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6 <br /> Service contracts are most prevalent in the Departments of Social Services and Aging. However, <br /> the County has not conducted a comprehensive analysis of the cost impact of requiring a living <br /> wage for all services providers. Social Services estimates that imposing a $12.76 per hour <br /> minimum wage rate on in-home aide providers, for example, would cost an additional $260,000 <br /> to provide the same level of service as this year. <br /> County as Community Leader <br /> Organizations in North Carolina have established voluntary living wage certification programs that <br /> promote and recognize private and public sector employers paying a living wage. <br /> In Buncombe County, a non-profit called Just Economics of Western Carolina is actively promoting living <br /> wage policies in that part of the state. According to the group's website, the organization offers <br /> members a variety of benefits: <br /> • A"Living Wage Certified" emblem for display, <br /> • Events, promotions, and sales highlighted on the Just Economics Facebook Page and publicity <br /> through advertisements in local media outlets, <br /> • Free promotion through the Just Economics member mailing list, Facebook Fans, and other <br /> printed lists, <br /> • A special profile of the business on the Just Economics website, <br /> • Participation in high-profile press conferences and Just Economics events aimed at promoting <br /> the Living Wage Employer Certification Program and the employers that meet the criteria, <br /> • Participation in a growing network of local employers dedicated to building a more sustainable <br /> economy, and <br /> • Free Participation in business education programs. <br /> Just Economics uses a formula based on local housing costs to calculate the living wage. This formula is <br /> driven by the US Department of Housing and Urban Development's (HUD's) calculation of Fair Market <br /> Rents (FMR) for the area and the agency's guideline that no more than 30% of gross income should be <br /> dedicated to housing costs. <br /> Durham has a similar program to acknowledge and reward living wage employers. The Durham Living <br /> Wage Project offers a certification program to connect consumers to businesses paying a living wage. <br /> The Durham project, however, uses a standard of 7.5% over the Federal Poverty Level for a family of <br /> four to calculate its living wage. This methodology is consistent with the standard adopted by the City <br /> and County of Durham. <br /> In Orange County, the Orange County Living Wage project was recently launched. This organization also <br /> provides certification for private and public entities providing a living wage to employees. Orange <br /> County government was one of the first employers to be certified by this group. Orange County Living <br /> Wage calculates the living wage in the same manner as the Just Economics program where the living <br /> wage is tied to the cost of housing. Even though Orange County Living Wage uses a formula that is <br /> different from the County's, the County's current rate qualified for certification. The County's current <br /> living wage rate is $12.76 per hour for employees while the Orange County Living Wage project has <br /> established a rate of$12.75. <br /> Page 1 3 <br />