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Explaining the Poverty Budget Costs and Benefits PDF Print E-mail

Methodology:

  1. Costs that are determined annually are divided by 365 (days).
  2. Costs that are determined monthly are divided by 30 (days)
  3. When available, costs from research provided for the annual income of the federal poverty guideline (over $10,000 and no more than $14,999) are used to determine daily cost.
  4. Whenever possible, local costs are used.

Housing:

The United States Department of Housing and Urban Development (HUD) estimates the “Fair Market Rent” for regions around the country. Fair Market Rent is HUD’s way of determining the average rent and utilities combined in Buffalo. For a one-bedroom apartment in 2009, this cost was $602 a month.
http://www.nlihc.org/oor/oor2009/data.cfm?getstate=on&getmsa=on&msa=1944&state=NY

Automobile:

According to the Bureau of Labor Statistics in 2007 (last available study), a household with 1 vehicle with an annual income between $10,000 and $14,999 spent $3236 annually (on average) for transportation (vehicle, gas, and related expenses). Divide $3236 by 365 days = $8.87 a day
http://data.bls.gov/PDQ/outside.jsp?survey=cu

Public Transportation:

An All-Zones Bus/Rail Pass for one month through Niagara-Frontier Transportation Authority costs $77.
Divide $77 by 30days = $2.57 a day
http://www.nfta.com/metro/Fares.asp

Health Care:

In 2008, the Kaiser Family Foundation released a report which found that in 2008 the average employee sponsored individual health care plan cost a worker $721 a year with a $3,983 employer match for a total of $4,704. Family health care plans - on average - cost the worker $3,354 a year with a $9,325 employer match for a total of $12,680.
$721/365 days = $1.98 a day for an individual health care plan
$3,354/365 days = $9.19 a day for a family health care plan
http://ehbs.kff.org/pdf/7790.pdf

Cable TV:

The New York Times reported in May 2008 that cable customers typically pay at least $60.00/month.
Divide $60 by 30 days = $2.00 a day
http://www.nytimes.com/2008/05/24/technology/24cable.html

Cell Phone Bill:

JD Power and Associates released a report in November 2007 which found that the average monthly cell phone service bill came to $63.00 a month.
Divide $63.00 by 30 days = $2.10 a day
http://www.jdpower.com/corporate/news/releases/pdf/2007271.pdf

Internet:

The Pew Internet and American Life Project reports that the average internet bill for broadband internet users was $34.50 a month in 2008.
Divide $34.50 by 30 days = $1.15 a day
http://www.pewinternet.org/pdfs/PIP_Broadband_2008.pdf

Apparel:

According to the Bureau of Labor Statistics in 2007, someone making between $10,000 and $14,999 spent $779 on apparel a year.
Divide $779 by 365 days = $2.13 a day
http://data.bls.gov/PDQ/outside.jsp?survey=cu

Pets:

According to numbers from the American Society for the Prevention of Cruelty to Animals, an individual spends about $500 a year on supplies for a dog or cat.
Divide $500 by 365 days = $1.37 a day
http://www.aspca.org/

Food Stamps:

The Food Nutrition Service of the Federal Government determines that a single individual with earned income at the poverty level would receive approximately $24.
Divide $24 by 30 days = $.80 a day

HEAP (Home Energy Assistance Program):

Based on numbers from the New York State Office of Temporary and Disability Assistance, the average HEAP benefit for someone at the poverty level is $457.50.
Divide $457.50 by 365 days = $1.25 a day

EITC (Earned Income Tax Credit)

Based on the Internal Revenue Service and New York State Tax Code, the combined Federal and New York State EITC for an individual would be $195.      
Divide $195 by 365 = $.53 a day
http:/apps.irs.gov/app/eitc2008/SetLanguage.do?lang=eng 

 

 
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