Measures to Gauge Poverty Inch Forward

Mar 23, 2010

"Out of the Spotlight" Posting for March 11, 2010

Congressman Jim McDermott (D-WA), continuing his leadership role in promoting a more accurate federal poverty measure, has now taken the cause to his colleagues on the House Appropriations Committee. In a March 5 letter, Representative McDermott urged Representative David Obey, chair of the House Appropriations Committee and Representative Alan Mollohan, chair of the Subcommittee on Commerce, Justice, Science and Related Agencies, to fund the Administration's budget request to develop a supplemental poverty measure. The letter also requested funding for the design of a separate decent living standard threshold, which would identify what it takes to make ends meet. Both types of measures were included in a bill McDermott sponsored, The Measuring American Poverty Act (H.R. 6941); readers can visit this Spotlight commentary and webcast to get the Congressman's own words on why he took this step to get a better federal measure.

The letter comes on the heels of the Census Bureau's recent announcement to develop a Supplemental Poverty Measure (SPM). The SPM would not replace the current official poverty measure, which is used to set eligibility for a wide array of programs. If funding for the necessary research is approved, the first preliminary SPM would be released in 2011.

The Administration's budget, however, did not include a measure similar to the MAP Act's decent living standard. So in an important step forward, McDermott urged his colleagues to appropriate an additional $1 million over two years for the National Academy of Sciences to design a measure to gauge decent living standards. In the letter, McDermott described the conceptual differences between the measures:

This new supplemental measure will continue to be an indicator of deprivation, not adequacy, and by no means should the new threshold be used as an indicator of what it takes to make ends meet, avoid material hardship, and enjoy economic security. Accordingly, I also request appropriations of $1 million over two years to the National Academy of Sciences to work in collaboration with the Census Bureau and BLS to develop a method of calculating a decent living standard threshold and make recommendations to both Congress and the relevant statistical agencies. The decent living standard threshold means the amount of annual income that would allow an individual to live at a secure and decent, but modest, standard of living. There is a growing body of work in this area, and an NAS panel to analyze and evaluate existing research is a logical next step in determining an appropriate approach for such a measurement.

In no small measure, a decent living standard is logical in light of the proposed new supplemental. After all, the analysis which is undertaken to define the new supplemental should help ground the research related to a decent living standard. It's already an achievement that Congress and the Administration have begun to dance together on a new supplemental measure. If they inch even closer together, the music might really start and multiple measures would follow.

To learn more about the federal poverty measure, visit Spotlight's special resource site, www.povertymeasure.org.

This first appeared on Spotlight on Poverty and Opportunity; The Source for News, Ideas and Action -- March 11, 2010

 

site by Trilogy Interactive