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Argus Online

Bay Area pay not meeting basic needs, study says

November 21, 2000

By Steve Geissinger
SACRAMENTO BUREAU

SACRAMENTO -- In what they hope is jolting news to welfare reform officials, advocacy groups reported Monday that poor families in California's most costly region -- the Bay Area -- need to earn up to nearly four times more than projected by government to meet basic needs.

If Gov. Gray Davis and the Legislature, awash in multibillion-dollar budget surpluses, don't believe the new study, the organizations said, ask Leilani Luia of Alameda County, a 32-year-old single mother of two girls, and others like her.

Working in one of the many jobs that "lower self-esteem and confidence," Luia said she earned $10 an hour as a nurse's aide. That left her family "really struggling," she said, even before she wound up on welfare.

"It doesn't show (the children) that work is good, it just shows that work is something that you do," Luia said at a Capitol news conference.

The new study states she needs to earn more than twice what she was making to meet basic needs, she said.

Advocates say that should be a wake-up call to government officials trying to transform welfare recipients into self-sufficient workers as part of reform efforts. Federal and state governments, in particular, need to help train and educate recipients rather than forcing them into low-paying jobs.

The report on hourly-wage standards in order to meet basic needs, released by Californians for Family Economic Self-Sufficiency, a coalition of groups representing women and the poor, showed that five of the seven most expensive counties were in the Bay Area.

An adult with two children -- one in preschool and the other in public school -- needs to earn $25.55 hourly in the most expensive county, Santa Clara, to be self-sufficient.

San Francisco was second at $24.64 an hour; San Mateo, third, at $24.25; Santa Cruz, fourth, at $21.75; Contra Costa, sixth, at $20.63; and Alameda, seventh, at $20.57.

Ranking fifth, but outside the Bay Area, was Santa Barbara, at $20.70.

The wage requirements are three to nearly four times a major benchmark used by the federal government in determining assistance needs.

In California, according to the federal-poverty guide, an adult anywhere in the state with two children making more than $6.70 hourly would be above the poverty level.

U.S. Labor Department officials acknowledged that, unlike the federal poverty level, the self-sufficiency standards take into consideration the varying costs of such factors as housing, child care, food and transportation.

"What the (self-sufficiency) standards tell us is that lower wage jobs, even though well above the minimum wage or the official poverty level, simply do not provide enough for meeting a family's needs, even at a minimally adequate level," said Diana Pearce, a lead author of the report.

"It's because of high costs, such as housing and child care, for example, that single parents need higher wage jobs, not because of bad budgeting or bad choices," she said.

The coalition, which says its scientific study is based on government and credible private sources, measures how much parents must earn to pay for basic necessities, without government assistance or help from others.

"These are bare-bones budgets," Pearce said. "For example, the food budget has no take-out food, not even a pizza."

The coalition called on Davis to use the report as a guide for new investments in low-income families, such as further education initiatives, minimum wage increases and additional assistance with housing and child care.

The news conference came as the Davis administration is preparing a suggested 2001-02 state budget. But the governor's office said details of that proposal won't be unveiled until January.

Luia, who lives in San Leandro, is working toward the education she hopes will get her the kind of job that pays at least the $20.57 hourly she needs to be self-sufficient with her two girls in Alameda County.

After losing her job as a nurse's aide, because of a conflict between her job hours and children's child care availability, she went on welfare and was allowed to study to be a social worker, first at Merritt College in Oakland, and now at California State University, Hayward.

"I am one of the lucky ones," she said.