Effective February 15, 2000, the Federal Poverty Level rose to $8,350.00 per individual, adding $2,900 per family member for calculations. Multiples of the FPL serve as the basis for determining financial eligibility for programs such as Mass Health (133% FPL), Free Care (200% FPL), WIC (185% FPL), food stamps (130% FPL), and fuel assistance (175% FPL)-all figures for single adults without disabilities or not caring for the disabled, a child or an elder. A recent study published by the Women's Educational and Industrial Union has found that one in four Massachusetts families (27%) earns less than is necessary to meet expenses for healthcare, food, housing, transportation and childcare. Only 9% of these families fall at or below the current FPL. Therefore many Massachusetts residents earn too little to meet the cost of necessities, but too much to qualify for public assistance programs.

The WEIU research on the economic well-being of Massachusetts families is based on a measurement termed "the self-sufficiency standard," developed by Dr. Diana Pearce, Ph.D. of the University of Washington (1997). This guideline implies a disparity between what the Federal Poverty Level indicates as the threshold for maintaining subsistence and the actual income required to be self-sufficient without assistance from publicly funded programs. For example, the self-sufficiency standard for a family of four in Massachusetts is $42,564, while the Federal Poverty Level for the same family size is $17,050. The reason for this shortfall may in part be due to the outdated nature of the FPL as a standard for measuring the income level for meeting basic human needs.

Established in 1964, the FPL was calculated on the basis of USDA estimates of the cost of minimum food requirements for an individual, and multiplied by three. Each year, the FPL rises on the basis of inflation, determined by the Consumer Price Index. The FPL assumes that one spends 1/3 of his/her earnings on food, and does not take into consideration the differences in the cost of living between the states. Moreover, the FPL neglects to account for expenses for licensed child care which may have been utilized less in 1964 due to the composition of the work force. By one estimate child care ranges from 7% to over half of one's salary, which particularly affects those earning a low wage. Also, the FPL does not reflect expenses for housing, health care, and transportation. Even using the initial cost of food as the basis of determining the FPL may be outdated as nutritional standards have changed substantially in the past thirty years due to scientific research.

The WEIU report suggests that with an estimated one million adults nationwide transitioning from TAFDC to work, state lawmakers may need to consider ways to supplement federally funded programs so that more people would become eligible, or advocate for a redetermination of the FPL.