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3 <br />Attachment 1 <br />Method For Establishing the Living Wage <br />In establishing the Living Wage for Orange County employees effective July 1, 1998, the <br />Board based the wage amount on the Federal Poverty Level for a family of four as <br />adjusted for the Raleigh -Durham .Region using the American Chamber of .Commerce <br />Research. Association's Cost of Living Index. <br />Chart 1 below shows the Federal poverty levels, adjusted for the Raleigh-Durham region <br />cost of living in 1997 and 1999. The index for the Raleigh-Durham region includes Chapel <br />Hill. In 1997, the Raleigh-Durham region cost of living index was at 103.0 percent of the <br />national average.. In 1999 it is 101.8 percent of the national average. <br />Chart 1 -Health and Human Services Poverty Guidelines <br />Adjusted for Raleigh-Durham Region Cost of Living (Wage per Hour) <br />Number in <br />Family 1997 1999 <br />1 $ 3.90 $ 4.03 <br />2 $ 5.25 $ 5.41 <br />3 $ 6.60 $ 6.79 <br />4 $ 7.94 $ 8.17 <br />5 $9.29 $9.56 <br />For information, Chart 2 .below shows the unadjusted Federal poverty guidelines. These <br />establish the annual earnings needed for a family of a specific size to meet the threshold, <br />assuming a single wage earner and 2,080 working hours (40 hour work schedule) <br />annually, <br />Chart 2 -Health and Human Services .Poverty Guidelines <br />Minimum Hourly Wage <br />Number in Family 1997. 1999 <br />1 $ 3.79 $ 3.96 <br />2 $ 5.10 $ 5.32 <br />3 $ 6.41 $ 6.67 <br />4 $ 7.71 $ 8.03 <br />5 $9.02 $9.39 <br />In deciding to use the cost of living adjusted Federal poverty level for a family of four, the <br />Board of Commissioners had looked at information provided by the Orange County <br />Department of Social Services on the size of families needing temporary assistance. <br />Chart 3 below shows the updated information. <br />