Tom Murphy
RedwoodAge.com

The federal definition of poverty - already a topic of considerable debate - is getting its strongest challenge yet from the Republican administration in New York, which now estimates one in three of the city's elderly are "poor."

Mayor Mike Bloomberg's staff has redefined "cost of living" to include things like clothing, child care and other expenses that Washington considers optional. As a result, 23 percent of the people in the nation's largest city are now officially "poor" by New York's definition.

The new model was announced at the NAACP convention by Linda Gibbs, the city's deputy mayor for health and human services.  

New York's effort echoes an ongoing campaign across the country that shows how the federal poverty line falls far short of meeting the needs of the elderly. A recent study at UCLA, for example, showed the federal standard meets less than half the actual expenses met by elders living in California.

The federal poverty line was developed in the 1960s and still assumes Americans spend about a third of their money on food. 

In New York, fewer than one in five seniors are "poor" under the federal standards. But a third of the elders are poor under the city's new standard. 

Overall, 23 percent of New Yorkers by the city's estimation compared to 19 percent under fedearal guidelines.

The new standard won't affect federal funding for the city, but may be used in making decisions on services for the elderly and other poor citizens. It also could be used in administering city programs.

Gibbs told reporters the city's next step would be to issue a report “so our sister jurisdictions can adopt this approach.”

Alternative Index
The UCLA study also suggested a new standard, called the Elder Economic Security Standard Index. It estimates costs much more accurately by using data from local sources.

"Knowing the true cost of living for older adults is vital if we are to ensure that elder Californians can meet basic needs and maintain their independence," said Steven Wallace, a public health policy professor who wrote that study for the UCLA Center for Health Policy Research.

For example, the federal poverty guideline for a single elderly person is $10,210. But the average expenses of a California senior in good health is $21,011, according to the UCLA index. The gap for a couple is even greater: $13,690 versus $30,537.  "The elder index is a fact-based and comprehensive look at expenses for elders," Wallace said.