we-care-shasta-county

Today, 2,742 Shasta County low-income seniors and people with disabilities rely on 2,825 In-Home Supportive Services (IHSS) providers to deliver the care they need so that they may continue to live as independently as possible in their own home.

SHASTA COUNTY AT A GLANCE:
Total Population 179,804
Population 65+ 34,600*
IHSS Providers 2,825
IHSS Consumers 2,742
Current Wage $10.00
*of which 13,416 are 75+ years

In addition to providing low-income seniors and people with disabilities with the vital care they require, the IHSS program does so at a significant savings to taxpayers. Even with increasing the wages of caregivers, the IHSS program costs on average 4 to 7 times less than institutionalization, thereby saving taxpayers millions of dollars annually.IHSS: An Investment that Pays Off for Shasta

The IHSS program, which was founded by Governor Ronald Reagan as a cost-effective way to provide care to those in need, is funded through a combination of federal, state and local dollars. Because of its funding structure having a majority of its cost covered by the federal and state governments, the IHSS program brings new monies into Shasta’s local economy annually.

For Shasta County, the IHSS program currently brings an additional $30 million of new monies into the local economy each year. This annual infusion supports the existence of 223 full time jobs, helps sustain $26 million in economic output and generates $1.8 million in state and local taxes annually.

Estimated IHSS Program Costs (2015-16) For Shasta County

Total Program Cost Federal Share State Share County Share
$35,662,671 $18,976,996 $11,393,279 $5,292,397

Shasta County Home Care Workers: Living in Poverty

However, earning just $10.00 an hour, Shasta County’s IHSS providers are living in poverty. In fact, according to the California Budget Project, a single parent in Shasta County must earn $2,777 a month just to cover the basics. Yet, a home care provider working 40 hours a week and earning $10.00 an hour earns only $1,600 (before taxes). There’s no question that caregivers are struggling to make ends meet and often find themselves having to turn to government programs such as CalFresh to provide for their families.

Two Child Families
MONTHLY COST OF LIVING IN SHASTA COUNTY Single Adult Single-Parent Two-Parent (One Working)
Housing/Utilities $734 $949 $949
Child Care $0 $871 $0
Transportation $330 $330 $330
Food $293 $627 $866
Total Monthly Costs $1,357 $2,777 $2,145

Increasing IHSS Wages =
A Win-Win for Shasta County

Just as the IHSS program has been benefiting Shasta’s economy for years, providing caregivers with a livable wage will not only help lift them out of poverty, but will continue to benefit the local economy and create local jobs.

To make this point, let’s look at how increasing the wages of IHSS providers in Shasta County by $0.60 would benefit the County and its residents. In addition to the benefits, due to the federal and state share, a $0.60 increase would only cost Shasta County approximately $0.11 (including payroll taxes). Making it one of the best returns on investment available.

The charts below show how the new monies being brought in from the federal and state share of the wage increase supports and creates local jobs, stimulates output and generates new tax revenues.

New Wage: $10.60
Total Cost of $0.60 Wage Increase Federal Share State Share County Share
$2,122,703 $1,128,913 $645,964 $347,827

By increasing IHSS wages $0.60 to $10.60 an hour, the new monies coming from the federal and state share of costs would result in the creation of new jobs, an economic output of $1.67 million, and generate $115,668 in state and local taxes.

$0.60 Wage Increase Jobs Output State and Local Tax Revenue
Total Impact: 13.7 $1,669,545 $115,668

When adding in the economic benefits of the current IHSS program, an hourly IHSS wage of $10.60 will support 237 full time jobs, nearly $28 million in economic output and generate nearly $2 million in state and local taxes annually — all for pennies on the dollar!

Explanation of Chart Titles:

Jobs: The new jobs created as a result of increased labor income due to the wage increase. Output: The new goods and services produced as a result of the IHSS wage increase. This includes the direct demand (ie. IHSS worker uses wage increase to purchase something), indirect demand (local businesses purchasing supplies to produce goods and services which are directly purchased by the IHSS worker), and the induced demand (local businesses hire more workers/pay higher wages/etc to deal with increased demand, those workers then use the extra income to purchase local goods, etc).

Category

Member's Voice

Posted

February 24th, 2016