Study Says Federal Poverty Level Too Low For State Residents

from KTVU

SACRAMENTO -- A new study released this week concludes that basic living in California requires considerably more income than what the federal government defines as poverty level.

The study, Making Ends Meet: How Much Does It Cost To Raise A Family In California, by the California Budget Project found that the federal poverty line of $20,444 in annual income for a family of four in 2006 is less than half of what is needed to live adequately in the Golden State.

"I don't think any of us would want to try and support a family of four on that income," said Jean Ross, the California Budget Project's executive director.

According to the study, a two-parent family with one wage earner needs an annual income of $59,732 or about $29 an hour to pay basic bills in California. Families with two working adults need to make even more annually, $72,343, because of the cost of childcare.

"Families clearly need far more than the current minimum wage to achieve a modest standard of living. Our study shows that we need new measures of what it takes to support a family. The federal poverty line doesn't take into account the cost of childcare for working families or California's high housing costs," Ross said.

Bay Area residents need to make even more than the state average because of the region's traditionally high housing costs. A family of four with one working parent needs an hourly wage of about $26 to make ends meet, according to the study.

Ross hopes the study will prompt the federal government to re-examine how they determine the poverty standard.

"The poverty standard is inadequate," Ross said.