fbpx

Poverty line wages are too low

People who earn wages at the poverty line can’t afford essentials like safe housing, food, child care, transportation, taxes and healthcare. The cost of living varies across our state, but one thing remains the same: poverty line wages don’t cover basic expenses. A new report by the Economic Policy Institute (EPI) estimates what it really costs to get by in 9 different areas in Arkansas.

The federal poverty line for a family of four is only $24,250 a year. That’s less than half what it costs to get by in all areas in Arkansas according to the EPI’s calculator. For example, in rural areas of Arkansas, a family of four needs about $60,250 a year. These costs are higher for other urban areas of the state. This means that even at 200 percent of the poverty line ($48,500 a year for a family of four), families in Arkansas are still struggling to make ends meet.

About one in four kids in Arkansans lives below the poverty line. It is troubling to know that even with this high level of poverty, there are many more families above the poverty line who still can’t afford decent housing or healthy food.

“We can’t assume that families are okay financially just because they have incomes above the poverty line. Poverty line wages don’t pay for basic necessities like safe housing and a nutritious diet that kids and families need.” says Rich Huddleston, executive director at Arkansas Advocates for Children and Families (AACF).

The calculator assumes that families prepare all their meals at home, live in modest housing, and only travel for work and non-social reasons. It is an improvement on traditional Federal Poverty Line measures because it takes into account geographical differences in cost of living and accounts for a more comprehensive range of expenses. Find out the budget cost breakdown for your area by visiting the online EPI budget calculator.

What it takes to provide for a family of four:

Springdale/Fayetteville: $60,806

Crittenden:$63,261

Fort Smith: $58,643

Hot Springs: $63,362

Jonesboro: $59,346

Little Rock: $63,262

Pine Bluff: $60,899

Texarkana: $64,078

Rural Arkansas: $60,246