a Single and Wo Figure Figures 2: Montgomery County, MD Basic of Economic Security Tables Expenses for a Single 1 Preschooler 1 and 2 alsoFigure speak to impact transportation It should be noted that Figures 1 and 2 demonstrate only costs,Expenses of Washington, residents’ need to mainMonthly 1 1Worker 11Worker, 1 Preschooler, 1 Schoolchild enses 1 Worker DC suburb 1 Worker, Preschooler, Schoolchild tain cars for commuting, shopping and delivering children the relative sizes of BEST expenses. All BEST components Housing 31% 17% 31% 17% are essential to security, regardless of their impact on a to child care. Although an owned automobile is an asset, Utilities 5% or financed 3% 5%an automobile 3% worker’s budget. A family may spend slightly more or maintaining that is leased and Foodconsistently 7%accounts 8%for apless on a specific expense than the BEST prescribes, but 7%depreciating 8% (depreciation security will prove elusive if a family forgoes an expense. proximately 40% of BEST automobile costs) is a sizeable Transportation 11% 6% n 11% 6% Similarly, because the BEST is a conservative estimate of liability, and one of a family’s largest expenses, regardless ChildofCare 26% 0% or place 26%of residence. 0% need, if a family spends significantly less on an expense family size Personal & Household 12% 7% ousehold Items 12% 7%Items than their local BEST suggests, the family risks consumNet taxes 4% is the largest Health Care 4%expense 6%for nearly ing at substandard levels or consuming goods and services 6% or second largest (housing, food, child care, etc.) of substandard quality. Ulall BEST families. While BEST incomes and gross taxes inSavings 4% 4% avings Emergency 4% timately, each family with an income lower than the BEST crease with family 4% size, tax deductions and tax credits also 4% 2% avings Retirement 4% net tax 2%burdens as a percentage Index decides which components are most important and increase,Savings and of families’ how to allocate its spending, but Figures 1 and 2 suggest BEST incomes Net Taxes 23%families. 23% Net 23%decreases 23% slightly for larger the trade-offs families face when incomes fall short of the taxes do not consume less than 12% of any BEST family BEST Index. budget. BEST families in the DC metro area pay the lowest

Figure 1: Montgomery County, MD Basic Economic Security Tables Expenses for a Single Worker, 2010 Housing 31%

et Taxes 23%

Net Taxes 23% Utilities 5%

Food 7% Retirement Savings 4% ent Savings 4% Emergency Savings 4% ency Savings 4% Transportation 11% Health Care 4% Health Care 4% Personal & Household Personal & Household Items 12% Items 12%

Figure 2: Montgomery County, MD Basic Economic Security Tables Expenses for a Single Worker, 1 Preschooler and 1 Schoolchild, 2010 Housing 17% Utilities 3% Food 8%

Housing 31%

Utilities 5%

Net Taxes 23%

Housing 17 U

Transportation 6% Net Taxes 23%

Food 7% Transportation 11%

Note: BEST Index values are those for workers with benefits. Benefits include unemployment insurance and employment-based health insurance and retirement plans.

Retirement Savings 2% Retirement Savings 2% Emergency Savings 4% 26% Emergency Savings 4% Child Care Health Care 6% Health Care 6% Personal & Household Personal & Household Items 7% Items 7% Note: BEST Index values are those for workers with benefits. Benefits include unemployment insurance and employment-based health insurance and retirement plans.

Cover Cover imageafter needs to be replaced after Montgomery pie chart has “Child Care 0%” removed. mage needs to be replaced Montgomery pie chart has “Child Care 0%” removed. “School Child” should “Schoolchild”. should be “Schoolchild”. Pleasebe check all uses inPlease report.check all uses in report.

17-18 The are benchmarking figures the same. In theofDEthe report, ofathe three was done in awe d nchmarking figures all shaded the same.are In all theshaded DE report, the middle threethe wasmiddle done in different shade. Shall try that will it not because ourare other choices of color are grey and black? Or will it not workhere? well Or because our work otherwell choices of color grey and black? 2010 15

21 barsFigure 7 horizontal bars are not straight (enough).-They are straight 7 horizontal are not straight (enough).-They are straight Is figure 8 data from DOES, and does it cover all ofdon’t the DC Metro Area?-Iwas don’t know-----Shawn e 8 data from DOES, and does it cover all of the DC Metro Area?-I know-----Shawn this a question for was you?this a que

BEST FOCUS adult education & training expenses Community college provides adults with opportunities to improve their long-term economic outcomes. Community college degrees and certificates are increasingly necessary credentials for careers that pay economic security wages, and commonly boost earnings by 20% to 30% (Kazis 2002). BEST adult education and training expense is an independent adult’s cost of financing an education at their county’s community college—without incurring debt or depending on monetary gifts from friends or relatives. The cost of community college attendance consists of four components: (1) tuition and required fees; (2) books and supplies; (3) transportation to and from school; and (4) parents’ additional child care costs. The BEST assumes that adults attend community college with the goal of obtaining an associate’s degree. The majority (68%) of delayed enrollees—returning students who do not start their college educations upon high school graduation—attend community colleges with the goal of earning a certificate or associate’s degree (Horn, Cataldi & Sikora 2005). BEST workers who attend college work full time while attending school half time. A large portion of community college students are returning students and adult learners, with 44% being older than 24, and many are independent adults with at least one child (Choy 2002). The majority of adult students 24 years old or older work full time and identify themselves primarily as workers, not as students (Berker & Horn 2003; Goan & Cunningham 2007). Accordingly, an adult takes 15 credits a year to finish her community college education in four years. Because both delaying post-secondary education to save and starting college at an older age are risk factors for dropping out (Horn et al. 2005; Wei & Horn 2002) and because the typical returning student is a working, part-time student, the BEST presents adult education expense figures as an expense, rather than as a savings requirement.

Economic resources available for adults’ community college education include financial aid (grants, such as the federal Pell Grant) and tax benefits. Federal tax credits available to adult students who pay school-related expenses include the American Opportunity Credit and the Lifetime Learning Credit. The American Opportunity Credit modifies the existing Hope Credit under the American Recovery and Reinvestment Act (ARRA) for 2009 and 2010, raising income limits and the maximum amount of the credit. DC metro area grant programs available to community college students include the Part-Time Grant in Maryland and the Virginia Part-Time Assistance Program. However, access to assistance is limited for many community college students, even when state and federal funding levels are adequate to meet demand: the Lifetime Learning Credit is non-refundable, and therefore not helpful to independent low-income students who do not earn enough to pay federal income tax (but still pay universal Social Security and Medicare taxes), and the partly-refundable American Opportunity Credit is available only to students who carry at least a half-time course load. Because a minority of workers pursue education and training at community colleges, the expense is presented as a separate supplement to the BEST tables. Table 3 breaks down average cost of an associate’s degree earned in Arlington County, VA. While tuition and fees comprise the bulk of the cost for a student without children, an adult student who must pay additional transportation costs and must secure child care for one child will pay approximately 70% more for her education than students who do not. The cost of attendance may more than double for a single adult or member of a couple who must pay for children’s care while studying. Increased incomes typically make community college degrees valuable over the long term; in the short-term, independent students will find themselves with an extra expense comparable to BEST monthly utilities expenses, emergency and retirement savings or health care expenses.

Table 8: Basic Economic Security Tables, 2010

Arlington, VA Average Community College Education Expenses for a Single Worker, 2010

1 Worker

1 Worker, 1 Infant

1 Worker, 1 Infant, 1 Preschooler

$2,961 $715 $2,246 $155 $2,401 $9,603

$2,961 $715 $2,246 $1,746 $3,992 $15,969

$2,961 $715 $2,246 $3,562 $5,808 $23,232

Tuition, Fees, Books and Supplies Less Grants and Credits Total Annual School Expense Extra Transportation & Child Care Total Annual Cost Total Cost, 4 Years

Note: Calculations for single full-time workers who attend community college half-time and require paid care for their children during class time (only)


How Close are DC METRO AREA Workers to Economic Security? Housing 31%

Net Taxes 23%

Utilities 5%

Food 7%

Retirement Savings 4% Emergency Savings 4% Health Care 4% Personal & Household Items 12%

Transportation 11%

Housing 17%

As Figure 3 demonstrates, the typical single Utilitieschildless 3% worker in Fairfax County earns an incomeFood suggest8% ing economic security. Median incomes for both Transportation 6% Net Taxes 23% single men and single women exceed the Fairfax County, VA single worker BEST Index ($48,480). A Retirement Savings 2% approximately $34,600 typical single woman earns Emergency Savings 4% Child Care 26% more than her BEST Index; the typical single man Health Care 6% earns approximately $36,800 more than the BEST Personal & Household Items 7% Index.

Fifty percent of workers earn less than median inIn addition, over 4% of District workers, over Cover Cover image needs to be replaced after Montgomery pie chart come. has “Child Care 0%” removed. 5% of Maryland workers, and nearly 6% of Virginia “School Child” should be “Schoolchild”. Please check all uses in report. workers earn minimum wage or less (US Bureau of Labor Statistics, Characteristics of Minimum Wage A well-defined ofall need suchthe assame. the Basic 2010). The BESTofIndex for was a single without 17-18 The benchmarkingstandard figures are shaded In the DE report, the middle the three doneworker in a different shade. Shall we Economic Tables can reveal children the District is approximately twice the try that here? Or willSecurity it not work well because ourgaps otherbetween choices of color are greyin and black? typical DC metro area incomes and economic annual federal minimum wage ($7.25 per hour; security. These gaps which workers withinare straight $15,312 per year) and approximately 1.8 times the 21 Figure 7 horizontal bars suggest are not straight (enough).-They DC minimum wage ($8.25 per hour; region are most likely thrive and all which Isthe figure 8 data from DOES, andtodoes it cover of thelive DC MetroWashington, Area?-I don’t know-----Shawn was this a question for you? $17,424 per year). farthest from economic security. The distance typical workers find themselves incomes has right underneath. App G Move “Transportation” , “Childfrom Care”security farther from pies when Single Workers Raising Children great implications for state and local communities. Workers able to afford basic necessities and invest App G Incorrect in Alex. Pie: Personal & Household Items 26% Figure 4 demonstrates the challenges faced by a in themselves and their communities by saving are single parent raising a preschooler and a schoolchild much more likely to enjoy lifelong economic secuApp I Please double-check horizontal Index bar heights. rity and begin a cycle of prosperity for future genera- in Prince George’s County, MD. All BEST costs are the parent: food costs increase by nearly tions. Those who fall short of bar thefor Index are likely App I Parenthses under minimum wage 2-worker figures musthigher includefor “Workers”. half, health care costs are double and quality child to remain vulnerable to future economic instability care contracted at BEST market rates will cost the and pass that instability on to their children and parent over $1,000 per month. The BEST Index for tomorrow’s workers. a single worker raising a preschooler and schoolSingle Workers child ($76,920) in the county is 90% greater than the county Index for a single worker without chilFigure 3: Fairfax County, VA Basic Economic Security Tables dren ($40,440). Yet, typical single parent incomes for a Single Worker vs. Fairfax County Benchmark Incomes, are much lower than the incomes of typical adults 2010 120000 without children. 100000Raising Children Single Women

Single mothers80000 in the DC metro area are disproportionately lower income, and struggle to attain the 60000 several components of security. In 2008, approximately one-half of DC metro area families living in 40000 poverty were headed by single mothers (US Census Bureau, “Detailed 20000Tables B17012” 2008).

BEST Index, $48,480

Federal Poverty Level, $10,830

Sources: US Census Bureau, 2006-2008 American Community Survey. US Department of Health and Human Services, 2010 HHS Poverty Guidelines

Rising costs, rising0unemployment and stagnant wages have all contributed to increasing gaps between incomes and economic security. The economic security gap suffered by single women raising children is further widened, however, by occupational segregation and caregiving.


Nationwide, 49% of women work in services, sales and low-level administrative positions, the largest

$15,312

$83,051

$85,274

$109,247

Minimum Wage ($7.25/hr)

Median Income Single Women w/o Children

Median Income Single Men w/o Children

Median Household Income

2010 17

100000

6000 Figure 4: Prince George’s County, MD Basic Economic Security Tables for a Single Worker, 1 Preschooler and 1 Schoolchild vs. Prince George’s County Benchmark Incomes, 2010 BEST Index, $76,920

Federal Poverty Level, $18,310 $15,312

$45,563

$49,634

$83,796

Minimum Wage ($7.25/hr)

Median Income, Single Mothers

Median Income, Single Fathers

Median Family Income



employers of minimum and low-wage employees. In 2009, median annual women’s wages in these occupations ranged from $21,736 to $31,304, well below BEST Indexes for families including more than one child, regardless of DC metro area county or city of residence (US Bureau of Labor Statistics, Highlight of BEST Index, $93,984 Women’s Earnings in 2008 2009; US Bureau of Labor Statistics, “Table 39” 2009). DC metro area women also suffer a wage gap. In the mid-2000s, women workers in Washington, DC earned 85.5% (82.2% in Maryland and 76.2% in Virginia) of wages earned by men performing the Federal Poverty Level, $22,050 same jobs (Hartmann, Sorokina & Williams 2006). $34,848 in 2008, $68,860 $115,286workers $128,596 Nationally full-time women earned a median $638 per week work-Income, Median men Median Median Familyto full-time Minimum Wage Income, and Latino 2-Parent ers’ ($8.25/hr*2 $798 per week.Income African American 2-Earner Families Workers) Families with women earned even less, $554 per week and $501 Young Children per week, respectively (US Bureau of Labor Statistics, Sources: US Census Bureau, 2006-2008 American Community Survey. “Women’s earnings” 2009). Additionally, women are US Department of Health and Human Services, 2010 HHS Poverty Guidelines more often responsible for the care of children or ill, disabled or elderly family members, which often increases their expenses, decreases earnings over a lifetime and decreases or eliminates retirement income from savings, Social Security and pensions.


Two-Worker Families

4000

100000 secure two-worker family pays much An economically Federal Poverty Level, $18,310 more than a single worker for food, health care and transportation. 80000 However, because a second worker $45,563 $49,634 than he $83,796 adds$15,312 less to total BEST family expenses or she brings into the household, typical two-income Income, Minimum Wage Median Income,theMedian Median Family 60000 Single Single Fathersthan the ($7.25/hr) Mothers Income family lives closer to economic security typical single-earner family. This is true even ifSurvey. the second Sources: US Census Bureau, 2006-2008 American Community US Department of Health and Humanminimum Services, 2010 HHS Poverty Guidelines 40000 worker earns the federal wage, $7.25 per hour. As shown in Figure 5, the Washington, DC economic security 20000 Index for two adults with no children ($41,640) is approximately $10,000 higher than the BEST target for a childless single adult ($31,656). As a 0 Figure 5: Washington, DC Basic Economic Security Tables for 2 Workers, 1 Preschooler and 1 Schoolchild vs. District Benchmark Incomes, 2010

BEST Index, $93,984

150000 Federal Poverty Level, $22,050 $34,848 Minimum Wage ($8.25/hr*2 Workers)

120000 $68,860 Median Family 90000 Income

60000

$115,286

$128,596

Median Income, 2-Earner Families

Median Income, 2-Parent Families with Young Children


30000


0

result, each full-time worker in a two-income childless household needs to earn approximately 60% of what a single childless adult needs to earn to achieve economic security. However, workers in a two-income household with children must each earn much less than a single parent; the economic security target for two adults with a preschooler and schoolchild ($93,984) is only $8,304 higher than the target for a single adult raising a preschooler and schoolchild ($85,680).

2000

35 30Do DC METRO 25AREA Jobs 20Provide BEST 15Incomes? 10 5 0

According to the District of Columbia Department of Employment Services, professional and business services comprised 30% of private sector jobs in the DC metro area in 2010. As shown in Figure 6, trade, transportation and utilities was the second largest industry sector, and education and health services and leisure and hospitality followed. The Federal and local governments are also large employers in the DC metro area. Twenty-four percent of all jobs in the area in 2010 were public sector jobs, and approximately 14% of all jobs are in the federal government. The powerful effect of public sector employment insulated the area from the worst of the recession which began in 2008 and provides a large and growing demand for a highly educated workforce. The private labor market in the DC metro area is not projected to shift dramatically by mid-decade. The

number of low- and semi-skilled, low-wage positions, such as personal care workers and stock clerks, will continue to decrease slowly. Job growth is expected to come largely from private sector health care, professional services and education services, as well as from low-skill jobs in waste management and food service. Through 2016, openings due to growth will be greatest among computer software engineers, janitors, office clerks and security guards. Such occupations represent the increasing diversity of wages that the region will see in coming years if anticipated economic development trends are realized. DC metro area computer software engineers earned an average of $47.31 per hour in 2009; janitors earned an average of $11.84 per hour, and office clerks earned an average of $15.77 per hour.6 There will be continued high demand for low-wage

Figure 6: Private Sector Jobs in the DC Metro Area, by Industry Sector, 2010 & 2016 2% 4% 6% 6%

8%

9%

8%

11%

10%

Leisure and Hospitality

16%

19%

Education and Health Services

17%

15%

Trade, Transportation and Utilities

30%

29%

Professional and Business Services

Manufacturing Information Financial Activities Natural Resources, Construction and Mining

2% 3% 6%

2010

Other Services

2016

Source: District of Columbia Department of Employment Services

2010 19

workers through 2016. Workers such as cashiers and food servers will remain important to the DC metro area economy, and remain furthest from economic security due to low wages and ineligibility for employment-based benefits. Figure 7 compares some of the region’s faster growing occupations which do not require 4-year college degrees to selected DC metro area regional median BEST incomes (for workers with employer-based benefits) by family type. Employment-based benefits will continue to make the difference for many workers. As shown in Table 9, for BEST single parents pursuing economic security while raising a preschooler and schoolchild, BEST benefit—employment-based health insurance, employment-based retirement benefits and access to unemployment insurance—is worth as much as $3.52 per hour, or $7,400 per year.

As Figure 7 demonstrates, an increase in effective wage could move many workers in growing occupations which commonly lack benefits—groundskeepers, retail salespersons, clerks, home health aides, nursing aides and many others—closer to BEST Indexes for both single workers and two-worker families. While service sector jobs will provide the most job openings, largely due to turnover, according to the District of Columbia Department of Employment Services, 53% of new jobs created by 2016 will require at least some postsecondary education. More than 10% will require vocational training or an associate’s degree, and an additional 5.2% will require long-term on-the-job training. Such positions will provide the best opportunities for many of the DC metro area’s current low- and moderate-income workers to move toward or attain economic security.

Table 9: Basic Economic Security Tables, 2010

Value of Employment-based Benefits, per Hour, to Workers in the DC Metro Area, 2010

Area Alexandria, VA Arlington County, VA Fairfax County, VA Montgomery County, MD Prince George's County, MD Washington, DC

1 Worker


$2.61 $2.64 $2.74 $2.57 $2.27 $2.00

$3.52 $3.33 $3.36 $3.03 $2.70 $2.43



120

Figure 7: Median DC Metro Area Basic Economic Security Tables Hourly Wage vs. Average Wages of Selected DC Metro Area Occupations with High Projected 100 Annual Growth through 2016 80 BEST Index, 1 Worker + 1 Infant, $31.14

60 40

BEST Index, 2 Workers + 1 Preschooler + 1 Schoolchild, $23.49 (per Worker)


20

BEST Index, 1 Worker, $20.14

Indu Tot Prof Trad Edu Leis Oth Nat Fina Info Man

0

$15.77

$17.11

$35.21

$17.28

$12.53

$12.48

$13.03

$24.92

Offi Office Cl Clerks k

S Security it Guards

R Registered i t d Nurses

C t Customer Service Representatives

R Retail t il Salespersons

G Groundsd keepers

N Nursing i Aides Aid and Orderlies

Ad Administrative i i t ti Assistants

Sources: Author's calculations; US Department of Labor, Bureau of Labor Statistics Note: BEST Index values are those for workers with benefits. Benefits include unemployment insurance and employment-based health insurance and retirement plans. Occupations arranged in order of total openings due to growth through 2016

Figure 8: Projected Job Growth in the DC Metro Area through 2016, by Education Level

120 Moderate-Term On-The-Job-Training

10.6%

100

Long-Term On-The-Job-Training 80 Work Experience in a Related Occupation 60 Post Secondary Vocational Training 40 20

Associate’s Degree

Industry Total Professional and Business Services Trade, Transportation and Utilities Education and Health Services Leisure and Hospitality Other Services Natural Resources, Construction and Mining Financial Activities Information W Manufacturing

2 24.2%

Short-Term On-The-Job-Training

5.2% 7.1% 7 5 5.0% 5.4% 5

Bachelor’s Degree or Higher 0


42.5%

Source: District of Columbia Department of Employment Services

2010 21

ENDNOTES 1. Children younger than 19 are divided into four age categories: infant, preschooler, schoolchild and teenager (with toddlers included in the infant category). 2. Many BEST expenses are applicable to working adults 65 and older. However, such older adults are likely to participate in Medicare, and to receive Social Security, which contradict BEST health care and income assumptions. For information on the income needs of fully-retired elders, see Wider Opportunities for Women’s Elder Economic Security Standard Index at www. wowonline.org. 3. No income that allows economic security in the DC metro area is low enough to qualify for the low income credits available in the District, Maryland or Virginia. 4. Workers saving to buy a home save for a 20% down payment. While this is not the least expensive way to buy a home, smaller down payments increase risk of negative returns to the worker’s investment. A 20% down payment is conservative in that it limits risk.


5. Russell, Laura H., Ellen A. Bruce, Judith Conahan, and Wider Opportunities for Women. The WOW-GI National Elder Economic Security Standard: A Methodology to Determine Economic Security for Elders. Washington, DC: Wider Opportunities for Women, 2006. 6. US Bureau of Labor Statistics. “May 2009 Metropolitan and Nonmetropolitan Area Occupational Employment and Wage Estimates: WashingtonArlington-Alexandria, DC-VA-MD-WV Metropolitan Division.” Wages by Area and Occupation. 2010. http://www.bls.gov/oes/current/oes_47894.htm#370000 (accessed 2010). 7. Russell, Laura H., Ellen A. Bruce, Judith Conahan, and Wider Opportunities for Women. The WOW-GI National Elder Economic Security Standard: A Methodology to Determine Economic Security for Elders. Washington, DC: Wider Opportunities for Women, 2006. The Elder Economic Security Standard™ Index (Elder Index) measures out-of-pocket health care costs for seniors with Medicare coverage, including Medicare Parts A, B, C and D. As an add-on component, the Elder Index provides the average cost of home and community-based long-term care according to level of care. See the Wider Opportunities for Women website for more information.

APPENDIX A DC Metro Area BEST Data Sources* Expense/ Savings

Component

Data

Source

Housing

Rent

FY 2010 Fair Market Rents (40th percentile rents) FY 2010 Fair Market Rents: Ratio of utilities to total housing cost

US Department of Housing and Urban Development US Department of Housing and Urban Development (unpublished)

Utilities

Food

Food

Transportation

Geographic Differences in Food Prices Auto Costs

Gasoline

Average per-gallon cost of unleaded gasoline in the Central and Lower Atlantic regions

US Department of Energy Retail Gasoline Historical Prices

Mileage

Average miles driven per DC suburbs car owner in Virginia and Maryland Insurance premiums by DC metro area zip code for inexpensive “standard coverage” Cost of a weekly unlimited Metrobus pass and an unlimited Metrorail pass Washington, DC child care costs by age (75th percentile costs calculated in compliance with the Administration for Children and Families’ Childcare Development Block Grant)

US Department of Transportation National Housing Travel Survey GEICO, Erie Insurance, Traveler’s Insurance

Auto Insurance Public Transit Child Care

Average US cost of a basic, healthful, US Department of Agriculture low-cost food “basket” reflecting cur- Official USDA Food Plans: Cost of Food at Home rent USDA dietary guidelines. at Four Levels, US Average, March 2010 Low-Cost Food Plan Food cost index for selected DC C2ER (The Council for Community and Economic metro area regions Research) ACCRA Cost of Living Index Average US costs, over five years, of American Automobile Association depreciation, maintenance, finance Your Driving Costs (2010 Edition) charges and registration fees for a small sedan

Child Care in Washington, DC

Washington metro area Transit Authority Metro Pass and Farecard Options Officer of the State Superintendent of Education 2008 District of Columbia Child Care Market Rates and Capacity Utilization: A Survey of Family Home and Child Care Center Providers in the District of Columbia.

APPENDIX A - 2010 23

DC Metro Area BEST Data Sources* Expense/ Savings

Component

Data

Source

Child Care in Maryland

Maryland child care costs by age and region (75th percentile costs calculated in compliance with the Administration for Children and Families’ Childcare Development Block Grant) Virginia child care costs by age, county, and city(75th percentile costs calculated in compliance with the Administration for Children and Families’ Childcare Development Block Grant) Average US renters’ personal and household item spending, as a percentage of housing, utilities and food expenses Average health insurance premiums for employees of private industries in the DC metro area, by family type

Maryland State Department of Education Maryland Childcare Market Rate Survey

Child Care in Virginia

Personal & Household Items

Personal & Household Items

Healthcare

Employer-Sponsored Health Insurance Premiums Non-EmployerSponsored Health Insurance Premiums Out-of-Pocket Medical Costs

Taxes and Tax Credits

Emergency Savings

Retirement Savings

Federal Taxes and Tax Credits DC Taxes and Tax Credits MD Taxes and Tax Credits VA Taxes and Tax Credits Unemployment Insurance Replacement Rates Unemployment Insurance Benefits Retirement Income

401(k) Employer Match Social Security Education Savings

Two-year College Tuition and Fees, DC Two-year College Tuition and Fees, Montgomery County Two-year College Tuition and Fees, Prince George’s County Two-year College Tuition and Fees, VA

Individual and family premiums for health insurance plans approximating typical employer-sponsored health insurance plans, by DC metro area zip code Average out-of-pocket medical costs, by age group and US Census region

Federal tax rates and tax credits Washington, DC tax rates and tax credits Maryland tax rates and tax credits Virginia tax rates and tax credits Average unemployment insurance replacement rates in Washington, DC, Maryland and Virginia Maximum and minimum unemployment insurance benefits in Washington, DC, Maryland and Virginia Annual retirement income single elders (65+) and elder couples need to meet basic needs and age in their own homes, by DC metro area county Average US employer match for 401(k) plans Average Social Security benefits for retired workers, by county, in Washington, DC, Maryland and Virginia Tuition and fees per credit, 20092010, at Communty College of the District of Columbia Tuition and fees per credit, 2010, at Montgomery College

Virginia Department of Social Services 2007-2008 Virginia Childcare Market Rate Survey

US Bureau of Labor Statistics Consumer Expenditure Survey US Department of Health and Human Services Medical Expenditure Panel Survey Table II: [District of Columbia, Maryland, Virginia], Private Sector Data by Firm Size, 2008 Carefirst BlueCross Blue Shield, UnitedHealthOne, Kaiser Permanente

US Department of Health and Human Services Medical Expenditure Panel Survey Table 1: Total Health Services-Median and Mean Expenses per Person With Expense and Distribution of Expenses by Source of Payment: United States: 2007 Internal Revenue Service, 2009 Individual Income Tax Return District of Colombia Office of Tax and Revenue 2009 District of Columbia Individual Income Tax Return Spotlight on Maryland Taxes, 2009 Maryland Resident Income Tax Return Virginia Department of Taxation, 2009 Virginia Resident Individual Income Tax Return US Department of Labor Unemployment Insurance Data Summary US Department of Labor Comparison of State Unemployment Laws Adapted from The WOW-GI National Elder Economic Security Standard: A Methodology to Determine Economic Security for Elders US Department of Labor Monthly Labor Review US Social Security Administration Annual Statistical Supplement to the Social Security Bulletin, 2009 Community College of the District of Columbia Montgomery College

Tuition and fees per credit, 2010, at Prince George’s Community College

Prince George’s Community College

Tuition and fees per credit, 2010, at Northern Virginia Community College

Nothern Virginia Community College

24 Washington, DC Metro Area BEST - APPENDIX A

DC Metro Area BEST Data Sources* Expense/ Savings

Component

Data

Source

Four-year College Tuition and Fees, Room, Board

Average annual cost of tuition, fees and room and board at a public or public-subsidized Maryland or Virginia four-year university, DC uses the national average Details of the DC Tuition Assistance Grant Program

US Department of Education National Center for Education Statistics Digest of Education Statistics, 2009

Four-year College Tuition and Fees, Room, Board Transportation and Books Grants Adult Education

Two-year College Tuition and Fees, DC Two-year College Tuition and Fees, Montgomery County Two-year College Tuition and Fees, Prince George’s County Two-year College Tuition and Fees, VA

Homeownership Savings Home Prices Home Prices (Future) Closing Costs Inflation

Inflated Values

Average annual US cost of transportation and books and supplies at a public or public-subsidized four-year university Average grant amounts as a percentage of tuition for two- and four-year colleges Tuition and fees per credit, 20092010, at Communty College of the District of Columbia Tuition and fees per credit, 2010, at Montgomery College

Office of the State Superintendent of Education, DC Tuition Asssistance Grant Program (DCTAG) The College Board Trends in College Pricing, 2009 US Department of Education National Center for Education Statistics Community College of the District of Columbia Montgomery College

Tuition and fees per credit, 2010, at Prince George’s Community College

Prince George’s Community College

Tuition and fees per credit, 2010, at Northern Virginia Community College 25th percentile of home values in DC metro area by county, adjusted for bedroom size Housing price change, 1991-2009

Nothern Virginia Community College US Census Bureau American Community Survey

Federal Housing Finance Agency House Price Index (HPI) Average closing costs in Washington, Bankrate.com DC, Maryland and Virginia Consumer Price Index—All Urban US Bureau of Labor Statistics Consumer Price Consumers Index

* For a complete source table, including data dates and links to sources, please see The Basic Economic Security Tables: Washington, DC Metro Area Methodology and Supplemental Data, available at www.wowonline.org.

APPENDIX A - 2010 25

APPENDIX B

DC METRO AREA BEST ANNUAL INCOME FOR A SINGLE WORKER

Montgomery County, MD $47,340

Washington, DC $31,656 Arlington County, VA $43,260

Fairfax County, VA $48,480

Alexandria, VA $41,832

Basic Economic Security Tables Index for a Single Worker, 2010

26 Washington, DC Metro Area BEST - APPENDIX B

Prince George’s County, MD $40,440

APPENDIX C

DC METRO AREA BEST ANNUAL INCOME FOR A FAMILY OF THREE






Basic Economic Security Tables Index for a Single Worker, 1 Preschooler, 1 Schoolchild, 2010

APPENDIX C - 2010 27

APPENDIX D

DC METRO AREA BEST ANNUAL INCOME FOR A FAMILY OF FOUR





Basic Economic Security Tables Index for 2 Workers, 1 Preschooler, 1 Schoolchild, 2010

28 Washington, DC Metro Area BEST - APPENDIX D


APPENDIX E Basic Economic Securities Tables, 2010 (Workers with Employment-based Benefits) Washington, DC Metro Area, by Jurisdiction

Area Alexandria, VA Arlington County, VA Fairfax County, VA Montgomery County, MD Prince George's County, MD Washington, DC Range Median

1 Worker $41,832 $43,260 $48,480 $47,340 $40,440 $31,656 $16,824 $42,546

1 Worker, 1 Infant $63,324 $68,232 $71,880 $73,596 $61,860 $57,348 $16,248 $65,778

1 Worker, 1 Preschooler, 1 Schoolchild $88,980 $97,752 $102,708 $98,424 $76,920 $85,680 $25,788 $93,366

2 Workers, 1 Preschooler, 1 Schoolchild $95,544 $102,936 $108,144 $104,352 $84,552 $93,984 $23,592 $99,240


APPENDIX E - 2010 29

APPENDIX F Basic Economic Securities Tables, 2010 (Workers with Employment-based Benefits) DC Metro Area, by Jurisdiction and Receipt of Employment-based Benefits 1 Worker

Area Alexandria, VA Arlington County, VA Fairfax County, VA Montgomery County, MD Prince George's County, MD Washington, DC


1 Worker, 1 Infant


Workers with Employmentbased Benefits

Workers without Employmentbased Benefits







$41,832 $43,260 $48,480 $47,340 $40,440 $31,656

$47,352 $48,840 $54,264 $52,776 $45,240 $35,880

$63,324 $68,232 $71,880 $73,596 $61,860 $57,348

$71,448 $76,464 $80,328 $81,864 $69,696 $64,008

$88,980 $97,752 $102,708 $98,424 $76,920 $85,680

$96,420 $104,784 $109,812 $104,832 $82,620 $90,816

$95,544 $102,936 $108,144 $104,352 $84,552 $93,984

$108,288 $115,824 $121,344 $115,656 $95,208 $102,768


30 Washington, DC Metro Area BEST - APPENDIX F

APPENDIX G Alexandria, VA Basic Economic Security Tables Worker Alexandria-Single Worker Expenses for Alexandria-Single a Single Worker, 2010 Alexandria-Single Alexandria-Single Worker Worker

Net Taxes 20% Net Taxes 20% Net Taxes 20% Net Taxes 20%


Housing 32% Housing 32% RetirementRetirement Savings 4%Savings 4% Housing 32% Housing 32% Retirement Retirement Savings4% 4%Savings Savings4% 4% mergencyEmergency Savings Health CareHealth 4%Savings Care4% 4% mergency Emergency Savings 4% Health CareHealth 4% Care 4% Utilities 4%Utilities 4% Personal & Household Personal & Household Utilities 4%Utilities Food 8% Food 8% 4% Items 12% Items 12% Personal & Household Personal & Household Food 8% Food13% 8% Transportation 13% Transportation Items 12% Items 12% Transportation Transportation 13% 13%

Arlington-Single Worker Arlington-Single Worker Arlington County, VA Basic Economic Arlington-Single Arlington-Single Worker Security Worker Tables Expenses for a Single Worker, 2010 Net Taxes 19% Net Taxes 19% Net Taxes 19% Net Taxes 19%

Housing 33% Housing 33% RetirementRetirement Savings 4%Savings 4% Housing 33% Housing 33% Retirement Retirement Savings4% 4%Savings Savings4% 4% mergencyEmergency Savings Health CareHealth 4%Savings Care4% 4% mergency Emergency Savings 4% Health CareHealth 4% Care 4% Utilities 4%Utilities 4% Personal & Household Personal & Household Food 8% 4% Food 8% 4% Utilities Utilities Items 12% Items 12% Personal & Household Personal & Household Food 8% Food12% 8% Transportation 12% Transportation Items 12% Items 12% Transportation Transportation 12% 12%

Fairfax County-Single Worker Fairfax County-Single Worker Fairfax County-Single Worker Fairfax County-Single Worker Net Taxes 21% Net Taxes 21% Net Taxes 21% Net Taxes 21%

Retirement Retirement Savings 4%Savings 4% Emergency Savings Emergency Retirement Retirement Savings 4% 4%Savings Savings4% 4%

Alexandria, VA Basic Economic Security Expenses Alexandria-Single Worker,Tables 1 and 1 Alexandria-Single Worker, 1 and 1 for a Single Worker, 1 Preschooler and 1 Schoolchild, Alexandria-Single Alexandria-Single Worker, 1 and Worker, 1 1 2010 and 1

Housing 34% Housing 34% Housing 34% Housing 34%

Retirement Retirement Savings 2%Savings 2% RetirementEmergency Retirement Savings4% 2%Savings Savings4% 2% Emergency Savings Emergency Emergency Savings 4% Savings 4% Health CareHealth 6% Care 6% Health CareHealth 6% Care 6% Personal & Household Personal & Household Items 7% Items 7% Personal & Household Personal & Household Items 7% Items 7%

Housing 18% Housing 18% Housing 18% Housing 18% Utilities 2%Utilities 2% Utilities 2%Utilities Food 8% Food 8%2%

Food 8% Food 8% Transportation Transportation 6% 6% Transportation Transportation 6% 6% Child Care 27% Child Care 27% Child Care 27% Child Care 27%

Arlington-Single Worker, 1 and 1 Arlington-Single Worker, 1 and 1 Arlington-Single Worker, 1 and 1 Worker, 1 and 1 Expenses Arlington County, Arlington-Single VA Basic Economic Security Tables for a Single Worker, 1 Preschooler and 1 Schoolchild, 2010 Net Taxes 22% Net Taxes 22% Net Taxes 22% Net Taxes 22%

Housing 17% Housing 17% Housing 17% Housing 17% Utilities 2%Utilities 2% Utilities 2%Utilities 2% Food 7% Food 7%

RetirementRetirement Savings 2%Savings 2% Food 7% Food 7% Emergency Savings 2% 4%Savings Emergency RetirementRetirement Savings Savings 4% 2% Transportation Transportation Emergency Emergency Savings 4% Health CareHealth 5%Savings Care4% 5% 6% 6% Transportation Transportatio Health CareHealth 5% Care 5% 6% 6% Personal & Household Personal & Household Items 7% Items 7% Personal & Household Personal & Household Child Care 29% Items 7% Items 7% Child Care 29% Child Care 29% Child Care 29%

Fairfax County-Single Worker, 1 and 1 Fairfax County-Single Worker, 1 and 1 Fairfax County-Single Fairfax County-Single Worker, 1 and Worker, 1 1 and 1 Net Taxes 22% Housing 18% Net Taxes 22% Housing 18% APPENDIX G 2010 31 Net Taxes 22% Net Taxes 22% Housing 18% Housing 18% Utilities 2%Utilities 2% Retirement Retirement Savings 2%Savings 2% Utilities 2%Utilities 2% Food 8% Food 8% Emergency Savings RetirementEmergency Retirement Savings4% 2%Savings Savings4% 2% Food 8% Food 8%

Utilities 4%Utilities 4% Personal & Household Personal & Household Food 8% Food 8% Personal & Household Personal & Household Items 12% Items 12% Food 8% Food 8% Items 12% Items 12% Transportation Transportation 13% 13% Transportation 13% Transportation 13%

Arlington-Single Arlington-Single Worker Worker Arlington-Single Worker Arlington-Single Worker Net Taxes 19% Net Taxes 19% Net Taxes 19% Net Taxes 19%

Housing 33% Housing 33% Housing 33% Housing 33% Retirement Retirement Savings 4% Savings 4% RetirementRetirement Savings 4%Savings 4% mergency Emergency Savings 4% Savings 4% mergency Savings 4% Emergency Health CareHealth 4%Savings Care4% 4% Health CareHealth 4% Care 4% Utilities 4% Utilities 4% Personal & Household Personal & Household Utilities Utilities Food 8% 4% Food 8% 4% Personal & Household Personal & Household Items 12% Items 12% Food 8% Food 8% Items 12% Items 12% Transportation Transportation 12% 12% Transportation 12% Transportation 12%

Personal & Household Personal & Household Personal & Household Personal & Household Items 7% Items 7% Items 7% Items 7%

6%

Child Care 27% Child Care 27% Child Care 27% Child Care 27%

Arlington-Single Arlington-Single Worker, 1 and Worker, 1 1 and 1 Arlington-Single Worker, 1 and 1 Arlington-Single Worker, 1 and 1



Montgomery Montgomery County-Single County-Single Worker Worker Montgomery County, MD Basic County-Single Economic Montgomery County-Single Worker Security Montgomery Worker Tables Expenses for a Single Worker, 2010 Net Taxes 23% Net Taxes 23% Net Taxes 23% Net Taxes 23%

Fairfax County, VA Basic Economic Security Tables Expenses Fairfax1County-Single Worker, 1 and 1 2010 Fairfax County-Single Worker, 1 and 1 for a Single Worker, Preschooler and 1 Schoolchild, Fairfax County-Single Worker, 1 and 1 Fairfax County-Single Worker, 1 and 1 Net Taxes 22% Net Taxes 22% Net Taxes 22% Net Taxes 22%

Housing 34% Housing 34% Housing 34% Housing 34% Retirement Savings Retirement 4% Savings 4% Retirement Savings4% 4%Savings Retirement Savings 4% 4% mergency Emergency Savings EmergencyEmergency Savings 4%Savings 4% Health CareHealth 4% Care 4% Health CareHealth 4% Care 4% Utilities 4% Utilities 4% Utilities 4%Utilities Personal & Household Personal & Household Food 7% Food 7% 4% Personal & Household Personal & Household Items 12% Items 12% Food 7% Food 7% Transportation Transportation 11% 11% Items 12% Items 12% Transportation 11% Transportation 11%


etirement Retirement Savings 4% Savings 4% etirementRetirement Savings mergency Emergency Savings 4% 4%Savings Savings 4% 4% EmergencyEmergency Savings 4%Savings 4% Health CareHealth 4% Care 4% Utilities 5% Utilities 5% Health CareHealth 4% Care 4% Utilities 5%Utilities 5% Food 7% Food 7% Personal & Household Personal & Household Food 7% Food 7% Personal & Household Personal & Household Items 12% Items 12% Transportation Transportation 11% 11% Items 12% Items 12% Transportation 11% Transportation 11% PG County-Single Worker PG County-Single Worker PG County-Single Worker PG County-Single Worker

Housing 17% Housing 17% Housing 17% Housing 17% Utilities 2% Utilities 2% Utilities 2%Utilities 2% Food 7% Food 7% Food 7% Food 7% Transportation Transportation Transportation Transportation 6% 6% 6% 6%

Retirement Retirement Savings 2% Savings 2% RetirementRetirement Savings 4% 2%Savings 2% Emergency Emergency Savings 4% EmergencyEmergency Savings 4%Savings 4% Health CareHealth 5% Care 5% Health CareHealth 5% Care 5% Personal & Household Personal & Household Personal & Household Personal & Household Items 7% Items 7% Items 7% Items 7% Child Care 29% Child Care 29% Child Care 29% Child Care 29%

APPENDIX G Fairfax County, VA Basic Economic Security Fairfaxfor County-Single Worker Tables Expenses aFairfax Single County-Single Worker, 2010 Worker Fairfax County-Single Worker Fairfax County-Single Worker

6%

Housing 18% Housing 18% Housing 18% Housing 18% Utilities 2% Utilities 2% Utilities 2%Utilities 2% Food 8% Food 8% Food 8% Food 8% Transportation Transportation 6% Transportation 6% Transportation

Retirement Savings Retirement 2% Savings 2% RetirementEmergency Savings4% 2%Savings Retirement Savings 4% 2% Emergency Savings Emergency Savings 4% Emergency Savings 4% Health CareHealth 5% Care 5% Health CareHealth 5% Care 5% Personal & Household Personal & Household Personal & Household Personal & Household Items 8% Items 8% Items 8% Items 8% Child Care 26% Child Care 26% Child Care 26% Child Care 26%

Montgomery Montgomery County-Single County-Single Worker, 1 and Worker, 1 1 and 1 MontgomeryMontgomery County, MDMontgomery Basic Economic Security Expenses County-Single Worker,Tables 1 and 1 County-Single Worker, 1 and 1 for a Single Worker, 1 Preschooler and 1 Schoolchild, 2010 Net Taxes 23% Net Taxes 23% Net Taxes 23% Net Taxes 23%

Housing 17% Housing 17% Housing 17% Housing 17% Utilities 3% Utilities 3% Utilities 3%Utilities 3% Food 8% Food 8% Food 8% Food 8%

Retirement Retirement Savings 2% Savings 2% RetirementEmergency Savings 4% 2%Savings Retirement Savings 4% 2% Emergency Savings EmergencyEmergency Savings 4%Savings 4% Transportation Transportation 6% Health CareHealth 6% Care 6% Transportation 6% Transportation Health CareHealth 6% Care 6% Personal & Household Personal & Household Personal & Household Personal & Household Items 7% Items 7% Items 7% Items 7% Child Care 26% Child Care 26% Child Care 26% Child Care 26% PG County-Single PG County-Single Worker, 1 and Worker, 1 1 and 1 PG County-Single Worker, 1 and 1 PG County-Single Worker, 1 and 1

Net Taxes 19% Net Taxes 19% Net Taxes 22% Net Taxes 22% Net Taxes 19% Net Taxes 19% Net Taxes 22% Net Taxes 22% Housing Housing 28% Area28% BEST - APPENDIX G 32 Washington, DC Metro Retirement Retirement Savings 2% Savings 2% Housing 28% Housing 28% RetirementEmergency Savings4% 2%Savings Retirement Savings4% 2% Emergency Savings etirement Retirement Savings 3% Savings 3% Emergency Savings 4% Emergency Savings 4% Retirement Savings 4% 3%Savings Retirement Savings 4% 3% mergency Emergency Savings Health CareHealth 7% Care 7% mergencyEmergency Savings 4%Savings 4% Utilities 5% Utilities 5%

Housing 17% Housing 17% Housing 17% Housing 17% Utilities 3% Utilities 3% Utilities 3%Utilities 3% Food 9% Food 9% Food 9% Food 9%

Health CareHealth 4% Care 4% EmergencyEmergency Savings 4%Savings 4% Utilities 4%Utilities 4% Personal Personal Household Household Health&Care 4% &Care Health 4% Food 7% Food 7% Items 12% Items 12% Utilities Transportation Transportation 11%4%Utilities 11%4% Personal & Personal Household & Household Food 7% Food 7% Items 12% Items 12% Transportation 11% Transportation 11%

Transportation 6% Food 8% Transportation Food 8% EmergencyEmergency Savings 4%Savings 4% Personal & Personal Household Household Health Care 5% & Care Health 5% Transportation 6% Transportation Items 8% Items 8% Child Care 26% Personal & Personal Household & Household Child Care 26% Items 8% Items 8% Child Care 26% Child Care 26%

Montgomery County-Single Worker Montgomery County-Single Worker

Montgomery Montgomery County-Single County-Single Worker, 1 and Worker, 1 1 and 1

Montgomery County-Single Worker Montgomery County-Single Worker

Montgomery County-Single Worker, 1 and 1 1 and 1 Montgomery County-Single Worker, Housing 17% Housing 17% Net Taxes 23% Net Taxes 23%

Net Taxes 23% Net Taxes 23%

Housing 31% Housing 31% Net Taxes 23% Net Taxes 23% RetirementRetirement Savings 4%Savings 4% Housing 31% Housing 31% EmergencyEmergency Savings 4%Savings 4% Health Care Health 4% Care 4% Retirement Savings 4% Retirement Savings 4% Utilities 5%Utilities 5% EmergencyEmergency Savings 4%Savings 4% Food 7% Food 7% Personal Personal Household Household Health&Care 4% &Care Health 4% Utilities 5%Utilities 5% Items 12% Items 12% Transportation Transportation 11% 11% Food 7% Food 7% Personal & Personal Household & Household Items 12% Items 12% Transportation 11% Transportation 11% Prince George’s County, MD Basic Economic Security PG County-Single PG County-Single Worker2010 Worker Tables Expenses for a Single Worker,

Utilities 3%Utilities Housing 17% Housing 17%3% Net Taxes 23% Net Taxes 23% Food 8% Food 8% RetirementRetirement Savings 2%Savings 2% Utilities 3%Utilities 3% EmergencyEmergency Savings 4%Savings 4% Transportation 6% Food 8% Transportation Food 8% Retirement Savings 2% Retirement Savings Health CareHealth 6% Care2% 6% EmergencyEmergency Savings 4%Savings 4% Personal & Personal Household & Household Transportation 6% Transportation Health Care 6%7%Care Health 6%7% Items Items Child Care 26% Child Care 26% Personal & Personal Household & Household Items 7% Items 7% Child Care 26% Child Care 26% Prince George’s County, MD Basic Economic Security Ex- 1 PG County-Single Worker, 1 and 1Tables PG County-Single Worker, 1 and penses for a Single Worker, 1 Preschooler and 1 Schoolchild, 2010

APPENDIX G PG County-Single Worker PG County-Single Worker



Housing 28% Housing 28% Net Taxes 22% Net Taxes 22% RetirementRetirement Savings 3%Savings 3% Housing 28% Housing 28% EmergencyEmergency Savings 4%Savings 4% Utilities 5%Utilities 5% Retirement Savings 3% Retirement Savings Health CareHealth 4% Care3% 4% EmergencyEmergency Savings 4%Savings 4% Food 8% Food 8% Personal & Personal Household & Household Utilities 5%Utilities 5% Health CareHealth 4% Care 4% Items 11% Items 11% Transportation Transportation 14%Food 8% 14% Food 8% Personal & Personal Household & Household Items 11% Items 11% Transportation 14% Transportation 14% DC-Single Worker DC-Single Worker

Washington, DC DC-Single Basic Economic Security Tables Worker DC-Single Worker Expenses for a Single Worker, 2010 Net Taxes 18% Net Taxes 18%

Net Taxes Net Taxes RetirementRetirement Savings 3%18% Savings 3%18% EmergencyEmergency Savings 4%Savings 4% Retirement Savings 3%Savings Retirement 3% Health CareHealth 6% Care 6% EmergencyEmergency Savings 4%Savings 4%

PG County-Single Worker, 1 and 1 1 and 1 PG County-Single Worker,


Utilities 6%Utilities 6% Health 6% & Care Health 6% Personal & Care Personal Household Household Food 11% Food 11% Items 13% Items 13% Utilities 6%Utilities 6% Transportation Transportation 8% 8% Personal & Personal Household & Household Food 11% Food 11% Items 13% Items 13% Transportation 8% Transportation 8%

RetirementRetirement Savings 2%19% Savings 2%19% Net Taxes Net Taxes EmergencyEmergency Savings 4%Savings 4% RetirementRetirement Savings 2%Savings 2% Health CareHealth 7% Care 7% EmergencyEmergency Savings 4%Savings 4%

Housing 17% Housing 17% Utilities 3%Utilities Housing 17% Housing 17%3% Food 9% Food 9% Utilities 3%Utilities 3%

Food 9% Transportation Food Transportation 8%9%

Personal & Personal Household Health CareHealth 7% & Household Care 7% Items 8% Items 8% Transportation 8% Transportation Child Care 24% Personal & Personal Household & HouseholdChild Care 24% Items 8% Items 8% Child Care 24% Child Care 24% DC-Single Worker, DC-Single 1 and Worker, 1 1 and 1

DC-Single Worker, 1 and 1 1 and 1 DC-Single Worker, Washington, DC Basic Economic Security Tables Expenses for a Single Worker, 1 Preschooler andHousing 1 Schoolchild, 201013% 13% Housing Net Taxes 20% Net Taxes 20% Utilities 3%Utilities 3% Housing 13% Housing 13% Net Taxes 20% Net Taxes Food 9% Food 9% RetirementRetirement Savings 1%Savings 1%20% Utilities 3%Utilities 3% EmergencyEmergency Savings 4%Savings 4% Transportation Transportatio 3% Health CareHealth 6%Savings Care 1% 6% Food 9% Food 9% Retirement Savings 1% Retirement EmergencyEmergency Savings 4%Savings 4% Transportation 3% Transportatio Personal & Personal Household Health CareHealth 6%& Household Care 6% Items 7% Items 7% Child Care 34% Child Care 34% Personal & Personal Household & Household Items 7% Items 7% Child Care 34% Child Care 34%

APPENDIX G - 2010 33

APPENDIX H Basic Economic Security Tables, 2010 Alexandria, VA Average Community College Education Expenses for a Single Worker, 2010

Annual Tuition and Fees Less Grants and Tax Credits Total School Expense Extra Transportation & Child Care Total Annual Expense Total Cost, 4 Years

1 Worker

1 Worker, 1 Infant


$2,961 -$715 $2,246 $155 $2,401 $9,603

$2,961 -$715 $2,246 $1,434 $3,680 $14,718

$2,961 -$715 $2,246 $3,146 $5,392 $21,569


Basic Economic Security Tables, 2010 Arlington County, VA Average Community College Education Expenses for a Single Worker, 2010


1 Worker

1 Worker, 1 Infant


$2,961 -$715 $2,246 $155 $2,401 $9,603

$2,961 -$715 $2,246 $1,746 $3,992 $15,969

$2,961 -$715 $2,246 $3,562 $5,808 $23,232


34 Washington, DC Metro Area BEST - APPENDIX H

APPENDIX H Basic Economic Security Tables, 2010 Fairfax County, VA Average Community College Education Expenses for a Single Worker, 2010


1 Worker

1 Worker, 1 Infant


$2,961 -$715 $2,246 $155 $2,401 $9,603

$2,961 -$715 $2,246 $1,548 $3,794 $15,175

$2,961 -$715 $2,246 $3,295 $5,541 $22,163


Basic Economic Security Tables, 2010 Montgomery County, MD Average Community College Education Expenses for a Single Worker, 2010


1 Worker

1 Worker, 1 Infant


$3,607 -$845 $2,763 $158 $2,921 $11,682

$3,607 -$845 $2,763 $1,843 $4,606 $18,422

$3,607 -$845 $2,763 $3,529 $6,291 $25,164


APPENDIX H - 2010 35

APPENDIX H Basic Economic Security Tables, 2010 Prince George’s County, MD Average Community College Education Expenses for a Single Worker, 2010


1 Worker

1 Worker, 1 Infant


$3,502 -$824 $2,679 $158 $2,837 $11,346

$3,502 -$824 $2,679 $1,527 $4,205 $16,820

$3,502 -$824 $2,679 $2,724 $5,403 $21,610


Basic Economic Security Tables, 2010 Washington, DC Average Community College Education Expenses for a Single Worker, 2010


1 Worker

1 Worker, 1 Infant


$3,067 -$737 $2,331 $0 $2,331 $9,322

$3,067 -$737 $2,331 $844 $3,174 $12,697

$3,067 -$737 $2,331 $1,870 $4,200 $16,801


36 Washington, DC Metro Area BEST - APPENDIX H

c Security T Ben cCounty Security T Security T 0cCounty Ben County Ben 0 0

9

9 9me,

w/o me, me, w/o w/o

APPENDIX I

Arlington County, VA Basic Economic Security Tables for 1 Worker vs. Arlington County Benchmark Incomes, 2010 100000 $98,612

$98,612 $98,612 $98,612 Median

$75,925 $75,925 BEST Index, $43,260 $75,925

Household Median Median Income Household Household Income Income

5

5 ome, hers ome, ome, hers hers

4

$70,719 $70,719 $70,719

Federal Poverty Level, $10,830 $15,312 Federal Poverty Level, $10,830 Federal Poverty Level, $10,830 $15,312 Minimum Wage Median Income, Median Income, $15,312 Single Men ($7.25/hr) Single Women Minimum Wage Median Income, Median Income, w/o Children w/o Children Median Minimum Wage Median Income, ($7.25/hr) Single Women SingleIncome, Men Single Men ($7.25/hr) Single Women w/o Children w/o Children w/o Children w/o Children

100000

100000 $15,312 $59,291 Sources: US80000 Census Bureau, 2006-2008 American $15,312 $59,291 80000 Community $15,312 $59,291 80000 Minimum Survey. US Department of Health Wage Median Incom 60000 and Human Services, 2009 HHS ($7.25/hr) Single Wome Minimum Wage Median Incom 60000 Poverty Guidelines 60000 Minimum Wage Median Incom 40000

($7.25/hr) ($7.25/hr)

Notes: Values40000 inflated using the Con40000 sumer Price Index. Median incomes are 20000 estimates based on a small sample size.

Median Household Median Income Median Household Household Income Income

20000 20000 0 0 0

Median Family Median Family Income Income

Single Mothers Single Mothers

Single Fathers Single Fathers

Income Income

Minimum Wage ($7.25/hr) ($7.25/hr)

$39,676

$39,676

$39,676 Median Incom Single MedianMothe Incom Median Incom Single Mothe Single Mothe

Arlington County, VA Basic Economic Security Tables for 2 Workers, 1 Preschooler and 1 Schoolchild 150000vs. Arlington County Benchmark Incomes, 2010 150000 $164,444 150000 120000 $155,828

$155,828 $155,828

($7.25/hr) ($7.25/hr)

w/o Childre Single Wome Single Wome w/o Childre w/o Childre

Alexandria, VA Basic for a Single Alexandria, VA Worke Basic Alexandria, VA Alexan Basic Schoolchild vs. for a Single Worke for a Single Worke Schoolchild vs. Alexan Schoolchild vs. Alexan

Arlington County, VA Basic Economic Security Tables for 1 Worker, 1 Preschooler and 1 Schoolchild vs. Arlington County Benchmark Incomes, 2010 120000 Sources: US Census Bureau, 120000 $131,086 120000 2006-2008100000 American Community BEST Index, $97,752 $131,086 Survey. US100000 Department of Health $131,086 80000 $98,915 100000 and Human Services, 2009 HHS BEST Index, $97,752 BEST Index, $97,752 Poverty Guidelines 80000 $98,915 60000 80000 $98,915 $45,665 Notes: Values60000 inflated using the Consumer Price Index. Median incomes are 40000 60000 $45,665 estimates based on a small sample size. Federal Poverty Level,$45,665 $18,310 40000 20000 40000 $15,312 $15,312 Federal Poverty Level, $18,310 $131,086 20000 Federal Poverty Level, $18,310 0 $15,312 $15,312 20000 Minimum Wage Median Income, Median Income, Median Family $131,086 $15,312 $15,312 $131,086 ($7.25/hr) Single Mothers Single Fathers Income 0 Minimum Wage Median Family Minimum Wage Median Income, Median Income, Median Family 0 ($7.25/hr) Minimum Wage Median Income, Median Income, Median Family Minimum Wage Income

mic Security T oler Security and 1 ScT mic mic Security Benchmark oler and 1 ScIT oler and 1 ScI Benchmark Benchmark I

4

$98,612 $98,612

BEST Index, $43,260 BEST Index, $43,260

mic Security Ta hooler and 1 Ta S mic Security mic Security Ta Benchmark In hooler and 1 S hooler and 1In S Benchmark Benchmark In

5

Alexandria, VA Basic for a Single VA Worker Alexandria, Basic Alexandria, Basic Inco for a Single VA Worker for a Single Worker Inco Inco

4 $155,828 mes, Median Income, 2-Parent mes, Median Income, mes, Median Income, Families with 2-Parent 2-Parent Young Children Families with Families with Young Children Young Children

$131,086 BEST Index, $102,936 $131,086 BEST Index, $102,936 $131,086 BEST Index, $102,936

$164,444 $164,444

$155,828 $155,828

$30,624 Federal Poverty Level, $22,050 $30,624 Federal Poverty Level, $22,050 $30,624 Federal Poverty Level, $22,050 Minimum Wage Median Family Median Median Income, ($7.25/hr x 2 Income Incomes, 2-Parent Median Income, Median Family Median Minimum Wage Workers) Families Median Families with Minimum Median Family 2-Earner Median Income, 2-Parent Income Incomes, ($7.25/hrWage x2 Young Children ($7.25/hr x 2 Income Incomes, 2-Parent Workers) 2-Earner Families Families with Workers) 2-Earner Families Young Families with Children Young Children

Alexandria, VA Ba for Two VA Worke Alexandria, Ba 120000 Alexandria, VA Ba Schoolchild vs. Ale Sources: US Census Bureau, for Two Worke 120000 90000 for Twovs. Worke 2006-2008 American Community Schoolchild Ale Survey. US Department of Health 90000 Schoolchild vs. Ale 60000 and Human90000 Services, 2009 HHS Poverty Guidelines 60000

60000 30000

Notes: Values inflated using the Consumer Price Index. Median incomes are 30000 30000 estimates based on a0small sample size.

0 0 $30,624

$30,624 $30,624 Minimum Wage

APPENDIX I -

($7.25/hr x2 Minimum Wage Minimum Wage Workers) ($7.25/hr 2010 37 x 2 ($7.25/hr x 2 Workers) Workers)

$109,451

$109,451

$109,451 Median Fami Income Median Fami Median Fami Income Income

ity Tables ity Tables enchmark enchmark

, , o o

f f I I

APPENDIX I

Alexandria, VA Basic Economic Security Tables for 1 Worker vs. Alexandria Benchmark Incomes, 2010

$87,098 $87,098 Median Median Household Household Income Income

ty Tables fo ty Tables fo and 1 Scho and 1 Scho Incomes, Incomes,

, ,

Washington, DC Washington, DC for a Single W for a Single W

$87,098 $87,098 $59,291 $59,291 BEST Index, $41,832 BEST Index, $41,832

$64,216 $64,216

Federal Poverty Level, $10,830 Federal Poverty Level, $10,830 $15,312 $15,312 Minimum Wage Median Income, Median Income, Minimum Wage Median Income, Median SingleIncome, Men ($7.25/hr) Single Women ($7.25/hr) Single Women Single Men w/o Children w/o Children w/o Children w/o Children

Median Median Household Household Income Income

80000 80000

Sources: US Census Bureau, 70000 70000 2006-2008 American Community 60000 Survey. US Department of Health 60000 and Human Services, 2009 HHS 50000 50000 Poverty Guidelines

40000 40000 Notes: Values inflated using the Con30000 30000 sumer Price Index. Median incomes are 20000 estimates based on a small sample size. 20000 10000 10000 0 0

$17,424 $17,424 Minimum Wage Minimum Wage ($8.25/hr) ($8.25/hr)

Media Media Single Single w/o w/o

Washington, DC Washington, DC for a Single for a Single Schoolchild vs Schoolchild vs

Alexandria, VA Basic Economic Security Tables for 1 Worker, 1 Preschooler and 1 Schoolchild vs. Alexandria 100000 100000 Benchmark Incomes, 2010 BEST Index, $88,980 BEST Index, $88,980

$4 $4

80000 80000


60000 60000 40000 40000

$109,451 $109,451 Median Family Median Family Income Income

Federal Poverty Level, $18,310 Federal Poverty Level, $18,310 $15,312 $39,676 $56,398 $109,451 $15,312 $39,676 $56,398 $109,451 Minimum Wage Median Income, Median Income, Median Family Minimum Wage Median Income, Median Income, Median Family ($7.25/hr) Single Mothers Single Fathers Income ($7.25/hr) Single Mothers Single Fathers Income

Notes: Values inflated using the Consumer Price Index. Median incomes are estimates based on a small sample size.

20000 20000 0 0

$17,424 $17,424 Minimum Wage Minimum Wage ($8.25/hr) ($8.25/hr)

$28 $28

Median Median Single Single

Alexandria, VA Basic Economic Security Tables for 2 Workers, 1 Preschooler and 1 Schoolchild vs. Alexandria Benchmark Incomes, 2010

curity Tables fo curity Tables fo r and 1 Schoo r and 1 Schoo ark Incomes, ark Incomes,

150000


Sources: US Census Bureau, 150000 2006-2008 American Community 120000 Survey. US Department of Health 120000 and Human Services, 2009 HHS Poverty Guidelines 90000

Washington, DC B Washington, DC B for Two Workers, for Two Workers, vs. District B vs. District B

90000

$121,196 $121,196 Median Income, Median Income, 2-Parent 2-Parent Families with Families with Young Children Young Children

Federal Poverty Level, $22,050 Federal Poverty Level, $22,050 $30,624 $109,451 $132,436 $121,196 $30,624 $109,451 $132,436 $121,196 Median Income, Median Minimum Wage Median Family Minimum Median Family Median Median Income, 2-Parent Income Incomes, ($7.25/hrWage x2 ($7.25/hr x 2 Income Incomes, 2-Parent with 2-Earner Families Families Workers) Workers) 2-Earner Families Young Families with Children Young Children

38 Washington, DC Metro Area BEST - APPENDIX I

Notes: Values inflated using the Consumer Price Index. Median incomes 60000 are 60000 estimates based on a small sample size.

30000 30000 0 0 $34,848 $34,848 Minimum Wage Minimum Wage ($8.25/hr x 2 ($8.25/hr x 2 Workers) Workers)

$68, $68,

Median Median Inco Inco

APPENDIX I

conomic Security T conomic Security conomic SecurityBeT T Fairfax County Fairfax Fairfax County Be Be es, 2010County Fairfax County, VA Basic Economic Security Tables for 1 Worker vs. Fairfax County Benchmark Incomes, 2010 es, es, 2010 2010

85,274 85,274 85,274

an Income, an Income, an Income, e Men w/o e Men ehildren Men w/o w/o hildren hildren

$109,247 $109,247 $109,247 $83,051 $83,051 $83,051

$85,274 $85,274 $85,274

BEST Index, $48,480 BEST BEST Index, Index, $48,480 $48,480

$109,247 $109,247 $109,247 Median Median Median Household Household Household Income Income Income

80000 80000

80000 Sources: US Census Bureau, 70000 70000 2006-2008 American Community 70000 60000 Survey. US Department of Health 60000 60000 and Human Services, 2009 HHS 50000 Poverty Guidelines 50000 50000 40000 40000

40000 Notes: Values inflated using the Con30000 sumer Price Index. Median incomes are 30000 30000 20000 estimates based on a small sample size.

$15,312 $15,312 $15,312 Federal Poverty Level, $10,830 Federal Federal Poverty Poverty Level, Level, $10,830 $10,830 Minimum Wage Median Income, Median Income, Minimum Wage Income, SingleIncome, Men ($7.25/hr) Single Women Minimum Wage Median Median Income, Median Median Income, ($7.25/hr) Single Women Single Men w/o Children w/o Children ($7.25/hr) Single Women Single Men w/o w/o w/o Children Children w/o Children Children

20000 20000 10000 10000 10000 0 0 0

Median Median Household Median Household Income Household Income Income

Fairfax County, VA Basic Economic Security Tables for 1 Worker, 1 Preschooler and 1 Schoolchild vs. Fairfax County Benchmark Incomes, 2010 conomic Security Tab

conomic Security Tab conomic Security Tab Preschooler and 1 S Preschooler and 1 Preschooler and Inc 1S S unty Benchmark unty unty Benchmark Benchmark Inc Inc 010 010 010

80,258 80,258 80,258

an Income, an Income, an Income, e Fathers e e Fathers Fathers

$130,015 $130,015 $130,015

Median Family Fairfax Median Family Median Family Income Fairfax Income Income

$80,258 $80,258 $80,258

Minimum Wage Median Income, Median Income, Median Family Minimum Wage Income, Income, Family ($7.25/hr) Single Mothers Single Fathers Income Minimum Wage Median Median Income, Median Median Income, Median Median Family ($7.25/hr) Single Income ($7.25/hr) Single Mothers Mothers Single Single Fathers Fathers Income

Federal Poverty Level, $22,050 Federal Federal Poverty Poverty Level, Level, $22,050 $22,050 $30,624 $130,015 $146,651 $139,111 $30,624 $130,015 $146,651 $139,111 $30,624 $130,015 $146,651 $139,111 Minimum Wage Median Family Median Median Income, Minimum Wage Median Family Median Median Income, ($7.25/hrWage x2 Income Incomes, 2-Parent Minimum Median Family Median Median Income, ($7.25/hr 2 Income Incomes, 2-Parent Workers)xx 2 2-Earner Families Families with ($7.25/hr Income Incomes, 2-Parent Workers) 2-Earner Families Families Young Families with Children Workers) 2-Earner Families with Young Children Children Young

$15,312 $15,312 $15,312

Minimum Wage Minimum Wage Minimum Wage ($7.25/hr) ($7.25/hr) ($7.25/hr)

100000

100000 100000 Sources: US Census Bureau, 2006-2008 American Community 80000 Survey. US Department of Health 80000 80000 and Human Services, 2009 HHS Poverty Guidelines 60000

60000 60000 Notes: Values inflated using the Con40000 sumer Price Index. Median incomes are 40000 40000 estimates based on a small sample size. 20000 20000 20000 0 0 0

County, VA Basic Economic Security Tables for 2 Workers, 1 Preschooler, and 1 Schoolchild vs. County Benchmark Incomes, 2010

BEST Index, $108,144 BEST Index, Index, $108,144 $108,144 BEST

mic Security Tables f mic Security ff mic Security Tables nd 1 School Tables Child vs nd 1 Child nd 1 School School2010 Child vs vs Incomes, Incomes, Incomes, 2010 2010

6,651

$130,015 $ , $ ,, $130,015 $ $130,015


$54,206 $15,312 $54,206 $54,206 $15,312 Federal Poverty Level, $18,310 $15,312 Federal Federal Poverty Poverty Level, Level, $18,310 $18,310

Prince G Prince G Prince Ta G Security Security Ta Security Ta Cou Cou Cou

Prince G Prince G Prince G Secur Secur Secur Presch Presch Presch George's George's George's

$15,312 $15,312 $15,312

Minimum Wage Minimum Wage

Minimum Wage ($7.25/hr) 120000 ($7.25/hr) ($7.25/hr) 120000 120000 Sources: US Census100000 Bureau, 100000 2006-2008 American Community 100000 Survey. US Department of Health 80000 and Human Services,80000 2009 HHS 80000 Poverty Guidelines 60000 60000 60000 Notes: Values inflated using the Con40000 sumer Price Index. Median incomes are 40000 40000 estimates based on a small sample size. 20000 20000 Prin 20000 Prin Prin 0 Secu 0 Secu 0 Secu and

and and

APPENDIX I - 2010 39 $139,111

M M MS S S

$30,624

APPENDIX I

Fairfax Fairfax County, County, VA VA Bas Bas Tables for a 1 Tables for a 1 Worker Worker Benchmark In Benchmark In

Economic Economic Se Se Montgomery C Montgomery County, MD Basic Economic Security Tables for 1 Worker vs. Montgomery County Montgomery C ,, 2010 Benchmark Incomes, 2010 2010 $96,166 $96,166 $83,329 $83,329 $72,413 $72,413 BEST Index, Index, $47,340 $47,340 BEST

9 9

$96,166 $96,166

me, me, w/o w/o


60000 60000

Notes: Values inflated using the Consumer Price Index.40000 Median incomes are 40000 estimates based on a small sample size.

$15,312 $15,312 Federal Poverty Poverty Level, Level, $10,830 $10,830 Federal Minimum Wage Wage Median Median Income, Income, Median Median Income, Income, Minimum Single Men Men ($7.25/hr) Single Women Women Single ($7.25/hr) Single w/o Children Children w/o Children Children w/o w/o

me, me, ers ers

$15,312 $15,312

$83,051 $83,051

Minimum Minimum Wage Wage ($7.25/hr) ($7.25/hr)

Median Median Income, Income, Single Single Women Women w/o w/o Children Children

Montgomery County, MD Basic Economic Security Tables for 1 Worker, 1 Preschooler and 1

M M S S

Fairfax Fairfax County, County, VA VA Bas Bas Tables for a Single Worke Tables for a Single Worke Sources: US Census Bureau, Schoolchild vs. Fairfax 2006-2008 American Community Schoolchild vs. Fairfax 120000 Incomes 120000 Incomes Survey. US Department of Health and Human Services, 2009 HHS 90000 Poverty Guidelines 90000

150000 150000

BEST BEST Index, Index, $98,424 $98,424

Notes: Values inflated using the Con60000 sumer Price Index.60000 Median incomes are estimates based on a small sample size.

30000 30000

Federal Federal Poverty Poverty Level, Level, $18,310 $18,310 $15,312 $15,312

$115,159 $115,159

$52,338 $52,338

$63,368 $63,368

$115,159 $115,159

Minimum Wage Wage Median Median Income, Income, Median Median Income, Income, Median Median Family Family Minimum ($7.25/hr) Single Mothers Mothers Single Single Fathers Fathers Income Single ($7.25/hr) Income

Median Median Family Family Income Income

0 0 $15,312 $15,312

Minimum Wage Wage Montgomery County, MD Basic Economic Security Table for 2 Workers, 1 Preschooler and 1 Schoolchild Minimum ($7.25/hr) vs. Montgomery County Benchmark Incomes, 2010 ($7.25/hr) 150000 150000

Federal Federal Poverty Poverty Level, Level, $22,050 $22,050 $30,624 $115,159 $30,624 $115,159 Minimum Minimum Wage Wage ($7.25/hr ($7.25/hr xx 2 2 Workers) Workers)

Median Median Family Family Income Income

Median Income,

Median Income, M Median Income, M Single Single Mothers Mothers

Notes: Values inflated using the Con60000 sumer Price Index.60000 Median incomes are estimates based on a small sample size.

$134,280 $134,280

$135,819 $135,819

Median Median Income, Median Median Income, Incomes, 2-Parent Incomes, 2-Parent 2-Earner Families Families 2-Earner Families Families with with Young Young Children Children

40 Washington, DC Metro Area BEST - APPENDIX I $135,819 $135,819

$54,206 $54,206

Sources: US Census Bureau, 2006-2008 American Community 120000 120000 of Health Survey. US Department and Human Services, 2009 HHS 90000 Poverty Guidelines 90000

BEST Index, Index, $104,352 $104,352 BEST

Economic Economic 2 2 wo wo eschooler eschooler and and y y County County Benc Benc 10 10

0 0

20000 20000 0 0


Economic Sec Economic Schoolchild Sec vs. Montgomery County Benchmark Incomes, 2010 orker, orker, 1 1 Presc Presc Montgomery Montgomery ,, 2010 2010

8 8

120000 120000

Sources: US Census Bureau, 2006-2008 American 100000 100000Community Survey. US Department of Health and Human Services, 80000 800002009 HHS Poverty Guidelines

30000 30000 Fairfax County, VA Basic Eco Fairfax County, VA Basic Eco for 2 workers, 1 Preschoole 0 for 2 workers, 1 Preschoole 0 vs. Fairfax County Benchm

vs. Fairfax County Benchm

APPENDIX I

asic Economic Se Prince George's asic Economic SeC Prince George's CPrince George’s County, MD Basic Economic Security Tables for 1 Worker vs. Prince George’s County mes, 2010 mes, 2010 Benchmark Incomes, 2010 Sources: US Census Bureau, 2006-2008 American Community Survey. US Department of Health and Human Services, 2009 HHS Poverty Guidelines

BEST Index, $40,440 BEST Index, Index, $40,440 $40,440 BEST

831 831

ncome, ncome, en w/o ncome, en w/o renw/o en ren ren

$72,884 $72,884

Median Median Household Median Household Income Household Income Income Prince

asic Economic S asic Economic Worker, 1 PresS ldWorker, vs. Prince Ge 1 Pres ncomes, 2010 ld vs. Prince Ge ncomes, 2010

9,634 9,634

Income, Income, Fathers Income, Fathers Fathers


$72,884 $72,884 $72,884 Median Household Median Median Income Household Household Income Income

George’s County, MD Basic Economic Security Tables for 1 Worker, 1 Preschooler and 1 Schoolchild vs. Prince George’s County Benchmark Incomes, 2010

$83,796 $83,796

Median Family Prince Median Family Income Prince Median Family Income Income


Federal Poverty Level, $18,310 Federal Federal Poverty Poverty Level, Level, $18,310 $18,310 $15,312 $45,563 $49,634 $83,796 $15,312 $45,563 $49,634 $83,796 $15,312 $45,563 $49,634 $83,796 Minimum Wage Median Income, Median Income, Median Family ($7.25/hr) Single Mothers Single Fathers Income Minimum Wage Median Income, Median Income, Median Family Minimum Wage Median Income, Median Income, Median Family ($7.25/hr) Single Income ($7.25/hr) Single Mothers Mothers Single Single Fathers Fathers Income

Sources: US Census Bureau, 2006-2008 American Community Survey. US Department of Health and Human Services, 2009 HHS Poverty Guidelines Notes: Values inflated using the Consumer Price Index. Median incomes are estimates based on a small sample size.

George’s County, MD Basic Economic Security Tables for 2 Workers, 1 Preschooler, and 1 Schoolchild vs. George’s County Benchmark Incomes, 2010 BEST Index, $84,552 BEST BEST Index, Index, $84,552 $84,552

MD Basic Economic S ers,Basic 1 Preschooler, a MD Economic S ers, 1 Preschooler, ce George's County a mes, 2010 County ce George's mes, 2010

9,583

Federal Poverty Level, $10,830 Federal Poverty Poverty Level, Level, $10,830 $10,830 Federal $15,312 $75,568 $70,831 $15,312 $75,568 $70,831 $15,312 $75,568 $70,831 Income, Minimum Wage Median Income, Median Single Men ($7.25/hr) Single Women Median Income, Minimum Wage Median Income, Minimum Wage Median Income, Median Income, w/o Children w/o Children Single Men ($7.25/hr) Single Women ($7.25/hr) Single Women Single Men w/o Children Children w/o Children Children w/o w/o

Federal Poverty Level, $22,050 Federal Federal Poverty Poverty Level, Level, $22,050 $22,050 $30,624 $83,796 $99,583 $105,282 $30,624 $83,796 $99,583 $105,282 $30,624 $83,796 $99,583 $105,282 Minimum Wage Median Family Median Median Income, ($7.25/hrWage x2 Income Incomes, 2-Parent Minimum Median Family Median Median Income, Minimum Wage Median Family Median Median Income, Workers)xx 2 2-Earner Families Families with ($7.25/hr Income Incomes, 2-Parent ($7.25/hr 2 Income Incomes, 2-Parent Children Workers) 2-Earner Families with Workers) 2-Earner Families Families Young Families with Young Young Children Children

Sources: US Census Bureau, 2006-2008 American Community Survey. US Department of Health and Human Services, 2009 HHS Poverty Guidelines Notes: Values inflated using the Consumer Price Index. Median incomes are estimates based on a small sample size.

APPENDIX I - 2010 41 $105,282

APPENDIX I

ity Tables f chmark Inc

ity Tables f chmark Inc

Washington, DC Basic Economic Security Tables for 1 Worker vs. District Benchmark Incomes, 2010

$57,729 Median $57,729

Household Income Median Household Income

ty Tables f and 1 Scho ncomes, ty Tables20 f

Sources: US Census Bureau, 2006-2008 American Community Survey. U.S. Department of Health and Human Services, 2009 HHS Poverty Guidelines

BEST Index, $31,656 BEST Index, $31,656 Federal Poverty Level, $10,830 $17,424 $48,318 $61,620 Poverty Level, $10,830 Federal Minimum Wage Median Income, Median Income, ($8.25/hr) Single Women Single Men $17,424 $48,318 $61,620 w/o Children w/o Children Minimum Wage Median Income, Median Income, Single Men ($8.25/hr) Single Women w/o Children w/o Children

$57,729


Median Household $57,729 Income Median Household Income

and 1 Scho ncomes, 20Washington, DC Basic Economic Security Tables for 1 Worker, 1 Preschooler and 1 Schoolchild vs. BEST2010 Index, $85,680 District Benchmark Incomes,

BEST Index, $85,680

Sources: US Census Bureau, 2006-2008 American Community Survey. U.S. Department of Health and Human Services, 2009 HHS Poverty Guidelines

$68,860


Median Family $68,860 Income

Federal Poverty Level,$28,383 $18,310 $17,424

Median Family Income

$37,181

$68,860


Minimum Wage Median Income, Median Income, Median Family ($8.25/hr) Single Mothers Single Fathers Income $17,424 $28,383 $37,181 $68,860 Minimum Wage Median Income, Median Income, Median Family ($8.25/hr) Single Mothers Single Fathers Income

y Tables foWashington, DC Basic Economic Security Tables for 2 Workers, 1 Preschooler and 1 Schoolchild vs. hoolchild v District Benchmark Incomes, 2010 010 y Tables fo

hoolchild v 010



$128,596 Median Income, $128,596 2-Parent Families with Median Income, Young Children 2-Parent Families with Young Children

$34,848 $68,860 $115,286 $128,596 Federal Poverty Level, $22,050 Median Income, Median Minimum Wage Median Family $34,848x 2 $68,860 $115,286 $128,596 2-Parent Income Incomes, ($8.25/hr 2-Earner Families Families with Workers) Minimum Wage Median Family Median Median Income, Young Children ($8.25/hr x 2 Income Incomes, 2-Parent Workers) 2-Earner Families Families with Young Children

42 Washington, DC Metro Area BEST - APPENDIX I

Sources: US Census Bureau, 2006-2008 American Community Survey. U.S. Department of Health and Human Services, 2009 HHS Poverty Guidelines Notes: Values inflated using the Consumer Price Index. Median incomes are estimates based on a small sample size.

APPENDIX J Basic Economic Security Tables, 2010 Washington, DC Basic Economic Security Tables 2010 vs. Washington, DC Self-Sufficiency Standard 2005, 1 Worker, 1 Preschooler and 1 Schoolchild Self-Sufficiency Monthly Expenses Standard, 2005 DC BEST, 2010 Difference ($) Difference (%) Housing & Utilities $949 $1,113 $164 17% Food $487 $648 $161 33% Transportation $114 $210 $96 84% Childcare $1,211 $2,456 $1,245 103% Personal & Household Items $303 $475 $172 57% Healthcare $267 $445 $178 67% Emergency Savings $262 $262 Retirement Savings $87 $87 Taxes $871 $1,777 $906 104% Tax Credits -$267 -$333 -$66 -25% Wage, Monthly $3,934 $7,140 $3,206 81% Note: Comparisons of some monthly expense values are affected by differences in BEST and Self-Sufficiency Standard expense calculation methodologies.

Sources: Wider Opportunities for Women, The Basic Economic Security Tables for the Washington, DC Metro Area, 2010. Wider Opportunities for Women and Dr. Diana Pierce, The Self-Sufficiency Standard for the Washington, D.C. Metropolitan Area 2005

APPENDIX J - 2010 43

APPENDIX K

HEALTH CARE REFORM AND THE BEST The Patient Protection and Affordable Care Act of 2010 was signed into law on March 24, 2010, and is expected to have a large impact on healthcare expenses in coming years. Beginning in September 2010, both employer-sponsored and individual insurance market health insurance plans must offer free preventive care, which may lower outof-pocket costs to DC metro area workers (The Commonwealth Fund 2010). Starting in 2011, state and federal government agencies will subject increases in premiums to heightened scrutiny and require a proportion of premium dollars established by law to be spent on patient care. However, neither federal nor state governments will have the authority to forbid premium increases or hold increases to a predetermined rate, and premiums are expected to rise in the short term for both employees with health care benefits and those who buy insurance in the individual market (Levey 2010). Beginning in 2014, the federal government will provide premium subsidies to families who earn 133400% of federal poverty guidelines ($29,327 and $88,200 for a family of four in 2009). Most families with one or two workers and one or two children who earn BEST incomes in the DC metro area would qualify for at least a modest premium subsidy. Ap44 Washington, DC Metro Area BEST - APPENDIX K

proximately 19 million US residents will qualify for subsidies (Grier 2010). Also in 2014, federal and state governments will launch health insurance “exchanges” that will allow buyers on the individual insurance market to negotiate premiums as groups. The Congressional Budget Office (2010) estimates that approximately 24 million uninsured and those who currently buy insurance on the individual market could benefit by participating in the insurance exchanges. Together, subsidies and exchanges will likely decrease the cost of health insurance for DC metro area families without employer-sponsored health insurance. However, plans on the exchanges will be required to meet minimum coverage standards, and participation in the exchanges will likely increase premiums for participants who would otherwise purchase minimal, “catastrophic coverage” typically characterized by relatively low premiums, high deductibles and limited coverage. Health care reform also includes a national, voluntary, public long-term care (LTC) insurance program that will allow participating workers access to a public insurance system covering injury, chronic illness and disability. The program, to be created under the Community Living Assistance Services and Supports

Act, will allow workers to plan for potential longterm care needs and remain in their homes while receiving care, instead of receiving care in institutional settings such as nursing homes. While not designed to cover all costs associated with long-term care, the insurance will reduce long-term care costs for the disabled and future retirees. The program will require enrollees to work for three years and pay into the system for five years before filing a claim. It will begin accepting workers’ contributions in 2012 (Kaiser Family Foundation 2010). LTC insurance’s effects on the income requirements for workers pursuing economic security is indirect, but LTC insurance is likely to be considered an economic security requirement in the not-too-distant future as the US continues to age, the cost of institutional care continues to increase and family mem-

bers are less available to provide informal care. BEST health care expenses do not account for long-term care costs. The Elder Economic Security Standard™ Index (Elder Index) that underlies BEST retirement savings calculations measures the cost of home and community-based long-term care, but as an addendum to the core Elder Index, and LTC costs are therefore not implicit in BEST retirement savings requirements.7 Long-term care insurance costs would increase participating workers’ expenses during their working years. On the other hand, carrying public LTC insurance may decrease retirement savings needs in the long run.

APPENDIX K - 2010 45

APPENDIX L

ADDITIONAL TAX INFORMATION Additional Information on Tax Credits

The Earned Income Tax Credit (EITC or EIC) is a refundable federal income tax credit for low- and moderate-income working individuals and families. Because the tax is refundable, tax filers needn’t owe taxes to receive the EITC. For the 2009 tax year, the maximum credit (for a family of 3 or more) was $5,657. The amount of the EITC refund is based on family size, filing status and household income. To receive the EITC, taxpayers must have earned income and must file a federal tax return. The EITC does not disqualify or qualify recipients for public benefits. The child and dependent care expenses credit is a non-refundable federal income tax credit which allows families to deduct a percentage of child or dependent care costs from the federal income taxes they would otherwise have to pay. The credit can equal as much as 35% of care expenses, depending on household income. For the 2009 tax year, the maximum claimable expenses are $3,000 for one child and $6,000 for two children. The Child Tax Credit is a non-refundable federal tax reduction for those with dependent children. The credit is equal to $1,000 per child. If the amount of the Child Tax Credit is greater than the amount of income tax owed, families may be able to claim the refundable Additional Child Tax Credit. 46 Washington, DC Metro Area BEST - APPENDIX L

Additional Information on ARRA Tax Provisions The American Reinvestment and Recovery Act created tax credit changes that benefit some DC metro area BEST families. The Making Work Pay tax credit reduces federal income tax withheld from workers paychecks. For the typical taxpayer the tax credit is a maximum of $400 for working individuals and $800 for working married couples. The maximum Earned Income Tax Credit (EITC or EIC) for families with three or more children increases to $5,657. The ARRA also allows the credit to married couples with higher incomes, regardless of number of children. The ARRA reduces the minimum earned income amount used to calculate the additional child tax credit to $3,000. The change will increase the number of families receiving refundable tax credits and the amounts of credits. Also under ARRA, the first $2,400 of 2009 unemployment benefits, which are normally taxed, is tax-free.

APPENDIX M The BEST Index for all family types is available at

www.wowonline.org

APPENDIX M - 2010 47



Alexandria, VA

Alexandria, VA




Monthly Expenses for: 1 Worker, 1 Infant

Housing $1,154 Utilities $129 Food $271 Transportation $440 Child Care $0 Personal & Household Items $419 Health Care $147 Emergency Savings $124 Retirement Savings $128 Taxes $709 Tax Credits -$34 Monthly Total $3,486 Annual Total $41,832 Hourly Wage $19.81 Additional Asset Building Savings Children's Higher Education $0 Homeownership $379

Housing $1,313 Utilities $147 Food $391 Transportation $482 Child Care $862 Personal & Household Items $499 Health Care $291 Emergency Savings $187 Retirement Savings $128 Taxes $1,145 Tax Credits -$168 Monthly Total $5,277 Annual Total $63,324 Hourly Wage $29.98 Additional Asset Building Savings Children's Higher Education $56 Homeownership $477






Alexandria, VA


Alexandria, VA

Monthly Expenses for: 1 Worker, 1 Preschooler, 1 Schoolchild

Monthly Expenses for: 1 Worker, 3 Teenagers

Housing $1,313 Utilities $147 Food $584 Transportation $482 Child Care $2,009 Personal & Household Items $551 Health Care $447 Emergency Savings $271 Retirement Savings $128 Taxes $1,784 Tax Credits -$301 Monthly Total $7,415 Annual Total $88,980 Hourly Wage $42.13 Additional Asset Building Savings Children's Higher Education $113 Homeownership $477



48 Washington, DC Metro Area BEST - APPENDIX M




Alexandria, VA

Alexandria, VA



Monthly Expenses for: 2 Workers

Monthly Expenses for: 2 Workers, 1 Infant

Housing $1,154 Utilities $129 Food $497 Transportation $613 Child Care $0 Personal & Household Items $480 Health Care $326 Emergency Savings $151 Retirement Savings $264 Taxes $712 Tax Credits -$67 Monthly Total (per Worker) $2,129 Annual Total $51,096 Hourly Wage (per Worker) $12.10 Additional Asset Building Savings Children's Higher Education $0 Homeownership $379

Housing $1,313 Utilities $147 Food $610 Transportation $655 Child Care $862 Personal & Household Items $558 Health Care $485 Emergency Savings $218 Retirement Savings $264 Taxes $1,230 Tax Credits -$200 Monthly Total (per Worker) $3,071 Annual Total $73,704 Hourly Wage (per Worker) $17.45 Additional Asset Building Savings Children's Higher Education $56 Homeownership $477






Alexandria, VA


Alexandria, VA

Monthly Expenses for: 2 Workers, 1 Preschooler, 1 Schoolchild

Monthly Expenses for: 2 Workers, 3 Teenagers

Housing $1,313 Utilities $147 Food $782 Transportation $655 Child Care $2,009 Personal & Household Items $605 Health Care $508 Emergency Savings $296 Retirement Savings $264 Taxes $1,717 Tax Credits -$334 Monthly Total (per Worker) $3,981 Annual Total $95,544 Hourly Wage (per Worker) $22.62 Additional Asset Building Savings Children's Higher Education $113 Homeownership $477

Housing $1,678 Utilities $187 Food $1,070 Transportation $655 Child Care $0 Personal & Household Items $792 Health Care $588 Emergency Savings $226 Retirement Savings $264 Taxes $1,220 Tax Credits -$317 Monthly Total (per Worker) $3,181 Annual Total $76,344 Hourly Wage (per Worker) $18.07 Additional Asset Building Savings Children's Higher Education $170 Homeownership $733




Basic Economic Security Tables, 2010 (Workers without Employment-based Benefits)

Alexandria, VA


Alexandria, VA









(Workers without Employment-based Benefits)

Alexandria, VA


Alexandria, VA









Alexandria, VA


Alexandria, VA










Alexandria, VA


Alexandria, VA



Housing $1,313 Utilities $147 Food $782 Transportation $655 Child Care $2,009 Personal & Household Items $605 Health Care $1,037 Emergency Savings $412 Retirement Savings $439 Taxes $1,959 Tax Credits -$334 Monthly Total (per Worker) $4,512 Annual Total $108,288 Hourly Wage (per Worker) $25.64 Additional Asset Building Savings Children's Higher Education $113 Homeownership $477

Housing $1,678 Utilities $187 Food $1,070 Transportation $655 Child Care $0 Personal & Household Items $792 Health Care $1,303 Emergency Savings $351 Retirement Savings $439 Taxes $1,532 Tax Credits -$317 Monthly Total (per Worker) $3,845 Annual Total $92,280 Hourly Wage (per Worker) $21.85 Additional Asset Building Savings Children's Higher Education $170 Homeownership $733

































































































Fairfax County, VA


Fairfax County, VA










Fairfax County, VA


Fairfax County, VA









Fairfax County, VA


Fairfax County, VA










Fairfax County, VA


Fairfax County, VA









Fairfax County, VA


Fairfax County, VA










Fairfax County, VA


Fairfax County, VA









Fairfax County, VA


Fairfax County, VA










Fairfax County, VA


Fairfax County, VA





































































































Prince George’s County, MD





Housing $958 Utilities $171 Food $271 Transportation $471 Child Care $0 Personal & Household Items $378 Health Care $145 Emergency Savings $119 Retirement Savings $109 Taxes $782 Tax Credits -$34 Monthly Total $3,370 Annual Total $40,440 Hourly Wage $19.15 Additional Asset Building Savings Children's Higher Education $0 Homeownership $264























Housing $958 Utilities $171 Food $497 Transportation $659 Child Care $0 Personal & Household Items $439 Health Care $333 Emergency Savings $147 Retirement Savings $231 Taxes $773 Tax Credits -$67 Monthly Total (per Worker) $2,070 Annual Total $49,680 Hourly Wage (per Worker) $11.76 Additional Asset Building Savings Children's Higher Education $0 Homeownership $264
































































Washington, DC


Washington, DC




Housing $928 Utilities $185 Food $434 Transportation $210 Child Care $1,181 Personal & Household Items $417 Health Care $304 Emergency Savings $169 Retirement Savings $87 Taxes $1,048 Tax Credits -$184 Monthly Total $4,779 Annual Total $57,348 Hourly Wage $27.15 Additional Asset Building Savings Children's Higher Education $53 Homeownership $553






Washington, DC


Washington, DC









Washington, DC


Washington, DC




Housing $928 Utilities $185 Food $677 Transportation $420 Child Care $1,181 Personal & Household Items $483 Health Care $484 Emergency Savings $203 Retirement Savings $182 Taxes $1,209 Tax Credits -$216 Monthly Total (per Worker) $2,868 Annual Total $68,832 Hourly Wage (per Worker) $16.30 Additional Asset Building Savings Children's Higher Education $53 Homeownership $553






Washington, DC


Washington, DC




Housing $1,186 Utilities $236 Food $1,188 Transportation $420 Child Care $0 Personal & Household Items $704 Health Care $586 Emergency Savings $190 Retirement Savings $182 Taxes $995 Tax Credits -$317 Monthly Total (per Worker) $2,685 Annual Total $64,440 Hourly Wage (per Worker) $15.26 Additional Asset Building Savings Children's Higher Education $160 Homeownership $849





Washington, DC


Washington, DC










Washington, DC


Washington, DC









Washington, DC


Washington, DC










Washington, DC


Washington, DC








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Acknowledgements Thanks to Dr. Yunju Nam, formerly of Washington University in St. Louis (now at the University at Buffalo, State University of New York) and Yung Soo Lee at the Center for Social Development, authors of asset-related Basic Economic Security Tables Index methodology and report content. Early drafts of the BEST methodology were commented upon by Dr. Michael Sherraden, Director of the Center for Social Development, Dr. Thomas M. Shapiro, Director of the Institute on Assets and Social Policy at Brandeis University, and Dr. Edward Nathan Wolff, Professor of Economics at New York University, Senior Scholar at the Levy Economics Institute of Bard College and Research Associate at the National Bureau of Economic Research.

Shawn McMahon, WOW Manger of Research and Innovation, is primary author of the DC metro area BEST report. Joan Kuriansky, Executive Director, and Donna Addkison, Family Economic Security Program Director at WOW, provide leadership and oversight for the Basic Economic Security Tables Initiative.

WOW thanks the many researchers, research institutions and Family Economic Security (FES) Project partners throughout the country that have participated in the discussion of worker’s needs and the definition of economic security.

Development of The Basic Economic Security Tables Index is funded by the Washington Area Women’s Foundation, the Ford Foundation and the Freddie Mac Foundation.


In addition to the BEST Index, the BEST Initiative promotes economic security using the Self-Sufficiency Standard, developed in partnership with Dr. Diana Pearce of the University of Washington, and the WOW-GI Elder Economic Security Standard Index, developed in partnership with the Gerontology Institute at the University of Massachusetts.

The Basic Economic Security Tables Index (BEST) is a measure of the basic needs and assets workers require for economic security throughout a lifetime and across generations. The BEST Index is a project of Wider Opportunities for Women’s Family Economic Security Program.