TASK FORCE ON
INCOME INEQUALITY
Public Meeting #1
Council Chambers in Sacramento
City Hall
July 29th, 2015
4 - 6 PM
Meeting Agenda
I.
Welcome & Introductions
II.
Timeline and Other Dates
III.
Goal and Ground Rules
IV.
Presentation on cost of living in CA & Sacramento (United Way)
V.
Presentation by California State University, Sacramento
❖ Sacramento’s Current Minimum Wage Profile
VI.
Public comment.
VII.
Task Force Next Steps and Timeline
WELCOME
Timeline
●
●
●
●
●
●
●
Task Force Goals & Ground Rules
Mayor Johnson has created the Task Force on Income Inequality to
develop a balanced and sustainable proposal for establishing a
minimum wage that helps Sacramento’s working families keep pace
with the cost of living.
Goal
● To develop a set of recommendations for implementation of a
minimum wage for the City of Sacramento taking into account
available data and public comment.
Ground Rules
● Work in good faith.
● Respect each others opinions.
PRESENTATION FROM
UNITED WAYS OF
CALIFORNIA
● Struggling to Get By: 2015 Study
○ Introduction of Real Cost Measures.
○ Cost of living in California & Sacramento.
Struggling to Get By:
The Real Cost Measure in California 2015
Sacramento Task Force on Income Inequality
July 29, 2015
Betsy Block, B3 Consults
for United Ways of California
Anyone who has ever struggled
with poverty knows how extremely
expensive it is to be poor.
James Baldwin
Fifth Avenue Uptown: A Letter from Harlem
July 1960
Presentation Agenda
Brief Overview of Report/Online Resources
What the Real Cost Measure Looks Like in Sacramento
Understanding the Wage Gap
Review Report Findings and Demographic Analysis
Policy Levers for Struggling Households
Online Resources
About Struggling to Get By
The Real Cost Measure:
basic needs budgets
Focus on households
Consider 1,088 household
types
Elder Index to address
challenges facing seniors
www.unitedwaysca.
How We Did It
Real Cost Budgets for 2012
2011-2013 American
Community Survey (census)
data
Regions, counties and
neighborhood cluster views
Defining Basic Needs
Basic Need
Notes
Housing
HUD’s fare market rent rates
Food
USDA Thrifty Food Plan (also used by CalFresh)
Childcare
Health Care
Transportation
Year-round care at a licensed family-based facility,
based on age of child and school participation
Consumer Expenditure Survey, average annual
expenses for healthcare
Consumer Expenditure Survey, average annual
expenses for private transportation
Miscellaneous
10% of all other expenses
Taxes
Calculated per federal and state tax laws, inclusive of
tax credits
What it Takes a Household with 2
Adults, 1 Infant and 1 School-Aged
Child to get by? (2012)
Real Cost Budget
Sacramento
County
Housing (2 bdm)
$12,252
Child care
$10,587
$14,701
Food
$9,437
$11,240
Health care
$6,344
$6,820
Transportation
$8,999
$9,675
Miscellaneous
$3,703
$5,059
Tax Credits
($3,836)
($3,609)
Taxes
$3,108
$7,147
Total Annual
$50,595
$73,894
San Francisco
$1021/
month
$22,860
Income Gap after Wages/
Public Assistance
1 in 3 California households
(31%) struggle to meet
basic needs
3.2 million households!
Real Cost Measure by Neighborhood Clusters
California: 31%
N=265
Low
9%
Contra Costa:
San Ramon &
Danville
Los Angeles:
Southeast LA
City/
East Vernon
High
80%
Real Cost Measure in Sacramento County
California: 31%
Sacramento County: 29%
High
43%
Low
16%
87%
of households below RCM with at
least one working adult
51%
of households with at least
one child under 6
is struggling
68%
of householders with
less than a high school diploma
struggle to meet basic needs
Real Cost Measure by Educational Attainment
933K
762K
1M
365K
142K
45%
below Real Cost Measure
when led by a person
born outside the U.S.
60%
when the householder
is not a citizen
1.5 million Latino
households struggle to
meet basic needs
Real Cost Measure by Race
Policy Levers
Lengthen phase-out periods for public
assistance programs
Boost the earning power of households that
struggle
Reduce the effective cost of housing
Target vulnerable populations
Contact Information
Pete Manzo
United Ways of California
pmanzo@unitedwaysca.org
Henry Gascon
United Ways of California
hgascon@unitedwaysca.org
Betsy Block
B3 Consults
betsy@b3consults.com
Adam Parker
adam.parker@berkeley.edu
PRESENTATION FROM
SACRAMENTO STATE
UNIVERSITY
● Profile of minimum wage workers in Sacramento
County
○ Who are minimum wage workers?
○ Who employs minimum wage workers?
Profile of the US Low Wage Worker
In the US, of the average minimum wage employees who earn under $10 hour:
Profile of Minimum Wage Workers
Assumptions & Limitations
●
Demographic profile is based on American Community Survey (2013
estimates).
●
County-level, not city-level data (1,463,149 people live in Sacramento
County, while approximately 470,000 live in the City of Sacramento).
●
ACS data is of people living in Sacramento County, who may or may not
work in Sacramento County.
Profile of Minimum Wage Workers
Assumptions & Limitations
Continued:
●
Survey data contain sampling error and nonsampling error.
●
The hourly wages were estimated based on the number of hours worked as
reported in the survey, subject to response bias.
●
There appear to be some errors in the reported number of weeks and hours
in the ACS data.
●
Occupational Employment and Wage Estimates from Bureau of Labor
Statistics cover Sacramento--Arden-Arcade—Roseville Metropolitan
Statistical Area (MSA): El Dorado, Placer, Sacramento, and Yolo Counties.
Profile of the Average Minimum Wage Worker in
Sacramento County*
Of those living in Sacramento County and earning under $10 per hour:
Account for 21.9 % of working people.
Account for 23.5% of working women.
48.8% are men and 51.2% are women.
Account for 20.4% of working men.
*Calculation Based on American Community Survey (2013 estimates)
Profile of the Average Minimum Wage Worker in
Sacramento County*
Of those living in Sacramento County and earning under $10 per hour:
Age: under 18 – 0.6%, 18 to 24 – 29.5%, 25 to 35 –
28.4%, 36 to 65 – 39.1%, over 65 – 2.3%
61.2% work full time.
*Calculation Based on American Community Survey (2013 estimates)
Profile of the average minimum wage worker in
Sacramento County*
Those living in Sacramento County and earning
under $10 per hour continued:
●
32.8% of working Hispanics
●
21.9% of working Asians or Native Hawaiians or Other Pacific Islanders
●
21.7% of working African Americans
●
19.5% of working Whites
●
23.4% of working Parents
●
22.9% of working Single Mothers
*Calculation Based on American Community Survey (2013 estimates)
Top Four Occupations in Sacramento*
Office and Administrative Support
Occupations
152,890
18%
Sales and Related Occupations
86,060
10%
Food Preparation and Serving
Related Occupations
78,440
9%
Business and Financial Operations
Occupations
65,150
8%
*Calculation Based on May 2014 Occupational Employment and Wage Estimates from
Bureau of Labor Statistics covering Sacramento MSA.
Top Five Occupations of Minimum Wage Workers
in Sacramento*
Food Preparation and Serving Related
Occupations
45,294
37%
Sales and Related Occupations
21,043
17%
Personal Care and Service Occupations
12,154
10%
Office and Administrative Support Occupations
11,670
10%
Transportation and Material Moving Occupations
10,335
9%
*Calculation Based on May 2014 Occupational Employment and Wage Estimates from Bureau
of Labor Statistics covering Sacramento MSA.
Contact Info
Min Li
California State University, Sacramento
limin@csus.edu
PUBLIC COMMENT
Task Force and City Council Timeline
Date
Agenda
Location
Wednesday, Aug. 5
4:00pm - 6:00pm
2nd Public Meeting
New City Hall
Wednesday, Aug. 12
4:00pm - 6:00pm
3rd Public Meeting
New City Hall
Wednesday, Aug. 19
4:00pm - 6:00pm
Task Force Internal Meeting
--
Wednesday, Aug. 26
4:00pm - 6:00pm
4th Public Meeting
Old City Hall