Poverty in California and Alameda County Sarah Bohn April 23, 2014 - - PowerPoint PPT Presentation

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Poverty in California and Alameda County Sarah Bohn April 23, 2014 - - PowerPoint PPT Presentation

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Poverty in California and Alameda County Sarah Bohn April 23, 2014 Poverty remains high, despite recent turnaround Children 30% All ages 25% Percent Poor 20% 15.8% Alamedas children 15% 12.8% Alameda 10% residents 5% 0% 1972

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SLIDE 1

Poverty in California and Alameda County

Sarah Bohn April 23, 2014

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SLIDE 2

0% 5% 10% 15% 20% 25% 30% 1972 1977 1982 1987 1992 1997 2002 2007 2012 Percent Poor Children All ages

12.8% Alameda residents

Poverty remains high, despite recent turnaround

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SOURCE: “Child Poverty” PPIC Just the Facts (2013) ; author’s calculations from Current Population Survey ASEC.

15.8% Alameda’s children

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SLIDE 3

We need realistic picture of poverty

  • Official poverty measure devised in 1960s

– Used to track trends in poverty and determine eligibility for many safety net programs

  • Has not been modified to reflect changes in cost of

living and anti-poverty programs

  • National effort to design alternative measures

began in 1990s

– Census Bureau releases “Research Supplemental Poverty Measure” in 2011 – PPIC & CPI release “California Poverty Measure” in 2013

3

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SLIDE 4

The California Poverty Measure is more accurate and comprehensive

  • Includes in-kind and tax-based safety net program

benefits

  • Accounts for out-of-pocket medical and work

expenses

  • Factors in cost of living differences across

California

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SLIDE 5

Our measure finds more people in poverty….

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SOURCES: California Poverty Measure estimates for 2011; official poverty estimates from the California sample of the ACS (2011). 22.0 25.1 16.2 23.1

5 10 15 20 25 30 35 40 All persons Children Percent

CPM rate

  • fficial rate
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SLIDE 6

…but fewer in deep poverty

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SOURCES: California Poverty Measure estimates for 2011; official poverty estimates from the California sample of the ACS (2011).

6.1 5.7 6.8 9.6

5 10 15 20 25 30 35 40 All persons Children Percent

CPM deep poverty rate Official deep poverty rate

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SLIDE 7

Poverty higher in Alameda than official statistics suggest

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SOURCES: California Poverty Measure estimates for 2011; official poverty estimates from the California sample of the ACS (2011).

18.4% 21.9% 13.0% 16.3%

0% 5% 10% 15% 20% 25% 30% 35% 40% All Children Percent Poor

CPM rate in Alameda Official rate in Alameda

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SLIDE 8

Fewer than 5% of Alameda’s children experience deep poverty

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SOURCES: California Poverty Measure estimates for 2011; official poverty estimates from the California sample of the ACS (2011).

5.5% 4.8% 6.5% 7.6%

0% 5% 10% 15% 20% 25% 30% 35% 40% All Children Percent in Deep Poverty

CPM deep poverty rate in Alameda Official deep poverty rate in Alameda

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SLIDE 9

0% 5% 10% 15% 20% 25% 30% 35% 40% Alameda San Francisco Bay Area

  • verall

Los Angeles Central Valley California Percent Poor

Overall Children

Compared to other large regions, fewer in poverty in Alameda County

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SOURCES: California Poverty Measure estimates for 2011.

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SLIDE 10

Compared to other large regions, fewer in poverty in Alameda County

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SOURCES: California Poverty Measure estimates for 2011.

0% 5% 10% 15% 20% 25% 30% 35% 40% Alameda San Francisco Bay Area

  • verall

Los Angeles Central Valley California Percent Poor

Overall Children

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SLIDE 11

Families need $10,000 more than the Federal Poverty Threshold to make ends meet in Alameda County

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32,438 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Alameda San Francisco Bay Area Los Angeles San Diego Fresno California

  • verall

average Poverty Threshold ($)

SOURCE: California Poverty Measure estimates for 2011

Federal Poverty Line

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SLIDE 12

Safety net programs benefit millions

  • f Californians

Recip ipie ients (millions

  • ns)

Federal, , state, and local e expenditure res (billions) CalWO WORKs 1.47 $3.44 General A Assistance 0.15 $0.40 Supplemental Security In y Income

  • me

1.27 $9.14 CalFr Fresh 3.64 $6.73 Child ld T Tax Credit 2.91 (filers) $4.14 Earned In Income

  • me Tax Credit

3.27 (filers) $7.25 Federal h hous using s sub ubsidies 0.48 (units) $3.60 School b breakfast and nd l lunc unch 2.18 $2.04

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SOURCE: California Poverty Measure estimates for 2011

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SLIDE 13

Need-based programs cut the poverty rate sharply, especially for children

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5 10 15 20 25 30 35 40 All persons Children CalWORKs/GA Percent

If program omitted CPM rate

SOURCE: California Poverty Measure estimates for 2011

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SLIDE 14

Need-based programs cut the poverty rate sharply, especially for children

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8.4 13.9

5 10 15 20 25 30 35 40 All persons Children Percent

If all major programs

  • mitted

California Poverty Measure Rate

SOURCE: California Poverty Measure estimates for 2011

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SLIDE 15

5.7% 8.9%

0% 5% 10% 15% 20% 25% 30% 35% 40% All Children Percent If all major programs omitted CPM rate

Contribution of the safety net is relatively smaller in Alameda

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SOURCE: California Poverty Measure estimates for 2011

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SLIDE 16

Earnings appear to play a larger role in the Bay Area

  • At the same time, more research to be done to

pin down sources of regional differences

  • Also better understand role the safety net could

play

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SLIDE 17

Notes on the use of these slides

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These slides were created to accompany a presentation. They do not include full documentation of sources, data samples, methods, and interpretations. To avoid misinterpretations, please contact: Sarah Bohn (bohn@ppic.org: 415-291-4413) Caroline Danielson (danielson@ppic.org; 415-291-4462) Thank you for your interest in this work. Additional resources: www.ppic.org