The California Elder Economic Security Initiative ™

CARA ConferenceOctober 22, 2007

Susie Smith

Californians for Family Economic Self-Sufficiency,a project of

The Insight Center for Community Economic Development

The California Elder Economic Security Initiative™

2

Insight Center for Community Economic

Development Insight Center is a 38 year old national research

and consulting organization dedicated to building economic health and opportunity in vulnerable communities

We partner with a diverse range of colleagues to develop innovative strategies and programs that result in systemic change and help people become, and remain, economically secure Californians for Family Economic Self-Sufficiency (CFESS)

3

A multi-year project that offers a conceptual framework and concrete tools to shape public policies and programs to promote the economic well being of older adults, whether or not they have the capacity to be fully self-reliant or are in need of certain public supports to age in place with dignity.

The Elder Economic Security Initiative™ program is…

4

Insight Center, Oakland, CA Californians for Family Economic Self-Sufficiency (CFESS), a project of

Insight Center, is a statewide network of 400+non-profit and public agencies

Wider Opportunities for Women, Washington, DC

Gerontology Institute at the University of Massachusetts

UCLA Center for Health Policy Research

Statewide CA-EESI Steering Committee

National EESI Advisory Board – guides national work and vetted methodology over 2 years

Who is Involved in the Elder Economic Security Initiative™ (EESI™)?

5

National EESI™ Advisory Board

Our National Research Partner: Gerontology Institute at UMass Boston

AARPNational Council on the AgingThe Urban Institute Income Benefit and Policy CenterNational Committee to Preserve Social Security and MedicareWomen's Institute for a Secure RetirementHealth Policy Institute at Georgetown Public Policy InstituteInstitute for Women’s Policy Research ACCRA-the Council for Community and Economic Research The National Caucus and Center on Black Aged, Inc. The Pension Rights CenterNational Academy of Social Insurance State EESI partners, and affiliate state EESI partners

6

California EESI Steering CommitteeCalifornia Community Foundation On Lok SeniorHealth

John Muir/Mt. Diablo Community Health Fund National Council on Aging

Alameda County Area Agency on Aging Senior Community Centers of San Diego

U.S. Department of Labor, Women’s Bureau UCSF Institute for Health and Aging

California Women’s Agenda St. Mary’s Center

California State Senator Sheila Kuehl California Senate Subcommittee on Aging and Long Term Care

Office of California State Senator Elaine Alquist California Advocates for Nursing Home Reform

National Senior Citizens Law Center Plumbline Coaching and Consulting, Inc.

Cal-Nev Community Action Partnership The Health Trust

Fresno-Madera Area Agency on Aging Office of California State Assemblymember Patty Berg;UC Berkeley Center for the Infoline Sacramento

Advanced Study of Aging Service

Los Angeles County Area Agency on Aging Los Angeles City Area Agency on Aging

Y & H Soda Foundation UCLA Center for Health Policy ResearchUnited Way of the Bay AreaCalifornia Commission on the Status of Women Edgewood Center for Children and FamiliesAARP The California EndowmentStanford Geriatric Education Center California Alliance for Retired Americans

7

The Goals

To Provide a Framework to help guide:

o Older adults’ decisions and choices,

o Families and agencies that help care for them,

o Aging Boomers as they plan for their futures, and

o Public policy and programs at the national, state, and local level.

8

Coalition building, Research, Education, Advocacy, and A media strategy at

the community, state, and national level.

The Elder Economic Security Initiative™ program combines…

9

Current State EESI™ Partners

Insight Center for Community Economic Development (CA)

MA Association of Older Americans (MA)

Health and Medicine Policy Research Group (IL)

Pathways PA (PA)

Wisconsin Women's Network (WI)

Expanding to include 15 more lead state partners

10

How does the EESI™ program work?

We use a three-pronged approach: Tabulate state Elder Economic Security

Standard™ indexes using a standardized methodology;

Develop national, state, and local coalitions; and Develop and implement a national, state, and

local policy/programmatic agendas and priorities drawn from the findings of the Elder Standard index.

11

Why theCalifornia Elder Economic Security Standard™

index? Elder poverty in CA is already a

serious problem: 8% of CA adults age 65+ live

below federal poverty in 2005 11% of San Diego adults age

65+ live below federal poverty in 2005

29% of all California’s older adults have incomes below double the poverty line ($19,600 single adult; $23,400 for two-person household)

Significant increase in elders will strain mechanisms of support

Standard tool used for assessing elders’ economic well-being is deeply flawed

The CA Elder Economic Security Standard™index:

The new measure of income adequacy allows advocates

to push for policy and programmatic changes that

improve living standards and economic security

12

High Cost of Living: Impact on EldersElder Standard™ index shows…

What does it take for elders to age with dignity?

To remain in the community as their health and other needs change?

How costs vary by life circumstances: Household, housing tenure, health,

transportation, & need for long-term care

13

The Basic Assumptions

Considers market costs of independent living – without subsidies

Begins at age 65Assumes elders are

retired

14

The Cost Data:Comparable - Area specific

HousingFoodHealth care and

statusTransportationOther needs

15

Federal Poverty Line v Elder Standard

The Federal Poverty

Line:

- Based on cost of

food

- “One size fits all” in

every county and

state of U.S.

- Same across housing

type

- Same across health

status

- Describes poverty

Elder Standard:

- ALL basic costs

- Varies by county

- Varies by household type

- Varies by health status

- Describes self-sufficiency

16

Sample Urban County Elder Standard DRAFT – Not for Distribution

Owner w/o Mortgage

Owner w/Mortgage

Fair Market Rent 1BR

Housing 421$ 2,089$ 1,068$ Food 215$ 215$ 215$ Transportation 121$ 121$ 121$ Health Care (Good Health) 293$ 293$ 293$ Miscellaneous @ 20% 210$ 210$ 210$ Elder Standard Per Month 1,260$ 2,928$ 1,907$

Elder Standard Per Year 15,125$ 35,133$ 22,883$

Monthly Expenses

Elder Person

17

Sample Urban County Elder Standard DRAFT – Not for Distribution

Owner w/o Mortgage

Owner w/Mortgage


Housing 421$ 2,089$ 1,068$ Food 624$ 624$ 624$ Transportation 323$ 323$ 323$ Health Care (Good Health) 586$ 586$ 586$ Miscellaneous @ 20% 391$ 391$ 391$ Elder Standard Per Month 2,345$ 4,012$ 2,992$


Monthly Expenses

Elder Couple

18

Elder Standard™ Index vs. Other Benchmarks

One-Person Household Elder Standard Range = $15,000 to $35,000 Federal Poverty Guideline = $10,210 SSI Payment in CA = $10,272 Average Soc. Security Paym’t in SUC = $12,024

Two-Person Household Elder Standard Range =$28,000 to $48,000 Federal Poverty Guideline =$13,690 SSI Payment in CA = $18,024 Average Soc. Security Paym’t in SUC = $22,619

19

The Impact of Long-Term Care at Home in Massachusetts*

(example of what will come for CA)

Need for Care

Low MediumHigh with Adult Day

Health

High w/o Adult Day

Health

Hours/ Week

6 hrs 16 hrs 36 hrs 36 hrs

Cost/ Month

$663 $1,729 $3,028 $3,680

Cost/ Year

$7,955 $20,753 $36,331 $44,161

20

Sample Urban County Results Indicate…

High housing costs equal up to 70% of total expenses

For singles, healthcare is 2nd largest expense

For couples, food is 2nd largest expense

21

Sample Rural/Central Valley County

Owner w/o mortgage

Owner w/mortgage


380$ 1,071$ 542$ 217$ 217$ 217$ 121$ 121$ 121$

Health Care (Good Health) 283$ 283$ 283$ Miscellaneous @ 20% 200$ 200$ 200$ Elder Standard Per Month 1,201$ 1,893$ 1,363$


Expenses/Monthly and Yearly Totals

Housing Food Transportation

Elder Person

22

Sample Rural/Central Valley CountyDraft – Not for Distribution

Elder CoupleOwner w/o mortgage

Owner w/mortgage


380$ 1,071$ 542$ 482$ 482$ 482$ 323$ 323$ 323$

Health Care (Good Health) 566$ 566$ 566$ Miscellaneous @ 20% 350$ 350$ 350$ Elder Standard Per Month 2,101$ 2,792$ 2,263$


Expenses/Monthly and Yearly TotalsHousing Food Transportation

23

Rural/Central Valley Elder Standard™ vs.

Other BenchmarksOne-Person Household Elder Standard Range = $14,400 to $22,700 Federal Poverty Guideline = $10,210 SSI Payment in CA = $10,272 Average Soc. Security Paym’t in SRC = $11,944

Two-Person Household Elder Standard Range =$25,200 to $33,500 Federal Poverty Guideline =$13,690 SSI Payment in CA = $18,024 Average Soc. Security Paym’t in SRC = $20,066

24

Sample Urban County Results Indicate…

High housing costs equal up to 38% of total expenses

Healthcare is 2nd largest expense for singles and couples

Food is 3rd largest expense

25

Summary of Findings, continued

Elders can’t make ends meet at the federal poverty level or average Social Security payment without supports in sample rural or urban counties in CA

26

Using the Elder Standard™ index

Education Policy and Advocacy Case Management Community Planning Programmatic

Development Financial Security

27

Proposed Action Plan

Inform Elders Legislators Aging agencies Governor’s Office

Identify Gaps Opportunities

28

Proposed Action Plan

Expand Coalition of elders,

advocacy orgs., public agencies, legislators, service providers

Promote Legislative/

Administrative Action Programmatic reforms

Change Future Outlook

29

Change This Picture in the Future

A Yardstick for Measuring Change Develop new programs Foster partnerships & collaborations Create flexible networks

Securing Income Inform responsible retirement planning Promote livable wages that provide livable retirement income Strengthen Social Security & Medicare Address Pension/Annuity Issues Address debt issues

Invest In Expanding health care access/connectors Manage cost of health care Preserve and expand supply of affordable elder housing (rental,

owner, supportive services) Increasing options and access to long-term care Strengthen elder consumer protections

30

Taking Project to Scale in CA

Statewide Release 1st Quarter of 2008 after Governor’s Budget Announcement Statewide policy agenda Public hearings / Stakeholder engagement event Press release co-sponsored by key legislators

Local Coalition Building around the State Identify lead agencies in key regions Regional coalition - how data will help locally,

create local policy agenda Organize community forum/public event Local public hearings

31

Next Steps

Calculate packages of LTC costsFinalize statewide policy agenda and

briefingRelease Elder Standard & Policy Agenda

Statewide and regionallyExpand CA-EESI NetworkLaunch “It’s Not Your Fault” Campaign Listening Campaign on how data will help

older adults in CAResearch: Analyze “above/below” numbers

32

Next Steps

Train organizations and public agencies on how to use Elder Standard

Encourage adoption of the Elder Standard by policymakers, public agencies, non-profit organizations, and foundations

33

Get involved!

Join statewide CA-EESI CoalitionEmail [email protected]

Join Local EESI coalitionsSan DiegoLABay AreaSacramento

Attend Release EventsPress conferences, community forums, public

hearings

34

Discussion: Elder Standard™ index

What Programs & Policies Can Help Close the Income – Expense Gap in CA?

35

Discussion: Elder Standard™ index

How would you use this information? In Advocacy for yourselves and other older

adults? In direct service efforts? Interest in joining CA-EESI Coalition

Email [email protected]

36

Acknowledgements

California Elder Economic Security Initiative™ Steering Committee

Funders: The Health Trust, Alameda County AAA, LA County & City AAA, Wider Opportunities for Women, The California Community Foundation, The California Wellness Foundation, The California Endowment, Y & H Soda Foundation, United Way of the Bay Area

Next Steps/ Comments/ Questions

For more information, please contact:Susie Smith: [email protected](510) 251-2600x108

Documents

The California Elder Economic Security Initiative ™