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Chairman McDermott Introduces Federal Poverty Measurement Legislation
Praises Leadership of New York City Mayor Michael Bloomberg
September 18, 2008

 
New York City Mayor Michael Bloomberg and Rep. Jim McDermott (D-WA) met this morning in McDermott’s Washington, D.C. congressional office to discuss their commitment to developing a new poverty measurement, which has remained essentially unchanged for almost half a century.

Rep. Jim McDermott (D-WA) introduced federal legislation today to modernize the existing poverty measurement for the first time in a generation. 

“We’re measuring poverty in 2008 essentially using the methodology and standards that were employed in the 1950s, and we can’t possibly be effective in targeting precious and limited resources to help the poor using outdated, outmoded measurements,” McDermott said.  He is the chairman of the Income Security and Family Support Subcommittee that has jurisdiction over the issue.  “In the end this is about people, not statistics,” McDermott said, “and it is about the responsibility of the richest nation on earth to help the less fortunate among us.  As President John Kennedy said: “If a free society cannot help the many who are poor, it cannot save the few who are rich.”

McDermott said the issue has significant implications for cities across the country and he praised the leadership of New York City Mayor Michael Bloomberg who is at the forefront of efforts to make a positive difference.  “Mayor Bloomberg is leading with his head and heart, and his effort on behalf of the people of New York City will serve as an example for the rest of America. We have pledged to work together and I am pleased and proud to have him on America’s team.”

“You can't fix a problem if you misunderstand it, so if we are serious about tackling poverty, we need to get serious about accurately measuring poverty,” said Mayor Bloomberg.  “I met with Congressman McDermott this morning and applaud his leadership on this issue and support his forward-thinking legislation.  In Washington there is a never-ending debate about how to confront poverty but hardly any clarity on who is actually poor.  By reformulating the faulty-40 year old federal poverty measure we will be better able to understand the true nature of poverty in our country and move closer to the goal of ensuring all Americans have the opportunity to achieve the American dream.”

Mayor Michael Bloomberg announced in July a new alternative to the Federal poverty measure developed over the past year by the City’s Center for Economic Opportunity (CEO).  New York City is the first local government in the nation to overhaul the 40-year old poverty measure, which is based primarily on food expenditures and has not materially changed since it was first adopted in 1969.  Similar to Congressman McDermott’s legislation, the CEO poverty measure is based on recommendations developed by the National Academy of Sciences’ (NAS) Panel on Poverty and Family Assistance.  The CEO measure factors in food, clothing, shelter and utilities expenditures; counts tax credits and benefits - such as Food Stamps and Section 8 housing subsidies - and adjusts for differing geographic cost factors in housing.  Over the past several months, CEO staff has offered technical assistance to staff in Los Angeles, Chicago, Seattle, Washington D.C., San Francisco and Miami who are interested in replicating this new methodology. 

According to McDermott, the current poverty measurement essentially multiplies the cost of a minimally adequate diet by a factor of three to arrive at a threshold for help.  But the congressman noted that core expenses are different in the 21^st century than they were in the 1950s.  The National Academy of Sciences studied the issue over a decade ago and made recommendations on how to update the measurements; the NAS recommendations are at the heart of McDermott’s legislation.

“A poverty measurement for the 21^st century must take into account food, clothing, shelter and other basic necessities that consume a much greater percentage of a family’s budget, and this legislation will do that as well as measure how widely shared prosperity is in our economy,” McDermott said. 

Read a summary of the legislation.