City Council Agenda and Packet 2017 03 14 SP

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SUBJECT: DISCUSSION/DIRECTION — LIVABLE WAGE OVERVIEW AND OPTIONS DATE: MARCH 14, 2017 PAGE 2OF12 However, on an increasing basis, the long-established cost -of -living indices are challenged by social policy analysts as outdated instruments to gauge a family's cost of living and set a wage that would realistically cover it. The criticisms of traditional indices include: they are often based on the cost of food and do not consider other basic need costs or the different types of needs of households; that low income people may bear disproportional tax burdens; and traditional indices do not reflect that the cost of housing and other basic needs can vary widely in different locations of the country. Over the past 20 years, an alternative approach to calculating the cost -of -living has been developed by Dr. Diana Pearce of the University Of Washington School Of Social Work. Called the Self -Sufficiency Standard (SSS), because it factors a broad range of basic needs into its calculation including local housing, child care, health care, transportation, and taxes. Additionally, it varies expenses for children based on their age to accommodate differing child care needs, health care, and nutrition costs at different ages. It considers housing costs and how they can vary state by state but also by county, reflecting for example, the considerable difference between renting or buying in New York City versus in rural New York. In 2002, the National Center for Women's Welfare was founded specifically to support the continued development and refinement of the SSS. As part of that effort, the Center has established a network of 37 state -based organizational partners, one of which is in Colorado. The Colorado Center on Law and Policy (CCLP) prepares data -driven publications, policy proposals, and advocacy initiatives addressing issues important to low-income Coloradoans. For more information please refer to www.cclponline.org or for the complete report refer to http://cclponline.org/wp- content/uploads/2015/06/SSS-FINAL.pdf A number of organizations in Colorado, including the City of Boulder, have moved to the use of the SSS due to the availability of Colorado specific information. In the previous discussion with City Council, staff noted that the City of Boulder recently looked at this issue in detail and staff should consult with them on their findings. Deputy City Manager, Heather Balser, and Human Resources Director, Kathleen Hix met with City of Boulder's Human Resources Director, Joyce Lira and City of Boulder's Human Services Director, Karen Rahn to discuss and review with them their information on Livable Wage. A summary of their overall actions is discussed. Recent City of Boulder Actions • In 2015 the City of Boulder updated its living -wage resolution, which commits the City to pay all standard full-time City of Boulder employees no less than 120 percent of the Federal Poverty Guidelines (FPG) for a family of four. The 2015 updates extend the livable wage to include in 2016 standard part time (those regularly scheduled and eligible for benefits pro -rated for those employees working 20 hours per week and above) and temporary employees at a rate of CITY COUNCIL COMMUNICATION