Wyoming LAP Book - 2001-2002 Legislation

Family Budgets And Poverty

      The significance of the preceding bills on minimum wage and wage disparity becomes readily apparent when considering the growing inability of working families to make ends meet.
      According to the federal government, the poverty level for a family of four is approximately $17,000/year. That means families with incomes at or less than that level are classified as "poor" and become eligible for a variety of public assistance programs.
      However, the federal poverty level is determined using a formula established in the 1960s, based on the cost of food. It does not reflect the realities of current American life, particularly the need for child care and health insurance.
      Recent research on family budgets shows the inadequacy of the current poverty level. A basic needs budget covering food, health care, transportation, taxes, housing, child care, and other necessities totals nearly 210% of the federal poverty level.
      In Wyoming, about 12% of the population is under the federal poverty line. However, using family budgets as a guideline, the percentage of Wyoming's population suffering hardship - lack of health insurance, insecurity of food and housing, etc., due to inadequate income is about 23%.
      The Economic Policy Institute's nationwide study Hardships in America - The Real Story of Working Families (2001) compiled data showing that a working family of four in Casper needs an income of about $30,500/year to cover basic needs, based on local costs. In Cheyenne, the figure is about $33,000.
      The Equality State Policy Center is working toward wider dissemination and understanding of poverty and family budget data to help further public understanding of state economic issues.

Wyoming at a Glance
From: State of Working America 2000-01. Mishel, et al. 2000, Economic Policy Institute. Washington, D.C.

Many families in Wyoming saw moderate improvements in their standard of living over the 1990s as median family income and the wages of low-wage workers grew. However, the growth in wages for low- wage workers did not make up for losses in the 1980s, and the median wage continued a decline that began in the 1980s.

Median family income for four-person families
Middle-income families in Wyoming have fared well during the current economic expansion. Median family income for four-person families was $50,989 in 1998, surpassing its 1989 level of $46,823 (in 1998 dollars). In the 1990s, median income grew faster in Wyoming than for the nation as a whole, but the Wyoming median income remained lower than the national level.

Income inequality
Income inequality in Wyoming grew over the 1990s. In the late 1990s, the income of the wealthiest 20% of families was 8.2 times that of the poorest 20% of families. By comparison, in the late 1980s, the wealthiest 20% of families had 6.9 times the income of the poorest 20%.

Poverty rate
The poverty rate in Wyoming grew over the 1990s from 10.3% in 1988-89 to 12.1% in 1997-98. However, Wyoming''s poverty rate remained lower than the national rate (13.0% in 1997-98).

Wages
In Wyoming in the 1990s, the wages of low-wage workers grew. However, gains by low-wage workers did not make up for their losses in the 1980s. In 1999, the inflation-adjusted hourly wages of low-wage workers (workers at the 20th percentile) were 17.8% lower than they were in 1979. The wages of middle- wage workers declined, while the wages of similar workers grew at the national level. The median wage (the wage of workers in the middle) was 22.2% lower than it was in 1979.

Unemployment
The unemployment rate in Wyoming fell from 6.3% in 1989 to 4.9% in 1999, leaving Wyoming's unemployment rate above that of the nation (4.2% in 1999).
While the decline in unemployment is good news, not everyone benefited equally. Less-educated workers (especially women) had unemployment rates that were well above the state average. For example, while in 1999 the general unemployment rate in Wyoming was 4.9%, the unemployment rate for women with less than a high school education in 1997-99 was 14.2%.

Jobs paying poverty-level wages
Many jobs in Wyoming pay poverty-level wages. In 1999, 34.3% of jobs in Wyoming paid below the wage needed to lift a family of four above the poverty line with full time, full-year work. Wyoming has a higher share of poverty-wage jobs than does the nation as whole.