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$10.32 is no living wage
By The Standard Staff - 10/14/2007
$10.32 my foot.
There are plenty of things I’m saying about what the Northwest Federation of Community Organizations this week announced is a living wage for Montanans, but they’re not suitable for print.
I don’t agree with that amount, unless it’s a typo or a figure from 1975.
In my experience as a “single Montana adult,” a $10.32 per hour pay wouldn’t even come close to “meet basic needs, maintain some ability to deal with emergencies and plan ahead,” as the NFCO report says.
Not unless that single adult already went to college, bought a really, really, really reliable car, owned a home (mortgage-free) and had pre-existing, permanent health insurance. Already having a wardrobe appropriate for the workplace would be helpful, too.
About 30 percent of my paycheck (which isn’t that big itself) goes to taxes, so a person earning $10.32 an hour really brings home about $290 a week, or $1,150 a month.
Based on that amount and the most bare-bones of budgets I lived on during college (think ramen noodles and five blankets on the bed), here’s a breakdown of where that money goes.
In Anaconda — not Missoula or Bozeman, far more expensive markets — I paid $450 a month to rent a clean, small one-bedroom apartment. It’s not the most I’ve paid for an apartment in this state either. Amount of paycheck left: $700
Last January the heating bill for that apartment ran $140. Ouch, huh? Most rentals have old windows and aren’t well insulated. I know the tab was less once it got warm, but the smallest bill I ever saw was $40, and employers don’t pay more in the winter because it’s cold. Cash left: $560
I pay $120 for car insurance with a perfect driving record and a 10-year-old all-wheel drive wagon. That’s because I’m too young (early 20s) to enjoy low rates and keep full coverage. Anyone making $10.32 probably doesn’t have the cash to buy a new car if theirs gets creamed. Even my $1,000 deductible would be hard to cough up. What’s left in the bank: $440.
Putting gas in the car is pretty expensive nowadays. I spend about $60 a month in fuel and don’t drive that much. Cash on hand: $380
People who make $10.32 still like to eat. I spend about $150 on groceries a month. Checking account balance: $230.
Renter’s or homeowner’s (though I doubt most people making $10.32 own homes) insurance is a must. Mine was $40. Money left: $190
The NFCO also includes health-care costs in their figures. I doubt most $10.32 an hour jobs provide insurance. Even with my double coverage, I spend $15 a month on contacts and $40 on allergy medication (anyone who works with me understands how much I sneeze). What’s left: $135.
One hundred and thirty-five dollars. That’s what you get at the end of the month. I know some of you might be saying “Well, it’s better than nothing,” but really, it is nothing.
Here’s what irks me about NFCO’s living wage. They claim earning $10.32 an hour allows enough room to “deal with emergencies” and “plan ahead.” Not in this universe. Putting $135 a month in a savings account won’t replace your clutch or repair a burst pipe. It won’t cover a trip to the emergency room or even a plane ticket home if a family member passes away.
Forget about “planning ahead” unless your biggest plans are a trip to Deer Lodge. To me, the See DIGGINGS, Page D2 future means college, where a year of tuition at the University of Montana — before buying books and paying countless other fees — is $11,846, according to the university’s Web site.
That means it’ll only take you eight years to save up for school, as long as tuition holds steady and nothing ever comes up to make you stray from budget.
The $10.32 lifestyle is not one of luxury, or even little indulgences. You’re not buying a new winter jacket or replacing old shoes. You’re also not splurging on oil changes or a birthday present for your little brother. Forget going out to see movies or enjoy the occasional meal in a restaurant.
But there is one upside. You’re probably not going to be nursing many hangovers, since a Friday night out can blow half of your monthly savings.
You’ll only get headaches balancing your checkbook.
— Reporter Holly Michels can be reached via e-mail at holly.michels@lee.net.
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