House The Homeless, Inc.
P.O. Box 2312
Austin, Texas
78768-2312
(512) 796-4366
Universal Living Wage Formula
"We have devised a National Formula that is based on each local economy throughout the entire United States. The formula is designed in such a manner that no matter whether you are in Austin, Boston, or L.A., if you are willing and able to work a 40 hour week, you should at least be able to access the cheapest form of housing."
.Work a minimum 40 hour week
.Spend no more than 30% of income on housing
.Index the minimum wage to the local cost of housing as set each year by the U.S. Department of HUD (Fair Market Rents)
In Austin:
.Efficiency Apartment requires $9.79/hour
.1 Bedroom Apartment requires $11.83/hour
While the argument can be made that we need to more fully address medical and day care needs, this formula provides for the moral argument that if you are willing to work for it, you should at least be able to access the most basic form of housing and the barest of other necessities. The Universal Living Wage Formula allows us to justifiably call for a significant increase in the minimum wage in such a manner that is also politically achievable. We transformed this formula into Texas House Bill #303 and introduced it in the last Texas Legislative Session. We believe that by enacting this legislation we can put the minimum wage back on course (to a time before it failed to keep pace with inflation) when in the early 1970's (before "homelessness") the minimum wage was sufficient to allow people to work themselves off of our nation's streets. Wouldn't it be a quantum leap forward to remove the economic barriers that keeps many homeless persons on our streets?
Finally, by adopting the formula entirely, by indexing it to the cost of housing (through the use of the Fair Market Rents that are readjusted each year by the U.S. Dept. of HUD), we would not have to continually revisit this wage issue. As the cost of housing rises (or falls), the wage would keep pace with it in each locality throughout the United States. As a result, if a person is willing to work a full 40 hour week, they will be able to earn a wage sufficient to at least get into the cheapest form of housing whether it is in Austin, Boston or LA, etc.
LIVING WAGE FORMULA
Updated 6//01
1. HUD STANDARD: No more than 30% of a person's gross income should be spent on Housing.
2. HUD FAIR MARKET RENT $533 (EFFICIENCY Apartment in Austin/San Marcos, Texas
3. TOTAL MONTHLY INCOME: $533 divided by .3 = $1776.66 monthly gross income necessary to afford basic housing.
4. PREMISE: Anyone working 40 hours/week should be able to get housing and get off of the streets. 1
5. WORK HOURS: 40 hours/week @ 4.33 weeks/month = 173.33 work hours/month, 173.33 work hours X 12 months = 2080 hours/year.
6. Total Gross Monthly Income of $1776.66 X 12 months = $21,319.99
$21,319.99 divided by 2080 Hours/Year = $10.25/Hour ------
NEW HOURLY WAGE in Austin, Texas.
7. Total Monthly Expenditures:
$1776.66 Total Gross Monthly Income
-$402.40 Fed. Taxes, Soc Sec., Medicare 2
-$533.00 Housing Costs
-$841.26 Remaining for: Medical, Clothing
Transportation, Telephone, Food
1. Whether a person works 4 hours per week or 40 hours per week, they should be paid at the full 40 hour rate. A full hours work deserves a full hours wage.
2. Minus $266.49 for Federal Income Tax, $110.15 for Social Security, and $25.76 for Medicare. The Federal Income Tax rate (15%) is based on the monthly deductions outline in the Internal Revenue Circular E, Employers' Tax Guide (Rev. Jan, 2000), Social Security is 6.2% of gross monthly income, and Medicare is 1.45% of gross monthly income (Total equals $402.40)
UNIVERSAL LIVING WAGE FORMULA
1. HUD STANDARD: No more than 30% of a person's gross income should be spent on Housing.
2. HUD Fair Market Rent $645(One Bedroom Apartment, in Austin, San Marcos, TX)
3. TOTAL MONTHLY INCOME: $645 divided by .3 = $2150 monthly gross income necessary to afford basic housing.
4. PREMISE: Anyone working 40 hours/week should be able to get housing and get off of the streets. 1
5. WORK HOURS: 40 hours/week @ 4.33 weeks/month = 173.33 work hours/month, 173.33 work hours X 12 months = 2080 hours/year.
6. Total Gross Monthly Income of $2150 X 12 months = $25,800
$25,800 divided by 2080 hours/year $12.40 /hour----
NEW HOURLY WAGE in Austin, TX.
7. Total Monthly Expenditures:
$2150.00 Total Gross Monthly Income
-$486.98 Fed. Taxes, Soc Sec., Medicare 2
-$645.00 Housing Costs
$1018.02 Remaining for: Medical, Clothing,
Transportation, Telephone, Food
1 Whether a person works 4 hours per week or 40 hours per week, they should be paid at the full 40 hour rate. A full hours work deserves a full hours wage.
2 Minus $322.50 for Federal Income Tax, $133.33 for Social Security, and $31.18 for Medicare. The Federal Income Tax rate (15%) is based on the monthly deductions outline in the Internal Revenue Circular E, Employers' Tax Guide (Rev. Jan, 2000), Social Security is 6.2% of gross monthly income, and Medicare is 1.45% of gross monthly income (Total equals $486.98)