the ceo poverty measure association of public data users september 2010
TRANSCRIPT
![Page 1: The CEO POVERTY MEASURE Association of Public Data Users September 2010](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d135503460f949e7421/html5/thumbnails/1.jpg)
The CEO POVERTY MEASURE
Association of Public Data UsersSeptember 2010
![Page 2: The CEO POVERTY MEASURE Association of Public Data Users September 2010](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d135503460f949e7421/html5/thumbnails/2.jpg)
CEO’s Mandate, Direction, & Key Challenge
• Create a more useful tool for policymaking
• Adopt National Academy of Sciences’ (NAS) recommendations
• Employ American Community Survey– Large annual sample for NYC
– But ACS does not include much of what is needed to measure family resources as recommended by NAS
![Page 3: The CEO POVERTY MEASURE Association of Public Data Users September 2010](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d135503460f949e7421/html5/thumbnails/3.jpg)
Thresholds based on a percentage (80.5) of median annual reference family expenditures for these necessities:
– Food– Clothing– Shelter– Utilities
• Plus a little more for miscellaneous expenses (x 1.2)• Adjusted for inter-area differences in housing costs (via HUD Fair Market Rents)
Resources based on annual income available to family to obtain items in threshold including:
– Cash Income, after-taxes– Value of in-kind subsidies for
food– Adjustment for Housing
Status– Deduction for work-related
expenses (child care and transportation)
– Deduction for medical out-of-
pocket expenses (MOOP)
CEO Application of NAS Method
![Page 4: The CEO POVERTY MEASURE Association of Public Data Users September 2010](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d135503460f949e7421/html5/thumbnails/4.jpg)
Creation of the CEO Poverty Threshold Reference Family (Two adults, Two children), 2008
Source: US Bureau of the Census and US Dept. of Housing and Urban Development
NAS Threshold for U.S. (FCSU-CE) $24,755
Shelter & Utility Share, 44% = $10,892
Non-Shelter & Utility Share, 56% = $13,863
Shelter & Utility Share, Adjusted for Ratio of NYC/US Fair Market Rent (1.52) =
$16,556
CEO Threshold: Adjusted Shelter &
Utility Share + Non-Shelter & Utility Share = $30,419
![Page 5: The CEO POVERTY MEASURE Association of Public Data Users September 2010](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d135503460f949e7421/html5/thumbnails/5.jpg)
Alternative ThresholdsTwo Adult, Two Child Family, 2008
Source: US Bureau of the Census and US Dept. of Housing and Urban Development
$21,834$24,755
$30,419
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Official U.S. wide NAS NYC CEO
![Page 6: The CEO POVERTY MEASURE Association of Public Data Users September 2010](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d135503460f949e7421/html5/thumbnails/6.jpg)
Measurement of Family Resources (1)
• Pre-tax cash– Source: ACS
• Taxation– Federal Payroll Taxes– Federal, State, City Income tax liabilities and credits– Source: CEO Tax Model
• Cash-Equivalent Value of Nutritional Assistance– Food Stamps– Source: ACS, Administrative records– School Lunch Program– Source: ACS, Program rules, Census valuation of
meals
![Page 7: The CEO POVERTY MEASURE Association of Public Data Users September 2010](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d135503460f949e7421/html5/thumbnails/7.jpg)
Measurement of Family Resources (2)
• Adjustment for Housing Status
– Households do not require same level of expenditures to obtain housing of similar size and quality
– Adjustment: If household is living in public housing, receives a tenant-based subsidy, resides in a rent controlled apartment or owns its home free and clear, then add to family income:
Shelter and Utility portion of threshold – out-of-pocket expenditures for these items
– Source: NYC Housing and Vacancy Survey
![Page 8: The CEO POVERTY MEASURE Association of Public Data Users September 2010](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d135503460f949e7421/html5/thumbnails/8.jpg)
Measurement of Family Resources (3)
• Work-Related Expenses– Cost of commuting– Source: ACS and transportation agency data– Cost of child care– Source: Survey of Income and Program
Participation
• Medical Out-of-Pocket Expenses– Source: Medical Expenditure Panel Survey
![Page 9: The CEO POVERTY MEASURE Association of Public Data Users September 2010](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d135503460f949e7421/html5/thumbnails/9.jpg)
Alternative Resource MeasuresAt the 20th Percentile, 2008
Source: Tabulated from the American Community Survey PUMS as augmented by CEO.
$25,149
$29,138
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Pre-tax Cash CEO Income
![Page 10: The CEO POVERTY MEASURE Association of Public Data Users September 2010](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d135503460f949e7421/html5/thumbnails/10.jpg)
Alternative Poverty Rates for NYC, By Age, 2008
17.6
26.3
14.617.6
22.0
26.0
19.3
28.5
0
5
10
15
20
25
30
All Persons Children under 18 Adults, 18 thru 64 Adults, 65 and older
Per
cent
OFFICIAL CEO
Source: Tabulated from the American Community Survey PUMS as augmented by CEO.
![Page 11: The CEO POVERTY MEASURE Association of Public Data Users September 2010](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d135503460f949e7421/html5/thumbnails/11.jpg)
Effect of Additional Resource Measures On 2008 Poverty Rates, by Age Group
Source: Tabulated from the American Community Survey PUMS as augmented by CEO.
Percentage Point Change in Poverty Rates Due to:
All Under 18 18 thru 64 65 & olderNet Taxation -1.4 -5.5 -0.1 -0.8Nutritional Assistance -2.2 -4.1 -1.6 -1.9Housing Assistance -5.7 -9.1 -4.7 -5.0Work-related Expenses 2.4 4.0 2.2 0.6Medical Expenses 3.4 3.2 3.0 6.5
![Page 12: The CEO POVERTY MEASURE Association of Public Data Users September 2010](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d135503460f949e7421/html5/thumbnails/12.jpg)
Change in NYC Poverty Rates,2005-2008
20.6 21.2 22.2 22.019.1 18.9
17.7 17.6
0
5
10
15
20
25
2005 2006 2007 2008
Perc
ent
CEO NYC OFFICIAL NYC
Source: Tabulated from the American Community Survey PUMS as augmented by CEO.
![Page 13: The CEO POVERTY MEASURE Association of Public Data Users September 2010](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d135503460f949e7421/html5/thumbnails/13.jpg)
Rise in CEO Threshold OutpacesGrowth in Income
2005 2008 ChangeCEO Threshold $24,353 $30,419 24.9%CEO Income
20th percentile $24,054 $29,138 21.1%CEO Poverty Rate 20.6% 22.0% 1.4
Official Threshold $19,806 $21,834 10.2%Pre-tax Cash Income
20th percentile $21,499 $25,149 17.0%Official Poverty Rate 19.1% 17.6% -1.5
Source: Income and poverty rates are tabulated from the American Community Survey PUMSas augmented by CEO.
![Page 14: The CEO POVERTY MEASURE Association of Public Data Users September 2010](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d135503460f949e7421/html5/thumbnails/14.jpg)
Rise in Poverty Thresholds Over Time
1.00
1.20
1.40
1.60
1.80
1994
=1.
00
OFFICIAL CEO-NYC
Source: US Bureau of the Census and NYC Center for Economic Opportunity.
![Page 15: The CEO POVERTY MEASURE Association of Public Data Users September 2010](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d135503460f949e7421/html5/thumbnails/15.jpg)
Measuring Poverty in the Recession
• When the economy contracts:– Earned income plummets.– Increases in income from the safety net do not fully
replace this decline.– Total pre-tax cash income falls and the official poverty
rate rises.
• What will happen to CEO income?– Increased participation and benefit levels in Food
Stamp program– Expansion and creation of new tax credits– This makes change in total income harder to predict
![Page 16: The CEO POVERTY MEASURE Association of Public Data Users September 2010](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d135503460f949e7421/html5/thumbnails/16.jpg)
For More Information
• CEO Poverty Measurement Reports: http://www.nyc.gov/ceo/
• Mark Levitan, Director of Poverty Research: [email protected]