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Wages and Income SupportsThe nation's capital has become a city of haves and have-nots. The gap between rich and poor in the District is wider than in any almost every other major city. Nearly 20% of D.C. residents—110,000 people—live in poverty. For a family of four, this means an income of less than $20,400 a year. For such a family, the estimated annual cost of basic necessities in the District is more than $63,000. For many District residents who live in poverty the long-term solution is better education and more robust, relevant employment training programs. Nevertheless, there is—and will always be—a need to ensure that everyone has sufficient income to meet their daily needs. WagesPersistent unemployment and underemployment account for part of the income gap. Another important factor is the wage rate for jobs available to people with limited education and skills. Today, the minimum wage in the District is $7.00 per hour. At this rate, a person would have to work 141 hours a week just to afford a two-bedroom apartment. Although the minimum wage will increase to $7.55 in July, rising living costs will rapidly wipe out the small gain in purchasing power. SOME advocates indexing the minimum wage to inflation. Indexing will ensure that purchasing power keeps pace with the rising cost of living. Because the minimum wage has not been linked to cost of living, it now has less purchasing power than it did a decade ago, even though the dollar per hour rate has been increased. TANFThe Temporary Assistance for Needy Family (TANF) program is intended to provide families in poverty with support so that they can prepare for, find, and hold a job that will end their dependence on public resources. It is supposed to ensure sufficient food, medical coverage, reliable transportation and quality, affordable child care. TANF benefits in the District fall far short of this. The maximum benefit for a family of three is $427 per month—about 30% of what would be needed to lift the family above the federal poverty line. This is lower than the benefit in many other states, including Maryland. Yet it costs more to live in the District than almost any other city. SOME advocates a further increase in the TANF benefit, followed by annual cost of living adjustments. The District increased TANF benefits in 2006, for the first time in ten years, and the City Council approved another modest increase for 2008. However, the new rate is still wholly inadequate to cover the costs of living. Even with food stamps, a family on TANF has less than $30 per day to live on. The District should phase-in a substantial benefit increase and then preserve its purchasing power by adjusting for the ongoing impacts of inflation. Low-Income Home Energy AssistanceThe District's Low-Income Home Energy Assistance Program (LIHEAP) helps low-income households pay their utility bills on an emergency basis. Without such help, people can be without any heat in the winter or indoor cooling during our hot summer days. Because the program is so limited, many still go without food or needed medicines to keep from freezing. Some become homeless because they cannot pay their utility bills. SOME advocates additional funding for LIHEAP. LIHEAP is woefully under-funded. Last year, it served fewer than half the families eligible for help and ran out of funds before summer. Thanks to the City Council, the program received an emergency infusion of funds in December, as we recommended. Otherwise, thousands of families would have been without heat by mid-February. Without additional funding, shortfalls will worsen as energy costs continue to rise. ResourcesSOME Press Releases
Facts & Figures Recent Testimony
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