Working Hard Is Still Not Enough

2003 North Carolina Living Income Standard

RURAL AND URBAN COST OF LIVING BY FAMILY COMPOSITION
ONE PARENT, ONE CHILD
Monthly Expenses Urban % Of Total Rural % Of Total
Housing $616 27% $437 23%
Child care $442 19% $408 21%
Food $256 11% $256 14%
Health Care $247 11% $247 13%
Transportation $177 8% $211 7%
Miscellaneous $270 12% $215 11%
Taxes and Credits $270 12% $133 7%
Items Not Included
Debt (e.g. car loan) $0 0% $0 0%
Savings (e.g. savings or retirement) $0 0% $0 0%
TOTAL MONTHLY BUDGET  $2,278/month   $1,907/month
TOTAL ANNUAL BUDGET  $27,336/year  $22,884/year
HOURLY WAGE $13.14/hour $11.00/hour
LIS as a Percent of 2001 Federal Poverty Level for Family of Two $12,207 224% 188%
TWO PARENTS, ONE CHILD
Monthly Expenses Urban % Of Total Rural % Of Total
Housing $616 19% $437 14%
Child care $954 29% $924 31%
Food $497 15% $497 16%
Health Care $300 9% $300 10%
Transportation $250 8% $297 10%
Miscellaneous $345 10% $290 10%
Taxes and Credits $344 10% $273 9%
Items Not Included
Debt (e.g. car loan) $0 0% $0 0%
Savings (e.g. savings or retirement) $0 0% $0 0%
TOTAL MONTHLY BUDGET $3,306/month $3,018/month
TOTAL ANNUAL BUDGET $39,672/year $36,216/year
HOURLY WAGE $19.07/hour $17.41/hour
HOURLY WAGE PER PARENT $9.54/hour each parent $8.71/hour each parent
LIS as a Percent of 2001 Federal Poverty Level for Family of Four $17,960 221% 202%

Report Recommendations             URBAN COUNTIES

All costs are based on 2001 estimates. Calculations for statewide rural and urban LIS for 2003 use different methodologies than
used to calculate LIS in the original report; therefore, the data in the two living income standards should not be compared.
See Appendix A of Working Hard is Still Not Enough for details regarding the methodology.

What is the North Carolina Living Income Standard (LIS)?
The Living Income Standard (LIS) is a powerful analytic tool for assessing the economic well-being of North Carolina’s families. This measure is a bare bones budget, specific to family composition and geographic area that tells how much income these families must bring in to meet their most basic needs. Using the LIS, we are able to determine not only what it truly costs to live, but also to identify who is not earning enough and, ultimately, judge how well the state’s families are adjusting to the new economy. The LIS sheds light on the economic security issues that millions of our fellow residents face each day as well as on the policies that could be used to address these persistent challenges.
How was it created?

The Living Income Standard (LIS) is a basic budget for North Carolina’s families. It focuses on two common family types, identifying the cost differences associated with living in rural and urban areas of the state. The LIS assumes that all parents, be they single or married, must work full-time. It also assumes they are very frugal and only purchase basic necessities. Given these assumptions, the LIS calculates the family’s costs for seven basic budget items: housing, childcare, food, health care, transportation, miscellaneous expenses, such as clothing and cleaning products, and taxes. Reliable, consistent government sources are used to estimate these costs. More details on our Methodology
How do the original LIS and 2003 LIS compare?
In an effort to provide the best and most accurate estimate of the cost for families to live in North Carolina, Justice Center staff reviewed the methodology used to determine the original Living Income Standard (LIS) and conducted extensive research of best practices in the field. Based on this comprehensive assessment, we have chosen to alter our methodologies to adopt some of the identified best practices. We have shifted to use better sources of data for some budget items and state and federal policy changes have required us to shift methodologies for other items. Together, these changes mean that the costs and budget totals identified for the original LIS are not comparable to the 2003 living income data.
What other data is available?
County-level budgets are available for each of North Carolina’s 100 counties for the following four family types:
• Single parent with an infant
• Single parent with an infant and preschooler
• Two parents with infant and preschooler
• Two parents with infant, preschooler and one school-age child
How can I get more information about the LIS, living income issues and campaigns?

In May 2003, the NC Justice and Community Development Center released the update of it’s groundbreaking report. The new publication, Working Hard is Still Not Enough, provides additional data, policy recommendations, and resource materials. Copies of the report can be obtained either by calling the Justice Center (919-856-2570) or through our website, www.ncjustice.org. The website also contains a wealth of living income information, including county-level data.(Click here to open the report in PDF format.)
The Justice Center also released the North Carolina Grassroots Living Wage Campaign Handbook in May 2003. The Handbook is a practical guide providing information, tools and resources that can assist interested citizens in their efforts to organize a community campaign. For more information on the Handbook, please look on our website or contact Sheila Kingsberry-Burt at 856-3194.

The Living Income Standard and the information included here are excerpts from the May 2003
NC Justice and Community Development Center publication, Working Hard Is Still Not Enough.
Click on the title for a PDF copy of the report. For more information go to Living Income or call 919-856-2570