Universal
Living Wage
October 2000

The concept is simple. It is based on the premise that if a person works 40 hours a week, then he/she should be able to access basic housing. We use two existing dictates that no one should pay more than 30% of their gross monthly income on housing. The second guideline, the Fair Market Rests (FMRs) are established by HUD throughout the country for each municipality and all other areas. Therefore, the Living Wage will vary per area in accordance with the FMR. FMR's are based on the gross rent estimates, which include shelter rent and the cost of utilities, except for telephone service. We believe that this format, which uses already established government guidelines, enables us to utilize the existing government formulas to easily justify specific Universal Living Wage figures that are based on the need for housing and are appropriate to each municipality and outlying areas.

Universal Living Wage Formula

"We have devised a National formula that is based on each Local economy throughout the entire United States. The formula is designed in such a manner that no matter whether you are in Austin, Boston, or L.A., etc., if you are willing and able to work a 40 hour week, you should at least be able to access the cheapest form of housing."

¥ Work a minimum 40 hour week.
¥ Spend no more than 30% of income on housing.
¥ Index the minimum wage to the local cost of housing as reset each year by the U.S. Department of HUD (Fair Market Rents).

House the Homeless
Living Wage Formula

1. HUD STANDARD: No more than 30% of a person's gross income should be spent on housing.

2. HUD Fair Market Rent = $ 509.00 for an Efficiency Apartment in Austin / San Marcos, Texas

3. TOTAL MONTHLY INCOME NEEDED: $ 1696.66 (for 30% to = $ 509.00) to afford basic housing.

4. PREMISE: Anyone working 40 hours per week should be able to get housing and get off of the streets.1

5. Work Hours = 40 hours/week @ 4.33 weeks per month = 173.33 work hours per month. 173.33 work hours multiplied by 12 months = 2080 Hours per year.

6. TOTAL GROSS MONTHLY INCOME

$1696.66 x 12 months = $20,359.99
$20,359.99 divided by 2080 Hours per year = $9.79 Per Hour As the New Hourly Living Wage Here in Austin, Texas

7. TOTAL MONTHLY EXPENDITURES:

$1696.66 Gross Income
- 385.28 Federal Taxes, Social Security, Medicare2
- 509.00 Housing Costs
$803.38 Remaining for Medical Costs, Clothing, Food, Transportation, Telephone Service, Child Care, Etc. More information is available upon request.

1) Whether a person works 4 hours per week or 40 hours per week, they should be paid at the full 40 hour rate. A full hour's work deserves a full hour's wage.
2) $254.49 for Federal Income Tax, $105.19 for Social Security, and $24.60 for Medicare. The Federal Income tax rae (15%) is based on the monthly deductions outlined in the Internal Revenue Circular E, Employer's Tax Guide (Rev. Jan., 1999), Social Security is 6.2% of gross monthly income, and Medicare is 1.45% of gross monthly income (Total equalling $384.28).