TASK FORCE ON INCOME INEQUALITY. Public Meeting #1 Council Chambers in Sacramento City Hall July 29th, PM

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1 TASK FORCE ON INCOME INEQUALITY Public Meeting #1 Council Chambers in Sacramento City Hall July 29th, PM

2 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

3 WELCOME

4 Timeline

5 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.

6 PRESENTATION FROM UNITED WAYS OF CALIFORNIA Struggling to Get By: 2015 Study Introduction of Real Cost Measures. Cost of living in California & Sacramento.

7 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

8 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

9 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

10 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

11 How We Did It Real Cost Budgets for American Community Survey (census) data Regions, counties and neighborhood cluster views

12 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

13 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

15 Income Gap after Wages/ Public Assistance

16 1 in 3 California households (31%) struggle to meet basic needs 3.2 million households!

17 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%

18 Real Cost Measure in Sacramento County California: 31% Sacramento County: 29% High 43% Low 16%

19 87% of households below RCM with at least one working adult

20 51% of households with at least one child under 6 is struggling

21 68% of householders with less than a high school diploma struggle to meet basic needs

22 Real Cost Measure by Educational Attainment 933K 762K 1M 365K 142K

23 45% below Real Cost Measure when led by a person born outside the U.S. 60% when the householder is not a citizen

24 1.5 million Latino households struggle to meet basic needs

25 Real Cost Measure by Race

27 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

28 Contact Information Pete Manzo United Ways of California Henry Gascon United Ways of California Betsy Block B3 Consults Adam Parker

29 PRESENTATION FROM SACRAMENTO STATE UNIVERSITY Profile of minimum wage workers in Sacramento County Who are minimum wage workers? Who employs minimum wage workers?

30 Profile of the US Low Wage Worker In the US, of the average minimum wage employees who earn under $10 hour:

31 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.

32 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.

33 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)

34 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 to %, 25 to %, 36 to %, over % 61.2% work full time. *Calculation Based on American Community Survey (2013 estimates)

35 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)

36 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.

37 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.

38 Contact Info Min Li California State University, Sacramento

39 PUBLIC COMMENT

40 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

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