TRENTON-More than one in five New Jerseyans is in a family whose income falls below what is needed to maintain a modest standard of living, according to data released today by the Economic Policy Institute.

With 23.3% of persons in families unable to meet the no-frills basic family budget threshold (that's 383,000 men, women and children), New Jersey does slightly better than the national average of 28.3% More important, however, the number of New Jerseyans struggling to get by far exceeds what the federal government considers to be those in poverty. According to recently released US Census figures, about 8% of New Jerseyans live in poverty.

"These numbers show that federal government's view of poverty is totally out of touch with the real world," said NJPP President Jon Shure. "You can't define poverty out of existence by setting the line artificially low. Much more needs to be done in Washington and Trenton."

"It's hard to be poor anyplace, but it's even harder in New Jersey," Shure said. "Hardworking people, through no fault of their own are falling farther behind. That's why we need to take steps like expanding the state Earned Income Tax Credit, raising the threshold for paying state income tax so more low-income people are exempt and repealing state and federal tax cuts that redistribute income from the bottom top the top."

The current methodology used to calculate the federal poverty line has little changed since 1963 and makes no distinction for regional variations in the cost of living. As far as the federal government is concerned, a family of four making over $19,350 in any of the 48 contiguous states is above poverty. Nationwide, according to the EPI report, over three times more working families fall below the basic family budget measurement as fall below the official poverty line.

NJPP is putting out the New Jersey data from Washington-based EPI's report as part of its affiliation with the nationwide Economic Analysis Research Network. Basic Family Budgets, by Sylvia Allegretto of EPI, shows that a two-parent/two-child family in New Jersey needs from $45,924 to $53,820 a year, depending on where in the state it lives.

The report, which includes an online calculator that people can use to find the cost of living for their family size and location, figures the cost of food, child care, transportation, health care, taxes and other necessities.

NEW JERSEY BASIC LIVING COSTS

TAX REFORM

WORK & WAGES

BUDGET & FISCAL POLICY

TRANSIT ISSUES

ECONOMIC DEVELOPMENT

VOTING & GOVT REFORM

© 2008 New Jersey Policy Perspective