Attachment 1
2001CSSS68
City of Edmonton Submission to the
MLA Committee to Review Low-Income Programs
Introduction:
The City of Edmonton, the capital city of the Province of Alberta, is home to more than 650,000 people. Edmonton has approximately 20% of the population of the Province of Alberta. The Capital Region as a whole will approach a million people by the middle of the current decade. As the service centre for the entire Region, over 70% of the Region’s population have chosen to live and work in the City of Edmonton.
The majority of Edmontonians along with Albertans from across the Province have enjoyed the benefits of the “Alberta Advantage,” especially with the buoyant economy of the past few years. There is, however, a significant minority of the population that has not been able to enjoy the benefits of the Alberta Advantage. Many of these people, for one reason or another, are living on low-incomes.
The City of Edmonton Has a Higher Percent of Low-Income People:
The City of Edmonton, with more services, jobs and generally more lower cost rental accommodation, has drawn people with low-incomes from other parts of the Province. The City of Edmonton has a higher percent of the population living on low-incomes than does the Province as a whole and than the Capital Region.[1]
Alberta18.4%
Capital Region21.3%
City of Edmonton26%
Cost of Living is Higher in Larger Cities:
In addition to differences in the percent of the population having low-incomes, low-income itself has different meanings in communities of different size. That is, the cost of living is generally higher in larger communities. This difference is somewhat reflected by the 1999 Low Income Cut-Offs for a household of four people, as shown below.
Rural areas$23,260
Urban Areas
Less than 30,000 people$26,677
30,000 – 99,999$28,669
100,000 – 499,999$28,869
500,000 and over$33,658
This suggests that it costs considerably more to live in a large metropolitan centre like Edmonton than in smaller size communities.
Edmonton’s Low-Income Population is Diverse:
People with low-incomes are also very diverse. People with low-incomes are in all age groups, most ethnic groups, both genders and almost all segments of the population. The following is an example of the percent of selected segments of the City of Edmonton population who have low-incomes[2].
Total Edmonton Population26%
Families21%
Children Age 0-1432.1%
Youth Age 15-2435%
Seniors over Age 6524.8%
Recent Immigrants49.4%
Visible Minorities34.9%
Aboriginal People61.6%
Lone Parent Families60.8%
Also, a higher percent of women had low-income than did men and people with disabilities had a higher percent of low-income than did non-disabled people.
Most Low-Income Albertans are in the Labour Force:
Most low-income Albertans are in the labour force. Fully, 57% of low-income Edmonton residents were in the labour force. Across Alberta, 61% of low-income Albertans were in the labour force.
Low-Income Edmontonians are Worse Off than Many Other Low-Income Albertans:
During the period from 1992 to 1998 the ten-percent of the Edmonton population with the lowest incomes lost ground in their cumulative income. During this same period the other income groups increased the percent of their total income.
Low-income Edmonton residents are generally worse off financially than are those in the balance of the Capital Region and the Province as a whole. In the City of Edmonton,
approximately $11,585 was required to bring the average low-income family to the level of the Low Income Cut-Off; for the Capital Region, $11,295 was needed and for low-
income families in the Province as a whole, $10,709[3] was needed.
Provincial Income Support Programs have been Beneficial to Low-Income Albertans:
Provincial income support programs have been beneficial to very low-income Albertans. Government transfer payments, from both the Provincial and Federal governments, provided the average low-income Edmonton family with $3,497[4] in 1995.
Provincial income support benefits, reduced in 1993, have not increased in any major way despite increases in the cost of living. Albertans dependent upon provincial income supports are less able to adequately meet their basic needs today than they were in 1993, before benefit reductions.
Edmonton has a High Percent Receiving Income Supports:
Provincial income support programs, especially Supports for Independence (SFI) and Alberta Assured Income for the Severely Handicapped (AISH) play a major role in supporting very low-income Albertans. The Edmonton Region of Alberta Human Resources and Employment[5] appears to have a high percent of the recipients of these programs. Research by the Federation of Canadian Municipalities (FCM) indicates that in 1998, of 18 cities and regional municipalities in Canada,[6] Edmonton had the highest percent of the population reporting receipt of social allowances, 18.5%. Of further note is that with the high percent of recipients of social allowances in Edmonton, the percent of total community income[7] provided by this source is low.
Alberta Minimum Wage is Insufficient:
The Alberta Minimum Wage, currently at $5.90 per hour for adults, was raised in steps over several years. Yet, the minimum wage is inadequate to allow people to meet their basic needs. The following table shows the number of hours per week (for 52 weeks per year) it would take for an individual or family type to reach the level of the Low Income Cut-Off.
Single Person / 1 / 58.3 / $5.90 / $17,886
Lone Parent with One Child / 1 / 72.9 / $5.90 / $22,357
Couple with One Child / 2 / 45.3 / $5.90 / $27,805
Couple with Two Children / 2 / 54.8 / $5.90 / $33,658
Living on Low-Income is Stressful:
City of Edmonton staff members are in direct contact with low-income Edmontonians on a regular basis through the delivery of preventive social service and recreational programs. Staff report that many low-income people with whom they have contact are feeling the effects of low-income. They find that many low-income families argue about the shortage of money. Many must use the Food Bank and other nutrition supplement programs to make ends meet, especially at the end of the month. Many have debts and cannot reduce them as all income is required to meet basic food, shelter and clothing needs. Many are unable to pay utility bills. In addition, a portion of the low-income population has mental disabilities which can be exacerbated by lack of money.
Day Care and Out-of-School Care Require Additional Funding:
The Provincial Day Care Subsidy program provides a consistent level of support to low-income families across Alberta. However, there is no cap on the amount day care centres can actually charge service users. Families assessed as being eligible for the maximum subsidy may be required to pay up to $200 per month for their portion of costs.
While some municipalities provide out-of-school care for school age children through their Family and Community Support Services Program (FCSS), the service is not available across Alberta. Parents who require out-of-school care for their school age children are often faced with the option of leaving their children in potentially high-risk situations such as self-care. In some instances, families move from their current municipality of residence to a municipality that offers an out-of-school care subsidy.
The cost of child care is becoming prohibitive for many parents. Alberta child care centres are not directly funded by the Province and costs are rising. As well, wages for child care centre staff are often, at or just above, minimum wage. Low wages, therefore, mean that child care centre staff are often low-income Albertans themselves.
Disabled People Require Housing and Transportation:
Affordable, appropriate and accessible housing is critical to persons with disabilities. There is a lack of affordable housing in Edmonton and when accessibility is added as a necessity, the problem becomes significantly greater. Many disabled Albertans rely upon specialized transportation systems. Transportation to work, medical appointments, and education are critical for low-income disabled people.
Housing for Low-Income Albertans is a Critical Need:
Accessible and affordable housing is a real barrier to people on low incomes. In 1995, over 80% of low-income Albertans who rent their accommodation paid more than 30% of their income for shelter. As most do not live in government subsidized housing, increases in market rents severely affect them. High rents and damage deposits are problematic for many low-income people. Many people are left housed inadequately with possible higher costs to society such as increased crime and lower health status. Market rents in Edmonton have increased 16% since 1997 and are expected to increase another 5% in 2001. Declining rental housing vacancy rates, conversion of rental accommodation to condominiums, and high utility costs, which especially affect families, aggravate housing affordability. Family social housing waiting lists in Edmonton increased from 300 to 1,400 families in the past three years[8]. In addition, it has been revealed that there are over 1,100 homeless people in Edmonton.
In addition to the need for improved shelter allowances and additional social housing, there is a lack of leadership in the social housing area. The Federal Government is transferring administrative responsibility for social housing to the Provinces. Provinces are transferring increased responsibility to municipalities. All levels of government should work together to provide either sufficient affordable housing or sufficient money so that all people, regardless of their income level, can access suitable housing.
Proposals to the MLA Committee to Review Low-Income Programs
- That the Provincial Government increase financial benefits to low-income Albertans and that the benefit rates be tied to the cost of living.
Between 1992 and 1998 Albertans with the lowest incomes lost ground financially, while other income groups improved their situation. Those low-income Albertans in receipt of some Alberta income support programs saw their benefits reduced during this period. Many low-income families are struggling to meet basic living needs, including food, shelter and clothing. When emergencies arise, funds are diverted from basic living needs, adding to the stress felt by low-income families.
Food: Many low-income families find that it is increasingly difficult to obtain sufficient, nutritious food with the amount of money they have to live on. Food banks can only be used a limited number of times. Lack of nutritious food affects families’ health and children’s learning.
Shelter/Housing: There are limited housing options for low-income Albertans. The amount of financial assistance for housing is inadequate and long waiting lists exist. Low apartment vacancy rates and inadequate numbers of social housing units are contributing towards increasing costs of accommodation, the largest single expense for many low-income Albertans. High rents, utility costs and damage deposits are a barrier to good housing. Housing for low-income Albertans must be affordable, accessible and appropriate.
Clothing/Other: People with low-incomes are least able to absorb increases in the costs of goods and services, including winter clothing, school fees and supplies, medication, recreation and transportation.
The Provincial Government should increase financial benefits and link increases to the differential cost of living in different size communities.
- That the Provincial Government adopt a definition of poverty, acknowledge formal “poverty lines”, and tie benefit rates to an acceptable proportion of the poverty line that allows for the inclusion of all Albertans in society.
Provincial benefits for very low-income Albertans should enable them to take part as contributing members of communities, enhancing social inclusion for all. This includes taking part in the benefits as well as the obligations of society. Benefits at too low a level tend to thwart social cohesion and could help create an under-class that has no attachment to Alberta communities.
Neither Canada nor Alberta has formal “poverty lines.” In the absence of poverty lines, the Statistics Canada Low Income Cut-Offs have been used by many organizations. However, with the absence of an “official” poverty line it is difficult to assess whether the number and proportion of low-income Albertans is increasing or decreasing; whether our quality of life is improving or declining.
- That Provincial financial assistance programs for low-income Albertans be increased to permit access to programs, services and opportunities by increasing transportation allowances.
Many low-income Albertans have services and programs available in their communities that help reduce or minimize the impacts of low-income. However, low benefit rates require low-income individuals and families to set priorities between basic necessities of life and accessing other goods and services. Low-income Albertans require funds for public transit, or alternative transportation options.
The Provincial Government could also explore whether a subsidy for low-income transportation is best met through increasing financial assistance benefits to families and individuals or through grants to municipalities which administer public transportation systems.
- That Provincial financial assistance programs include adequate benefits to help ensure that families can access recreation/child development programs that can prevent or help break a cycle of poverty.
Recreation is an important need for members of all families, including low-income families. Research conducted at McMaster University and through the National Longitudinal Survey of Children and Youth revealed that enrollment in structured recreational programs support children’s feelings of success and self-worth and contribute to better behaviour and performance in school. Better behaviour and performance in school can aid children in completing their education and becoming fully contributing members of society. The research is particularly applicable to children of single parents. Other research carried out in Canada indicates that income is highly correlated with educational attainment. Children are more likely to have high educational attainment, and therefore higher incomes, if their parents also had high educational attainment. The Provincial Government should re-instate the recreation allowance that was removed from low-income benefits during the early part of the 1990s.
- That the Family and Community Support Services (FCSS) Program funding model be fully funded.
Many local organizations supported through the Provincial-Municipal FCSS partnership aid low-income Albertans in dealing with the impacts of poverty and low-income. FCSS funded social service agencies are seeing growing numbers of people who are finding it more difficult to cope on a limited income. It is increasingly difficult to meet the basic costs of shelter, food, transportation, health needs, child care and social development/recreation needs. Municipalities are not able to meet the demand for preventive social services needed by Albertans. The current FCSS funding allocation model was developed as part of the FCSS Re-design Process in 1996; however, the funding model was never fully implemented. Funding from the Provincial Government is needed to fully implement the funding model and assist these important community programs for all Albertans, especially those living on a low income.
- That the Provincial Income Support Programs and Provincial Housing Programs for Albertans with low-incomes and special needs be better coordinated.
The number and types of individuals and households with needs beyond safe, decent and affordable housing is increasing. Changes in health care policy, including de-institutionalization of the mentally and physically ill, have reduced institutional beds and required additional supports in the community. Better coordination among these programs can help ensure that Albertans with special needs have adequate housing and appropriate supports.
- That the Provincial Government increase funding for Provincial Day Care and Municipal Out-of-School Care Programs
The Provincial Day Care Subsidy program provides a consistent level of support to low-income families requiring child care across Alberta. While the Province provides subsidies, there is no cap on the amount child care programs can charge to users. Families assessed as being eligible for a maximum subsidy of $380 may in fact end up paying up to $200 as their portion of costs.
Out-of-school care programs in Edmonton have not received an increase in rates or revisions to the fee scale for many years due to funding restrictions. Many families previously eligible for day care subsidy are not able to access out-of-school care services or must pay very high fees. Increasingly, out-of-school care subsidies are becoming available only to the lowest income families and inhibit other low-income families from obtaining employment. In addition, families often must place their children in the lowest cost programs with not necessarily the best of care.
Increased funding for child care programs must address several issues, including a need for more child care spaces, increased wages to attract high quality child care centre staff, and flexibility to address the needs of families with several children.
- That the Provincial Government support employment opportunities with higher wages and consider an increase in the Alberta Minimum Wage.
Those working poor earning minimum wage, have great difficulty meeting their basic living requirements. The Alberta Minimum Wage, currently at $5.90 per hour for adults (six provinces having higher minimum wages), was raised in steps over several years. Yet, the minimum wage provides an income considerably below that which is considered adequate to meet basic needs. A single person in Edmonton or Calgary would have to work over 58 hours per week at minimum wage to have an income that reaches the LICO.