Study: Minimum wage not enough to pay the bills

Living wage report looks at ways work force group can aid regional workers

By Jim Redden

The Portland Tribune, Jul 13, 2008, Updated Oct 30, 2009 (104 Reader comments)

When it comes to getting by in the Portland region, not all counties are created equal, according to a recent cost of living study.

For example, the study by the Center for Women’s Welfare at the University of Washington’s School of Social Work found that it costs less to make ends meet in Multnomah County than either of its neighbors, Clackamas and Washington counties.

According to the study, basic living costs for one adult wth a schoolage child range from $25,617 in Multnomah County to $35,924 in Clackamas County and $37,681 in Washington County. The spread is similar as family sizes increase.

But despite the differences, the state’s minimum wage of $7.95 an hour is not enough to meet basic living expenses in any of the counties. It only pays $16,790 a year.

The study was commissioned by the WorkSystems Inc., a nonprofit organization that helps distribute federal work force training funds in Multnomah and Washington counties. As defined by the study, basic costs include housing, food, taxes, transportation, child care and health care.

The study was presented to the monthly meeting of the Workforce Investment Board that advises the organization on Friday.

Commissioner Sam Adams, who serves on the board and pushed for the study, called the findings the first serious attempt to determine how much it costs in live in the region. He said the results are especially important for agencies, like WSI, that work to raise the living standards of the poor.

“It couldn’t come at a better time, not only because the economy is going through a rough patch, but because changes in the global economy are creating both problems and opportunities we need to take advantage of,” Adams told the board meeting.

The study, “The Self-Sufficiency Standard for Oregon 2008,” was conducted by Diana Pearce, Ph.D., director of the Center for Women’s Welfare at the University of Washington’s School of Social Work.

WSI commissioned the study largely to help its clients understand how much money they need to earn to be self-sufficient. The findings will be used in a computer-based program called the Prosperity Planner than can be customized to reflect residences, family types and sizes.

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