Economic Security

The Report Card reviews several policies and programs to improve women's economic security.  First, child support payments can make a substantial difference in the financial well-being of single mothers and their children.  Under federal law, families receiving income assistance, known as Temporary Assistance for Needy Families (TANF), must assign their rights to child support payments to the state. (1) When a state collects child support on behalf of a TANF recipient, the state is permitted to keep the money to reimburse itself and the federal government for TANF assistance. States, however, have the option of allowing some of the child support payment to be "passed through" to the parent and child. (2) By providing this additional income, the "pass-through" allows low-income mothers and their children to better meet their daily needs.  Second, states can aid low-income families by improving the actual collection of child support.  States have done better in their child support collection rates, due to increased enforcement activity and legislative reforms. (3) They do, however, still only collect in a fraction of all child support cases. Third, because women account for nearly 60 percent of the recipients of Supplemental Security Income (SSI), states can aid low-income families receiving SSI by supplementing these payments with state funds. (4) Finally, states can pass minimum wage laws that are above the federal minimum.(5) This action is particularly important to women’s economic security as about 66% of working women who are paid hourly rates earn the federal minimum wage or less. (6)

Data Points for this Issue:

  • Child Support Pass-Through

      Strength Of Policy 2007 Change From 2004
    ALABAMA No/Harmful Policy Worse
    ALASKA Meets Policy Same
    ARIZONA No/Harmful Policy Same
    ARKANSAS No/Harmful Policy Same
    CALIFORNIA Meets Policy Same
    COLORADO No/Harmful Policy Same
    CONNECTICUT Meets Policy Same
    DELAWARE Meets Policy Same
    DISTRICT OF COLUMBIA Meets Policy Better
    FLORIDA No/Harmful Policy Same
    GEORGIA Meets Policy Same
    HAWAII No/Harmful Policy Same
    IDAHO No/Harmful Policy Same
    ILLINOIS Meets Policy Same
    INDIANA No/Harmful Policy Same
    IOWA No/Harmful Policy Same
    KANSAS No/Harmful Policy Same
    KENTUCKY No/Harmful Policy Same
    LOUISIANA No/Harmful Policy Same
    MAINE Meets Policy Same
    MARYLAND No/Harmful Policy Same
    MASSACHUSETTS Meets Policy Same
    MICHIGAN Meets Policy Same
    MINNESOTA Meets Policy Same
    MISSISSIPPI No/Harmful Policy Same
    MISSOURI No/Harmful Policy Same
    MONTANA No/Harmful Policy Same
    NEBRASKA No/Harmful Policy Same
    NEVADA No/Harmful Policy Same
    NEW HAMPSHIRE No/Harmful Policy Same
    NEW JERSEY Meets Policy Same
    NEW MEXICO Meets Policy Same
    NEW YORK Meets Policy Same
    NORTH CAROLINA No/Harmful Policy Same
    NORTH DAKOTA No/Harmful Policy Same
    OHIO No/Harmful Policy Same
    OKLAHOMA No/Harmful Policy Same
    OREGON No/Harmful Policy Same
    PENNSYLVANIA Meets Policy Same
    RHODE ISLAND Meets Policy Same
    SOUTH CAROLINA Meets Policy Same
    SOUTH DAKOTA No/Harmful Policy Same
    TENNESSEE Meets Policy Same
    TEXAS No/Harmful Policy Same
    UTAH No/Harmful Policy Same
    VERMONT Meets Policy Same
    VIRGINIA Meets Policy Same
    WASHINGTON No/Harmful Policy Same
    WEST VIRGINIA No/Harmful Policy Same
    WISCONSIN Meets Policy Same
    WYOMING No/Harmful Policy Same
     
    Meets PolicyMeets Policy 21  
    Limited PolicyLimited Policy 0  
    Weak PolicyWeak Policy 0  
    No/Harmful PolicyNo/Harmful Policy 30  
    Better Better 1  
    Worse Worse 1  
    Same Same 49  

    Does the state allow families receiving Temporary Assistance to Needy Families (TANF) to keep some amount of the child support payments collected on their behalf?

    States receive a "meets policy" if they have a child support "pass-through" policy and a "no policy" if they do not have such a policy.

    Data Source: Child Support Pass-Through, 2007.

    Jan Justice, Center for Law and Social Policy, "State Policy Regarding Pass-Through and Disregard of Current Month's Child Support Collected for Families Receiving TANF-Funded Cash Assistance," as of May 3, 2007, available at http://www.clasp.org/publications/pass_through_2007may3.pdf, accessed May 16, 2007.

  • Child Support Collection

      Strength Of Policy 2007 Change From 2004
    ALABAMA Limited Policy Better
    ALASKA Meets Policy Same
    ARIZONA Weak Policy Better
    ARKANSAS Meets Policy Better
    CALIFORNIA Weak Policy Same
    COLORADO No/Harmful Policy Worse
    CONNECTICUT Weak Policy Same
    DELAWARE Limited Policy Same
    DISTRICT OF COLUMBIA No/Harmful Policy Same
    FLORIDA Limited Policy Same
    GEORGIA Weak Policy Same
    HAWAII No/Harmful Policy Same
    IDAHO Limited Policy Same
    ILLINOIS No/Harmful Policy Same
    INDIANA Weak Policy Same
    IOWA Meets Policy Same
    KANSAS Limited Policy Better
    KENTUCKY Weak Policy Same
    LOUISIANA Weak Policy Same
    MAINE Meets Policy Same
    MARYLAND Limited Policy Better
    MASSACHUSETTS Weak Policy Same
    MICHIGAN Weak Policy Same
    MINNESOTA Meets Policy Same
    MISSISSIPPI No/Harmful Policy Same
    MISSOURI Weak Policy Same
    MONTANA Meets Policy Better
    NEBRASKA Meets Policy Better
    NEVADA Weak Policy Same
    NEW HAMPSHIRE Meets Policy Same
    NEW JERSEY Meets Policy Same
    NEW MEXICO No/Harmful Policy Same
    NEW YORK Limited Policy Same
    NORTH CAROLINA Meets Policy Better
    NORTH DAKOTA Limited Policy Worse
    OHIO Limited Policy Same
    OKLAHOMA Limited Policy Same
    OREGON Weak Policy Same
    PENNSYLVANIA Meets Policy Same
    RHODE ISLAND No/Harmful Policy Same
    SOUTH CAROLINA Weak Policy Same
    SOUTH DAKOTA Limited Policy Same
    TENNESSEE Weak Policy Same
    TEXAS Meets Policy Better
    UTAH Meets Policy Same
    VERMONT Meets Policy Same
    VIRGINIA Meets Policy Better
    WASHINGTON Meets Policy Same
    WEST VIRGINIA Limited Policy Same
    WISCONSIN Meets Policy Same
    WYOMING Meets Policy Better
     
    Meets PolicyMeets Policy 18  
    Limited PolicyLimited Policy 12  
    Weak PolicyWeak Policy 14  
    No/Harmful PolicyNo/Harmful Policy 7  
    Better Better 11  
    Worse Worse 2  
    Same Same 38  

    What is the state’s child support collection rate?

    States that collect some amount of child support in 61 percent or more of all cases are making an effort to advance the economic security of families and therefore receive a "meets policy." States that are collecting between 50 percent and 60 percent of all cases receive a "limited policy."  States that are collecting less that 50 percent but more than 40 percent receive a "weak policy." States that collect 40 percent or less receive a "no policy."

    Data Source: Child Support Collection (%), FY 2005.

    US Department of Health and Human Services, Administration for Children and Families, Office of Child Support Enforcement, "Table 4: Statistical Program Status, FY 2005," available at http://www.acf.hhs.gov/programs/cse/pubs/
    2006/reports/preliminary_report/table_4.html    , accessed May 17, 2007.

  • State Supplement of SSI Grant

      Strength Of Policy 2007 Change From 2004
    ALABAMA Meets Policy Same
    ALASKA Meets Policy Same
    ARIZONA Meets Policy Same
    ARKANSAS No/Harmful Policy Same
    CALIFORNIA Meets Policy Same
    COLORADO Meets Policy Same
    CONNECTICUT Meets Policy Same
    DELAWARE (1) No/Harmful Policy Same
    DISTRICT OF COLUMBIA Meets Policy Same
    FLORIDA Meets Policy Same
    GEORGIA No/Harmful Policy Same
    HAWAII Meets Policy Same
    IDAHO Meets Policy Same
    ILLINOIS Meets Policy Same
    INDIANA Meets Policy Same
    IOWA Meets Policy Same
    KANSAS No/Harmful Policy Same
    KENTUCKY Meets Policy Same
    LOUISIANA Meets Policy Same
    MAINE Meets Policy Same
    MARYLAND Meets Policy Same
    MASSACHUSETTS Meets Policy Same
    MICHIGAN Meets Policy Same
    MINNESOTA Meets Policy Same
    MISSISSIPPI No/Harmful Policy Same
    MISSOURI Meets Policy Same
    MONTANA (2) No/Harmful Policy Same
    NEBRASKA Meets Policy Same
    NEVADA Meets Policy Same
    NEW HAMPSHIRE Meets Policy Same
    NEW JERSEY Meets Policy Same
    NEW MEXICO Meets Policy Same
    NEW YORK Meets Policy Same
    NORTH CAROLINA Meets Policy Same
    NORTH DAKOTA No/Harmful Policy Worse
    OHIO Meets Policy Same
    OKLAHOMA Meets Policy Same
    OREGON Meets Policy Same
    PENNSYLVANIA Meets Policy Same
    RHODE ISLAND Meets Policy Same
    SOUTH CAROLINA Meets Policy Same
    SOUTH DAKOTA Meets Policy Same
    TENNESSEE No/Harmful Policy Same
    TEXAS Meets Policy Same
    UTAH Meets Policy Same
    VERMONT Meets Policy Same
    VIRGINIA Meets Policy Same
    WASHINGTON Meets Policy Same
    WEST VIRGINIA No/Harmful Policy Same
    WISCONSIN Meets Policy Same
    WYOMING Meets Policy Same
     
    Meets PolicyMeets Policy 42  
    Limited PolicyLimited Policy 0  
    Weak PolicyWeak Policy 0  
    No/Harmful PolicyNo/Harmful Policy 9  
    Better Better 0  
    Worse Worse 1  
    Same Same 50  
    • 1. Delaware is categorized as not having supplements, because supplements are available only to persons in “protective care” arrangements. In Delaware, protective care arrangements are for people “living in an approved adult residential care facility.” Social Security Administration, Office of Policy, "State Assistance Programs for SSI Recipients, January 2006," September 2006, Tables 1 & 2, available here, accessed June 1, 2007.
    • 2. Montana is categorized as not having supplements, because supplements are available only to persons in “protective care” arrangements. In Montana, the facilities include assisted living facilities, group homes for the mentally disabled or mentally ill, community homes for the physically or developmentally disabled, child and adult foster care, and transitional living services for the developmentally disabled. Social Security Administration, Office of Policy, "State Assistance Programs for SSI Recipients, January 2006," September 2006, Tables 1 & 2, available here, accessed June 1, 2007.

    Does the state provide its own Supplemental Security Income (SSI) to the elderly, the blind and people with disabilities?

    States receive a "meets policy" when they supplement federal SSI payments with state funds. States receive a "no policy" if they do not.

    Data Source: State Supplement of SSI Grant, 2006.

    Social Security Administration, Office of Policy, "State Assistance Programs for SSI Recipients, January 2006," September 2006, Tables 1 & 2, available at http://www.ssa.gov/policy/docs/progdesc/
    ssi_st_asst/2006/ssi_st_asst06.pdf    , accessed May 23, 2007.

  • Minimum Wage

      Strength Of Policy 2007 Change From 2004
    ALABAMA No/Harmful Policy Same
    ALASKA Limited Policy Worse
    ARIZONA Limited Policy Better
    ARKANSAS Limited Policy Better
    CALIFORNIA Limited Policy Same
    COLORADO Limited Policy Better
    CONNECTICUT Limited Policy Same
    DELAWARE Limited Policy Same
    DISTRICT OF COLUMBIA Limited Policy Same
    FLORIDA Limited Policy Better
    GEORGIA Weak Policy Same
    HAWAII Limited Policy Same
    IDAHO Weak Policy Same
    ILLINOIS Limited Policy Better
    INDIANA Weak Policy Same
    IOWA Weak Policy Same
    KANSAS Weak Policy Same
    KENTUCKY Weak Policy Same
    LOUISIANA No/Harmful Policy Same
    MAINE Limited Policy Same
    MARYLAND Limited Policy Better
    MASSACHUSETTS Limited Policy Same
    MICHIGAN Limited Policy Better
    MINNESOTA Limited Policy Better
    MISSISSIPPI No/Harmful Policy Same
    MISSOURI Limited Policy Better
    MONTANA Limited Policy Better
    NEBRASKA Weak Policy Same
    NEVADA Limited Policy Better
    NEW HAMPSHIRE Weak Policy Same
    NEW JERSEY Limited Policy Better
    NEW MEXICO Weak Policy Same
    NEW YORK Limited Policy Better
    NORTH CAROLINA Limited Policy Better
    NORTH DAKOTA Weak Policy Same
    OHIO Limited Policy Better
    OKLAHOMA Weak Policy Same
    OREGON Meets Policy Better
    PENNSYLVANIA Limited Policy Better
    RHODE ISLAND Limited Policy Same
    SOUTH CAROLINA No/Harmful Policy Same
    SOUTH DAKOTA Weak Policy Same
    TENNESSEE No/Harmful Policy Same
    TEXAS Weak Policy Same
    UTAH Weak Policy Same
    VERMONT Limited Policy Same
    VIRGINIA Weak Policy Same
    WASHINGTON Meets Policy Better
    WEST VIRGINIA Limited Policy Better
    WISCONSIN Limited Policy Better
    WYOMING Weak Policy Same
     
    Meets PolicyMeets Policy 2  
    Limited PolicyLimited Policy 28  
    Weak PolicyWeak Policy 16  
    No/Harmful PolicyNo/Harmful Policy 5  
    Better Better 20  
    Worse Worse 1  
    Same Same 30  

    Does the state have a minimum wage that allows a family of three to reach the federal poverty threshold?

    States with a minimum wage of $7.80 are allowing a family of three supported by a full-time, year-round, minimum-wage earner to reach the federal poverty level threshold and therefore receive a "meets policy."  States with a minimum wage that falls below $7.80 but above the federal minimum wage of $5.85 receive a "limited policy."  Those with a minimum wage that is at or below the federal minimum wage receive a "weak policy."  States with no minimum wage laws receive a "no policy."  As of July 2007, the Federal Minimum Wage increased from $5.15/hr to $5.85/hr.  Ratings have been given according to the current Federal Minimum Wage of $5.85/hr.  As a result, states whose minimum wages have remained constant since 2004 may receive a lower grade because they do not keep pace with the new federal minimum.  The Federal Minimum Wages is scheduled to increase again to $6.55/hr in July 2008 and to $7.25/hr in July 2009.

    Data Source: Minimum Wage ($), 2007.

    U.S. Department of Labor, "Employment Standards Administration: Wage and Hour Division," January 1, 2007, available at http://www.dol.gov/esa/minwage/america.htm, accessed May 9, 2007. For this indicator, the Report Card uses the federal poverty threshold.  The preliminary estimate of the weighted average poverty threshold for a family of three for 2006 is $16,242. U.S. Census Bureau, "Poverty Threshold 2006," February 2007, available at http://www.census.gov/hhes/www/poverty/threshld/thresh06.html, accessed May 31, 2007. The poverty threshold is divided by 2080 (40 hours per week times 52 weeks per year) to obtain the $7.80 benchmark.  This means that a person working full-time, year-round would need to earn $7.80 per hour for her family of three to reach the estimated poverty threshold for 2006. Please note that for some states in the "no policy" category, employers generally must pay at least the federal minimum wage for all workers covered by federal law. However, they may pay lower amounts to the small number of workers exempt from federal coverage.  A listing of the exemptions for the federal minimum wage mandate are available at  http://www.twc.state.tx.us/news/efte/
    exemptions_from_minimum_wage_and_overtime.html
     

1. 42 U.S.C. § 657(a)(1)(A).

2. Additionally, this amount of child support, usually $50, is "disregarded" in calculating the amount of TANF assistance the family receives, so that the state does not count it as additional income to the family and reduce the amount of assistance by the amount of child support given to the family. 42 U.S.C. § 657(a)(1)(B).

3. These policy changes include several measures under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, such as continued efforts to transform the child support information system, automate caseload processing and implement stricter new hire directives. These changes, coupled with earlier reforms in the 1980s, can help account for the increase in collection rates. For more information, see Elaine Sorensen and Ariel Halpern, "Child Support Enforcement is Working Better Than We Think," April, 2000, available at http://www.urban.org/Template.cfm?NavMenuID=24&template=/TaggedContent/ViewPublication.cfm&PublicationID=6471.

4. Social Security Administration, "SSI Annual Statistical Report, 2005," May 2007, available at http://www.socialsecurity.gov/policy/docs/statcomps/ssi_asr/#highlights.  SSI is a federal program that makes monthly cash payments to the elderly, the blind and people with disabilities, and provides the primary means of financial assistance to these individuals when they have limited income and resources. 42 U.S.C. § 1381 et seq.

5. In May 2007, Congress and President Bush approved an increase in the minimum wage. The increase takes place in stages, with an initial increase to $5.85 beginning in the summer 2007 eventually reaching $7.25 by the summer of 2009.

6. Department of Labor Statistics, "Characteristics of Minimum Wage Workers, Table 1," 2004, available at http://www.bls.gov/cps/minwage2004tbls.htm#1.