1 in 5 Pennsylvania Households Lacks Sufficient Income

More working families above federal poverty level cannot afford basic needs

HARRISBURG, Pa., May 11 /PRNewswire/ -- One-fifth of the 3.4 million
households in Pennsylvania lack adequate income to meet their basic needs,
representing a large and diverse group of families experiencing distress.
That's one of the findings from PathWays PA's latest study of the economic
needs of the state's working families, Overlooked and Undercounted: Struggling
to Make Ends Meet in Pennsylvania.

The first-ever study, done in partnership with the state Department of Labor
and Industry, measured the number of families in economic distress using the
Self-Sufficiency Standard for Pennsylvania. The Standard calculates the wages
70 different family configurations must earn to pay for basic necessities such
as child care, nutritious food, adequate housing and health care in each of
the state's 67 counties.

Based on real market costs, the Standard provides a more accurate portrait of
economic distress than federal poverty guidelines, which are based only on
food costs. More than half of the households with incomes below the
Self-Sufficiency Standard earn more than the 2009 federal poverty level of
$14,570 for a single parent and a preschooler and $22,050 for a family of
four.

"Many federal and state economic policies and programs address only those with
incomes below or near the federal poverty level, which has created a large and
diverse group of families who are routinely overlooked even though they are
experiencing economic distress," said Carol Goertzel, President and CEO of
PathWays PA. "These families are not considered in talks about how to support
citizens in economic distress. They are falling through the cracks."

According to the study, only six percent of the households with inadequate
income receive public cash assistance and 75 percent spend more than 30
percent of their income on housing. Nearly two-thirds have children. Other
findings include:

-- 26% are married couples with children
-- 26% are single-female headed households with children
-- 5% are single male-headed households with children
-- 67% are white, 19% are black, 9% are Latino and 3% are Asian/Pacific
Islander; 9 out of 10 households are headed by U.S. citizens
-- 42% have a high school degree, 27% have some college or an
associate's degree, and 14% have a Bachelor's degree or
higher; 17% lack a high school diploma

The release of the report marks the first time that demographic data relating
to the Self-Sufficiency Standard has been collected in the state. Previously,
the Standard had simply been calculated but the number and types of households
affected had not been determined.

For a single parent and preschool child, the Self-Sufficiency Standard ranges
from $23,913 in lower-cost counties such as Bedford, Fulton, Fayette and
Somerset to $36,208 in higher-cost areas such as Dauphin, Cumberland, Centre
and Montour. The Self-Sufficiency Wage is lowest in the central southwestern
part of the state. But lower-cost counties are concentrated in the interior of
the state as well.

"Most of these households are in a policy gap -- with incomes too high to
qualify for most public assistance programs but too low to adequately meet
their basic needs," said Goertzel.

"Using this report, we believe state policy makers can take steps to
effectively deal with this shortcoming. A broad-based policy effort is needed
to secure adequate wages, benefits and public supports, such as child care, to
increase income adequacy for a large portion of Pennsylvania families,"
Goertzel said.

Dr. Robert Garraty, Executive Director of the State Workforce Investment
Board, said efforts should include increased educational opportunities such as
job training, apprenticeships, affordable community colleges and financial aid
for education.

One proven method of increasing educational opportunities for workers is the
state's Industry Partnership program, which brings together businesses in the
same industry clusters and allows them to combine their resources to respond
to human resource needs, retention/recruitment challenges, and provide
training and skills advancement for employees. "Since the Industry
Partnerships program began in 2005, more than 73,000 workers have benefited,"
said Dr. Garraty. "Workers who participated in training saw their incomes
increase by an average of 6.62 percent in the first year after their
training."

In addition to educational needs, most families need help with child care and
housing costs, as indicated by the report findings. The overwhelming majority
of families, Goertzel points out, are struggling to make ends meet without any
help from work support programs. "It is not the lack of work that drives
poverty, but rather the nature of the jobs and economic opportunity for those
who are working," Goertzel said.

PathWays PA partnered with the Pennsylvania Department of Labor and Industry
to produce the first edition of Overlooked and Undercounted. The report was
developed by Diana M. Pearce, Ph.D., Director of the Center for Women's
Welfare at the University of Washington School of Social Work.

To view the full report, Overlooked and Undercounted: Struggling to Make Ends
Meet in Pennsylvania, visit: http://pathwayspa.org/PW_Over_Under_lo_res.pdf.

PathWays PA began in 1978 as the Women's Association for Women's Alternatives,
one of Pennsylvania's first residential programs to keep low-income,
vulnerable women together with their children. It has grown to become one of
the Greater Philadelphia region's foremost providers of residential and
community-based services for women and their children. Each year PathWays PA
serves more than 6,000 women, children and families who reside in
Philadelphia, Delaware, and Chester counties through a full complement of
social services, job training and employment assistance, outreach and
residential programs.

SOURCE PathWays PA

Marianne Bellesorte, Director of Policy, of PathWays PA, +1-610-543-5022 ext.
209, mbellesorte@pathwayspa.org