Colorado’s powerhouse for the poor

COLORADO CENTER on LAW & POLICYAdvancing the health, economic security and wellbeing of low-income Coloradans

Low-wage jobs replace middle-wage jobs across the country

A lost decade for low-wage earners

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013-10%

-5%

0%

5%

10%

15%

12%

-2%

-8%

Colorado low-wage earners fall behind

80th percentile

50th percentile (Median)

20th percentilePerc

ent c

hang

e in

wag

es, 2

000

base

line 2007 Recession

More and more Coloradans live in poverty

• 125,000 more Coloradans lived in poverty in 2012.

• 32,000 more children lived in poverty in 2012.

• Colorado is a “well-educated” state. 7 out of 10 Coloradans have completed at least some college.

• Poverty is much higher among the less educated.

2007 20120%

5%

10%

15%

20%

12.0%13.7%

16.3%18.5%

Thousands more Coloradans live in post-re-cession poverty

PovertyChild poverty

Pove

rty ra

te

Less than high school

High School graduate or

GED

Some college or associate's

Bachelor's degree or

more

0%

5%

10%

15%

20%

25%

30% 26.9%

13.3%10.0%

4.5%

Education is key to economic self-sufficiency

Pove

rty ra

tes

by e

duca

tiona

l at-

tain

men

t

Single parents face uphill battle

• 4 out of every 10 single moms lives in poverty.

• Families with children under five have a higher incidence of poverty than families with children ages 6-17.

• 5th most expensive state for center based child care for non-school aged children.

• Only one in four potentially eligible children receive subsidized care through CCCAP.

Married parents Single Dad Single Mom0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

10.3%

27.8%

39.4%

Single parents face uphill battle

Pove

rty ra

tes

for t

hree

fam

ily ty

pes

Single moms pay a larger share of their income for child care

23.8%

Single Dad

11.4%

Married couple family

Share of in-come spent on child care

Remaining income

34.4%

Single Mom

• Roughly one out of every three dollars a single mother earns may go to paying for child care.

• Median household income for single mothers was $28,000 while married couple households brought home $84,000.

• Average cost of center based care for a four-year old in Colorado was $9,619.

Current state of Colorado policies to help the poor

• Earned Income Tax Credit– In 2011, 345,000 Colorado tax filers claimed the Federal EITC. State credit is not available.

• Child and Dependent Care Tax Credit– 93,000 Colorado filers claimed the child care and dependent tax credit.– Roughly 55,000 low-income, working parents could not claim the existing credit.

• Colorado Child Care Assistance Program– CCCAP provided subsidized child care to about 32,000 children in 2012 or about 25

percent of eligible population.– In 2005, CCCAP served 28 percent of the eligible population.– Funding for CCCAP has decreased 19 percent from pre-recession levels.

• Adult Basic Education– Colorado is the only state that provides zero state funding for Adult Basic Education.

Colorado can do more to ensure economic security for all Coloradans

• Implement the state level EITC. SB13-001.

• Fix child care expenses tax credit to ensure the most needy can also claim the credit. HB14-1072.

• Increase funding and improve access to subsidized child care. Not yet introduced.

• Fund adult basic education and skills training in Colorado. HB14-1085.

Colorado Center on Law & Policy789 Sherman St., Suite 300

Denver, CO 80203www.cclponline.org

COLORADO CENTERon LAW & POLICY

Thank you

Claire LevyExecutive Director

303-573-5669 ext. 301clevy@cclponline.org