Ohio Issues

 

Budget for a Working Poor Family in Ohio (Mother and 2 Children)

The following chart illustrates the dollars and cents of life for Ohio's working poor. It assumes that families receive Food Stamps and child care assistance and are enrolled in the Children's Health Insurance Program. (Figures rounded to the nearest dollar, except hourly wage.)

Minimum Wage:
71% of
poverty

100% of poverty

150% of poverty

200% of poverty


Income from Wagesa
Hourly Wage

$5.15

$7.22

$10.83

$14.44

Monthly Earned Income

$893

$1,252

$1,878

$2,503

Annual Earned Income
  

$10,712

$15,020

$22,530

$30,040


Annual Taxes/Tax Credits
Federal Income Taxesb

$0

$1,149

$1,724

$3,302

State Income Taxesc

$11

$98

$351

$679

City Income Taxesd

$214

$300

$451

$601


Tax Liability before Credits

$225

$1,547

$2,526

$4,582

Child Tax Credit (CTC)e

$71

$502

$123

$0

Fed'l Earned Income Tax Credit (EITC)f

$4,008

$3,600

$2,021

$441


Net Annual Tax Liability / (Refund)
      

($3,854)

($2,555)

$382

$4,141


Net Incomeg
Annual

$14,566

$17,575

$22,148

$25,899

Per Month
        

$1,214

$1,465

$1,846

$2,158


Additional Monthly Resources
Food Stampsh
                 

$224

$124

$0

$0


    
Net Monthly Resources
       


$1,438


$1,589


$1,846


$2,158


Monthly Expenses
Rent/Utilitiesi

$440

$440

$440

$440

Foodj

$377

$377

$377

$377

Transportationk

$372

$372

$372

$372

Necessitiesl

$280

$280

$280

$280

Out-of-Pocket Health Carem

$0

$0

$46

$46

Employer-Based Health Premiumn

$0

$0

$40

$40

Child Careo

$50

$94

$182

$815


Total Monthly Expenses
                

$1,519

$1,563

$1,737

$2,370


   
Monthly Resources after Expenses

   
-$81

      
$26

        
$109

           
  -$212

    

    

Footnotes
  1. Wage and Annual Income: Information from the 2002 Federal Poverty Guidelines (Source: Federal Register, Vol. 67, No. 31, February 14, 2002, pp. 6931-6933). The hourly wage assumes working 52 weeks per year and 40 hours per week. [Download a summary of current Federal Poverty Guidelines (PDF, 9 KB) prepared by CDF-Ohio.]
      
  2. Federal Income Taxes (pre-EITC): Calculations by the Center on Budget and Policy Priorities and CDF-Ohio.
     
  3. State Income Taxes: Calculations by the Center on Budget and Policy Priorities. (Note: As all Ohio families, working poor families also pay sales taxes. Working poor families pay a higher proportion of their income in sales taxes compared with families at higher income levels.)
     
  4. City Income Taxes: Calculations by CDF-Ohio based on a city income tax of 2%. The lowest city income tax in Ohio is 0.0% (Martins Ferry City); the highest is 2.85% (Euclid City). City tax rate information is from the Municipal Income Tax Rates listing on the Ohio Municipal League web site (revised 1/23/02).

  5. Child Tax Credit (CTC): Calculations by the Center on Budget and Policy Priorities and CDF-Ohio. [For more information on the Child Tax Credit, visit the IRS Child Tax Credit web page.]

  6. Federal Earned Income Tax Credit (EITC): Calculations by the Center on Budget and Policy Priorities.   [Learn more about the federal EITC from the IRS Earned Income Tax Credit web page.]

  7. Net Income: Calculated by subtracting the Net Annual Tax Liability from the Annual Earned Income. In the case of a refund, the Net Annual Tax Refund was added to the Annual Earned Income.

  8. Food Stamps: Families above 130% of the poverty guideline are not eligible to receive food stamps. Calculations by CDF-Ohio based on the Center on Budget and Policy Priorities Quick Guide to Calculating Food Stamp Benefits for Families with Children (3/23/99). (Learn more about Food Stamps and the USDA's other Nutrition Assistance Programs from the Food, Nutrition and Consumer Services web site.)

  9. Rent/Utilities: Expense is for a rented dwelling and utilities/fuels/public services. From the 1999 Consumer Expenditure Survey - Rent/Utilities, adjusted for inflation, and reflect national averages. Individual circumstances will vary.

  10. Food: Expense is for all food, both at home and away from home. From the 1999 Consumer Expenditure Survey - Food, adjusted for inflation, and reflect national averages. Individual circumstances will vary.

  11. Transportation: Expense is for cars and trucks (used), gasoline and motor oil, maintenance and repairs, and vehicle insurance. It is assumed that the family does not use public transportation, as it is not available statewide. From the 1999 Consumer Expenditure Survey - Transportation, adjusted for inflation, and reflect national averages. Individual circumstances will vary.

  12. Necessities: Expense is for household operation, housekeeping supplies, apparel and services, and personal care products and services. From the 1999 Consumer Expenditure Survey - Necessities, adjusted for inflation, and reflect national averages. Individual circumstances will vary.

  13. Out-of-Pocket Health Care: Expense is for medication, equipment, and doctor and hospital costs not covered by employer-based health insurance. The value is the mean out-of-pocket expenditure for a single woman who had employer-based health insurance. At these levels of poverty, the cost of out-of-pocket health care for some parents (in families at or below 100% of poverty) and most children would be covered by Healthy Start and Healthy Families, Ohio’s health coverage program for children and families. Provided by the Ohio Department of Health, based on preliminary data from the 1998 Ohio Family Health Survey. The Medical Care Price Index (MCPI) was used to adjust prices.

  14. Employer-Based Health Premium: The cost at 77% and 100% of poverty is covered under Healthy Families, Ohio’s Medicaid program for children and parents. The cost at 150% and 200% is the mean employee contribution for a woman with single insurance coverage, not family coverage. At these levels of income, children in families are eligible for Healthy Start. Provided by the Medical Expenditure Panel Survey: Health Insurance Component Analytical Tool (MEPSnet/IC).  The MCPI was used to adjust prices.

  15. Child Care: At 77%, 100% and 150% of poverty, a family is eligible for child care assistance. At those levels of poverty, the family pays a co-payment, which is determined by family size, monthly income, and number of children. The monthly co-payment is based on the Ohio Administrative Code, Section 5101:2-16-39. At 200% of poverty, an Ohio family is no longer eligible for child care assistance. The price is determined on the assumption that the family consists of a toddler and a preschooler. The average cost of child care for a toddler is $99/week at a center, while it is $89/week for a preschooler at a center. The cost of child care would be more for an infant and less for a school-age child. Eligibility for assistance is currently at 185% of poverty. (Source: Ohio Child Care Resource and Referral Association 2001 report.)
 

©2002 Children's Defense Fund-Ohio                     Updated September, 2002